Australian Rare Earths : New tenements secured in search for clay hosted rare earths

ASX ANNOUNCEMENT

29 March 2022

New tenements secured in expanded search for clay hosted rare earths

• • Leveraging the expertise developed during the past two-year assessment of the 100% owned flagship Koppamurra Project, AR3 has identified other highly prospective regions for clay hosted rare earth exploration within Australia

• • Three new areas have been added to the AR3 exploration portfolio:

  Woolgangie (Western Australia)

  • - A Joint Venture with Belres Pty Ltd (Belres JV) that includes two granted exploration tenements and five pending applications, 60km south-east of Coolgardie

  • - Previous drilling identified thicknesses up to 22m of anomalous rare earth element content in regolith under 10m of overburden

  • - AR3 has also submitted tenement applications immediately adjacent to those within the Belres JV, giving a total combined 2,200km2 of prospective exploration area

  Dalrymple (Queensland)

  • - Five exploration licence applications, centred 100km SW from Bowen in Queensland

  • - Exploration tenure dominated by rock suites containing high value prospective rare earth minerals, including Allanite

  • - 1,505km2 of highly accessible ground near existing road and rail infrastructure

  Massie Creek (Queensland)

  • - Granted Exploration Licence EMP 27952, roughly 200km WSW of Cairns, allowing for rapid on-ground evaluation of the prospect

  • - Nearby stream sediment sampling detected elevated REE that may originate from the igneous host rocks in the region

  • - 327km2 of prospective ground in a location with highly weathered clay potential

Australian Rare Earths Limited(ASX:AR3)('AR3' or the Company) is pleased to announce three new exploration areas, potentially hosting rare earth clay resources. Clay hosted rare earth resources are unique in providing a heavy rare earth content, without deleterious radioactive elements, in deposits that are close to surface, flat lying, and homogenous. Mining of these deposit types is usually simple open cut in soft ground with a low strip ratio, lending itself to lower capital and operating costs, with potential for rapid progressive rehabilitation.

Australian Rare Earths Limited ABN 73 632 645 302

ASX Code: AR3

Level 10, 111 Gawler Place Adelaide, SA 5000

Website:www.ar3.com.au Email:[e-mail]

Phone: [phone]

Woolgangie

A Joint Venture with Belres Pty Ltd ("Belres") for 7 exploration tenements plus 7 additional AR3 neighbouring exploration tenements, 60km south-west of Coolgardie, Western Australia. Known as the Woolgangie Rare Earth Element (REE) project, the ground comprises an area of 2,200km2 of exploration license recently granted or under application. This includes a 70km strike length of the Ida Fault zone, a major crustal suture zone that separates the Southern Cross Domain to the west and the Coolgardie Domain the east. The AR3 team considers the Woolgangie area prospective for REE exploration based on drilling that indicated significant zones of regolith (weathered granite) hosted REEs that were intersected in 2010, whilst drilling for nickel.

It appears that the zones of clay hosted REEs have been formed in the regolith via a supergene enrichment process and sourced from the underlying granite. Easy access to the tenements is available via bush tracks from the nearby camp site of Queen Victoria Rock.

Figure 1 - Cross Section Looking North, RC (WRC016) and RAB Drilling conducted by Mincor in 2009 / 2010 completed on now granted (Belres) tenement E 1501831

Intersections from Reverse Circulation (RC) drilling in the regolith included WRC0014 (22m @ 268ppm Ce, 230ppm La and 41ppm Y totalling 680ppm TREE) from 10m depth, and WRC0016 (26m @ 377ppm Ce, 209ppm La and 97ppm Y totalling 683ppm TREE) from 32m depth with other REE not yet assayed.

Recent assays of previous Rotary Airblast Drilling (RAB) spoil adjacent to the WRC0016 drillhole, shown in Figure 1 above, confirmed elevated levels of all REEs from 9 samples of weathered granite clay returning up

Australian Rare Earths Limited	Phone: [phone]
ABN 73 632 645 302	Email:[e-mail]
Level 10, 111 Gawler Place	Website:www.ar3.com.au
Adelaide, SA 5000

to 180ppm Nd, 27ppm Sm, 3ppm Gd, 14ppm Dy and 54ppm Y; with total REE oxides (TREO) of up to 1,582ppm from a single sample. The average TREO for the nine samples was 890ppm.

REO	La2O3	CeO2	Nd2O3	Sm2O3	Eu2O3	Gd2O3	Tb4O7	Dy2O3	Ho2O3	Er2O3	Tm2O3	Yb2O3	Y2O3	TREO
Hole_ID (Grab)	1.173	1.228	1.1664	1.1596	1.1579	1.1526	1.151	1.1477	1.1455	1.1435	1.1421	1.1387	1.27
RAB KWB083	115.0	260.3	68.6	10.1	1.0	6.0	0.9	4.9	0.9	2.4	0.3	2.4	23.6	496.4
RAB KWB082	222.9	352.4	70.8	9.3	0.8	5.5	0.8	4.4	0.8	2.1	0.2	1.8	19.3	691.0
RAB KWB082	278.0	499.8	124.8	17.6	1.6	10.6	1.6	8.1	1.4	3.7	0.5	3.0	36.4	987.2
RAB KWB082	287.4	498.6	124.8	17.6	1.5	10.6	1.5	7.6	1.4	3.5	0.5	2.8	35.8	993.6
RAB KWB081	173.6	310.7	79.1	11.0	1.0	7.4	1.1	6.4	1.1	3.3	0.4	2.8	30.6	628.5
RAB KWB080	462.2	785.9	206.5	29.8	2.6	19.1	2.5	13.0	2.1	5.3	0.6	3.6	49.3	1,582.5
RAB KWB084	221.7	356.1	86.3	12.9	1.4	9.5	1.4	8.7	1.7	5.1	0.7	4.8	48.8	759.2
RAB KWB085	161.9	305.8	83.7	13.3	1.4	9.5	1.4	7.5	1.4	3.5	0.5	2.7	36.8	629.3
RAB KWB085	355.4	702.4	210.0	31.7	3.5	22.1	2.9	15.7	2.7	6.6	0.7	4.6	69.2	1,427.7

Table 1 - Recent analysis of old Rotary Airblast Drilling (RAB) spoil, grab samples

Near surface weathered horizons of the Burra Granodiorite is the initial target area for regolith hosted REE exploration. The grab samples of this weathered horizon, detailed in Table 1 above, are currently being assessed for simple desorption and acid leaching of REEs.

Project	Tenement ID	Holder	Application Date	Grant date	Blocks	Area sq km
Woolgangie	E15/1798	Belres Pty Ltd	26/10/2020	18/03/2022	24	67.2
Woolgangie	E15/1831	Belres Pty Ltd	10/08/2021	18/03/2022	56	156.8
Woolgangie	E15/1834	Belres Pty Ltd	30/08/2021	pending	50	140
Woolgangie	E15/1842	Belres Pty Ltd	10/09/2021	pending	60	168
Woolgangie	E15/1898	Belres Pty Ltd	4/03/2022	pending	48	134.4
Woolgangie	E63/2202	Belres Pty Ltd	4/03/2022	pending	60	168
Woolgangie	E15/1899	Belres Pty Ltd	15/03/2022	pending	60	168
Totals:	358	1002.4
Woolgangie	E15/1868	WRDBD Developments Pty Ltd	8/12/2021	pending	70	196
Woolgangie	E15/1869	WRDBD Developments Pty Ltd	8/12/2021	pending	70	196
Woolgangie	E15/1870	WRDBD Developments Pty Ltd	8/12/2021	pending	64	179.2
Woolgangie	E15/1871	WRDBD Developments Pty Ltd	8/12/2021	pending	70	196
Woolgangie	E15/1872	WRDBD Developments Pty Ltd	8/12/2021	pending	70	196
Woolgangie	E15/1873	WRDBD Developments Pty Ltd	8/12/2021	pending	23	64.4
Woolgangie	E15/1874	WRDBD Developments Pty Ltd	8/12/2021	pending	61	170.8
Totals:	428	1198.4
Total:	786	2200.8

Table 2 - Woolgangie Project Tenement Schedule

Note: WRDBD Developments Pty Ltd is a wholly owned subsidiary of AR3

Australian Rare Earths Limited	Phone: [phone]
ABN 73 632 645 302	Email:[e-mail]
Level 10, 111 Gawler Place	Website:www.ar3.com.au
Adelaide, SA 5000

Figure2 - Woolgangie Project Location Plan, with Cross Section Location (RED)

Australian Rare Earths Limited ABN 73 632 645 302

Level 10, 111 Gawler Place Adelaide, SA 5000

Phone: [phone] Email:[e-mail] Website:www.ar3.com.au

Dalrymple

The acquisition of 5 tenements, 100km south-west of Bowen, Queensland. The ground comprises an area of 1,505km2 under Exploration Licence application.

A preliminary geological assessment of the region by AR3 identified the presence of felsic volcanics and large-scale alkali granites/granitoids, which are considered prospective for hosting REE. The minerals within these rocks are susceptible to weathering in tropical environments and could potentially mobilise REEs into the developing regolith profile.

Mapping and targeted geochemical sampling will provide insight to the potential for regolith hosted REE mineralisation. Ongoing assessment will be possible via easy access to the tenure area through existing roads and tracks.

Some of the targeted basement sequences are expected to have significant weathering profiles, as follows;

• • Marlborough Pocket Granodiorite, a pale pink hornblende, an Intrusive "Caldera" type magmatic chamber with identified Allanite mineralisation presenting as Priority target.

• • Expedition Pass Granite, a pale pink leucocratic biotite monzogranite, containing rare pegmatitic lenses, an Intrusive "Caldera" type magmatic chamber presenting as Priority target.

• • Leichhardt Range Granite, a pale pink to pink/grey granite, a Permo-Carboniferous leucocratic muscovite granite

• • The Bulgonunna Volcanics Suite, Felsites (Lavas, Clastic and Intrusive)

• • Pine Creek Granite, a pale pink/grey Monzogranite, Permo-Carboniferous

Tenement ID	Project	Holder	Application Date	Grant Date	Area km2	State	Total
EPM 28165	Dalrymple	3QRDBD Developments Pty Ltd	3/12/2021	Pending	301.5	QLD
EPM 28166	Dalrymple	2QRDBD Developments Pty Ltd	3/12/2021	Pending	321.2	QLD
EPM 28167	Dalrymple	4QRDBD Developments Pty Ltd	3/12/2021	Pending	249.9	QLD
EPM 28168	Dalrymple	5QRDBD Developments Pty Ltd	3/12/2021	Pending	311.2	QLD
EPM 28169	Dalrymple	1QRDBD Developments Pty Ltd	3/12/2021	Pending	321.4	QLD	1505.1

Table 3 - Dalrymple Project Tenement Schedule

Note: QRDBD Developments Pty Ltd is a wholly owned subsidiary of AR3

Australian Rare Earths Limited	Phone: [phone]
ABN 73 632 645 302	Email:[e-mail]
Level 10, 111 Gawler Place	Website:www.ar3.com.au
Adelaide, SA 5000