22 August 2022

Rainbow Rare Earths Limited

("Rainbow" or "the Company")

LSE: RBW

Rainbow enters into Rare Earths Extraction Master Agreement

Rainbow Rare Earths (''Rainbow'') announces that it has entered into a Master Agreement ("Agreement") with OCP S.A. ("OCP"), the Moroccan world leading producer of phosphate products, and Mohammed VI Polytechnic University ("UM6P"), a Moroccan university with a strong focus on science, technology and innovation, (together, the "Parties") to further investigate and develop the optimal technique for the extraction of rare earth elements from phosphogypsum.

Phosphogypsum contains rare earths as a by-product of phosphoric acid production. OCP together with the innovative research carried out by UM6P, have built up significant IP assets, know-how and expertise in the field of phosphogypsum processing. This provides a synergistic opportunity for joint development with Rainbow, given Rainbow's expertise and intellectual property on rare earths extraction and processing gained from work carried out to date at Phalaborwa completed with the separation technolog licensed from K-Technologies, Inc. ("K-Tech") , the process technologies company based in Florida, USA. OCP and UM6P will contribute with their respective expertise, including adapted complementary separation technologies.

The Parties intend to develop the optimal route for the extraction of rare earths from phosphogypsum, and the subsequent processing of these rare earths into separated elements. The Parties intend to work together on the development of pilot and industrial-scale extraction of rare earths from phosphogypsum.

Rainbow Rare Earths CEO, George Bennett, commented: "We are delighted to enter this Agreement with such innovative partners and believe their significant knowledge of phosphogypsum processing fits well with our own technical expertise in rare earths processing.

Recognising the enormous potential of phosphogypsum as a valuable source of rare earths, our team is focused on securing opportunities for both collaboration and expertise sharing, as well as gaining access to new supply as shown by our recently announced agreement with a diversified chemicals group in South Africa.

The successful global transition to clean energy is reliant on a considerable increase in supply of critical materials such as NdPr, required in permanent magnet technology, and we are therefore continually exploring the best way of producing rare earths responsibly from secondary sources, which removes significant time, risk and cost from the overall project timeline."

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.

**ENDS**

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About Mohammed VI Polytechnic University

Mohammed VI Polytechnic University is a pan-African hub of education, research, innovation and entrepreneurship, aspiring to become a solid bridge of knowledge between Morocco, Africa and the world.

Located in the "Mohammed VI Green City" in Benguerir, with branches in Rabat and Laayoune, UM6P applies a "learning by doing" approach and develops sound partnerships with world-wide class universities and industries, to promote leadership and training in focused research areas.

 UM6P specializes in different scientific fields including industrial management, mining, chemistry, engineering, agriculture, solar and renewable energy as well as social sciences.

About OCP S.A.

OCP is a major global company specializing in the mining, refining, processing, manufacturing, commercialization, marketing, and development of rock phosphate, phosphoric acid and phosphate-based fertilizers.

OCP and its Group has developed within its different departments and affiliates, significant intellectual propriety assets, know-how and expertise in innovative processes in the phosphate value chain, fertilizers and in the field of the Project.

Notes to Editors:

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

The Phalaborwa Rare Earths Project, located in South Africa, comprises an Inferred Mineral Resource Estimate of 38.3Mt at 0.43% TREO contained within gypsum tailings stacked in unconsolidated stacks derived from historic phosphate hard rock mining. High value NdPr oxide represents 29.1% of the total contained rare earth oxides, with economic Dysprosium and Terbium oxide credits enhancing the overall value of the rare earth basket in the stacks.  The rare earths are contained in chemical form in the gypsum stacks, which is expected to allow high-value separated rare earth oxides to be produced with lower operating costs than a typical rare earth mineral project.

The Company's Gakara Project in Burundi has produced one of the highest-grade rare earth concentrates in the world (typically 54% total rare earths oxides ("TREO")) through trial mining operations. The Gakara basket is weighted heavily towards NdPr, which account for approximately 19.5% of the contained TREO and 85% of the value of the concentrate. The Gakara project is currently on care and maintenance at the request of the Government of Burundi.