Rainbow Rare Earths Regulatory News (RBW)

Rainbow Rare Earths Limited

("Rainbow" or the "Company")

(LSE: RBW)

12 February 2021

Assay Results from Phalaborwa Indicate 0.5% TREO Grade, Confirming the High-Grade Nature of the Mineralisation

Rainbow Rare Earths Ltd is pleased to announce the first batch of assay results of the auger drilling programme completed at the Phalaborwa Rare Earths Project ("Phalaborwa" or the "Project") located in South Africa, which confirm:

· Average in situ grade of 0.50% total rare earths oxide ("TREO").

· Average in-situ combined grade of 0.15% Neodymium and Praseodymium ("NdPr") oxide, representing 29.7% of the TREO grade reported in the rare earths basket.

· 29.7% NdPr represents one of the highest weightings of NdPr in a rare earths basket of any project in the world.

These initial results, received from 178 of the 708 total samples from the 1,056-metre drilling programme, demonstrate the expected homogenous nature of the rare earth mineralisation in the gypsum stacks. They are also supportive of previous indications from the Sasol sample and test work programme.

Results are included in a table below. Further assay results will be announced shortly, followed by the estimation and publication of an JORC (2012) Mineral Resource Estimate within the estimated +/-35 million tonne gypsum stacks.

George Bennett, CEO, said: "These assay results go a long way to confirming the substantial tonnage and value of the Phalaborwa Rare Earths Project in terms of both in-situ grade and the consistency of the high value NdPr content in the rare earths basket. The results also demonstrate extremely low levels of radioactive elements present in the stacks, substantially below the low radioactive levels which we have seen to date for other rare earth projects globally. This factor simplifies the optimised processing flow sheet from Sasol's initial pilot plant flow sheet, developed to extract the rare earth mineralisation from the gypsum. These assays also highlight the environmentally advantageous characteristics of the Phalaborwa project, which we believe will position Rainbow as a leading example of a 'green' rare earth Company, producing the elements required for the clean energy revolution.

These are very high grades for a low-cost project of this type, which is potentially homogenous in nature, with minimal geological uncertainty, no waste stripping requirements and where the gypsum, which is already in a 'cracked' chemical form, is ready to process. The results further underscore Phalaborwa's potential to drive Rainbow's strategy to become a globally-significant producer of rare earth metals."

For further information, please contact:

Qualified Person

Mr Malcolm Titley, an independent consultant, full time employee of Maja Mining Limited and Competent Person as defined by the JORC Code. Mr Titley has visited the Phalaborwa site, reviewed the auger drilling programme, visited the analytical laboratory and approved the information contained in this announcement. Malcom Titley is a Member of both the Australasian Institute of Mining and Metallurgy and Australian Institute of Geologists.

Notes to Editors:

Rainbow's strategy is to become a globally-significant producer of rare earth metals. NdPr are vital components of the strongest permanent magnets used for the motors and turbines driving the green technology revolution. Analysts are predicting demand for magnet rare earth oxides will grow substantially over the coming years, driven by increasing adoption of green technology, pushing the overall market for NdPr into deficit.

The Company's Gakara Project in Burundi, which produces one of the highest-grade concentrates in the world (typically 54% TREO) through ongoing trial mining operations, is currently the only African producer of rare earths. The Gakara basket is weighted heavily towards NdPr, which account for over approximately 19.5% of the contained TREO and 85% of the value of the concentrate.

The Phalaborwa Rare Earths Project, located in South Africa, comprises approximately 35 million tonnes of gypsum tailings stacked in unconsolidated dumps derived from historic phosphate hard rock mining, containing rare earth elements with an initial estimated average in situ grade of 0.6% TREO, based on previous sampling campaigns, of which +/- 30% comprises high-value NdPr. The rare earths are contained in chemical form in the gypsum dumps, which is expected to deliver a higher-value rare earth carbonate, with lower operating costs than a typical rare earth mineral project.

Assay results: