Lynas Rare Earths : 2021 Modern Slavery Statement

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13 January 2022

2021 MODERN SLAVERY STATEMENT

Lynas Rare Earths Limited ("Lynas") (ASX:LYC, OTC:LYSDY, LYSCF) releases its 2021 Modern Slavery Statement, consistent with its reporting under the Modern Slavery Act 2018.

Authorized by: Sarah Leonard, Company Secretary

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Further Enquiries

Media Relations:

Jennifer Parker or Lauren Stutchbury

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Investor Relations:

Daniel Havas

VP Strategy & Investor Relations

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

p [phone] | f [phone] | w LynasRareEarths.com | ACN 009 066 648

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Modern Slavery Statement 2021

Contributing to a sustainable future

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Contents

1.	Letter from Chairman and CEO	2
2.	Introduction	2

3. Reporting Criterion One & Two:

Structure, Operations & Supply Chains 4

4.	Reporting Criterion Three:
	Risks of Modern Slavery
	in Operations and Supply Chain	8
5.	Criterion Four:
	Actions to address Modern Slavery	12

1. Criterion Five: Assessing effectiveness 13
2. Criterion Six: Consultation

	with owned or controlled entities	13
8.	Criterion Seven: Collaboration	13

9. Modern Slavery Act 2018 (Cth)

Statement Annexure

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1. Letter from Chairman and CEO

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Lynas Rare Earths Limited (Lynas) is proud to present our second Modern Slavery Statement. This Statement for the year ending 30 June 2021 outlines the actions we are taking to address the risks of modern slavery in our own operations and in our supply chains.

The Group has policies and procedures in place to protect human rights and prevent modern slavery, however, we recognise that an issue of this size and complexity requires constant vigilance, assessment and improvement. This is a priority for Lynas and we look forward to updating you on our continued progress in FY22.

This statement was approved by the Board of Lynas Rare Earths Ltd on 20 December 2021 as the principal governing body of the Lynas Group which comprises Lynas Rare Earths Limited, Lynas Services Pty Ltd, Mt Weld Holdings Pty Ltd, Mt Weld Mining Pty Ltd, Lynas Kalgoorlie Pty Ltd, Lynas USA LLC, Lynas Malaysia Sdn Bhd, Lynas Africa Holdings Pty Ltd and Lynas Africa Limited.

Kathleen Conlon	Amanda Lacaze
Chairman	CEO & Managing Director
Lynas Rare Earths Ltd	Lynas Rare Earths Ltd
20 December 2021	20 December 2021

2. Introduction

Caring for and respecting our people and our communities is at the heart of everything we do

Lynas Rare Earths Limited ACN 009 066 648 (Lynas) is committed to protecting the human rights of all people with whom we have dealings, including our employees, our business partners and their families, and all people in the communities in which we operate.

We recognise that our responsibility to protect human rights and manage the risk of modern slavery applies to our own global operations as well as to our supply chains and we take this responsibility seriously.

Lynas understands that modern slavery can occur in every industry and sector and includes eight types of serious exploitation: trafficking in persons, slavery, servitude, forced marriage, forced labour, debt bondage, deceptive recruiting for labour or services, and the worst forms of child labour.

This Modern Slavery Statement has been prepared in line with the Australian Modern Slavery Act 2018 (Cth) and the UN Guiding Principles on Business and Human Rights.

Our Values

Lynas aims to be the supplier of choice for our customers and a leader in sustainably produced Rare Earths. Our vision and value lives through our people and the way we do business.

Lynas Rare Earths Ltd Modern Slavery Statement 2021

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Effects of the COVID-19 Pandemic

The COVID-19 pandemic continued to present challenges for businesses around the world during the 2021 financial year (FY21).

Commencing in October 2020, Malaysia experienced a significant third wave of COVID-19 infections and this continued throughout FY21. While cases recorded in Western Australia remained very low, Lynas' well-established health and hygiene protocols in both Malaysia and Western Australia were strengthened during the year to protect the health and wellbeing of our people and communities. This includes communication and education, disclosure and reporting, testing, physical distancing, hygiene and precautionary isolation procedures.

Due to our strong health and hygiene protocols, no workplace transmission of COVID-19 was recorded in FY21.

Lynas Malaysia participated in the Malaysian Government's Public/Private COVID-19 Industry Immunisation Programme and 99.9% of staff and 99% of contractors were fully vaccinated as at 13 October 2021.

On 5 October 2021, the Western Australian (WA) Government announced that FIFO and local workers on WA mining and resources sites, and people who work in remote operations or run critical infrastructure, must be fully vaccinated by 1st January 2022. A vaccination policy has been implemented in line with the WA Government's public health directions and Lynas has supported personnel to access vaccines where possible.

On-site supplier audits were once again affected by COVID-19 movement restrictions in FY21. However, desktop audits were completed with five of Lynas Malaysia's largest suppliers during the year.

COVID-19 related disruptions to some supply arrangements continued in FY21, including shipping delays and temporary shutdowns by some suppliers as a result of the pandemic. We continue to work closely with our suppliers to address the challenges caused by COVID-19.

Lynas also initiated regular COVID-19 testing of all staff and contractors to the Lynas Malaysia plant (at Lynas' cost). Lynas Malaysia recognised by relevant authorities for the company's leadership in COVID-19 protocols.

Lynas will continue to assess and address modern slavery risks in our operations and supply chains during FY22 and report on our progress in line with the Commonwealth Modern Slavery Act 2018 Guidance for Reporting Entities.

Case study 1: Supporting communities affected by COVID-19

The Lynas Malaysia team worked hard through the year to support local communities affected by a vigorous third wave of COVID-19 as well as extreme weather events. Over 1000 daily necessity packs were distributed to surrounding communities affected by COVID-19 and Lynas Malaysia donated over 2,700 bedding comforters to people affected by floods in January 2021.

Lynas Rare Earths Ltd Modern Slavery Statement 2021

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