31 March 2026

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

Interim Results for the six months ended 31 December 2025

Rainbow Rare Earths is pleased to announce its unaudited results for the six months ended 31 December 2025 ("the Period").

Highlights

·   Rare earth elements ("REE") remain a critical strategic commodity, with ongoing global priorities to develop secure, alternative supply chains of these critical minerals.

·    Rainbow is pioneering the recovery of REE from phosphogypsum, a waste product from phosphoric acid production, with the aim of unlocking a low-cost, low capital intensity and responsible source of the magnet REE crucial to decarbonisation, defence and future-facing industries.

·    The Company has successfully established its flagship Phalaborwa project in South Africa as a proven producer of REE, with a large-scale pilot plant currently running the optimised primary flowsheet in Johannesburg and producing a high-grade mixed rare earth product ("MREP").

·  The Company is evaluating opportunities using third party commercially proven solvent extraction separation processes ("SX") to capture additional value by refining the MREP into a combined neodymium and praseodymium ("NdPr") oxide and a samarium, europium and gadolinium plus ("SEG+") product that is rich in medium and heavy REE including Dysprosium ("Dy") and Terbium ("Tb"), each at >99.5% purity.

·   As a chemical processing operation, Rainbow's flagship Phalaborwa project in South Africa eliminates many of the costs, risks and timescales associated with traditional REE mining projects and it is expected to be one of the highest margin REE projects in development today.

·    The project is recognised as a strategic and near-term source of both light and heavy REE by the U.S. Government, with a US$50 million funding option in place from the U.S. International Development Finance Corporation ("DFC") via strategic shareholder TechMet Limited ("TechMet"), and it is also the REE investment of choice for critical minerals royalty and streaming company Ecora Royalties PLC ("Ecora").

·    The Company is well advanced with all work streams to conclude the project's Definitive Feasibility Study ("DFS"), which will be published later this year. The DFS will update the economics of the Interim Economic Study released in December 2024 that presented a post-tax NPV₁₀ of US$611 million, a post-tax IRR of 38%, average EBITDA of US$180 million per annum over a 16 year project life, and a pay-back of 2.0 years for the US$326 million capital requirements; it is expected that optimisation initiatives will help to counter inflationary impacts since this time.

·    An Economic Assessment ("EA") has confirmed the Uberaba project in Brazil as a second major opportunity for Rainbow, with the project expected to be a long-life, high-margin producer of both light and heavy REE. Using a 10% discount rate and rare earth pricing reported by Argus Media Limited ("Argus") at 5 March 2026, the Uberaba EA post-tax NPV₁₀ estimated at US$916 million, with a post-tax IRR of 45%, average forecast EBITDA of US$217 million per annum over a 30 year project life, and an estimated pay-back of 1.7 years for the US$279 million estimated capital requirements.

·    Equity subscription completed 31 March 2026 at £0.20 per share raises c. US$14.6 million from strategic investors, providing the funds to complete the Phalaborwa DFS, Uberaba PFS and for general working purposes beyond the end of Q2 2027.

·    Pricing for both light and heavy REE increased significantly during the Period, with NdPr rising from c. US$60/kg in June 2025 to c. US$110/kg in December 2025. Export controls placed on certain heavy REE by China has led to a bifurcation in pricing, with the EU and USA prices quoted at three to four times those quoted in China.

George Bennett, CEO, commented:

"I am proud that Phalaborwa has successfully been confirmed as a producer of REE, with the pilot plant in Johannesburg delivering increasing quantities of a high-grade MREP, which is a commercial product. We look forward to updating the market on our progress as we work towards publication of the DFS later in the year.

We are equally excited about prospects for the Uberaba project in Brazil, with the EA published in March confirming this as a second major opportunity to develop a long term, high-margin producer of both light and heavy rare earth elements based in a favourable jurisdiction.

It is gratifying that the pricing for REE has started to respond positively, in line with true market dynamics and reflecting the longer-term demand for these minerals that are critical to both everyday and advanced technologies. Both Phalaborwa and Uberaba are expected to be robust throughout the pricing cycle, providing an exciting opportunity for a independent diversified supply of these critical minerals."

Investor Meet Company Presentation - Wednesday 8 April 2026

Rainbow is pleased to announce that CEO George Bennett will provide a live presentation via Investor Meet Company on 8 April 2026 at 10:00 BST.

The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 7 April 2026 at 9.00 BST 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.

Market Abuse Regulation ("MAR") Disclosure

This announcement contains inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"), and is disclosed in accordance with the Company's obligations under Article 17 of MAR.

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 by developing projects that recover rare earth elements from phosphogypsum, a by-product of fertilizer production. This approach avoids traditional mining and allows projects to be advanced more quickly and at lower cost. The Company is progressing two projects: Phalaborwa in South Africa and Uberaba in Brazil, and these projects are expected to produce critical materials for a wide range of industrial, energy, and defence applications. 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.

CEO Review

I am pleased to present Rainbow Rare Earths' interim results for H1 2026. This has been an important period for the Company, marked by significant technical advancements at our flagship Phalaborwa project in South Africa, set against a supportive backdrop of rising REE prices and increasing global focus on secure, ethical supply chains. As the world accelerates its transition to clean energy and advanced technologies, Rainbow is well-positioned to become a key Western supplier of critical magnet rare earths, including NdPr, Dy, Tb, and other strategic REE, including yttrium ("Y").

Market Context

Following a period of low pricing, magnet rare earth prices strengthened throughout the Period, with Nd and Pr prices reported by Argus rising from c. US$60/kg in June 2025 to c. US$110/kg in December 2025. Since Q2 2023 prices had been below the average cost of production in China, as reported by market analysts. The renewed price strength is underpinned in the West by the floor price of US$110/kg agreed between MP Materials and the US Government announced in July 2025, which is also footprinted in the recently announced supply deal agreed by the Japanese Government with Lynas Rare Earths. The US$110/kg floor price is in-line with the base case prices used by Rainbow in presenting the economics of the Phalaborwa project.

Export controls imposed by China have had a marked impact on heavy rare earth prices, including Dy, Tb and Y. This has led to a marked bifurcation of prices reported in Europe and the US, albeit at smaller volumes, compared to China. Prices for Dy and Tb assessed by Argus have been up to 3.5 times higher than Chinese equivalents, whilst prices for Y have recently risen to a 25 times multiple, reflecting the difficulty in securing supply.

Overall, analysts continue to predict long-term rising global rare earth prices, driven by continued demand growth. Traditional sectors, such as electric vehicles and offshore wind, are expected to continue to drive demand for rare earth permanent magnets. In addition, new demand drivers are increasingly being forecast in new sectors such as defence, advanced robotics and drones/advanced air mobility. Whilst it is not known if the EU/US price premium for heavy rare earths will endure, analysts report that prices for heavy rare earths are likely to continue to outperform light rare earths due to ongoing supply constraints.

Importantly for Rainbow global efforts to diversify REE supply chains away from China are continuing, including concerted efforts from the US, the EU, Australia, Japan and others to invest in new supply, build out the missing parts of the magnet supply chain, as well as to establish offtake and strategic stockpiles, amongst other initiatives. These actions underscore the strategic importance of projects like Phalaborwa, which can be a near-term source of both light and heavy REE.

Operational Review

Our primary focus during the Period remained on de-risking and optimising the Phalaborwa project, which benefits from its unique position as a low-cost, near-term production opportunity through the reprocessing of existing phosphogypsum stacks. The project is based on the processing of 2.2 Mtpa of phosphogypsum to recover c. 10,000 tpa MREP that can be further refined to deliver c. 1,800 tpa of NdPr oxide, and c. 60 tpa of Dy, c. 20 tpa of Tb and c. 140 tpa of Y as part of an SEG+ mixed product.

A major breakthrough has been achieved by Rainbow in terms of confirming an economic process to extract REE from phosphogypsum, with the Company succeeding where previous attempts over the last c. 40+ years have failed. This flowsheet is being demonstrated now with the large-scale pilot plant in Johannesburg producing ever-increasing quantities of high grade MREP including economic quantities of all four magnet rare earths: Nd, Pr, Dy and Tb. This success establishes Phalaborwa as a producer of REE.

Rainbow is evaluating opportunities using third party commercially proven SX separation processes to capture additional value by refining the MREP into a combined NdPr oxide and a SEG+ product. Separation can be carried out on site at Phalaborwa or in a third-party location, where additional funding support may be available. The separation capacity may be developed alongside the initial project, or in a staged manner following a similar path to many other global rare earth development projects. The evaluation will be informed by a comprehensive economic assessment, considering financing availability, costs, project timelines, and overall economics, as well as the input from potential offtake partners.

Continued optimisation of the primary flowsheet

As previously announced, Rainbow has made a number of important changes and optimisations to the Phalaborwa primary flowsheet in order to drive project efficiencies using intellectual property ("IP") developed by the Company. This part of the flowsheet prior to separation represents the majority of the project's cost base.

The leach process was fully optimised via large-scale locked cycle tests that yielded several benefits expected to reduce cost in the primary leaching circuit, including:

·    the leach process has been reduced from three stages to two;

·    the residence time has been reduced from 32 hours to eight; and

·    leach heating requirements have been significantly reduced.

Rainbow's in-house team has developed a rare earth recovery and purification process from the pregnant leach solution combining continuous ion exchange ("CIX") and precipitation steps. This combined process rejects a large volume of impurities and delivers a high grade MREP which can be sold or used as a high-grade feed stream for separation. The results have been confirmed at bench scale through extensive lock-cycle testing with solution recycle, used to simulate a continuous circuit.

Rainbow has determined that SX, as the industry standard, represents the optimal route for separation of the MREP, representing a commercially proven path to delivering Rainbow's proposed NdPr and SEG+ products. The reduction in feed volume due to the CIX and precipitation process results in a smaller-than-typical SX plant, minimising the expected plant footprint, operating and capital cost requirements.

A number of trade-off studies were also pursued and progressed positively in 2025, the most notable of which are:

·   Mechanical reclamation has been selected to replace hydraulic reclamation. This provides more flexibility around reclamation planning, simplifies the plant feed process, and reduces the environmental risk of reclaiming with acidic water as originally anticipated.

·    An on-site sulphuric acid plant is expected to derisk and simplify the supply of sulphuric acid from external sources and provide on-site power generation for use in the leaching process, reducing external power costs.

Together with the optimisation measures noted above, these initiatives are expected to positively impact power, reagent, labour and capital costs for the project.

Operation of Large-Scale Pilot Plant

Post Period-end, the Company has commenced pilot scale operations as the final phase of process test work for Phalaborwa. The large-scale pilot operation is currently running the optimised leach process producing sufficient volumes of pregnant leach solution to allow for optimisation of the CIX and impurity removal processes. It will provide the data that underpins the DFS, including mass balance, equipment sizing and capital and operating costs, and will be used as the basis for third-party validation for project finance.

The pilot-plant initially produced a 55% total rare earth oxides ("TREO") high-purity mixed rare earth hydroxide. Subsequent improvements have delivered a higher grade 78% TREO product, which Rainbow expects to confirm as a suitable feedstock for some SX separation processes. Further purification steps have also been undertaken to deliver a higher grade mixed rare earth oxide with sufficiently low levels of impurities to be suitable for any third party SX separation process. In-house assays have been generated and are being verified by duplicate tests and a third-party referee analysis process.

The pilot plant mixed rare earth products will be used for validation with potential off-take partners as well as feedstock for SX test work.

Project Economics and Timeline

The Phalaborwa updated Interim Study published in December 2024 confirmed strong base line economics for the project, which has a base case NPV₁₀ of US$611 million, a post-tax IRR of 38% and a payback of less than two years. The economics were published using base case rare earth prices of US$110/kg Nd oxide, US$112.5/kt Pr oxide, US$340/kg Dy oxide and US$1,875/kg Tb oxide.

The DFS, to be published later this year, will update the economics of the project. It is expected that the cost optimisation initiatives completed will help to counter inflationary impacts since December 2024. The economic analysis will compare the expected returns from selling the high grade MREP, which is expected to have a 70%-75% overall payability, to the additional value that is expected to be generated from producing the NdPr and SEG+ products via SX. The opportunity to realise higher prices than the Chinese benchmark for the heavy rare earths contained in the SEG+ product will also be explored, which could materially improve the economics of the project.

Upon completion of the DFS, finalisation of the project permitting will run in parallel with the project finance process to allow construction to commence by the end of 2027.

Environmental

Phalaborwa is founded on the principles of circularity, reprocessing phosphogypsum which is the by-product of historic phosphoric acid production to produce the critical rare earths required for global decarbonisation. The Company has the potential to use local waste streams, sulphuric acid and silica, as reagents for its operations.

The operations will serve to clean up the legacy environmental issue of acid water associated with the historic unlined gypsum stacks, using this water in the closed-circuit plant process rather than drawing on an external water source for the processing plant. The clean-up of acid water is expected to improve groundwater quality which is impacted by the stack water emanating from the base of the unlined stacks.

The clean gypsum by-product will be stored on new lined stacks designed in accordance with IFC Performance Standards and the Equator Principles, before being sold down over time to local agricultural and industrial users. This is expected to allow, over time, for a full circle rehabilitation of the site.

Rainbow plans to establish a low cost, low-carbon energy source for the project. The Company continues to assess renewable energy power options, with the aim that this could provide the project's power requirements not self-generated in the planned sulphuric acid plant.

Uberaba - Brazil

The Uberaba project in Brazil is the subject of a Joint Project Development Agreement between Rainbow and the Mosaic Company ("Mosaic"), (NYSE: MOS), the world- leading American producer and marketer of concentrated phosphate and potash crop nutrients based in Tampa, Florida. The project is similar to Phalaborwa in that it will entail the processing of phosphogypsum, a waste residue from Mosaic's phosphoric acid production, using Rainbow's intellectual property to economically extract REE.

In March 2026, Rainbow published the results of an Economic Assessment ("EA") for Uberaba that confirmed the project as a second major opportunity for Rainbow, with the potential to be a long-life, high-margin and near-term producer of both light and heavy REE. The EA does not meet the standards for a scoping study under the JORC Code as it is not based on a formally designated resource.

The EA results, reported using rare earth pricing sourced from Argus Media Limited (Argus) on 5 March 2026, delivered a post-tax NPV₁₀ of US$916 million, a post-tax IRR of 45%, average EBITDA of US$217 million per annum over a 30 year life-of-mine, and a pay-back of 1.7 years.

Rainbow and Mosaic have signed a Joint Project Development Agreement to progress a Pre-Feasibility Study ("PFS") for Uberaba. On completion of a positive PFS and a decision to proceed with a DFS, the parties currently intend to establish a joint venture, with Mosaic holding 51% and Rainbow 49%, subject to negotiation of final Heads of Terms.

Other Opportunities

Rainbow's technology can unlock a global opportunity for a low-cost and responsible supply of REE from phosphogypsum. The Company continues to evaluate other strategic opportunities globally where its IP could be appropriately utilised. Rainbow's Gakara project in Burundi remains on care and maintenance with a limited holding cost for the Company.

Financial Review

During the Period the Company spent US$394k at the laboratory facility in Johannesburg including both research costs and associated capital expenditure. A further US$366k was incurred for technical work at Phalaborwa, bringing the total capitalised costs to date for the project to US$17.7 million. Business development costs of US$121k were incurred, mainly focused on the Uberaba EA.

The Company continues to manage its overheads, with total cost of US$1,626k in the Period excluding business development costs. The income statement was dominated by a US$3,879k change in the fair value of the royalty liability driven by stronger forecast rare earth prices, with a recognised liability of US$11.1 million at 31 December. This reversed a fall in fair value recognised at 30 June 2025 due to low forecast rare earth prices.

The total cash outflow in the Period was US$2.5 million, leaving a cash balance of US$1.4 million at 31 December 2025. On 31 March 2026 the Company raised US$14.6 million from strategic investors at £0.20 per share via the issue of 55.4 million new Ordinary Shares. Including these proceeds, based on the Group's forecasts the directors are of the opinion that the Group has sufficient working capital for its present requirements, that is for at least the next 12 months from the date of publication of this document.

Cautionary Statement:

The business review and certain other sections of this interim report contain forward looking statements that have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. However, they should be treated with caution due to inherent uncertainties, including both economic and business risk factors, underlying any such forward-looking information and no statement should be construed as a profit forecast.

Directors' Responsibility Statement

We confirm that to the best of our knowledge:

a)  the Condensed set of Interim Financial Statements has been prepared in accordance with IAS 34 'Interim Financial Reporting';

b)   the interim management report includes a fair review of the information required by DTR 4.2.7R (indication of important events during the first six months and description of principal risks and uncertainties for the remaining six months of the year);

c)   the interim management report includes a fair review of the information required by DTR 4.2.8R (disclosure of related parties' transactions and changes therein); and

d)   the condensed set of interim financial statements, which has been prepared in accordance with the applicable set of accounting standards, gives a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer, or the undertakings included in the consolidation as a whole as required by DTR 4.2.4R.

This Interim Report has been approved by the Board and signed on its behalf by:

George Bennett

Chief Executive Officer

31 March 2026

Condensed Consolidated Statement of Comprehensive Income

For the six months ended 31 December 2025

The results of each period are derived from continuing operations.

Condensed Consolidated Statement of Financial Position

As at 31 December 2025

Condensed Consolidated Cash Flow Statement

For the six months ended 31 December 2025

1.     The prior year cash flow statement has been restated to reflect finance income as an investing cashflow and interest on borrowings as a financing cashflow.