16 August 2022

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

European Raw Material Alliance Membership

Rainbow Rare Earths is pleased to announce it has become a member of the European Raw Material Alliance ("ERMA"). ERMA is working to ensure reliable, secure, and sustainable access to critical and strategic raw materials, with a specific focus on the rare earth magnet chain. Aiming to make Europe economically more resilient, ERMA is looking to diversify supply chains, promote innovation, create jobs, and attract investment. By 2030, ERMA's activities will increase the production of raw and advanced materials.

Rainbow CEO, George Bennett, commented:

"We are pleased to have been accepted as a member of ERMA - an essential alliance which is working to accelerate the green and digital transition through securing and reinforcing rare earths supply chains. With our near-term development opportunity at Phalaborwa, alongside our unique and innovative technologies and processes, Rainbow is well positioned to contribute to a responsible supply chain, unlocking sources of critical permanent magnet rare earths which are required to drive global decarbonisation."

**ENDS**

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About ERMA:

The European Raw Materials Alliance (ERMA) aims to make Europe economically more resilient by diversifying its supply chains, creating jobs, attracting investments to the raw materials value chain, fostering innovation, training young talents and contributing to the best enabling framework for raw materials and the Circular Economy worldwide.

The Alliance addresses the challenge of securing access to sustainable raw materials, advanced materials, and industrial processing know-how. By 2030, ERMA's activities will increase the production of raw and advanced materials and address Circular Economy by boosting the recovery and recycling of Critical Raw Materials. More specifically, the Alliance will:

·    Bolster the creation of environmentally sustainable and socially equitable innovations and infrastructure.

·    Implement a Circular Economy of complex products like electric vehicles, clean tech, and hydrogen equipment.

·    Support Europe's raw materials industry capability, to extract, design, manufacture and recycle materials.

·    Promote innovation, strategic investment, and industrial production across specific value chains.

About Rainbow Rare Earths:

Rainbow's strategy is to become a globally significant producer of rare earth metals. Nd/Pr and Dy are vital components of the strongest permanent magnets used for the motors and turbines driving the green technology revolution. Analysts are predicting demand for magnet rare earth oxides will grow substantially over the coming years, driven by increasing adoption of green technology, pushing the overall market for Nd/Pr and Dy into deficit.

The Phalaborwa Rare Earths Project, located in South Africa, comprises an Inferred Mineral Resource Estimate of 38.3Mt at 0.43% TREO contained within gypsum tailings stacked in unconsolidated stacks derived from historic phosphate hard rock mining. High-value NdPr oxide represents 29.1% of the total contained rare earth oxides, with economic Dysprosium and Terbium oxide credits enhancing the overall value of the rare earth basket in the stacks.  The rare earths are contained in chemical form in the gypsum stacks, which is expected to allow high-value separated rare earth oxides to be produced with lower operating costs than a typical rare earth mineral project.

The Company's Gakara Project in Burundi has produced one of the highest-grade rare earth concentrates in the world (typically 54% total rare earths oxides ("TREO")) through trial mining operations. The Gakara basket is weighted heavily towards Nd/Pr, which account for approximately 19.5% of the contained TREO and 85% of the value of the concentrate. The Gakara project is currently on care and maintenance at the request of the Government of Burundi.

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