Preliminary Results for Year-end 30 June 2025

27 October 2025

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

Preliminary Results for the Year ended 30 June 2025

Rainbow Rare Earths is pleased to announce its preliminary results for the year ended 30 June 2025 ("FY 2025" or the "Year").  The financial information in this release does not constitute the Financial Statements.  The Group's Annual Report, which includes the audit report and audited Financial Statements for the year ended 30 June 2025, will be available on the Company's website at www.rainbowrareearths.com.

Highlights

·    Rare earth elements ("REE") are vital to both economic resilience and national security. The imposition of export controls by China in April 2025, followed by further tightening proposed in October 2025, has galvanised the West to act to secure independent and responsible supply of these critical minerals.

·    Rainbow is at the forefront of addressing these challenges, with the Phalaborwa project in South Africa recognised as a near-term and strategic source of both the light and heavy rare earths that are indispensable to the green energy transition, defence and many other daily and advanced technologies.

·    Strong project backing from the United States International Development Finance Corporation ("DFC"), which is an indirect shareholder via TechMet Limited ("TechMet") and has also committed US$50 million in project equity funding, as well as backing by Ecora Resources PLC ("Ecora"), which chose Phalaborwa as its first royalty in the REE space.

·    Our world-class laboratory in Johannesburg, one of the most the most sophisticated mineral analysis facilities on the continent, is perfecting the process to extract REE from phosphogypsum. This technology offers unique environmental and social benefits by transforming legacy waste into critical inputs for society.

·    As a chemical processing operation, with no mining, hauling or stockpiling required, Phalaborwa is positioned right at the lowest end of the global industry cost curve and is expected to be one of the highest margin projects in development today.

·    Excellent technical progress made with the production of a high-purity, mixed rare earth product ("MREP"), which significantly exceeds average industry standards. An evaluation is underway to define the optimal route to separation, with the final products expected to be a separated NdPr oxide and a SEG+ product combining the full suite of medium and heavy rare earths.

·    Rainbow will now run a pilot scale plant to validate the updated primary flowsheet parameters, as well as incorporating and demonstrating the expected capital and operating cost savings from ongoing trade-off studies.

·    Phalaborwa's Definitive Feasibility Study ("DFS") is expected to be finalised in 2026; upon its completion, finalisation of the permitting process will run in parallel with the project finance process, which is expected to enable construction to commence in 2027.

·    The Uberaba project in Brazil represents an exciting opportunity to replicate Phalaborwa at a potentially larger size and Rainbow is working with partner the Mosaic Company ("Mosaic") to rapidly complete an Economic Assessment ("EA") of this phosphogypsum project.

·    Longer term, the Company expects that the technology to recover critical REE from phosphogypsum will provide opportunities to develop a scalable and sustainable business. To this end, we are currently evaluating strategic partnerships in Saudi Arabia, Morocco and Canada, along with a number of other prospects globally.

·    Responsible production is at the heart of Rainbow's business model and the Company continues to embed environmental, social and governance ("ESG") standards and practices within its corporate and project development.

Investor Meet Company Presentation - Wednesday 29 October 2025

Rainbow is pleased to announce that CEO George Bennett will provide a live presentation via Investor Meet Company on 29 October 2025 at 10:00 GMT.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard or at any time during the live presentation.

Investors can sign up to Investor Meet Company for free and add to meet RAINBOW RARE EARTHS LIMITED via: https://www.investormeetcompany.com/rainbow-rare-earths-limited/register-investor

Investors who already follow RAINBOW RARE EARTHS LIMITED on the Investor Meet Company platform will automatically be invited.

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Market Abuse Regulation (EU) No 596/2014 ("MAR") which has been incorporated into UK law by the European Union (Withdrawal) Act 2018 until the release of this announcement.

For further information, please contact:

Notes to Editors:

About Rainbow:

Rainbow Rare Earths aims to be a forerunner in the establishment of an independent and ethical supply chain of the rare earth elements that are driving the green energy transition. It is doing this successfully via pioneering the first commercial recovery of rare earth elements from phosphogypsum that occurs as the by-product of phosphoric acid production.  These projects eliminate the cost and risk of typical rare earth projects, which involve mining and the production of a rare earth concentrate that must be chemically cracked to form a mixed rare earth carbonate before further downstream processing. As such, Rainbow's projects can be brought into production quicker and at a lower cost than traditional hard rock mining projects.

The Company is focused on the development of the Phalaborwa Project in South Africa and the earlier stage Uberaba Project in Brazil. Rainbow's process will deliver separated rare earth oxides through a single hydrometallurgical plant on site, with a focus on the recovery of neodymium, praseodymium, dysprosium and terbium. These are critical components of the high-performance permanent magnets used in electric vehicles, wind turbines, defence and exciting new markets such as robotics and advanced air mobility.

The Phalaborwa updated interim economic study released in December 2024 has confirmed strong base line economics for the project, which has a base case NPV₁₀ of US$611 million. Given Phalaborwa is a chemical processing operation, with its resource sitting at surface in a chemically cracked form, it has a much lower operating cost than traditional rare earth mining projects, and it is therefore estimated to be one of the highest margin rare earth projects in development today outside of China.

More information is available at www.rainbowrareearths.com or by visiting the Rainbow Rare Earths Curation Showcase at: Curation Connect - Rainbow Rare Earths Showcase or https://app.curationconnect.com/company/Rainbow-Rare-Earths-90903

 www.curationconnect.com

Chairman's Statement

Dear Shareholder,

FY 2025 has been a pivotal year for Rainbow Rare Earths and the global REE industry generally, with REE having firmly entered the global consciousness as materials critical to both national security and economic resilience.

These elements are indispensable in the electronic and household products we rely on daily, as well as in emerging technologies driving the future, from electric vehicles to defence systems and robotics.

REE are known as 'industrial vitamins', as they enable a huge variety of technological functions. While they may only be used in tiny quantities and therefore only account for a fraction of a product's cost, they are often responsible for 100% of its functionality.

However, the Year highlighted the vulnerabilities in the global REE supply chain, particularly following China's imposition of export controls in April 2025 on certain medium and heavy rare earth elements and the rare earth permanent magnets ("REPM") that contain them. These restrictions caused immediate and significant disruptions, with some industries such as automotive facing temporary factory shutdowns due to shortages of high-performance REPM. Post Year end, China has proposed tighter controls on REPM and related technologies.

China's dominance across all stages of the REE supply chain has been starkly exposed as a major threat to global industries, galvanising the West to act decisively to establish independent and diversified supply chains.

A landmark development occurred in July 2025, when the U.S. Government entered into an unprecedented public-private partnership with MP Materials, a U.S. producer of REE.  This initiative to help build out a domestic REPM supply chain incorporated a neodymium / praseodymium ("NdPr") offtake floor price of US$110/kg, significantly higher than the spot price of ca. US$63/kg at the time.

Since the announcement of this deal, NdPr prices have rallied to ca. US$80/kg, fuelled by improved sentiment and rising demand for REPM. Additionally, a clear price bifurcation has emerged stemming from China's export controls, with ex-China heavy REE prices significantly higher than those in the Chinese domestic market.

As long advocated by Rainbow, the need for an NdPr floor price above current levels to incentivise new sources of supply outside of China appears to have been accepted by Western Governments. The U.S., Australia, and the EU have suggested a willingness to develop strategic stockpiles of key critical minerals such as REE, further supporting this shift.

Rainbow Rare Earths is at the forefront of addressing these challenges, and I am proud to report that our Phalaborwa project in South Africa has garnered significant support, including backing from the DFC via our strategic shareholder TechMet. This recognition underscores Phalaborwa's potential to deliver a near-term, responsible supply of both the light and heavy magnet REE.

Our innovative processing technology, developed in-house, is rewriting the economics of REE production by eliminating the costs and risks associated with traditional mining. While China has sought to further extend its control on the market by banning the export of REE processing technology, Rainbow has established market-leading expertise, positioning us as a pioneer in this space.

Our world-class laboratory in Johannesburg, one of the most sophisticated mineral analysis facilities on the continent, is perfecting the process to extract REE from phosphogypsum and separate them into rare earth oxides ("REO") and we have made excellent progress in recent months; read more in the CEO's Statement to follow.

The ability to recover critical REE from phosphogypsum stacks sitting at surface not only delivers economic advantages over traditional REE mining projects, but also offers unique environmental and social benefits by transforming legacy waste into critical inputs for green and other advanced technologies.

Phalaborwa's position in the lowest cost quartile establishes it as one of the highest margin REE projects in development today and its status as a stand-out project in the space is evidenced by the quality of our stakeholders, including the support from TechMet and the DFC, as well as our royalty agreement with Ecora.

Our goal is to advance the technology for extracting REE from phosphogypsum at our Phalaborwa project, creating a worldwide opportunity for cost-effective and sustainable REE production from comparable secondary sources, such as our collaboration with Mosaic at Uberaba in Brazil.

In so doing, we expect to unlock a low-cost and responsible supply of REE globally, allowing Rainbow to capitalise on the expected rise in REE demand from the green energy, defence and technology industries, fostering a resilient and enduring business model.

As we move forward, Rainbow Rare Earths remains committed to delivering value for our stakeholders while contributing to a more secure and sustainable global REE supply chain. I extend my gratitude to our team, partners, and investors for their continued support as we navigate this transformative period for the industry.

Adonis Pouroulis

Non-Executive Chairman

CEO's Statement

Dear Shareholder,

2025 has been a transformative year for Rainbow Rare Earths, with our pioneering technical advancements positioning the Phalaborwa project as one of the world's lowest-cost producers of REE. This achievement underscores Phalaborwa's critical role in establishing a responsible and independent REE supply chain, addressing the growing global demand for these essential materials.

Our primary technical challenge was to economically recover magnet REE from phosphogypsum, a feat we have successfully accomplished in record time. This breakthrough fundamentally de-risks the project, as previous attempts over the last ca. 40 years by others to extract REE from phosphogypsum did not prove commercially viable.

The project's robust economics were outlined in the Interim Economic Study published in December 2024 (the "Interim Study"). Ongoing trade-off studies are expected to further optimise both capital and operating costs for the primary leaching circuit, which represents ca. 85% of the expected total cost base for the project, with results to be shared once finalised.

Our second major milestone was developing a high-purity, mixed rare earth product suitable for cost-effective separation. Utilising continuous ion exchange ("CIX"), a technology commonly applied in uranium and gold processing but innovative for REE, our team has produced an exceptionally pure MREP, equivalent to a mixed rare earth carbonate ("MREC") averaging over 55% total rare earth oxides ("TREO") across multiple test campaigns. This exceeds the industry's typical refinery specification of 42 to 44% TREO, positioning Phalaborwa's MREP among the highest-grade products globally.

We have further enhanced this MREP by incorporating a cerium ("Ce") depletion step into the Phalaborwa process which has lowered the Ce content by ca. 65%, reducing the metal content for separation which is expected to deliver a positive impact on capital and operating costs for the downstream flowsheet.

This groundbreaking work has been achieved in-house, which allowed the impurity removal optimisation to be carried out rapidly and efficiently by our dedicated technical team using our own newly commissioned laboratory facilities in Johannesburg. There we have assembled world-class expertise and equipment, including a cutting-edge ICP-MS (Inductively Coupled Plasma Mass Spectrometer), which enables the immediate reporting of assays of sample grades, ranging from low parts per billion to high purity. Rainbow is the first company in Africa to own and operate such advanced equipment.

At the time of writing, the laboratory is being prepared to run a pilot scale plant to validate the updated primary flowsheet parameters and MREP, as well as incorporating and demonstrating the expected capital and operating cost savings from the ongoing trade-off studies.

An evaluation has commenced to define the optimal route to separation of the MREP, comparing the well-known solvent extraction technology ("SX") with the continuous ion chromatography ("CIC") separation technology envisaged in the Interim Study.   This will deliver the final route for production of a 99.5% purity mixed NdPr oxide, suitable for metal and alloy manufacturing to supply further downstream magnet manufacturing, and a high value SEG+ product, containing the medium and heavy REE including our high value dysprosium ("Dy") and terbium ("Tb"). The evaluation will also define if the project can be developed in a staged manner, allowing the MREP to be sold prior to further investment in separation capacity, following a similar path to many other global rare earth development projects. Our decision will be informed by a comprehensive economic assessment, considering financing availability, costs, project timelines, and overall economics.

The proposed pilot plant work and important findings from the trade-off studies will be incorporated into the DFS for Phalaborwa, which we expect to be finalised in 2026, the timing of which will be dependent on the outcome of the various trade-off studies and separation evaluation work underway. Whilst this is later than originally planned, the delay is expected to enable the results of the trade-off studies to benefit Rainbow by delivering a robust, technically proven flowsheet, with lower capital and operating costs. This optimisation work will therefore result in the most economically attractive project, enhancing shareholder value over the long term. It will also ensure that Phalaborwa retains its attractive position right at the lowest end of the global industry cost curve. Upon completion of the DFS, finalisation of the permitting process will run in parallel with the project finance process, which is expected to enable construction to commence in 2027.

The work at Phalaborwa offers a scalable model that can be applied to our Uberaba project in Brazil, where we have partnered with Mosaic to conduct an EA at an unprecedented pace. Uberaba offers the potential for large-scale REE recovery from phosphogypsum with a significantly longer project life, further strengthening our portfolio.

Longer term, the Company expects that the technology to recover critical REE from phosphogypsum will provide opportunities to develop a scalable and sustainable business. To this end, we are currently evaluating strategic partnerships in Saudi Arabia, Morocco and Canada, along with a number of other prospects globally.

Interest in offtake agreements has increased significantly, driven by industry recognition that the combined output from Phalaborwa and Uberaba could position Rainbow as a significant global supplier of responsibly sourced light and heavy REE. The proposed SEG+ product is particularly sought after, addressing the critical bottleneck in heavy REE supply, a key vulnerability in Western supply chains.

As we advance our projects, Rainbow remains committed to maintaining low corporate overheads, ensuring financial resources are appropriately directed toward project definition.

The Gakara project in Burundi has remained on care and maintenance throughout the Year at the request of the Government of Burundi. As noted in last year's Annual Report, the asset has been fully written down, except for cash and recoverable VAT. Costs associated with Gakara have been minimised until a resolution with the Government is found.

I extend my deepest appreciation to our stakeholders for their steadfast support and to our exceptional technical team, whose dedication has propelled Phalaborwa to its current stage. Their expertise in recovering REE from phosphogypsum positions Rainbow to build a sustainable, long-term business as demand for these critical materials accelerates.

George Bennett

Chief Executive Officer

Financial Review

Rainbow's strategic focus is to identify and develop secondary rare earth deposits that can be brought into production quicker and at a lower cost than traditional hard rock mining projects. As a developer, Rainbow capitalises the costs of exploration and evaluation for each identifiable project once the legal right to the project has been secured. The Board and management focus on maintaining a tight control of costs, including corporate overheads, ensuring that most of the funds raised will go directly towards building value across our portfolio.

During FY 2025 the Group invested US$2.1 million to progress the Phalaborwa project in South Africa. Costs associated with the laboratory facility set up to develop the Group's IP for the recovery of REE from phosphogypsum totalled US$0.8 million including US$0.5 million for tangible fixed asset additions and US$0.3 million recognised as research costs. A further US$0.2 million of business development costs were incurred relating to progressing the Uberaba opportunity in Brazil and broadening the Group's international pipeline of phosphogypsum opportunities. General and administrative costs, including costs relating to the Gakara asset in Burundi, represented to a cash outflow of US$2.9 million.

In FY 2025 the Group raised US$10 million of finance from Ecora, including US$1.5 million via an equity placing and US$8.5 million proceeds from the sale of a royalty over gross revenue from the future development of the Phalaborwa project.

Profit and loss account

The Group reported a loss of US$3.3 million for FY 2025 (FY 2024: US$4.3 million). The reduced loss was driven by a fair value gain of US$1.2 million arising from the first-time revaluation of the Ecora royalty liability, offsetting the costs associated with that financing transaction, and the non-recurrence of the US$0.7 million impairment costs for the Gakara project in Burundi recognised in FY 2024. The gain arising on the revaluation of the Ecora royalty liability was caused by a fall in forecast rare earth prices at 30 June 2025 compared to the forecasts available on 1 July 2024 when the royalty agreement was entered into. In Q3 2025 rare earth prices rose strongly, mirroring the early forecasts, suggesting that this gain will be reversed in FY 2026.

Costs associated with the Group's rare earth laboratory in Johannesburg, totalling US$0.3 million, were recognised in the income statement as research costs as they are considered to be incurred developing the Group's knowledge for the recovery of REE from phosphogypsum that will be applicable on a global basis, and are not solely related to the Phalaborwa asset.

Within administration expenses, costs totalling US$0.2 million (FY 2024: US$0.1 million) were incurred on the Group's business development opportunities. Costs associated with maintaining the Gakara project on care and maintenance totalled US$0.3 million (FY 2024: US$0.4 million). The Group continues to focus on minimising costs associated with the asset whilst considering all options to try to realise the value associated with the REE mineral opportunity. The Group's other corporate costs totalled US$3.2 million (FY 2024: US$3.0 million), dominated by staff costs of US$2.0 million (FY 2024: US$1.9 million). 

Net finance income was US$819k (FY 2024: income of US$22k) driven primarily by the US$1.2 million recognised gain on revaluation of the Ecora royalty liability, offsetting the US$0.4 million costs associated with that financing.

Balance Sheet

The Group assets are dominated by the cumulative US$17.4 million relating to the Phalaborwa asset which have been capitalised as an intangible asset in accordance with IFRS 6, of which US$1.6 million was incurred in FY 2025. At the balance sheet date, the Group has tangible fixed assets of US$0.5 million relating primarily to the laboratory facilities in Johannesburg.

The Group's liabilities are dominated by the Ecora royalty liability, valued at US$7.3 million at FY 2025. In addition, the Group has a US$0.2 million loan with FinBank in Burundi, denominated in Burundi Francs, which is due to be repaid on a reducing balance basis by April 2027. There are no other significant borrowings or long-term cash settled liabilities. With the exception of indirect taxes and contributions payable under the Gakara mining convention, which are not being settled during the ongoing suspension of the Gakara operations, the Group continues to pay all trading liabilities as they fall due.

For FY 2025, the Group had a recognised environmental liability of US$0.1 million relating to the Gakara asset in Burundi. There are no obligations for environmental closure at the Phalaborwa project site as the Group does not yet have legal ownership of the project site.

Going Concern

At 30 June 2025, the Group had US$3.9 million of cash. The base case forecast includes a total cash outflow for the 18 month period ending 31 December 2026 of US$8.8 million.  Management's reasonably plausible downside scenario includes a total cash outflow of US$11.5 million. The forecast confirms that the Group will need to raise additional funds before 31 December 2026 under all scenarios, the timing of which is dependent primarily on the speed at which the Phalaborwa DFS is completed, which is within management's control. In addition, further funds may be required to progress the Uberaba opportunity in Brazil dependent on the outcome of the initial EA and negotiations for a definitive agreement for the project with Mosaic.

The Board is confident that this funding will be secured, based on its history of successful fundraising. However, it also acknowledges that this funding is not, at the present time, in place. Accordingly, the Board acknowledges that the need for additional funding represents a material uncertainty which may cast significant doubt on the ability of the Group to continue as a going concern and, therefore, that it may be unable to realise its assets and discharge its liabilities in the normal course of business. The financial statements do not include any adjustments that would result if the Group was unable to continue as a going concern.

Pete Gardner

Chief Financial Officer

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 30 June 2025

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2025