Evaluation of a Listing in the USA

In brief · summary, not quotable

Rainbow Rare Earths Limited is evaluating a potential stock exchange listing in the United States to enhance its access to capital and liquidity, driven by its role as a low-cost supplier of critical rare earth raw materials to Western supply chains, significant US investment in rare earths, and its growing US nexus including a partnership with The Mosaic Company and a US$50 million option from the US International Development Finance Corporation for its Phalaborwa project. The company also noted strong demand from North American investors in a recent private placement, including from Traxys, a partner in the US Government's "Project Vault" initiative.

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Rainbow Rare Earths is pleased to announce that its Board of Directors is initiating a process to evaluate the potential benefits to the Company of carrying out a stock exchange listing in the United States.

The Company remains focused on its core strategic priorities, which include the delivery of the Definitive Feasibility Study at the Phalaborwa project in South Africa in 2026 and the imminent commencement of a Pre-Feasibility Study at the Uberaba project in Brazil, in conjunction with its US partner, The Mosaic Company ("Mosaic").

The decision to evaluate a potential US listing has been driven by:

Rainbow is an advanced and low-cost source of potential near-term supply of critical rare earth raw materials to western rare earths supply chains, including to the US market;
the US is leading the way globally on the build-out of independent rare earths supply, with major investments across the supply chain;
Rainbow's growing US nexus, including via its partnership with Mosaic, to develop the Uberaba project in Brazil, and continued support from the US International Development Finance Corporation ("DFC"), which has a US$50 million option to provide project equity financing for Phalaborwa;
notable investor demand for Rainbow from North American investors, as evidenced by Rainbow's recent private placement which was supported predominantly by US-based investors, including Traxys, a key partner in the US Government's US$12 billion critical raw materials stockpiling initiative, "Project Vault"; and
observed valuation and trading liquidity enhancement for companies listed on US markets.

As part of the evaluation process, Rainbow plans to engage with existing shareholders and other relevant stakeholders to solicit their feedback on this strategy. The Company will update the market following this engagement process.

Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.