Directors Share Purchase

FOR IMMEDIATE RELEASE

24 MARCH 2021

Rainbow Rare Earths Limited

("Rainbow" or the "Company") (LSE: RBW)

Notification and public disclosure of transactions by PDMR and persons closely associated with them

The Company announces that Pete Gardner, CFO of the Company, has on 24^th March 2021 purchased 200,000 ordinary shares of no par value each in the Company ("Ordinary Shares") at an aggregate price of 15.23 pence per share. 

As a result of this transaction the beneficial ownership of Pete Gardner in the Ordinary Shares of the Company is as follows:

Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

**ENDS**

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Notes to Editors:

Rainbow's strategy is to become a globally significant producer of rare earth metals. NdPr 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 NdPr into deficit.

The Company's Gakara Project ("Gakara") in Burundi, which produces one of the highest-grade concentrates in the world (typically 54% total rare earths oxides ("TREO")) through ongoing trial mining operations, is currently the only African producer of rare earths.  The Gakara basket is weighted heavily towards NdPr, which account for over approximately 19.5% of the contained TREO and >88% of the value of the concentrate.

The Phalaborwa Rare Earths Project ("Phalaborwa"), located in South Africa, comprises approximately 35 million tonnes of gypsum tailings stacked in unconsolidated dumps derived from historic phosphate hard rock mining, containing rare earth elements with an initial estimated average in situ grade of 0.5% TREO, based on previous sampling campaigns, of which +/- 30% comprises high-value NdPr. The rare earths are contained in chemical form in the gypsum dumps, which is expected to deliver a higher-value rare earth carbonate, with lower operating costs than a typical rare earth mineral project.