Magnetic End Use Rare Earth

Exploration in The Northern Territory

Investor Update 2 September 2014 ASX:SPX

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Company Position

Shares ~156 million A$0.056 1/09/2014

Market Cap A$8.7 million

Shareholders +1200

Funds A$632,000 (30 June 2014)

Exploration in Progress

Directors,Officers

andFounders

Funds Other Top20

TOTALTop 20

42%

4% 11%

56% Shareholder Base

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Location Close to the Port of Darwin

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= Exploration Target Size

approximately 19 Million

Tonne (17 – 21 Mt) Shape @

3.5 – 4m Thickness;

0.4% - 0.6% TREO; 36-38%

Magnetic End Use REO’s

The potential quantity and grade of the Exploration

Target is conceptual in nature, that there has been

insufficient exploration to estimate a Mineral Resource

and that it is uncertain if further exploration will result in

the estimation of a Mineral Resource. Refer to ASX

Announcement of 6 August for further details.

GDA94, Z52

Initial Surface Discovery F

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MEU REO

Rich

Nd2O3 20%

Pr6O11 4%

Y2O3 25%

Er2O3 2%

Yb2O3 2%

Ho2O3 1%

Tm2O3 0%

Lu2O3 0%

Gd2O3 7%

Sm2O3 6%

Dy2O3 5%

Tb4O7 1%

Eu2O3 1%

CeO2 21%

La2O3 5%

SKH02 1.5 – 2.4m; 0.61% TREO

HREO

Rich

The Choice To Seek The Most Economically Profitable Basket Price

And;

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Magnetic Sector - The Fastest Growing For Rare Earths

Drivers: Clean energy expansion and miniaturisation

Example: Hybrid and Electrical vehicles

Permanent Magnet Sector

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Skyfall’s MEU REO’s

Give the Prospect a Leading Basket Price

Prices – Metalpages Website – January 2014

Secondary Crandallite Group and Xenotime Minerals

Xenotime

Absorption

Absorption

Monazite

Monazite

Bastnaesite

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Disclaimer High Magnetic REE and

HREE Distributions –

Leading Basket Price

Drill Rig Mobilised F

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Evidence of a Deep Primary System – Potential for Grades to improve

Skyfall

Interpreted REE Rich Intrusive Body (Granite?) Potential REE source

Major Fault Fluid circulation, Potential REE transport

Skyfall

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T?????????????

Mineralogy: A Clue for Deeper Exploration

Secondary Minerals Identified at Skyfall Including Florencite, Crandallite, Gorceixite and Goyazite are

known in the weathering profile above deposits such as Mt Weld

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Hole 1 ~300m

Trial Pit 2:

2m @ 0.59%TREO

Including 0.8m @

1.17%TREO;

41% MEU

REO/TREO;

34% HREO/TREO;

Best Assays:

3540ppm Nd2O3

477ppm Dy2O3

+

104ppm Scandium

A Large Magnetic End Use Rare Earth Drill Target 3 Holes Planned

Hole 2 ~300m

Hole 3 ~300m

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Interpreted Cross Section RL

A B

Exploration Model and Type Hole F

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Liberated Xenotime

Particle from Skyfall

Mineralogy: Lower Cost Processing Options Being Investigated

Extremely low levels of contaminant elements Th and U

(6.7ppm and 44ppm respectively at 0.2%TREO cut-off).

= Competitive Advantage

Weathered silts and sandstones containing abundant

quartz which can help mineral processing.

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Large District Potential

Skyfall - Current Focus of Activity - Drilling

Severine

Knightfall

Stromberg – 85 Drill Holes – Mineral Inventory

Scaramanga – 7 Drill Holes

Largo

45km

SPX Tenement Boundaries/Holdings

All Tenements 100% Spectrum

Airborne Radiometric

Image – Relative to

Background

- -14.3º

- 1

31.2

º

- 1

31.1

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Value Proposition Shallow Mining and Drilling

– Advantages

for Development

High Magnetic REE and

HREE Distributions –

Leading Basket Price

Value Proposition

Further Work in Progress –

Trial Pitting/Drilling

Large Single Location

Targets offer a potential

impact on the “Rest of

World’s” Magnetic REE and

HREE Needs

Mineralogy – Xenotime –

Absorption - ‘Potential for

Quicker and Cost Effective

Development and

Processing’

Market Cap US$ millions (28/08/14)

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• The Company has prepared this presentation. Whilst the information contained in this presentation has been prepared with all

reasonable care from information provided by the Company and from sources, which the Company believes are reliable, no

responsibility or liability is accepted by Spectrum Rare Earths for any errors or omissions or misstatements, however

caused. To the maximum extent permitted by law, Spectrum Rare Earths, its directors officers, employees and agents disclaim

liability for any loss or damage which may be suffered by any person thought the use or reliance on anything contained in or

omitted in this presentation.

• Certain information in this presentation refers to the intentions of Spectrum Rare Earths, but these are not intended to be

forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other

applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause

Spectrum Rare Earth’s actual results, performance or achievements to differ from those referred to in this presentation.

Accordingly, Spectrum Rare Earths, its directors officers, employees and agents do not give any assurance or guarantee that

the occurrence of the events referred to in this presentation will actually occur as contemplated.

• Spectrum Rare Earths directors and associates own shares in Spectrum Rare Earths Company. The Company recommends

investors obtain their own independent financial and accounting advice before making any financial investment in reliance

upon information contained in this publication.

• Competent Person

The information in this report that relates to exploration targets and exploration results is based on information compiled by Ian

Bamborough, a Competent Person who is a Member of The Australian Institute of Geoscientists. Ian Bamborough is a fulltime

employee and Director of Spectrum Rare Earths Limited, in addition to being a shareholder in the Company. Ian Bamborough

has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the

activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for

Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ian Bamborough consents to the inclusion in the

report of the matters based on his information in the form and context in which it appears.

Disclaimer

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ASX:SPX ABN: 94 115 770 226

Ian Bamborough MANAGING DIRECTOR

ian.bamborough@spectrumrareearths.com.au

www.spectrumrareearths.com.au

Tel +61 (0)8 9325 7946

Level 10, 553 Hay Street Perth WA, Australia

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