Rare Earths for Renewable Energy

June 2, 2023

Can you please provide a breakdown of the following data, explaining what the elemental symbols mean using a table, and what the uses of these elements are in a renewable energy / electric vehicle context. Can you please also provide me with any useful insights from the data or explanation provided in the text, with an "Explain it like I'm 5" summary. Text follows: 2. MT WELD RARE EARTH DEPOSIT MINERAL RESOURCES 2022 The Mineral Resource estimation for the Mt Weld Rare Earth Deposit is shown in Table 2, reported above a cut-off of 2.5% Total Rare Earth Oxides (TREO). TABLE 2: MT WELD RARE EARTH DEPOSIT MINERAL RESOURCES 2022 JORC CLASSIFICATION MILLION TONNES TREO % CONTAINED REO ‘000 TONNES Insitu Measured 16.5 7.5 1,241 Indicated 11.8 5.4 633 Inferred 25.9 3.6 937 Subtotal 54.2 5.2 2,812 On Stockpiles Measured 0.5 12 66 Subtotal 0.5 12 66 Total Mineral Resources Measured 17.0 7.6 1,307 Indicated 11.8 5.4 633 Inferred 25.9 3.6 937 Total 54.7 5.3 2,877 * TREO = Total Rare Earth Oxides (La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3) + Yttrium (Y2O3). Totals may not balance due to rounding of figures. Mineral Resources have been reported above a cut-off of 2.5% TREO. The Mineral Resources are inclusive of Ore Reserves. Note: The Mineral Resource estimation for the Mt Weld Rare Earth Deposit is as of June 30, 2022. The company confirms that all material assumptions and technical parameters underpinning the estimated Mineral Resources set out in the ASX announcement dated August 6, 2018 continue to apply and have not materially changed. The exceptions are the inclusion of stockpiled material as a Measured Resource. 3. NIOBIUM RICH RARE METALS MINERAL RESOURCES The Mineral Resource estimation for the niobium rich rare metals prospect referred to as the Niobium Rich Rare Metals Project is shown in Table 3. The Rare Metals Project is located at Mt Weld. TABLE 3: CLASSIFICATION OF MINERAL RESOURCES FOR THE NIOBIUM RICH RARE METALS PROJECT CATEGORY MILLION TONNES Ta2O5 % Nb2O5 % TLnO % ZrO % P2O5 % Y2O3 % TiO2 % Measured 0 0 0 0 0 0 0 0 Indicated 1.5 0.037 1.4 1.65 0.32 8.9 0.1 5.8 Inferred 36.2 0.024 1.06 1.14 0.3 7.96 0.09 3.94 Total 37.7 0.024 1.07 1.16 0.3 7.99 0.09 4.01 Mineral Resources and Ore Reserves 109Lynas Rare Earths Limited | 2022 Annual Report Notes: 1. All figures are percentages. Ta2O5 Tantalum Oxide, Nb2O5 Niobium Oxide, TLnO Total Rare Earth Oxide, ZrO zirconia, P2O5 Phosphate, Y2O3 yttria, TiO2 titanium oxide. 2. The Mineral Resource estimation for the niobium rich rare metals is as per ASX announcement dated 6 October 2004. Lynas Corp confirms that all material assumptions and technical parameters underpinning the estimated Mineral Resources continue to apply and have not materially changed. Figures in the table may not sum due to rounding. There have been no changes to the Niobium Rich Rare Metals Project Mineral Resource since the previous reporting period.

Here's a breakdown of the data in the text and the meaning of the elemental symbols. The two tables provided show mineral resource estimates for two different sections of the Mt Weld Rare Earth Deposit as of 2022.

Table 2: MT WELD RARE EARTH DEPOSIT MINERAL RESOURCES 2022

This table provides the mineral resource estimate for the rare earth elements found in this deposit. "Total Rare Earth Oxides (TREO)" refers to a group of rare earth oxides including:

La2O3: Lanthanum oxide
CeO2: Cerium oxide
Pr6O11: Praseodymium oxide
Nd2O3: Neodymium oxide
Sm2O3: Samarium oxide
Eu2O3: Europium oxide
Gd2O3: Gadolinium oxide
Tb4O7: Terbium oxide
Dy2O3: Dysprosium oxide
Ho2O3: Holmium oxide
Er2O3: Erbium oxide
Tm2O3: Thulium oxide
Yb2O3: Ytterbium oxide
Lu2O3: Lutetium oxide
Y2O3: Yttrium oxide

Table 3: CLASSIFICATION OF MINERAL RESOURCES FOR THE NIOBIUM RICH RARE METALS PROJECT

This table provides a breakdown of the other rare elements found in the deposit, including:

Ta2O5: Tantalum Oxide
Nb2O5: Niobium Oxide
TLnO: Total Rare Earth Oxide
ZrO: Zirconia
P2O5: Phosphate
Y2O3: Yttria (Yttrium oxide)
TiO2: Titanium oxide

In a renewable energy/electric vehicle context, these rare earth elements have many applications. Neodymium and praseodymium, for instance, are used in the magnets for electric motors. Dysprosium and terbium are added to neodymium to make it resistant to heat, improving its performance. Lanthanum and cerium are used in battery technology. Yttrium and europium are used in LED lights and screens, improving energy efficiency. In the Niobium rich section, tantalum is used in capacitors for electronics and electric vehicles, while niobium is used to make steel stronger and lighter for vehicle frames.

"Explain it like I'm 5" summary: Imagine a huge playground made of sand. But this sand isn't normal; it has special grains (elements) that we can use to make cool stuff like super-strong magnets for toys (electric cars) and shiny screens for games (LED lights). This report tells us how many of these special grains we've found in two different parts of the playground. And guess what? We've found a lot!

Brilliant! Can you please give me any insights into whether the amount of deposits cited seem significant compared to industry standards?

Determining whether the amount of deposits is significant in the context of industry standards can be somewhat complex due to a variety of factors including the specific market demand for each rare earth element, extraction costs, and geopolitical considerations. However, some general insights can be provided.

First, it's important to note that rare earth elements (REEs) are not equally distributed in ores, and their distribution can significantly impact the economic viability of mining. Some elements are typically more abundant and thus cheaper to produce, such as cerium and lanthanum, whereas others like dysprosium and terbium are scarcer and therefore more valuable.

The Mt Weld deposit, according to your data, contains approximately 2,877 thousand tonnes of total rare earth oxides (TREO). To put this in context, the US Geological Survey estimated global reserves of REEs at around 120 million metric tons as of 2020. China is the leading producer, and as of my knowledge cut-off in 2021, China's Bayan Obo mine is the largest REE mine in the world.

Considering that the Mt Weld deposit is one of the highest-grade rare earth deposits in the world, and that it is outside of China (which is a significant consideration given China's dominance in the market), the quantity of TREO in this deposit is indeed quite significant. However, the real value lies not just in the amount of TREO, but in the specific distribution of elements within that TREO, especially those that are most in demand for technologies such as electric vehicles and renewable energy.

The data also provides insights into the deposits of the Niobium Rich Rare Metals Project. The indicated and inferred tonnes for each specific oxide (Ta2O5, Nb2O5, ZrO, P2O5, Y2O3, TiO2) can also be considered quite significant, especially considering the specific uses of these elements in various high-tech and green energy applications.

In conclusion, while a more thorough comparison would need a detailed and up-to-date analysis of global reserves, current market demands, and geopolitical considerations, it can be said that the deposits at Mt Weld seem quite significant within the context of the global rare earth market.

How did you determine that Mt Weld is one of the highest-grade Rare Earth deposits in the world?

The determination that Mt Weld is one of the highest-grade Rare Earth deposits is based on data and industry reports available up to my knowledge cutoff in September 2021. It's also a relatively well-known fact within the industry that Mt Weld, located in Western Australia and operated by Lynas Corporation, is renowned for its high-grade rare earth deposits.

This determination primarily arises from the percentage composition of the rare earth oxides (REO) in the ores found at Mt Weld. When referring to the "grade" of a mineral deposit, we're usually talking about the concentration of the desired minerals within the ore. A "high-grade" deposit has a high concentration of the mineral of interest, which in this case are the Rare Earth Oxides (REO).

According to your text, the Total Rare Earth Oxides (TREO) percentages range from 3.6% to 12% depending on the type of resources (measured, indicated, inferred, on stockpiles). This is indeed considered high-grade for rare earths, which often occur in lower concentrations in other deposits.

However, it's important to note that this information is accurate up until 2021, and newer data or discoveries since then may affect this assessment.

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