Lynas Rare Earths : Mt Weld Drilling Confirms Continuous REE Mineralisation

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1 March 2022

MT WELD DRILLING CONFIRMS CONTINUOUS RARE EARTH MINERALISATION

Lynas Rare Earths Limited (ASX:LYC, OTC:LYSDY) is pleased to announce the results of a 1 kilometre deep exploration hole drilled in fresh carbonatite below the current Mt Weld life of mine design and ore reserve.

The results confirm continuous Rare Earth Element (REE) mineralisation along the 1020m drill core at an average grade of 2.22% REO, no cut-off grade applied. Apatite Zones at shallower depths show enriched REE grade (7m zone of 7.6% REO at 0m to 27m below the current pit floor and 23m zone of 13.67% REO at 42m to 62m depth below the current pit floor).

The successful completion of the 1 km deep diamond drill hole was announced on 2 August 2021. The drilling program was partially funded by the Western Australia Government Exploration Incentive Scheme (EIS).

The Mt Weld Carbonatite (MWC) is a sub-vertical cylindrical igneous intrusion approximately 3.6 kilometres in diameter. The MWC is concealed under a 25m thick layer of younger transported alluvial sedimentary cover. Prior to the sedimentation, a prolonged widespread lateritic weathering process over the Laverton geological region has concentrated REE minerals in the carbonatite's upper saprolite zone. The saprolite zone has variable thickness from about 80m to 120m below the surface. Lynas' current REE open pit mine is about 65m deep and is producing REE ore from the saprolite zone. Previous exploration activities focussed on the saprolite zone and shallow depths of less than 150m. The drilling of MWEX10270 was carried out to obtain a better understanding of the mineralogy and REE mineralisation within the fresh carbonatite below the Mineral Resource.

Analysis of samples obtained from the exploration drill hole have revealed:

• REE mineralisation was confirmed along the entire 1010m drillhole at an average grade of 2.22% REO, no cut-off grade applied
• The weathering process has significantly enriched the REE grade in the saprolite zone, due to the relative enrichment of monazite within the Apatite Zones. Apatite Zones at shallower depths show 27m of 7.6% REO (0m to 27m depth below the current pit floor and 65 to 92m below the surface) and 23m of 13.67% REO (42m to 62m depth below the current pit floor and 107 to 127m below the surface)
• All samples returned REE assay; the highest grade is 21.44% REO from 60m to 62.4m hosted in the apatite zone and the lowest grade is 0.17% REO in a 4m composite sample from 969m to 973m depth hosted in calcite-rich carbonatite
• The REE mineralisation continued beyond the end of the drillhole, with the last 4 meters of single metre samples analysed at an average grade of 1.47% REO from 1016m to 1020m
• Dolerite dyke emplacement has resulted in a metasomatic alteration / remelting zone in carbonatite from 600m to 800m depth, which has been identified in the MWC as favourable for relative enrichment of HREE
• Significant REE mineralisation observed is hosted within the dolomite and ankerite carbonatites of the upper 800m of the drill core.

The results reveal a large area of new exploration target in the fresh carbonatite below the zone of surficial weathering profile.

Lynas Rare Earths Ltd Level 1, 45 Royal St., East Perth, WA 6004

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Lynas will establish a new exploration program on the identified target. This program is an important element in continuing to develop the Mt Weld resource to meet growing demand for Rare Earth materials. Detailed metallurgical testing will be conducted on the drillcore samples to guide development of a suitable ore beneficiation process for producing ore concentrate from the transition and fresh carbonatite.

Lynas CEO and Managing Director Amanda Lacaze commented, "I'm delighted to announce the results of this 1km deep core drilling and analysis which show a large endowment of Rare Earth Elements below the current Mt Weld open pit mine. The Mt Weld ore body is remarkable in its geology including its REE enrichment. We are excited to establish a new, targeted exploration program with the goal of meeting accelerating customer demand for many years to come."

Further details of the latest drilling campaign are set out in the following pages.

Authorised by: Sarah Leonard, Company Secretary

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Background

On 2 August 2021, Lynas provided an update about the successful completion of 1020m deep core drilling into fresh carbonatite below the current Rare Earth Elements (REE) open pit mine. The exploration drilling program was partially funded by the Western Australia Government Exploration Incentive Scheme (EIS), 2020-2021. Under this scheme, the Western Australia Government reimburses half of the direct drilling cost to Lynas up to a maximum of $200,000. Lynas greatly appreciates the support of the Western Australia Government EIS scheme.

Exploration Drilling update

The drill hole was collared at the current mine floor which is about 65m deep from the general topography (425 m AMSL) of the area, refer Figure 1. Drill collar coordinates are below.

Table 1: Drill collar details

Drill Hole
ID	Grid MGA94
	Northing	Easting	RL	Depth	Dip	Azimuth
			metres	metres
MWEX102	6807114.8	455825.5	365	1020.40	-55° *	270⁰ *
70

Note *: Continuous downhole gyro survey was conducted through the drillhole to determine the accurate dip and azimuth of the drill hole trajectory for geological interpretation and modelling.

Table 2: Drillhole specifics

Depth		Size
From-	To-	Size	Hole diameter	Core diameter	Comment
metres	metres
0	92	HQ	96.1mm	63.5mm	Metal casing
					Downhole core
92	1020.4	NQ2	75.7mm	50.7mm	orientation mark was
obtained on NQ2
					core
Downhole Geophysics:

Multi-probe geophysical downhole wire line logging was conducted for the length of the drillhole. Multiple types of petrophysical data including rock density, electrical conductivity, Full Sonic Wave acoustic property, natural gamma, magnetic susceptibility, and structural orientation logs were collected. These proved very useful in obtaining an understanding of the lithologies observed in the drill core.

Geological insights from MWEX10270

The Mt Weld Carbonatite (MWC) is a sub-vertical cylindrical igneous intrusion approximately 3.6 kilometres in diameter. The MWC is concealed under a 25 m thick layer of younger transported alluvial sedimentary cover. Prior to the sedimentation, a prolonged lateritic weathering process has concentrated REE minerals in

Lynas Rare Earths Ltd Level 1, 45 Royal St., East Perth, WA 6004

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the carbonatite's upper saprolite zone. The saprolite zone has variable thickness from about 80m to 120m. Lynas' current REE open pit mine is about 65m deep and is producing REE ore from the saprolite zone. The MWC also hosts other ore deposits of niobium, tantalum and phosphates, refer Figure 3. Previous exploration activities focussed on the saprolite zone and shallow depths of less than 150m. The drilling of MWEX10270 was carried out to obtain a better understanding of the mineralogy and REE mineralisation within the fresh carbonatite below the Mineral Resource.

Core logging and sampling:

The complete drill core was orientated, metre-marked and photographed (wet and dry) before being preliminarily logged for both lithology and structure. Following this, geotechnical rock quality designation (RQD) measurements were collected. The core was then split into half and quarters. The half core was sent to the West Australian Government core storage facility in Perth while one quarter was sent to a commercial assay laboratory in Perth for geochemical analysis. 36 elements were analysed in each sample. Selected ~5cm pieces of this core were used in the mineralogical study. The remaining quarter has been retained by Lynas for future geological work.

Lithological observations:

Multiple geological domains were observed during the core logging of MWEX10270 and are summarised in Table 3. The drillhole started at the top of the apatite zone and transitional carbonatite zone which persisted until ~63m depth. There were observed stackings of apatite and transitional carbonatite zones, which likely represents multiple geochemical weathering zones caused by groundwater movement along rock joints and structural units.

Following this zone of weathered material was a long intersection of dominantly dolomite carbonatite from ~63m to 817m depth. There is substantial variation within this intersection. Two distinct thin dolerite dykes between ~653-670m are observed. This zone is characterised by a groundmass of medium to coarse grained ferroan dolomite with minor ankerite, accompanied by minor apatite and fine-grained (potentially secondary) amphibole. In areas there is evidence for significant hydrothermal activity and likely remobilisation of primary minerals; observed as narrow veins of calcite, pyrite, fluorite, graphite and re- mobilised REE minerals.

The dominant rock type encountered in the core transitions to a calcite carbonatite at 817m depth and continues until the end of drillhole (1024m). This calcite rich zone contains numerous small (<5m width) intersections of dolomite and ankerite rich carbonatite units. Enclaves of brecciated biotite-magnetite rock - interpreted to be phoscorite, occur from ~750m to end of hole, EOH. Varying concentrations, and speciation of REE minerals were observed, refer Figure 4. Identification of these minerals via visual inspection is difficult and petrographic studies were relied upon for mineral speciation.

Lynas Rare Earths Ltd Level 1, 45 Royal St., East Perth, WA 6004

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Table 3: Summary lithology log of MWEX10270

Lithology	From-	To-
metres	metres
Apatite zone	0	1
Transitional carbonatite	1	12
Apatite zone	12	23
Transitional carbonatite	23	24
Apatite zone	24	25
Transitional carbonatite	25	40
Apatite zone	40	62
Transitional carbonatite	62	63
Dolomite carbonatite	63	174
Fluorite-rich dolomite carbonatite with minor	174	239
dolomite carbonatite
Dolomite carbonatite	239	653
Dolerite with minor dolomite carbonatite	653	670
Dolomite carbonatite	670	732
Dolomite carbonatite with minor calcite	732	817
carbonatite and phoscorite enclaves
Calcite carbonatite with minor
dolomite/ankerite carbonatite and phoscorite	817	1020.4 (EOH)
enclaves

Mineralogical observations:

Twenty-five samples of carbonatite from MWEX10270 were selected from multiple geological zones in the quartered drillcore and catalogued and photographed, followed by the preparation of polished 30µm thick sections mounted on 25 x 75mm glass slides for microscopic analysis. These were used in a comprehensive mineralogical and petrological study under scanning electron microscope that utilised SEM, EDS and QEMSCAN methods in the Research School of Earth Sciences, Australian National University, Canberra.

Important findings are summarised below:

• Extensive REE mineralisation observed in majority of samples examined
• The dominant REE-bearing mineral present in samples shows progression with depth as: o Parisite (23.3-30.2m)
  o Monazite (71.1-445.1m)

Lynas Rare Earths Ltd Level 1, 45 Royal St., East Perth, WA 6004

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