Appia Rare Earths & Uranium : 1st Quarter Management's Discussion & Analysis ended December 31, 2022

APPIA RARE EARTHS & URANIUM CORP.

(formerly "APPIA ENERGY CORP.")

MANAGEMENT'S DISCUSSION AND ANALYSIS

For the three months ended December 31, 2022

Appia Rare Earths & Uranium Corp.

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December 31, 2022

Management's Discussion and Analysis - December 31, 2022

As of February 22nd , 2023

The following management's discussion and analysis ("MD&A") of the financial condition and results of operations of Appia Rare Earths & Uranium Corp. ("Appia" or the "Company") constitutes management's review of the factors that affected the Company's financial and operating performance for the three months ended December 31, 2022. The MD&A was prepared as of February 22nd 2023 and should be read in conjunction with the unaudited condensed interim financial statements for the three months ended December 31, 2022, the ("Financial Statements") and the audited financial statements for the year ended September 30, 2022, including the notes thereto. Unless otherwise stated, all amounts discussed herein are denominated in Canadian dollars. These Financial Statements of the Company have been prepared in accordance with International Financial Reporting Standards ("IFRS") as described in Note 2 to the Financial Statements.

Appia is a Canadian mineral exploration company listed on the Canadian Securities Exchange under the trading symbol "API", and in the USA the shares commenced trading on the OTCQX platform as "APAAF" on June 14, 2022. Graduating to the OTCQX marks an important milestone, demonstrating its qualifications and building visibility among U.S. investors. In Germany the shares trade under the symbols A0I.F, A0I.MU and A0I.BE. Appia is focused on the rare earth element ("REE") deposits at Alces Lake, particularly high priced "critical REE's", and on exploring high-grade,near-surface uranium deposits in the Athabasca Basin area.

ALCES LAKE HIGH-GRADE REE PROJECT

On February 16, 2023 Appia announced that additional claims had been staked at Alces Lake, bringing the total area to 38,522 contiguous hectares (95191 acres) with rare earth elements and gallium mineralization in the Athabasca Basin area, northern Saskatchewan.

All geochemical assay results from the 2022 exploration drilling and exploration program have been received and are being analysed and studied for the 2023 summer program.

2022 Highlights:

• Record metreage (17,481 metres) drilled in 2022
• Additional delineation drilling on the high-grade mineralization in the Wilson, Richard, Charles, Bell sites ("WRCB") discovery including previously undrilled monazite targets at Danny and at Wilson/Wilson North
• Initial delineation drilling on the discoveries at Magnet Ridge and Magnet Ridge West included 44 holes and a total 7,344 metres drilled
• First drilling on highly prospective anomalies at the West Limb
• Drilling on the Western Anomaly at Sweet Chili Heat, Diablo and Buffalo to follow-up on 2021 assay results

In June 2022, complete WRCB assay results from its 2021 drilling program were announced and the discovery of a massive new rare earth element ("REE") bearing zone in the WRCB area of Alces Lake. Additional assay results from 2021 drilling in the Western Anomaly area of the Alces Lake claims block were announced in July 2022.

2022 Highlights:

• Wilson 21-WRC-014 intersected 15.81 wt% TREO over a drilled width of 3.67m within a broader interval of 6.99m @ 11.70wt% TREO
• Wilson 21-WRC-016 intersected 24.30 wt% TREO over a drilled width of 1.93m within a broader interval of 3.19m @ 15.38wt% TREO and 17.85 wt% TREO over a drilled width of 2.69m within a broader interval of 11.6m @ 5.71wt% TREO
• Richard 21-WRC-053 intersected 17.12 wt% TREO over a drilled width of 1.08 metres within a broader interval of 4.29m @ 5.19wt% TREO
• High grade, at or near surface mineralization at WRCB is now correlated along strike length for 100 metres
• New discovery of the AMP zone, which is continuous from surface to a down plunge extent of 300 metres and remains open. The true width of the mineralized zone is known to exceed 10 metres

In the 2022 drilling program, a total of 37 holes were drilled into WRCB to continue delineation of the high-grade REE mineralization and also delineate previously undrilled targets in Danny (adjacent to WRCB) as well as additional drilling into the Wilson/Wilson North zone. New WRCB drilling also extended the trend of the REE mineralization by approximately 120 metres along strike to a total of 280 metres of strike-length mineralization. The WRCB accumulation remains open in both the northwest and southeast directions.

The most significant new drilling area in 2022 was in the Magnet Ridge, located approximately 1.5 kilometres south-southeast of WRCB on a well defined regional geologic corridor. A total of 34 holes (5,318 metres) were drilled into the primary Magnet Ridge

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December 31, 2022

target that outcrops on surface. A nearby (and possibly geologically related) prospect on Magnet Ridge West saw another 10 holes (2,025.9 metres) drilled. The rocks in these two prospects appear to be geologically similar to the 2021 discovery AMP zone at WRCB, which also outcrops on surface.

Drilling on-trend and in-between WRCB and Magnet Ridge was also conducted, with 5 holes and 1,044 metres of drilling done, primarily at the Strocen prospect.

Keying off results in the WRCB-Magnet Ridge trend on the eastern limb of the large regional fold at Alces Lake, Appia conducted the first drilling program on the previously undrilled West Limb. Six holes with a total of 1,014.9 metres were drilled and encountered indications of elevated radioactivity. Lastly, drilling of five holes was conducted on the Western Anomaly. Following up on the 2021 assay results for this new exploration area, two holes (393 metres) were drilled at Sweet Chili Heat, two holes (393 metres) at Diablo and one hole (166.5 metres) at Buffalo. Mineralization was encountered in all three target areas and assay results will be analyzed and evaluated once received.

On December 6, 2022, the Company announced the receipt of assay results from the prospecting program carried out on the West Limb zone south of the Magnet Ridge zone. Grab samples from outcrops included into following results:

• 36.11 wt.% TREO from samples of massive to semi-massive monazite in outcrop at West Limb
• 3.34 wt.% TREO from a mineralized biotite shear zone at West Limb
• 4.34 wt.% TREO from visible monazite in a shear zone south of the Magnet Ridge zone
• 2.03 wt.% TREO from visible monazite discovered in the Western Anomaly.

Following the results of the 2021 aerial geophysics survey, Appia more than doubled the acreage of the Alces Lake claims blocks. Appia expects to report on a total 4,864-line km of high resolution radiometric and aeromagnetic surveys over three previously unsurveyed sections of the Alces Lake block. The northwest portion of the block has a planned 2,152-line km, the south portion of the block will have 2,487-line km surveyed, and the eastern side of the claims block will have an additional 225-line km collected. The survey results are being analysed.

Bulk Sample Extraction

As part of a metallurgical collaboration with CanmetMINING focused on beneficiation testwork for the Alces Lake Rare Earth Project, the Company in May 2022 extracted a bulk sample from the Alces Lake discovery. The primary focus for the test program is to optimize and enhance the development of an Alces Lake Project flowsheet and to confirm other material testwork that has been previously conducted by other parties on the Alces Lake monazite.

Federal R&D assistance is provided through a collaboration agreement with CanmetMINING, under their Critical Minerals Research, Development and Demonstration program. This program targets research and development for upstream critical minerals processing and aims to stimulate the development of battery and permanent magnet value chains in Canada.

The test work is anticipated to include grinding, flotation, magnetic separation, ore sorting, and dense medium separation (DMS). CanmetMINING scientists will work closely with the Company and its consultants for mineral processing. The objective is to design and execute a comprehensive and optimal testing approach that will produce a high-grade rare earth mineral concentrate from the Alces Lake mineralized material.

A total of 0.9 tonnes of mineralized material was extracted from the Alces Lake Deposit with 0.6 tonnes shipped to SGS Canada's Lakefield facility in Ontario for crushing and sizing ahead of test work. The remainder of the sample will be shipped at a later date. Upon completion of the preparatory work, the sample will be shipped to CanmetMINING for the test programs.

CanmetMINING is a science and technology branch of the Lands and Metals sector of Natural Resources Canada, is a world- class leader in the development and deployment of green mining innovation technologies. Much of its research is undertaken in partnership with industry, provincial governments, other federal departments, universities and international agencies.

CanmetMINING's $47.7M Critical Minerals RD&D Program was funded through the Federal Budget 2021 to develop domestic critical raw materials value chains, and position Canada as a global supplier of choice for critical mineral products. R&D is focused on 3 key priority research areas: battery minerals, the Mining Value from Waste Program (MVfW), and rare earth elements and other critical minerals. This collaboration with Appia under the REE and other critical minerals area seeks to advance the production of permanent magnet raw materials in Canada.

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December 31, 2022

ALCES LAKE SUMMARY

Appia's 2022 drilling program included drilling significantly deeper holes to determine continuity at depth and along the identified REE mineralization trends, as the Company works toward making a maiden resource estimate in accordance with NI 43-101 requirements.

The Alces Lake project encompasses some of the highest-grade total and critical* REEs and gallium mineralization in the world, hosted within a number of surface and near-surface monazite occurrences that remain open at depth and along strike.

• Critical rare earth elements are defined here as those that are in short-supply and high-demand for use in permanent magnets and modern electronic applications such as electric vehicles and wind turbines (i.e: neodymium (Nd), praseodymium (Pr), dysprosium (Dy) and terbium (Tb)).

The Alces Lake project is in northern Saskatchewan, is in the same Canadian province that is developing a "first-of-its-kind" rare earth processing facility in Canada (currently under construction by the Saskatchewan Research Council, with the Monazite Processing Unit scheduled to become operational in 2023). The Alces Lake project area is 35,682 hectares (88,173 acres) in size.

The exploration program for the summer of 2023 is currently being planned, including geological, geophysical and geochemical surveys in priority areas of a 20 to 25 km-long structural corridor from the main mineralized zones at the WRCB and immediate area.

Athabasca Basin Uranium Properties

In January 2022 Appia announced the acquisition of contiguous new mineral claims in the Athabasca Basin area, northwest Saskatchewan. Portions of the newly acquired Otherside claims block were previously held by Appia.

The Otherside claim block is 27,291 contiguous hectares (67,437 acres) located approximately 50 kilometres south of Fond du Lac. The claims were staked on the basis of similar geological and geophysical signatures to the Company's Loranger property as well as other known high-grade,large-tonnage uranium deposits in the Athabasca Basin including Fission Uranium Corp's Triple R deposit, NexGen Energy's Arrow deposits and others. Otherside straddles a 40 km long corridor hosting multiple discrete conductors with associated magnetic gradients and gravity lows, within the north central Athabasca Basin.

Appia now holds a total of 75,315 hectares (186,107 acres) of land on four uranium claim blocks (Otherside, Eastside, North Wollaston and Loranger).

On November 2, 2022, the Company reported on the helicopter-bornegamma-ray spectrometry and VTEM geophysical survey on the North Wollaston uranium property. Appia acquired 951-line km of VTEM data and 867 line km of radiometric data within an area of 174 km2 revealing characteristic features of basement hosted type uranium deposits of the eastern Athabasca Basin. There is an abundance of historic uranium anomalies on the property. Data integration and 3D modelling is in process for identifying drill targets.

Uranium and REEs Outlook

The trade war between the USA and China is jeopardizing the availability of critical REEs. The Company's Alces Lake project contains some of the highest-grade total critical REE mineralization in the world.

A shortage of critical REEs has developed, largely a result of the increase in electric vehicle production. China continues to control the pricing of REEs. Some of the REE concentrates is imported, processed in China to final form and re-exported.

Since the coup in Myanmar in February 2021 the Chinese are illegally mining across the border in areas controlled by a junta- sponsored militia. Myanmar is China's largest, rare earth source. In 2020 Myanmar accounted for 35,500 tons of concentrates, 74% of Chinese imports of rare earths for refining, processing and sale around the world. Around ten rare earth mines have opened illegally across an uncontrolled border in Myanmar, with considerable environmental damage and pollution of the rivers.

For the supply of critical REEs required by the defence industry and for electronics, Washington is working on plans to reduce the dependence on China for the supply of critical REEs. There is a growing cooperation between Canada and USA in finding and producing REEs in North America, a long-term objective. A bipartisan bill was introduced in the American Senate which would force the US defence contractors to avoid use of China-sourced rare earth metals; it would also seek to create a strategic stockpile in the US.

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December 31, 2022

Cameco is reactivating the shut down McArthur River uranium mine over a period of time. Operations at Cigar Lake, the world's largest single largest uranium mine are increasing. Cameco is using its inventory of mined uranium and is expected to continue purchasing on the spot market this year in order to satisfy its contractual delivery requirements and reported an increase of only 41% in its average realized price over the same period in 2021 due to the impact of fixed price contracts.

The uranium demand forecast shows an increase from China, and known supply sources are projected to be unable to match demand. Industry opinion is that long term contract prices of US$60 per pound is needed before any new mining project advances. The spot price is currently around US$50 per pound. The World Nuclear Association recently projected an annual production shortfall of 50 million pounds in the near future, but there is still idle production capacity available at this time.

The political stability of countries supplying the US with uranium and REEs has caused concern in the United States, as it relies on imports of uranium for reactors and for the supply of REEs required by the defence industry, for electronics and high strength magnets needed in the electric vehicle and wind farm applications.

Ontario Properties

Appia holds over 13,008 hectares (32,143 acres) encompassing five mineralized zones in the Elliot Lake area of northern Ontario. The zones are called Teasdale, Banana Lake, Canuc, Bouck Lake and Buckles Lake. The Elliot Lake area produced some 360 M lbs. of U3O8 from 13 underground mines between 1955 and 1996 and is the only mining camp in Canada that had significant historical commercial REE production.

No work has been carried out in recent years, as the current market price for uranium oxide does not yet warrant additional work at this time.

The Company is considering the next stage of the Teasdale exploration and evaluation. The longer-term outlook for uranium prices is positive and the successful recovery of the REEs, particularly the critical elements of the total rare earths encountered, is very encouraging. Factors favourable for the project include the following:

• new mine infrastructure development would be in brownfield areas already disturbed by industrial and mining activity;
• water, electrical, transportation and communications infrastructure are in place or close at hand;
• the recovery of uranium from Elliot Lake ore is well known. Based on Teasdale Lake test results, the recovery of REEs appears to face no significant technical uncertainties;
• Appia is not responsible in any manner for potential future environmental impacts arising out of historical mining operations or waste disposal; and,
• The Cameco uranium refinery is located approximately 60 km away, near Blind River.

Results of Operations

The Company spent $345,138 on deferred evaluation expenditures in the three months ended December 31, 2022 (2021 - $2,944,931). The very large decrease reflects the extension of the 2021 drilling program to December 2021.

Total general and administrative expenses for the three months ended December 31, 2022, were $642,971 compared to $328,087 in 2021, higher due to an increase in non-cashshare-based compensation to $373,823 (2021 - $144,283), an increase in professional fees to $59,810 (2021 - $41,841), investor relations to $85,506 (2021 - $68,461) and management fees and salaries to $68,163 (2021 - $44,541).

The Company's net loss and comprehensive loss for the three months ended December 31, 2022, was $642,039 (2021 - $322,538).

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