Reach Resources : Strategic Investment into Rare Earth Element Recycling

For personal use only

21 March 2022

REACH RESOURCES MAKES STRATEGIC INVESTMENT INTO CUTTING-EDGE

RARE EARTH ELEMENT RECYCLING BUSINESS

• Strategic investment of $1.8M into REEgenerate Pty Ltd, an Australian private company that owns 100% of the Coconut Club REE exploration project in Quebec, Canada and has an option to acquire 100% of REEcycle Inc, a US based Rare Earth Element (REE) separation and technology Company
• REEcycle has developed a process that has the potential to reclaim nearly all rare earth elements in discarded NdFeB magnets with a recovery efficiency demonstrated in pilot testing in excess of 99%
• The patented process developed at the University of Houston uses a proprietary solvent to safely and efficiently extract REEs from scrap with low temperatures, low pressures, and minimal energy needs and waste
• In pilot testing, REEcycle's technology has demonstrated an ability to safely extract 15 of the 17 rare earth elements found in discarded permanent magnets in electronic waste from its pilot plant in Houston, Texas
• NdFeB magnets will be sourced predominantly from end-of-life wind turbines, electric vehicles, electric bikes and electronic waste
• REEcycle aims to provide an alternative option to traditional mined sources of rare earth metals as well as reduce supply chain uncertainty and geopolitical risk for companies reliant on these materials
• REEcycle won top honours for the US Department of Energy's ("DOE") National Clean Energy Prize, and has received cash awards from the National Science Foundation ("NSF"), DOE, and top US universities
• REEgenerate has established a high-powered Board comprising of leading industry experts Ashley Zumwalt-Forbes and Daniel Marmadou, and Advisory team including Mick McMullen, and founder Casey McNeil
• The global permanent magnet market size was valued at USD$17.85 billion in 2018 and is projected to reach USD$34.70 billion by 2026, exhibiting a CAGR of 8.7% during the forecast period 1 , with the rare earth metals component being valued at US$5.3 billion in 2021 with only 1% of REEs sourced from recycled end of life products 2
• Shanghai Metals Market (SMM) forecast recycling of NdFeB magnets is likely to be the largest growth of neodymium and dysprosium supply from 2021 to 2025
• Reach Resources raises $2.4M in new equity to fund its investment in REEgenerate and the development of its existing mineral resource exploration projects

• Advanced Materials: Permanent Magnets Market, 2020.

• Drobniak, A., and Mastalerz, M., 2022, Rare Earth Elements-A brief overview: Indiana Geological and Water Survey, Indiana Journal of Earth Sciences, v. 4.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

Reach Resources ("Reach" or "Company") is pleased to announce that it has made a strategic investment of $1.8M into REEgenerate Pty Ltd ("REEgenerate"), an Australian private company that owns 100% of the Coconut Club REE exploration project in Quebec, Canada. REEgenerate has an option to acquire 100% of REEcycle Inc ("REEcycle"), a US based Rare Earth Element (REE) separation and technology Company.

REEcycle was established to create a dependable, renewable, secure source of rare earth elements, to reduce uncertainty for companies reliant on these materials. REEcycle has developed a cutting edge process that has the potential to reclaim 15 of the 17 rare earth elements locked inside of discarded NdFeB magnets with a recovery efficiency of greater than 99%. The patented process uses a proprietary solvent to extract REEs safely and efficiently from scrap with low temperatures, low pressures, and minimal energy needs and waste.

The REEcycle team has strategically concentrated on the recovery of neodymium and dysprosium, two REE's that are ranked highest in both importance to clean energy and in supply risk. From 2014 to 2016, REEcycle won top honours and national awards at business plan competitions hosted by many top universities. In late 2014, REEcycle won all three top prizes at the U. S. Department of Energy's National Clean Energy Prize Competition.

Figure 1: REEcycle Separation Technology

In pilot testing, REEcycle has been able to achieve up to 99.8% separation/recovery efficiency of pure rare earth elements from the other materials in the magnet (Iron and Boron). The process is carried out at atmospheric pressure, under mild temperatures, producing water (pH 6) which contains Iron and Boron at concentrations compliant with those specified by municipal sewage treatment systems. Rare Earth Oxide (REO) concentrate exists in carbonate form but can easily be converted to an oxide.

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

Figure 2: REEcycle Flow Sheet

REEcycle PROCESS

● Extracts using Metal-organic Frameworks (MOFs)

● Uses controlled temperatures < 100 °C ● Uses autogenous pressure

● REEs selectively grouped in crystalline structure

● Allows for simple gravity separation ● Leaves behind no acidic waste

PROCESS ADVANTAGES	ENVIRONMENTAL BENEFITS
●	High Selectivity	●	Low Temperature Requirements
● Ease of REE Isolation	●	Low Disposal Costs
●	Purity of Raw Materials	●	Low Hazardous Waste
		●	Low Energy Consumption

Figure 3: REEcycle Technology Characteristics

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

REEcycle aims to provide an alternative option to traditional mined sources of rare earth metals as well as reduce supply chain uncertainty and geopolitical risk for companies reliant on these materials. Some benefits of this process include:

• New revenue stream from electronic waste
• Dependable, renewable, secure source of REEs
• Source REEs domestically
• Reduce landfill waste and support sustainable end-of-life process
• Truly circular and sustainable product
• Very low carbon footprint process.

REEcycle has received significant positive support from reputable sources like the Scientific American, stating "With their innovative (and proprietary) approach to recycling a pair of critical rare earth materials, the REEcycle team introduced the energy industry to an innovative way to turn waste into a domestic stream of rare earth elements."

Figure 4: REEcycle Strategy

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1

For personal use only

Figure 5: REEcycle vs Rare Earth Mining

Figure 6: Pilot Plant REE Output Breakdown per kg

Reach Resources Limited | Level 4, 216 St Georges Terrace, Perth WA 6000 | P: [phone]| web:reachresources.com.au

Email: [e-mail] | ABN 79 097 982 235 | ASX:RR1