Rainbow Rare Earths Ltd. provided an update on the feasibility of a processing facility to produce a high-purity cerium-depleted mixed rare earth carbonate from the Company's Gakara Rare Earths Project ("Gakara"). Metallurgical Engineering Technology and Construction (Pty) Ltd. ("METC") was engaged by Rainbow to re-validate and update a preliminary economic assessment ("PEA") conducted in 2015 by SGS Lakefield Canada Inc. ("SGS"), providing an optimised scoping study ("the study"). Highlights: The study has confirmed the feasibility of a 10,000tpa rare earths element ("REE") cracking plant (the "plant"), doubling its capacity from 5,000tpa, originally proposed in the SGS PEA, based on the Strong Acid Agitated Bake ("SAAB") process developed from the test work completed by SGS; METC optimised the process, incorporating newer technologies, to deliver a flowsheet capable of producing a high-grade cerium-depleted mixed rare earth carbonate, containing approximately 39% neodymium and praseodymium ("NdPr"), the critical input materials for permanent magnets required for electric vehicle ("EV") and wind turbine technology; The 2020 capital cost of US$35.2 million, estimated by METC, for a 10,000tpa plant (US$3,522 per tpa) compares favourably to the SGS 2015 estimate of US$22.3 million for a 5,000tpa plant (US$4,456 per tpa). The operating cost estimate produced by METC is US$1,279/t, compared to the original SGS estimate of US$1,654/t. This represents a 21% reduction in capital intensity and 23% in operating cost, providing an expected resilience to the project economics, even in the event of a volatile pricing environment; and The proposed plant location in South Africa would provide strong synergies with Rainbow's other rare earths project at Phalaborwa, contribute to the local economy and facilitate a sustainable, transparent rare earths supply chain. SGS originally successfully tested five process routes and developed a flowsheet based on a SAAB process to produce a cerium-depleted mixed rare earth carbonate from a 5,000tpa plant with a capital cost of $23 million. In December 2020, METC updated and optimised the scoping study, by reviewing and analysing the process design criteria from the SGS PEA. As a result, METC upgraded the processing capacity of the rare earths elements cracking plant from the originally proposed 5,000tpa to 10,000tpa. Based on the work carried out to date, the plant demonstrates low capital intensity of $35.2 million and operating costs of $1,279/t. By integrating the downstream processing of the Gakara rare earths concentrate into a cerium-depleted mixed rare earths carbonate into Rainbow's business model, the Company has the potential to participate in a larger segment of the overall value chain. The study identified South Africa as an optimal location for the processing plant. This would facilitate significant synergies for the Company, given the location of its Phalaborwa Rare Earths Project, near Pretoria in South Africa. By locating the processing plant within the industrial hub of Johannesburg, the study confirmed that Rainbow would realise cost efficiencies in the areas of reagents, power and transport. Whilst power consumption is not expected constitute a significant proportion of the overall operating costs, the use of renewable energy would be considered, in line with Rainbow's commitments as an environmentally responsible producer.