Sustainably Sourcing Magnet and Heavy Rare

Earths to meet Net Zero Carbon Ambitions

Corporate Presentation

IONICRE.COM.AU 6 October 2022

Cautionary Statement

IMPORTANT NOTICE AND DISCLAIMER

This presentation should be considered in its entirety. If you do not understand the material contained in this presentation, you should consult your professional
advisors. The sole purpose of this presentation is to provide shareholders with an update on current activities of the Company and the current state of exploration at
the Makuutu Rare Earths Project in the Uganda.
Any statements which may be considered forward looking statements relate only to the date of this presentation document. Such forward looking statements
involve known and unknown risks, uncertainties and other important factors beyond the Company’s control that could cause actual results, performance or
achievements of the Company to be materially different from future results, performance, or achievements expressed or implied by such forward looking statements.
As a result of these factors, the events described in the forward-looking statements in this document may not occur.
Notwithstanding the material in this presentation, shareholders should consider that any investment in the Company is highly speculative and should consult their
professional advisers – whether scientific, business, financial or legal – before deciding whether to make any investment in the Company.
The Company may at its absolute discretion, but without being under any obligation to do so, update, amend or supplement this presentation or any other
information to the recipient. No person has been authorised to give any information or make any representation other than contained in this document and if given
or made, such information or representation must not be relied on as having been so authorised.

Competent Person Statement

Information in this report that relates to previously reported Exploration Targets and Exploration Results has been crossed-referenced in this report to the date that it
was originally reported to ASX. Ionic Rare Earths Limited confirms that it is not aware of any new information or data that materially affects information included in
the relevant market announcements.
The information in this report that relates to Mineral Resources for the Makuutu Rare Earths deposit was first released to the ASX on 3 May 2022 and is available to
view on www.asx.com.au. Ionic Rare Earths Limited confirms that it is not aware of any new information or data that materially affects information included in the
relevant market announcement, and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply
and have not materially changed.
The information in this report that relates to Scoping Study results and production targets was first released to the ASX on 29 April 2021 and is available to view on
www.asx.com.au. Ionic Rare Earths Limited confirms that it is not aware of any new information or data that materially affects information included in the relevant
market announcement, and that all material assumptions and technical parameters underpinning the estimates in the announcement continue to apply and have
not materially changed.

IONIC RARE EARTHS PAGE 2

IonicRE’s Vision

Integrated, Full Life-Cycle Rare Earth Company

Mining Rare Earths Refining Rare Earths Recycling Rare Earths

• Mining magnet and heavy rare • Developing standalone refinery to • Recycling secondary sourced spent
earths from the Makuutu Rare separate magnet and heavy rare NdFeB magnets and swarf to
Earths Project, producing REOs for earths for downstream value produce separated, refined magnet
net zero carbon targets addition to metals, magnets and RE REOs
compounds
• MLA to be submitted Oct 2022, • Demonstration plant expected to
expected award Q1 2023 • Evaluating US locations and be in operation H1 2023 in Belfast,
downstream collaborations UK
• Long-life Ionic Adsorption Clay (IAC)
deposit, low capex development • Scoping Study underway, expected • Completing the circular economy
Q4 2022 of rare earths
• Scalable asset, exploration upside

IONIC RARE EARTHS PAGE 3

IonicRE Value Proposition

1. MAKUUTU IS A LARGE UNIQUE IONIC ADSORPTION CLAY

DEPOSIT, PROVIDING SCALABLE EXPANSION POTENTIAL TO
TAP INTO SURGING RARE EARTHS PRICING IN THE FUTURE “When peering into the outlook for the next decade
to come, it becomes quickly apparent that the
rapid demand growth of the 2020s will soon be
2. MAKUUTU A LOW CAPITAL DEVELOPMENT PROJECT,
dwarfed by the astronomical demand growth of
PRODUCING MAGNET & HEAVY RARE EARTHS CRITICAL FOR
the 2030s – and therein lies the real defining
TOMORROW’S NET ZERO CARBON TARGETS
challenge and opportunity facing the global rare
earth industry today.
3. MAKUUTU’S STRATEGIC IMPORTANCE WILL INCREASE LONG
If the global industry continues to operate
TERM WITH DRAMATIC INCREASES IN DEMAND AT THE
myopically – preparing, anticipating and investing
DOORSTEP
only for a three to five-year outlook – the rate of
demand growth for magnet rare earths will soon
4. GEOPOLITICAL TENSIONS DRIVING SECURE, ALTERNATIVE reach ‘escape velocity’; a point at which annual
SUPPLY OF MAGNET & HEAVY RARE EARTHS demand growth becomes so great (i.e. >6,000
tonnes per annum) that it is simply implausible for
5. DOWNSTREAM REFINING POTENTIAL TO UNLOCK VALUE OF the already-lagging supply-side to catch up and
MAKUUTU BASKET keep up.”
Adamas Intelligence, Sept 28, 2020
6. MAGNET RECYCLING EXPOSURE WITH TECHNOLOGY READY TO
COMMERCIALISE IN MODULAR, GLOBAL DEPLOYMENT

IONIC RARE EARTHS PAGE 4

IonicRE Corporate Snapshot

STRATEGIC VALUE DRIVEN BY THE UNIQUE MAGNET AND HEAVY REO BASKET

$0.10 200
CAPITAL STRUCTURE (as @ 05/10/2022)
Shares Outstanding 3,872,604,920 Volume Share Price
$0.09 180
Total Options Outstanding 199,000,000
(exercisable at 1.8 to 6.4 cents)
$0.08 160
Total Outstanding Performance Rights 10,200,000

Share Price A$0.045

$0.07 140
Market Capitalisation A$174 million

12 month Share Price Range A$0.033 – A$0.098 $0.06 120

Volume Traded (Millions)

12 month Average Daily Volume / Turnover 38m shares (~A$2.2m)

IXR Share Price (A$)

Cash Balance (30/06/2022) A$26.8 million $0.05 100

IXR MAJOR SHAREHOLDERS

$0.04 80
Major Shareholders (Top 20) 29.1%
Board, Executives, & Key Advisors 8.6%
$0.03 60
BOARD AND MANAGEMENT
Trevor Benson Chairman $0.02 40
Tim Harrison Managing Director

Jill Kelley Executive Director $0.01 20

Max McGarvie Non Executive Director

$0.00 -
Brett Dickson Company Secretary & CFO Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22

IONIC RARE EARTHS PAGE 5

 Rare Earth Supply Chain – Alternate capacity requires long term investment

SUSTAINABLY SOURCING THE MOLECULES WILL REQUIRE DEVELOPING ALTERNATIVE CAPACITY GLOBALLY

• Rare earths are amongst the most resource-critical raw materials: they are of highest economic importance and at the same time feature a high supply
risk – supply chain dominated by China

• China has a dominant position in every value addition step in conversion of mined REEs to value added products

• Developing a sustainable supply chain external from China needs scale and capacity in every step  Long-term investment needed to facilitate this

REE Mining 1 REE Processing 1 REE Metals1 REE Magnets1 REE Recycling 2

Australia Myanmar Malaysia EU Japan EU ROW Japan ROW ROW

9% 11% 11% 1% India 7% 1% 1% 5% 1% 1%
ROW 1%
7%
USA
13%

China China China

China China
60% 87% 94%
91% 99%

1 Rare Earth Magnets and Motors: A European Call for Action A report by the Rare Earth Magnets and Motors Cluster of the European Raw Materials Alliances, Oct
IONIC RARE EARTHS 2021. Argus Analytics Oct 2021. 2 Wood Mackenzie Global rare earths short-term outlook August 2022. PAGE 6
NdFeB Permanent Magnet Supply Demand to 2050

DEMAND FOR NEW NdFeB PERMANENT MAGNETS WILL EXCEED SUPPLY

• Significant increase in demand for NdFeB permanent magnets from

now to 2050, with 150% increase in total magnet capacity required
forecast by 2050

• EV demand the main driver as global forecast EV sales increase to

estimated 80m units per annum by 20501

• HVAC (Heating, Ventilation and Air Conditioning) will be a growing

demand as populations adjust to climate changes globally

• No new western mines in construction now

• So where will supply come from given timeline to develop a new mine,
commission and reach name plate production?

• Near term, from 2023 onward, expected that demand for NdPr
increasingly exceeds growth projections2

• Global consumption of Dy presently exceeds production by 200

tonnes, rising to over 500 tonnes in 2023, resulting in the depletion of
historically accumulated inventories and dysprosium oxide shortages
from 2024 onwards2

• Global consumption of Tb will exceed global production by nearly 300

tonnes in 2022 resulting in the drawdown of historically accumulated
inventories and shortages from this year forward2

Source: WoodMac

IONIC RARE EARTHS 1 Wood MacKenzie, Global rare earth strategic planning outlook to 2050, June 2022; 2 Adamas Intelligence, August 2022. PAGE 7
Where do the Molecules come from?

WITH DEMAND INCREASING, WHERE ARE THE MOLECULES OF Nd, Pr, Dy & Tb GOING TO COME FROM?

• Forecast deficit in magnet REOs from 2023 accelerating over the next decade  DyTb deficit escalating now

• There will be insufficient heavy rare earth oxide supply outside of China and Myanmar to meet the needs of emerging magnet makers

“With current global heavy rare earth

oxide production increasing just
marginally each year and the outlook
for Myanmar (miner of 40% of the
world’s dysprosium and terbium)
uncertain, heavy rare earth elements
remain a massively under-addressed
blind spot in the automotive supply
chain.”

“By 2035, Adamas projects the global

rare earth market will be short more
than one China’s worth of NdPr oxide
supply, and over five China’s worth of
Dy and Tb oxide supply, annually
(referring to China’s 2022 production
levels) should supply not increase
substantially more than what is
currently anticipated.”

Adamas Intelligence

IONIC RARE EARTHS Adamas Intelligence, August 2022. PAGE 8

Existing Chinese Supply – Sourcing DyTb from Myanmar

CHINA INCREASING HARDROCK LREE MINED SUPPLY, IAC HREE SUPPLY QUOTA REMAINS STEADY

• China has maintained IAC HREE mining quotas at same level since 2018
(19 ktpa) whilst ramping up readily available hardrock LREE production
(101 ktpa  166 ktpa)2 Chinese REO Mining Production Quota 2
• EV traction motors and generators tend to use high-temperature- 200
performance grades of NdFeB magnets that contain elevated
180
concentrations of HREE Dy and Tb

Approved Mined Production (ktpa)

160
• Moreover, with China’s known HREE resources dwindling and feedstock
supplies from Myanmar into China drying up in the first half of 2022, China 140
could soon face a domestic HREE supply crunch that could severely
curtail its Dy and Tb exports1 120

100
“Imports from Myanmar now exceed
China’s domestic mining quotas, so even 80
if the mines in China were producing at
full capacity, Myanmar would remain the
60
country’s single largest source of new
heavy rare earth supply – and with no
other companies in China legally allowed 40
to process this material, there is nowhere
else for imports to go.”
“With domestic stockpiles dwindling, 20
Chinese enterprises are increasingly
dependent on supply from Myanmar.” 0
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Global Witness3 Hardrock - LREE 75.95 87.15 87.15 87.15 87.15 100.85 112.85 120.85 148.85 165.65
IAC - HREE 17.85 17.85 17.85 17.85 17.85 19.15 19.15 19.15 19.15 19.15

1Adamas Intelligence, August 2022. 2 Ministry of Industry and Information Technology, China, 2022. 3 Global Witness, Heavy Rare Earths Supply Chain Risk; Illicit
IONIC RARE EARTHS minerals from Myanmar are the world’s largest source of supply. August 2022.
PAGE 9
 Geo-Political Tensions – Driving Demand for Alternative, Resilient Supply

GLOBAL DESIRE TO DEVELOP ALTERNATIVE RARE EARTHS SUPPLY CHAINS TO PROTECT MANUAFCTURING AND DEFENCE

“ Lithium and rare earths will soon be more important

than oil and gas. Our demand for rare earths alone
will increase fivefold by 2030. […] We must avoid
becoming dependent again, as we did with oil and
gas. […] We will identify strategic projects all along the
supply chain, from extraction to refining, from
processing to recycling. And we will build up strategic
reserves where supply is at risk. This is why today I am
announcing a European Critical Raw Materials Act.”

“ We have to build a more resilient supply chain ,

supporting projects and attracting more private
investment from mining to refining, processing and
recycling.”
“It’s a question of
supply-chain security” European Commission President von der Leyen
recalled some hard facts: without secure and
sustainable access to the necessary raw materials,
our ambition to become the first climate neutral
“DOE, DOD, and the Department of State signed a memorandum of agreement
continent is at risk.
(MOA) to better coordinate stockpiling activities to support the U.S. transition to
clean energy and national security needs.” 14 September 2022

White House Briefing, 22 February 2022

Financial Times, The scramble for rare earths carries big geopolitical risks, 27 September 2022;
IONIC RARE EARTHS Politico, Pentagon suspends F-35 deliveries after discovering materials from China, 7 September 2022. PAGE 10
IonicRE aspires the build alternative supply from mine and recycling

DEVELOPING A SECURE, TRACEABLE, MAGNET AND HEAVY RARE EARTH SUPPLY CHAIN TO FACILITATE NET ZERO CARBON AMBITIONS

The Mine – Makuutu The Refinery – Unlock flow of The Basket – High Margin Sustainable REO Production,
REO to downstream partners Circular Economy via Recycling
Makuutu is one of very few One of the highest value REO
global ionic adsorption clay Opportunity to maximise baskets of all projects in ESG drive globally to source
(IAC) deposits with scale to move revenue from the Makuutu MREC development today sustainable critical raw
the needle on heavy rare earth product materials
33% magnet REOs used in EVs
oxide (REO) supply
Collaborate with end users on and wind turbines (Nd, Pr, Dy, Tb) Development of Ionic
MRE of 532Mt @ 640 ppm with development of secure and plus another 10% used in other Technologies to accelerate
significant Exploration Upside traceable REO supply chain magnetic applications (Sm, Gd, supply from secondary sources
Ho) via magnet recycling
Simple mining and low capex REOs  Metal  Magnets
processing to produce Mixed Rare 44% Heavy REOs (Sm to Y) Recycling magnet REOs presently
Focusing on potential in US
Earth Carbonate (MREC) makes up 40% of global magnet
market 93% of forecast value derived
REO supply chain, dominated by
No radionuclides from magnet REOs plus Y
China (>99%)1
Major future source of Scandium
production

IONIC RARE EARTHS 1 Wood Mackenzie, Global rare earths short-term outlook July 2022. PAGE 11
 Makuutu Rare Earths Project
Low Capital, Modular, Ionic Adsorption Clay Project

IONIC RARE EARTHS PAGE 12

Harnessing the wide appeal of the Makuutu Basket

MAKUUTU PROVIDES A UNIQUELY BALANCED BASKET RICH IN MAGNET AND HEAVY RARE EARTHS

MLA on RL 1693 – Stage 1 Makuutu is unique and Existing Infrastructure at Significant Exploration upside at
receiving global interest due to Makuutu Makuutu still to be realised
Greater Makuutu MRE currently
high quality balanced (magnet +
532 mt @ 640 ppm TREO, with • Highway and road access to Already one of worlds largest
HREO) basket
over 400mt Indicated Resource site plus rail Ionic Adsorption Clay (IAC)
Proven IAC, classified as medium deposits
Indicated Resource on RL 1693 • Nearby 132 kV power
Yttrium, high Europium deposit
presently ~ 259mt @ 740 ppm infrastructure with readily Highly prospective licence
TREO Discussions continue with other available low-cost hydropower EL00147 recently tested via RAB
groups looking to secure long- drilling with assays confirming
Strategic importance of • Cell phone communications
term magnet and heavy REO clay hosted REE mineralisation
Makuutu (51% IonicRE ownership available across site
supply present
moves to 60% on completion of
• Water available
FS ~ Oct 2022) Potential feed to standalone Rare Exploration Target revised
Earth Refinery demonstrating potential to
IonicRE has pre-emptive right on
double resource longer term
remaining 40% of Project One of less than a handful of
global projects that can produce New EL00257 to be tested in 2023
the molecules needed

IONIC RARE EARTHS PAGE 13

 Significant Advantages for IAC Mining/Processing vs Hardrock

Ionic Clay Rare Earth Elements Vs Hard Rock Rare Earth Elements
Ionic Adsorption Clay (IAC) deposit mineralisation is highly
Significant project and cost advantages associated with ionic clay projects like Makuutu
desirable given it produces a balanced REO basket dominant in
magnet & heavy REO with higher value and broader appeal
Mining & Processing Stages Ionic Adsorption Clay – Hosted REE Hard Rock – Hosted REE
Hard rock:
Soft material, negligible (if any) blasting
Mineralisation Bastnaesite and Monazite (LREO dominant);
Elevated HREO/CREO product content
Xenotime (HREO dominant) Near surface IAC mineralisation translates to lower strip ratios with
Low relative operating costs:
High relative operating costs:
lower cost mining methods
Surface mining (0-20m)
Mining Blasting required
Minimal stripping of waste material
Could have high strip ratios
Progressive rehabilitation of mined areas
No crushing or milling
IAC ores require much lower CAPEX intensity to produce refined
Simple process plant
Comminution, followed by beneficiation that often REOs
Processing Mining Site requires expensive (flotation) reagents to produce
Potential for static or in-situ leaching with low reagent mineral concentrate
at ambient temperatures
Mixed REE mineral concentrate (typically 20-40%
Mine Product Mixed high-grade Rare Earths precipitate, either oxide IACs produce value added Mixed Rare Earth Carbonate product,
TREO grade), high LaCe content, requires substantial
or carbonate (+90% TREO grade) for feedstock directly
processing before suitable for feed to rare earth higher grade and basket value
into Rare Earth separation plant, low LaCe content
separation plant
60-70% payability as mixed Rare Earth oxide/
Product Payability 30-35% payability as a mineral concentrate
carbonate
IAC product achieves approx. double the payability
Non-radioactive tailings
Tailings often radioactive (complex and costly
Processing - Environmental Solution treatment and reagent recovery requirements disposal)
(somewhat off-set by advantageous supporting
Legacy tailing management
infrastructure) IACs experience none of the radionuclide issues that plague
High temperature mineral " cracking" using strong hardrock LREO Projects
Processing - Refinery Simple acid solubilisation followed by conventional
REE separation reagents to solubilise the refractory REE minerals
(Typically, not on Mining
site) Complex recycling of reagents and water Complex capital-intensive plant (~$500m-$1B)
required Radionuclide issues follow REE mineral
Lower Capex (~$100-$200m) concentrates IAC separation and refining much lower CAPEX requirement

IONIC RARE EARTHS PAGE 14

The REE Basket Problem – the Solution requires HREE ‘Balance’

IONICRE THROUGH MAKUUTU CAN DELIVER UNIQUE HREE BALANCE TO WESTERN LREE PRODUCTION

IAC HREE mines complement hardrock LREE mines

Ionic Adsorption Clay (IAC) deposit mineralisation is highly desirable
in China, providing ‘balance’ to REE supply quotas
given it produces a balanced REO basket dominant in magnet & heavy
REO with higher value and broader appeal

Hardrock rare earth mines typically produce basket >90-95% LREE, i.e.
very low in HREE content

Very few true IAC deposits (<5) identified of scale outside of southern
China, Myanmar and south east Asia

Increased LREE production to facilitate oversupply, and potentially

suppress LREE prices, specifically NdPr

IAC HREE mines typically much lower production capacity than hardrock
LREE mines, however much higher value product

The rare earth solution for the future requires a balance; LREE readily
sourced but HREE is truly rare (hard to find)

IONIC RARE EARTHS PAGE 15

Tier-One Infrastructure already there – supports low CAPEX Development

EXCELLENT LOCAL INFRASTRUCTURE SUPPORTS LOW CAPEX DEVELOPMENT

LOGISTICS
Approximately 10 km from Highway 109,
connecting Makuutu to both capital city
Kampala and Port of Mombasa, Kenya
Approximately 20 km from rail line
connecting to Port of Mombasa

POWER
Large hydroelectric generation capacity
(+810MW) within 65 km of Makuutu Project
area will deliver very low-cost power
(US$0.05/kWh), plus further capacity being
developed
Existing electrical grid infrastructure
immediately adjacent to site to provide
stable power

WATER
Plentiful fresh water within and near project
area (water harvesting)

WORKFORCE
No camp required – low-cost professional
local workforce available

IONIC RARE EARTHS PAGE 16

Makuutu Mineral Resource Estimate  Mining Lease Application

MAKUUTU MRE CURRENTLY >500 MILLITON TONNES, FOCUS FOR MLA ON MAKUUTU CENTRAL ZONE (RL 1693)

JORC MRE1 of 532 million tonnes @ 640 ppm Total Rare Earths Oxide
(TREO), at a cut-off grade of 200 ppm TREO-CeO2

76% of Makuutu MRE now converted to Indicated Resource, at 404 million

tonnes at 670 ppm TREO

Increased resource confidence at Makuutu to support MLA focused on RL

1693 – contains 259 million tonnes an Indicated Resource of 259 million
tonnes at 740 ppm TREO-CeO2 1

Makuutu Central Zone (MCZ), provides a continuous resource area over

5.5km long and 3km wide for a combined 234 million tonnes or 44% of the
total resource and 52% of the total Indicated Resource

Other RLs and ELs will advance towards MLA as their Licences move to the TREO no
Estimation Tonnes TREO LREO HREO CREO Sc2O3
next renewal period (RL 00007 expected to progress to MLA in Nov 2024) Category
Domain (Mt) (ppm)
CeO2
(ppm) (ppm) (ppm) (ppm)
(ppm)

Indicated Clay 404 670 450 500 170 230 30

Shallow, near surface IAC mineralisation, with clay layer averaging 5 to 12m
thick under cover approximately 3m deep. Average hole depth ~18m, Inferred Clay 127 540 360 400 140 180 30

maximum clay thickness ~29m Total Resource Clay 532 640 430 480 160 220 30

IONIC RARE EARTHS 1 Makuutu Mineral Resource Estimate reported to ASX on 3 May 2022. PAGE 17
 Exploration Target Updated – Potential to Double Resource

EXPLORATION TARGET REVISED INDICATING SIGNIFICANT UPSIDE AT EL00147 PLUS NEW TARGET TO NORTH WEST (EL00257)

Updated Exploration Target1 reported

216 – 535 million tonnes grading 400 – 600 ppm

TREO*

*This Exploration Target is conceptual in nature but is based on

reasonable grounds and assumptions. There has been
insufficient exploration to estimate a Mineral Resource and it is
uncertain if further exploration will result in the estimation of a
Mineral Resource.

Longer term, numerous exploration targets

identified for drilling in 2023

• 67 RAB drill holes (Phase 3) announced in July 2021

confirmed extension of mineralisation east to
EL00147, between previous identified radiometric
anomalies, and to northwest (EL00257)

• Total tenement package ~ 300 km2 across 37km of

mineralisation trend

• Completed field exploration programs in Q3 2022

and mobilising additional scout drilling later in early
2023

IONIC RARE EARTHS 1 Makuutu Exploration Target reported to ASX on 1 June 2022. 2 Phase 3 RAB results announced 15 July and 20 July 2021. PAGE 18
ESG initiatives advancing at Makuutu

ESG FRAMEWORK TO BUILD LASTING LEGACY, DEFINING PATH TO NET ZERO CARBON RARE EARTH FOOTPRINT

Environmental and Social Impact Rehabilitation to consider Community Support Programs Community socio-economic
Assessment (ESIA) submitted in development of longer term identified baseline surveys across initial
December 2021, hearings industrial programs for project area underway
completed, approval pending employment Working together to build a
future where everyone has a Built a Ugandan team to drive
Focus on carbon footprint Aligned with Uganda’s 3rd pathway to health and Project activity in country
reduction using low cost National Development Plan opportunity
renewable (hydro) power (NDPIII) Community and Stakeholder
Establishment of an Advisory engagement ramping up
Minviro engaged to complete Life • Agricultural Programs to Committee to coordinate
Cycle Analysis (LCA) increase productivity Local support for sub-district
community development
health clinics during Covid-19
• Aquaculture and fish farming investment priorities
Rehabilitation plans to ensure net
positive climate legacy Resettlement Action Plan (RAP)
• Agroforestry Key focus being community
underway across RL 1693
health and education
Water treatment for reagent
recovery and rehabilitation Recently joined the UN Global
strategy Compact

IONIC RARE EARTHS PAGE 19

 Downstream Industries Empowered by IonicRE’s
Basket and the Supply Chain Opportunity

IONIC RARE EARTHS PAGE 20

 IonicRE Basket is a highly strategic basket with escalating forecast value

DOWNSTREAM PROCESSING TO REO AND VALUE ADDED PRODUCTS UNLOCKS SIGNIFICANT UPSIDE

REO Pricing
• IonicRE progressing & evaluating downstream REE
Makuutu (China)
separation and refining circuit – Scoping Study Rare Earth Oxide Basket Argus Metals
MAKUUTU BASKET CONTENT
expected late Q4 2022 Composition 29-Sept-2022 MAGNET & HEAVY REO PRODUCT
US$/kg
• Refinery Locations have been evaluated with a focus
La2O3 % 13.5% $ 1.35
now on the US supply chain
CeO2 % 13.5% $ 1.40 La2O3
• Exploring opportunities to value add beyond REOs Pr6O11
Y2O3 13.5%
% 5.5% $ 104.50 25.4%
through supply chain collaboration / partnerships
Nd2O3 % 23.2% $ 106.00
• MREC product typically has payability ~ 60-70%
Sm2O3 % 4.7% $ 2.55
(presently ~ US$40-$47/kg1) depending upon
Eu2O3 % 0.9% $ 28.50 CeO2
destination Lu2O3
Gd2O3 13.5%
% 4.4% $ 58.50 0.2%
• Refined REO payability increased to 100% (presently
Tb4O7 $ 1,830.00 Yb2O3
~US$66/kg1) % 0.6% 1.3%
Dy2O3 % 3.7% $ 323.00
• Makuutu current spot REO basket price ~38% lower Tm2O3
Ho2O3 $ 102.00 0.3%
than highs in Feb 2022 due to current global climate % 0.7%
Er2O3 $ 55.00 Er2O3
and slowdown in China % 2.0%
2.0% Pr6O11
Tm2O3 $ 850.00 5.5%
• 2030 forecast pricing of Makuutu REO basket % 0.3% Ho2O3
Yb2O3 $ 13.50 0.7%
between US$90/kg (downside case) to US$142/kg % 1.3%
Dy2O3
(upside case)5 – ex. Sc Lu2O3 % 0.2% $ 805.00 3.7%
Y2O3 $ 9.20 Tb4O7
• 2035 forecast pricing of Makuutu REO basket % 25.4% 0.6%
Sum Total Gd2O3
between US$123/kg (downside case) to US$155/kg 100%
4.4% Eu2O3
Magnet REO % 43% Nd2O3
(upside case)5 – ex. Sc Light REO2
0.9%
Sm2O3 23.2%
% 56%
4.7%
• Scandium upside represents potential increase of 20- Heavy REO3 % 44%
25% additional revenue potential from Makuutu LOM Critical REO4 % 54%
Basket Value US$/kg $ 66.03
Note. Rounding Applied to nearest 0.1%.

IONIC RARE EARTHS 1Based upon current Chinese spot REO pricing. 2 Light REO = La, Ce, Pr, Nd. 3 Heavy REO = Sm, Eu, Gd, Tb, Dy, Ho, Er, Tm, Yb, Lu, Y.
outlook to 2035, September 2022.
4 Critical REO = Nd, Eu, Tb, Dy, Y. 5 Adamas Intelligence Rare Earth Magnet PAGE 21
IonicRE Basket – Forecast Demand driving long term appreciation

Forecast demand for magnet REOs plus Yttrium driving long term pricing forecast for the Makuutu Basket

5.4% 23.2% 4.7% 4.4% 0.6% 3.7% 0.7% 25.4%

Makuutu Magnet REO content Makuutu Magnet REO content used in other magnet Makuutu Y content
used in NdFeB magnets applications (SmCo), and some substitution in NdFeB (Gd & Ho) used in F-35s

IONIC RARE EARTHS Adamas Intelligence PAGE 22

 China Dominates Global REE Separation & Refining Capacity

ALL HEAVY RARE EARTH ROADS LEAD TO CHINA …. UNTIL NOW

Global heavy REO separation

and refining capacity operated NPM Silmet
Estonia
and controlled by China1 Light Rare Earth
Separation and Refining
Northern Rare Earths
Bayan Obo (Inner
Small capacity identified in Mongolia)
Light Rare Earth Separation
Vietnam and Refining

Minmetals
Several Provinces
Light and Heavy Rare Earth
HREO separation and refining Separation and Refining
plants under consideration
but none in construction yet Chinalco
Several Provinces
Light and Heavy Rare Earth
Separation and Refining

IonicRE evaluated a number Xiamen Tungsten

Fujian
of global locations to base Thailand Light and Heavy Rare Earth
heavy rare earth refinery Light Rare Separation and Refining
India Rare Earth
Separation Southern Rare Earths
Earths Limited Jiangxi and Sichuan
and Refining
Light Rare Earth Light and Heavy Rare Earth
Separation and Refining Separation and Refining
Vietnam
IonicRE to advance Rare Light and Heavy Rare Earth Guangdong Rare
Earth Refinery to Magnets Separation and Refining
Light REO Capacity Earth Group
Initiative (including Guangdong
Recycling) to sell product to Heavy REO Capacity Light and Heavy Rare
Earth
partners in EU and US Lynas Rare Earths Separation and Refining
Malaysia
Light Rare Earth Separation
and Refining

IONIC RARE EARTHS 1 Argus Analytics. PAGE 23

REE Supply Chain and IonicRE Capability to date

IONICRE ADDING CAPACITY TO BECOME INTEGRATED IN FUTURE RARE EARTH SUPPLY CHAINS

1. Makuutu Rare Earths Project 2. IonicRE Refinery 3. Magnet Recycling

• Low Capital, modular development enables • Under Evaluation now assessing potential • Low capital development to recycle spent
IonicRE to bring on highly sought-after economics  Scoping Study due Q4 2022 magnets and swarf to produce separated
basket of REEs and refined 99.9%+ REOs
• Targeting separation of MREC from
• Expandable with free cash flows and Makuutu to produce refined REOs for • Near term magnet REO production
growing market demand downstream conversion to metals and capacity (Nd, Pr, Dy and Tb – potential for
alloys through collaboration / partnerships Sm, Gd, Ho)
• MLA on RL1693 planned for late 2022
• Potential to receive MREC feed or HREO • Modular recycling plants located in
• Expecting ML granted early 2023
products from other producers numerous jurisdictions
• Commencing operations in 2024

IONIC RARE EARTHS Rare Earth Magnets and Motors: A European Call for Action A report by the Rare Earth Magnets and Motors Cluster of the European Raw Materials Alliances. PAGE 24
 Standalone Refinery to unlock value of balanced basket REOs

DEVELOPMENT SUPPLY CHAIN TO PRODUCE REOs OF INCREASING DEMAND AND DECREASING SUPPLY

• Rare earth separation and refinery facility developed to take REO Production
Rare Earth
advantage of long life, secure and traceable supply source from Capacity1 Major Applications and Uses
Element
Makuutu (t/annum)
Battery alloys, metal alloys, auto catalysts, petroleum refining, polishing
• Plan to ramp up to ~ 4,000 tonnes per annum of REO1 Lanthanum (La) 580
powders, glass additives, phosphors, ceramics, and optics
• Long life potential producing a basket with suite of individual Battery alloys, metal alloys, auto catalysts, petroleum refining, polishing
Cerium (Ce) 550
REEs that will appreciate long term powders, glass additives, phosphors, and ceramics

• Increase of Makuutu MRE  extension of life  increased appeal to Praseodymium (Pr) 220
Permanent magnets, battery alloys, metal alloys, auto catalysts, polishing
powders, glass additives and colouring ceramics
go downstream
Permanent magnets, battery alloys, metal alloys, auto catalysts, glass
• Potential to source additional REO feed stocks (as heavy MREC Neodymium (Nd) 1,000
additives and ceramics
products) by other REE mines for additional revenue generation Samarium (Sm) 180 Magnets, ceramics, and radiation treatment (cancer)
• Inclusion of magnet recycling increased Nd, Pr, Dy and Tb Europium (Eu) 35 Phosphors, optical fibres, flat panel displays
production capacity longer term Gadolinium (Gd) 170
Ceramics, nuclear energy, and medical (magnetic resonance imaging X-
rays)
• Facilitate the value of the refined REOs into downstream industry Permanent magnets for high temperature applications, fluorescent lamp
Terbium (Tb) 25
phosphors, defence applications
• Opportunity for OEMs to participate in secure and traceable
supply chain Dysprosium (Dy) 140 Permanent magnets, defence
Holmium (Ho) 30 Permanent magnets, nuclear energy and microwave equipment
• Various industrial opportunities to create JVs in new industrial Erbium (Er) 75 Nuclear energy, fibre optic communications, and glass colouring
applications
Thulium (Tm) 11 X-rays (medical) and lasers
• Maximise revenue upside from development of the Sc market Ytterbium (Yb) 65 Cancer treatment and stainless steel
Lutetium (Lu) 10 Age determination, medical and petroleum refining
Battery alloys, metal alloys, phosphors, catalytic converters, ceramics and
Yttrium (Y) 1,000
defence
High strength, low weight aluminium scandium alloys, solid state energy
Scandium (Sc) 120
storage, 3D printing, high intensity lighting

IONIC RARE EARTHS 1 Nominal capacity aligned with Makuutu Scoping Study production capacity. PAGE 25
IonicRE Vision – Facilitating Manufacturing

DEVELIVERING MAGNET & HEAVY REO SUPPLY CHAIN TO CREATE NEW INDUSTRY AND JV’s

• Through the availability of long-life, low-cost MREC from Makuutu, IonicRE

aiming to develop relationships with key industry participants to generate
EU and US based manufacturing activity
• Initial focus on permanent magnets used in Electric Vehicles, Offshore Wind
Turbines and Defence
• Expanded out shortly after to cover other magnet REO applications with
Sm, Gd and Ho
• Longer term focus in heavy rare earth growth opportunities
• Niche heavy rare earth applications and high-end technologies –
communications, medical, laser optics
• Providing a secure and traceable supply of magnet and heavy rare earths –
Seeds of Technology – to facilitate new R&D to propagate new applications
and innovations with partners
• Development of new age alloys for new technologies - Aluminium-
Scandium alloys in light weighting transportation
• Facilitating Life Cycle ownership of Rare earth processing
• Magnet recycling and redeployment of magnet REOs back to new high
quality, high intensity applications

IONIC RARE EARTHS PAGE 26

 Magnet Recycling and the
Circular Economy of Rare Earths

IONIC RARE EARTHS PAGE 27

Ionic Technologies – NdFeB Magnet Recycling

DEVELOPING CAPACITY ON RARE EARTH SEPARATION, REFINING AND RECYCLING

• IonicRE advancing Ionic Technologies (formerly Seren Technologies), a leading magnet recycling technology company,
based in Belfast UK, a spin out from Queen University Belfast (QUB)
• Unique recycling technology that can hydrometallurgically extract, separate and refine magnet REOs from spent
magnets and swarf to high purity 99.9%+ oxides – Nd2O3, Pr6O11, Dy2O3 and Tb4O7
• Recently awarded grant of £1.72 million (~ A$2.9 million) from the UK Government’s Innovate UK Automotive
Transformation Fund Scale up Readiness Validation (SuRV) program, to develop a demonstration scale magnet recycling
plant, a significant step towards securing the UK supply of critical rare earth metals for EV manufacture
• 16,000 tonnes of rare earth permanent magnets are exported from China to Europe each year, representing approximately
98% of the EU market
• Provide springboard to accelerated rare earth production capacity, with potential to commence magnet REO production at
small scale in 2023 whilst Makuutu is being developed and ramped up and in parallel to the development of the Refinery
• Potential to facilitate collaboration / partnership agreements on downstream supply chain from REOs  RE metals  RE
alloys  NdFeB magnets

MIXED GRADES OF WASTE 100% RECYCLED INDIVIDUAL HIGH SPECIFICATION PERMANENT

PERMANENT MAGNETS RARE EARTH OXIDES MAGNETS FOR E-DRIVES

IONIC RARE EARTHS PAGE 28

Ionic Technologies – NdFeB Magnet Recycling

RECYCLING OF MAGNET REO DOMINATED BY CHINA, MAKES UP 40% OF EXISTING GLOBAL SUPPLY

ROW
1%
120

REO Production, Annual (ktpa)

100

80

60

40

20

China
0
99%
2021 2022 2023 2024 2025 2026

Refined magnet REO Recycled magnet REO

Secondary sourcing (recycling) of rare earth Current breakdown and forecast to 2026 of global magnet REO
oxides market share dominated by China production by refined vs recycled sources globally

IONIC RARE EARTHS Wood Mackenzie, Global rare earths short-term outlook July 2022. PAGE 29
 Facilitating the automotive rEVolution
33% Magnet REOs required for Permanent Magnet drives for EVs

IONIC RARE EARTHS PAGE 30

 Electric Vehicles – Sales Ramping up Faster

EV SALES GROWING FASTER THAN PRIOR FORECAST

• Global governments mandate change with ICE to be banned in several countries from 2025,
with significant changes expected in Europe where demand driven by government incentives
will see it overtake China by 2030 as largest market for EVs
• US announced target of 50% EV penetration by 2030 – ICE ban from 2035 in California
• EV sales accelerating at higher growth than previously forecast 20% CAGR to 2026 then 10% CGR
to 20321
• 2021 EV sales doubled that of 20201
• Forecast EV Penetration1 to grow significantly over the next 20 years
• 1.5% in 2020  12.5% in 2030  45% in 2040
• EV fleet growth forecast at 27% per annum from 2020 (13 million EVs) to 2030 (140 million EVs),
then 15% per annum to 2040 (565 million EVs)1

Global EV Sales Forecast 1

EVs Sold (millions per

35
30
annum)

25
20
15
10
5
0
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032

China Europe USA ROW

1 Argus Analytics, April 2022;

IONIC RARE EARTHS PAGE 31
 Electric Vehicles – Driven by NdFeB Magnets

PERMANENT MAGNETS USED IN EV’s REQUIRE ~4-8% DyTb TO OPERATE AT CONDITIONS REQUIRED

• Worldwide EV demand driving insatiable

appetite for NdFeB (Permanent magnets)
• NdFeB magnets are essential for producing
light, compact and high efficiency traction
motors. Approx. 28-32% of the NdFeB
magnet is magnet NdPr, with DyTb used as
a minor additive (~4-8%) to improve
magnet performance at high temperatures1
• NdPr receives substantial focus, but DyTb
largely overlooked
• Adding DyTb to the increases the coercivity
of the motor, enabling the motor to operate
at much higher temperatures (from 150oC
to up to 240oC), and greater efficiency, than
motors with only NdPr (max temp 80oC) Permanent magnets
containing Nd, Pr, Dy & Tb

An exploded view of a permanent-magnet electric-vehicle traction

(propulsion) motor. The rare-earth-containing magnets are embedded in the
rotor.

1 Pavel, et al., Role of substitution in mitigating the supply pressure of rare earths in electric road transport applications, 2017;
IONIC RARE EARTHS 2 David Kramer; Physics Today 74, 20-24 (2021), American Institute of Physics. PAGE 32
 Facilitating Offshore Wind Capability
IonicRE basket producing all the Nd, Pr, Dy and Tb required for offshore wind turbines

IONIC RARE EARTHS PAGE 33

Land Constrained – Go Offshore

COUNTRIES ADOPT OFFSHORE WIND TURBINES TO REACH CO2 TARGETS

2021 world offshore wind turbine The International Renewable Energy

capacity was 48 GW1 Agency (IRENA) also has a 1000GW
ambition by 2050.

McKinsey Global Energy Perspective 2021

Argus1 estimates an additional 235 GW
estimated that to reach the Accelerated
of installed offshore wind turbine
Energy Transition target of limiting global
capacity to be added by 2030  25% warming to 1.5oC, over 1,240 GW of offshore
CAGR for the remainder of the decade wind capacity to be installed by 2050.3

In its 2019 World Energy Outlook, Ambitious target announced in

the International Energy Agency (IEA) December 2020, Ocean Renewable
Sustainable Development Scenario has up to Energy Action Coalition (OREAC) calling on
570GW of offshore wind in 2040. If achieved, the governments to up their offshore renewable energy
world would be on track to reach about 1000GW ambition to achieve the coalition’s vision of 1,400 GW
in 20502. of offshore wind by 2050.

IONIC RARE EARTHS 1 Argus analytics, October 2021; 2 Ocean Renewable Energy Action Coalition, The Power of our Ocean, December 2020; 3 McKinsey Global Energy Perspective 2021. PAGE 34
No DyTb – No Offshore Wind Turbine Capacity

THE BASICS – HOW MUCH REO IS REQUIRED PER MW OF OFFSHORE TURBINE CAPACITY?

Rare earth elements and boron (B) are essential for turbine designs that Most direct-drive turbines, but also to different extents certain
employ permanent magnets (NdFeB). The HREOs Dy2O3, Tb4O7 and in technical designs with gearboxes, are equipped with permanent
some cases Ho2O3, can be substituted to improve the operability of the magnet generators, which contain NdPr and smaller quantities of
NdFeB magnets. Adding these HREOs helps the high temperature DyTb. On average, a permanent magnet contains 28.5% NdPr, 4.4%
direct drive turbines maintain their magnetic characteristics1. DyTb, 1% B and 66% Fe and weighs up to 4 tonnes for a 6MW offshore
Substitution is not an option. direct drive wind turbine2.

HALIDE* 150-MV OFFSHORE WINE TURBINE

• Each 6 MW4 of offshore direct drive wind turbine

capacity requires ~ 1,700 kg magnet REOs;

• ~210 kg/MW Nd2O3 x 6 MW = 1,260 kg Nd2O3

• ~42 kg/MW Pr6O11 x 6 MW = 254 kg Pr6O11

• ~20 kg/MW Dy2O3 x 6 MW = 117 kg Dy2O3

• ~8 kg/MW Tb4O7 x 6 MW = 49 kg Tb4O7

1Roskill, Rare Earths: Outlook to 2030, January 2021; 2 European Commission, Raw materials demand for wind and solar PV technologies in the transition towards a de-carbonised energy
IONIC RARE EARTHS system, 2020; 3 Li et al., One Earth 3, Critical Rare-Earth Elements Mismatch Global Wind Power Ambitions, 2020; 4 Haliade 150-6MW turbine by GE Renewable Energy @GErenewables; PAGE 35
 Wind Turbines keep getting BIGGER!

BIGGER TURBINES TO GENERATE MORE POWER, INCREASE CAPITAL EFFICIENCY

• Direct Drives have become the technology of choice for offshore wind turbines, where low
maintenance cost is crucial, and where lower wind speed locations are now being explored
• Application of Direct Drive turbines do not use a gearbox, and are cheaper to make, lighter,
more reliable and have lower maintenance costs
• Direct Drive turbines achieve a better conversion of the spinning blades and rotor to
electrical energy, especially in lighter winds
• The adoption of low-speed Direct Drive turbines is dependent upon NdFeB permanent
magnets (PM), essential for producing light, compact and high efficiency generators
• Larger turbines in development to increase overall power generated from wind farms
• Increase in Offshore Wind Turbine unit capacity is driven by an overall desire to improve
overall economy of scale  driving down cost for each MW or power produced

IONIC RARE EARTHS Visual Capitalist; Argus Analytics, April 2022. PAGE 36
 Facilitating Defence Capability
IonicRE basket – Heavy Rare Earth Strategic Appeal for Defence Applications

IONIC RARE EARTHS PAGE 37

Magnet & Heavy REO crucial in Defence Applications

DEFENCE HREO SUPPLY CHAIN – PROVIDING SECURE SOURCE OPTION TO FACILITATE BUILDING STOCKPILES

Makuutu Basket ~73% used in Defence

Applications
La2O3
13.5%

Y2O3
25.4%
Y2O3 used in F-35
presently sourced
from IACs in southern
Lu2O3
China and Myanmar 0.2%
CeO2
13.5%
Yb2O3 Lockheed Martin F-35 Lightning II
1.3% Joint Strike Fighter
Tm2O3
0.3%
Er2O3
2.0%
Ho2O3 Pr6O11
0.7% 5.5%
Dy2O3
3.7%
Tb4O7
0.6%
Gd2O3
4.4% Eu2O3
0.9% Sm2O3 Nd2O3 LREO
4.7% 23.2% HREO

IONIC RARE EARTHS https://www.defenseworld.net/feature/33/US_Companies_Threatened_With_Sanctions_May_be_Denied_Chinese_Rare_Earth_Materials#.YIZ_mJAzYuU PAGE 38

Magnet & Heavy REO crucial in Defence Applications

DEFENCE HREO SUPPLY CHAIN – MAKUUTU POTENTIALLY SUPPLIES IT ALL US Navy Virginia Class Submarine

• Numerous Magnet & HREO materials are used in defence applications in the engines, disk drive motors, radar
of the aircraft, fin actuators in missile guidance and control systems, control devices in tanks, missile systems, command and
control centres; lasers, interrogators, underwater mines, countermeasures, satellite communications, radar, and sonar on
submarines and surface ships, optical equipment and speakers, components in anti-missile defense systems, satellites and
night vision devices among others.
• REE metals used in F-35 fighter (417kg); Virginia-class submarine (4,170kg); and Arleigh-Burke guided missile destroyer
(2,360kg).
• Terfonal-D is a rare earth alloy made of Tb, Fe and Dy that is used in high-power sonar on ships and submarines.
• Stealth helicopters also use Terfenol-D speakers in their noise cancellation technology blades and NdFeB magnets.

PRODUCT / APPLICATION RARE EARTH ELEMENT (REE) USAGE

F-35 Lightning II joint strike fighter Y Jet engine

ATHENA laser weapon system Er, Yb, Nd Optical fibres in fibre laser module Lockheed Martin F-35 Lightning II
Joint Strike Fighter
Tomahawk missile Combination of Nd, Pr, Dy, Tb, Sm Fin actuators in missile guidance and control systems, GPS, sensors

Joint Direct Attack Munition (JDAM) guided bombs Combination of Nd, Pr, Dy, Tb, Sm Fin actuators in missile guidance and control systems, GPS, sensors

AN/ALQ-184 Electronic Attack Pod Y Electronic jamming devices, storage batteries

Zumwalt-class destroyer Nd, Pr, Dy, Tb, Sm Electric motors

HUMVEE military truck Y, Eu, Tb Humvee-mounted Laser Avenger

F-16, F-15, F-22 Er, Sm Jet engine, Electric systems- permanent magnets

M1A2 Abrams tank Sm, Eu, Nd, Tb, Y Navigation system, Laser-equipped computer main gun sight

Stinger MANPAD Combination of Nd, Pr, Dy, Tb, Sm Fin actuators in missile guidance and control systems, GPS, sensors

Precision-guided munitions Combination of Nd, Pr, Dy, Tb, Sm Fins attached to fuselage, special magnets

PATRIOT missile air defence system Gd, Sm, Y Radio frequency circulators

MQ-9, MQ-1 Predator drones Y, Tb Laser Weapon System

IONIC RARE EARTHS https://www.defenseworld.net/feature/33/US_Companies_Threatened_With_Sanctions_May_be_Denied_Chinese_Rare_Earth_Materials#.YIZ_mJAzYuU PAGE 39

Magnet & Heavy REO – IonicRE Production Delivers Every Need

US Navy Virginia Class Submarine

 La  Sm  Tb
 Pr  Eu  Lu
 Nd  Dy  Y

Lockheed Martin F-35 Lightning II

Joint Strike Fighter

Rare Earth Elements in National Defense: Background, Oversight Issues, and Options for Congress, 23 December 2013
IONIC RARE EARTHS https://www.defenseworld.net/feature/33/US_Companies_Threatened_With_Sanctions_May_be_Denied_Chinese_Rare_Earth_Materials#.YIZ_mJAzYuU
(https://sgp.fas.org/crs/natsec/R41744.pdf)
PAGE 40
 Heavy Rare Earth Dominant
IonicRE basket – 44% Heavy Rare Earths deployed in high end applications

IONIC RARE EARTHS PAGE 41

 Key HREO Applications without Substitute – New Supply Required

HREO USED IN HIGH END FOR NICHE APPLICATIONS – NO SUBSTITUTION FOR REOS IN SPECIFIC APPLICATIONS

MRI Machine PET Scan NdFeB and SmCo permanent magnets Erbium is a key input into enabling 5G technology

• IAC mines in southern China and Myanmar produce approximately • Critical applications REE are essential for electronic devices as
95% of the worlds production of HREO permanent magnets (PM) in speakers, computer components, global
• Export Control Ban implemented by China on 1 December 2020 now positioning systems (GPS), sonar, defence systems and lasers – will start
focused on prioritising Chinese consumption and strategic to see this flow through to consumer item availability and cost
stockpiling • Er is a key input into enabling 5G technology – Erbium doped fibre
• High-value niche medical applications such as amplifiers (EDFA) are used to compensate the loss of an optical fibre in
long-distance optical communication and can amplify multiple optical
• Magnetic Resonance Imaging (MRI) machines using Gd; signals simultaneously. No Erbium, No 5G.
• Positron Emission Tomography (PET) imaging using Lu; • Nuclear power plant use Sm-Co permanent magnets, and Dy & Er in
• X-rays, Solid-state lasers, optical isolators and microwave neutron-absorbing control rods, plus other applications using Eu, Gd and
equipment using Er, Ho, Tm, Yb, Y; Ho

IONIC RARE EARTHS PAGE 42

 Key HREO Applications – Fibre Laser outlook to 2030

GLOBAL FIBRE LASER MARKET VALUE ESTIMATED TO REACH US$8.42 BILLION BY 2030 (CAGR 14.5%)

• Global fiber laser market value estimated to be US$2.23 Billion in 2020

• Optical fibers used in the fiber laser are doped with rare earth metals such as Yb, Er, Nd, Tb and Eu.
• Fibre lasers are optically pumped devices mostly used with laser diodes (uses REE) amplify the produced light. Fiber lasers has a large surface-to-volume
ratio (heat dissipation is relatively easy). Laser is comparatively smaller and lighter in weight than traditional lasers
• Widely used in number of industrial manufacturing processes: marking, metal cutting and welding of automotive and aircraft components.
Technological advancements, rapid improvement in infrastructure coupled with research and development in this field have contributed to the growth
of the market.
• Automotive industry (growing demand of EVs) vital for the growth of fibre laser market.
• Growing demand for compact, cost-effective lasers along with widespread adoption of fibre lasers into numerous new industries are also anticipated to
propel the market growth.

IONIC RARE EARTHS Fiber Laser Market by Type, by Application - Global Opportunity Analysis and Industry Forecast, 2021 - 2030 PAGE 43
 Scandium Upside
IonicRE basket – Scandium to unlock new industries and ’Blue Sky’

IONIC RARE EARTHS PAGE 44

 Makuutu is one of the largest global Scandium resources… and
growing

2ND LARGEST GLOBAL SCANDIUM RESOURCE REPORTED

Dalur (Rosatom)
Kovdor (EuroChem) Deposit Metals: U, Sc
Deposit Metals: FeO, Phosphate
Scandium Resource: unknown
Scandium Resource: unknown
Project Status: Producing
Key to the success of the Project Status: Producing
Production: unknown
Production: unknown
scandium industry is a
diverse and reliable supply Bayan Obo (Inner Mongolia)
Deposit Metals: REE
chain Scandium Resource: unknown
Project Status: Producing
Production: ~5tpa Sc2O3
While historically the
scandium market has China (several suppliers)
Deposit Metals: TiO2 waste
been dominated by Scandium Resource: unknown
Chinese supply, there are Project Status: Producing
Production: ~10tpa Sc2O3
companies producing
scandium or actively Taganito (SMM)
developing scandium Deposit Metals: Ni, Co, Sc
Scandium Resource: unknown
supply Elk Creek (Niocorp) Project Status: Producing
Deposit Metals: Nb, Ti, Sc Production: 7.5tpa Sc2O3
Scandium Resource: 15,500t
Project Status: Financing
The Makuutu Rare Earths Ramu (CMC)
Deposit Metals: Ni, Co, Sc
Project’s scandium Scandium Resource: unknown
Sorel Tracy (Rio Tinto)
endowment and time to Deposit Metals: TiO2 waste SCONI (Australian Mines) Project Status: Producing

market make it a key Scandium Resource: unknown

Project Status: Development
Deposit Metals: Ni, Co, Sc
Scandium Resource: 1,400t Sunrise (Clean TeQ)
future global player in the Target Production: 3tpa Sc2O3 Project Status: Financing Deposit Metals: Ni, Co, Sc
scandium market Scandium Resource: 17,500t
Nyngan (Scandium Intl) Project Status: Financing
Deposit Metals: Ni, Co, Sc
Crater Lake (Imperial Mining) Scandium Resource: 4,000t
Scandium market Deposit Metals: Sc, REEs
Makuutu Project Status: Financing
expected to grow very Scandium Resource: to be defined
Project Status: Advanced Exploration Deposit Metals: REE, Sc
quickly once stable supply Scandium Resource: 15,690t +
Flemington (Australian Mines)
Deposit Metals: Ni, Co, Sc
is demonstrated Project Status: Feasibility Study underway Scandium Resource: 1,100t
Project Status: Scoping Study

IONIC RARE EARTHS PAGE 45

Applications with Aluminium in Light-weighting Transportation

The need for light-weighting solutions has dramatically increased the adoption of aluminium alloys in transportation. Stricter efficiency
standards, the advent of the electric vehicle and the emergence of new sectors are accelerating uptake, generating new opportunities for
aluminium alloys, like Al-Sc alloys, to strengthen its position as a key material for the future

AUTOMOTIVE AEROSPACE SPACE MARINE RAIL

Aluminium content in Aluminium is well-established While historically niche sub- Due to its high strength and Like aerospace, aluminium
vehicles has been steadily in aerospace, with most sector of aerospace, the high corrosion resistance, has had a long history with
increasing, driven by stricter airplanes constructed of commercial space industry aluminium alloys are a rail, widely used in both
efficiency and emissions aluminium alloys. While represents a fast-growing growing material of choice freight and passenger cars
requirements carbon fibre materials are sector where aluminium has a for shipbuilding
long, deep-rooted history Aluminium provides ~30-
lighter, they are more
Aluminium is displacing high- 35% weight reduction over
expensive, have a higher Rockets use a range of ‘Marine grade’ aluminium is
strength steel (HSS), a lower steel and does not corrode,
maintenance cost and require aluminium alloys in propellant 100 times less prone to
cost and heavier competitor, leading to a much longer
costly metals (such as tanks, providing a strong, corrosion than its steel
in several components service life
titanium) to be used in lightweight material which can counterpart2
The electric vehicle (EV) concert. More advanced operate over large temperature High-speed trains realise
‘Marine grade’ aluminium
revolution is dramatically aluminium alloys can provide ranges the greatest benefit from
alloys are both strong and
accelerating aluminium’s comparable low-cost aluminium, which require
Advanced aluminium alloys, weldable, which mean large
market share through new alternative to composites low weight and high-
combined with 3D printing, sections of ships can be
parts (e.g. battery boxes) and strength to minimise
The next aerospace provide the space industry a constructed with no joints or
the need to increase vehicle friction loss
aluminium alloys will be unique opportunity to mass bolts, which reduce corrosion
range. EVs have 35-50% more
strong and weldable, produce reusable rockets and and the risk of water ingress
aluminium than internal
removing the need for rivets, satellites
combustion engine vehicles1
providing enormous weight
saving

1 Aluminium Content in European Passenger Cars, Ducker Frontier presentation prepared for European Aluminium, Oct 2019, range depending on vehicle category
IONIC RARE EARTHS 2 Aluminium in Transport, www.aluminiumleader.com/application/transport PAGE 46
 Ionic Rare Earths Limited
Level 1, 34 Colin Street
West Perth WA 6005 Australia

www.ionicre.com.au
[email protected]

T +61 8 9481 2555

F +61 8 9485 1290

IONIC RARE EARTHS PAGE 47