Lynas Rare Earths (LYC) investor relations material

Deal rationale and strategic fit

• The acquisition brings the largest known ionic rare earth clay resource outside China into the acquirer's portfolio, diversifying and complementing operations in Australia and Malaysia, and aligns with the Towards 2030 strategy to add resource and scale, particularly in heavy rare earths.

• The deal provides exposure to a premier Brazilian rare earth project, strengthens the acquirer's position as the only commercial producer of separated light and heavy rare earth oxides outside China, and supports Brazil’s rare earth industry development.

• Meteoric shareholders gain exposure to a proven rare earth producer, mitigating funding and execution risks.

Financial terms and conditions

• All-share transaction: each Meteoric shareholder receives 0.0207 Lynas shares per Meteoric share, valuing Meteoric at A$968m on a fully diluted basis, with implied premiums of 68.4% to last close and 64% to 60-day VWAP.

• Meteoric shareholders will own approximately 5.9% of the combined entity post-transaction.

• Interim funding facility of up to A$110m provided to Meteoric for project development and working capital during the scheme process.

• The transaction is scrip-based, preserving Lynas's cash for project development and growth initiatives.

• Both boards and largest shareholders intend to vote in favor, subject to no superior proposal and a positive independent expert opinion.

Synergies and expected cost savings

• The combination leverages Lynas's technical expertise and Meteoric's local knowledge to optimize production and business opportunities, unlocking value at Caldeira and mitigating development risk.

• Integration aims to maximize efficiency from mining to end products, with potential for greater cost-effectiveness and increased feedstock capacity.

• Caldeira's low-cost profile enhances Lynas's ability to maintain a competitive cost base.