Lynas Corporation Rare Earths – we touch them everyday

Annual General Meeting

CEO Address 29 November 2013

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Disclaimer

This Presentation has been prepared by Lynas Corporation Limited (ABN 27 009 066 648) (Lynas or the Company). This Presentation contains summary information about Lynas and its subsidiaries (Lynas Group) and their activities current as at the date of this Presentation. The information in this Presentation is of general background and does not purport to be complete or to comprise all the information that a shareholder or potential investor in Lynas may require in order to determine whether to deal in Lynas shares. It should be read in conjunction with Lynas Group’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange (ASX), which are available at www.asx.com.au. This document is not a prospectus or a product disclosure statement under the Corporations Act (Cth) 2001 (Corporations Act) and has not been lodged with the Australian Securities and Investments Commission (ASIC).

Not investment or financial product advice

This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire Lynas shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek financial, legal and taxation advice appropriate to their jurisdiction. Lynas is not licensed to provide financial product advice in respect of Lynas shares. Cooling off rights do not apply to the acquisition of Lynas securities.

Financial data

All dollar values are in Australian dollars (A$) unless stated otherwise and financial data is presented within the financial year end of 30 June 2012 unless stated otherwise. Any pro forma historical financial information included in this Presentation does not purport to be in compliance with Article 11 of Regulation S-X of the rules and regulations of the US Securities and Exchange Commission.

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This Presentation contains certain “forward-looking statements”. The words “estimate”, “expect”, “should”, “could”, “may”, “will, “predict”, “plan”, “scenario”, “forecasts”, “anticipates” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Such forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements.

Investment Risk and other risks

An investment in Lynas securities is subject to investment and other known and unknown risks, some of which are beyond the control of Lynas Group, including risk factors associated with the industry in which Lynas Group operates, such as: nature of mineral exploration and production; mineral and ore reserves; construction risks; progressing risks; project developments; market price and demand risk; credit and market risks; regulatory, political and environmental risks; tax and other risks generally relating to equity investment.

Not an offer

This Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. Securities in Lynas have not been, and will not be, registered under the U.S. Securities Act of 1933 or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States unless the securities are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, registration.

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Rare Earths market data - Disclaimer

The slides in this presentation containing Rare Earths market data have been sourced from independent analysis of end application demand, along with Lynas estimates of quantities of Rare Earths end use in various key applications.

Although Lynas believes that the outcomes expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance. Forward-looking statements are based on assumptions and contingencies which are subject to change without notice. Factors that could cause actual results to differ materially from those in forward-looking statements include new Rare Earths applications, the development of economic Rare Earths substitutes, and general economic, market or business conditions. While Lynas has made every reasonable effort to ensure the veracity of the information presented, Lynas does not guarantee the accuracy and reliability of the estimates, forecasts and conclusions contained herein. Accordingly, the Rare Earths market data in this presentation should be used for general guidance only. There can be no guarantee that actual outcomes will not differ materially from forward-looking statements.

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Introduction

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Lynas Vision: To be the leader in Rare Earths for a sustainable future

Business Model

Safe for people

Safe for the environment

Secure for customers

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Employee Safety

Lynas global operations were Lost Time Injury (LTI) free during the September quarter

12-month rolling LTI Frequency Rate for Lynas global operations as at the end of September was 0.8 (per millions hours worked)

Results so far…

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1

Environmental Monitoring

Lynas environmental emissions are strictly monitored and are well below permissible limits

Air emissions

Water treatment

Solid residues

2 Environmental monitors at the LAMP

Lynas „Safety Champion‟ Badges

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Triple Certification

Western Australian operations maintained certification to:

OHSAS 18001 (Occupational Health and Safety)

ISO 14001 (Environmental Management Systems)

ISO 9001 (Quality Management Systems)

In November, Lynas Malaysia operations were certified by Bureau Veritas to OHSAS 18001, ISO 14001 and ISO 9001 standards.

No major non-conformances were identified in the audit

Results so far…

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3

Solid Residues 4

ISO Certification

Road base products – two “WLP” based products tested and proven to be:

non-leachable

non-radioactive

non-toxic

Soil conditioning products

Successful results from pot trials

Field trials ongoing

Batching plant and

RB-10 product

Canola field trials in

Western Australia

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Customer expectations: Together for

Sustainability (TfS) example

• The initiative was founded in 2011 by six multinational companies.

• The purpose of this TfS Initiative is:

• to develop and implement a global audit program

• to assess and improve sustainability practices within the supply chains of the

chemical industry

• The founding members are:

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Customers focus on environmental, social and

governance issues in sustainable sourcing

Sustainable sourcing:

Suppliers are no longer assessed purely on the basis of price, quality and on-time delivery

Sustainability topics such as health & safety, labour and environmental issues are additional business criteria

Product Quality

On-time Delivery

Price

Management

Environment

Health & Safety

Labour &

Human Rights

Governance

Supply Chain focus from...

Sustain-ability

Product Quality

On-time Delivery

Price

Customers want key sourcing markets to know that:

They care about supplier‟s sustainability performance

They aim to identify and mitigate sustainability risks in their supply chains

They engage with suppliers to focus on a process of continuous improvement

…to

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TfS supplier audits – Lynas was audited

against these criteria in September 2013

Management

Environment

Health & Safety

Labour &

Human Rights

Governance

Management

• Management in Charge

• Policy & Continuous Improvement

Environment

• Environmental Compliance

• Waste

• Emissions to Air and

Climate Change

Health and Safety Criteria

• Product Safety

• Transportation Safety

• Process Safety and Storage

• Occupational Health and Safety

Labor & Human Rights

• Child labour

• Forced and Compulsory Labour

• Working Hours

• Minimum Wages

Governance

• Business Integrity

• Privacy and Intellectual Property

• Risk Area: Conflict Minerals

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Mt Weld – operational update

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Overview of Australian assets

Mt Weld Project and

Concentration Plant

Mt Weld Concentration Plant Mt. Weld Mine

The highest grade known deposit of Rare Earths in the world

Defined ore reserves of 9.7 million tonnes at an average grade of 11.7%, for a total of 1.14 million tonnes of contained REO

Reserves support more than 25 year mine life at 22,000tpa REO production rate

Simple, conventional open-pit mining operation

Mt. Weld Concentration Plant

Phase 1 commissioned in May 2011

Phase 2 commissioned in April 2013

Concentration Plant operating at 80% capacity during September quarter

Operations focused on cost efficiency

18.4kt of dry bagged concentrate ready for shipment to Malaysia as at end September

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Future milestones

Increase realised prices further

Optimise production at Phase 1 capacity until market prices recover

Phase 2 commencing operations in December quarter

The usage of the additional 11,000tpa capacity will be determined by various factors, primarily by market conditions

September 2013 quarter

Production: 253 tonnes REO equivalent products

Shipments: 218 tonnes REO equivalent products

Each Rare Earth element approved and sold at one or more customer

Premium over market prices obtained due to supply chain sustainability

Lynas Advanced Materials Plant (LAMP) –

operational update

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Leaching units

Work programs are progressing in line with expectations

They are addressing issues including:

Filter press clogging

pH adjustment process

Cracking units

Work programs in the cracking units are complete

They have addressed:

Wearing of stainless steel devices (replaced with alloys

LAMP – current work programs

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Finishing units

Upstream variability has impacted the ramp-up of downstream operations to date

Upstream improvements lead to more consistent finishing units output

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December quarter update

Production has increased in line with work program expectations

LAMP – production profile

LAMP REO Production

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Note: Current quarter to date includes product finishing output

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200

300

400

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Q4 FY13 Q1 FY14 Oct-Nov

to date

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EO Nov

est.

Oct

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Lynas operational outlook in summary

Lynas expects to produce at the 11ktpa REO run rate for the first calendar quarter of 2014 2

Phase 2 capacity will provide support to Phase 1 volumes and the ability to ramp up to 22ktpa capacity subject to increased market demand and prices

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Lynas will continue to develop further products upon customer request 4

WA production rates synchronised to LAMP needs, focusing on cost efficiency 1

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Speculative traders

enter the market and

stockpile REs to take

advantage of price rises

Consumers forced to

build up inventories

(above actual

consumption) to secure

future supply

0

50

100

150

200

250

Jan-2

008

Jul-2008

Jan-2

009

Jul-2009

Jan-2

010

Ju

l-20

10

Jan-2

011

Jul-2011

Jan-2

012

Jul-2012

Jan-2

013

Jul-2013

Lyn

as B

asket

Pri

ce (

US

$/k

g R

EO

)

China Domestic RE Prices

China FOB RE Prices

Rare Earths market: Recap on the price crisis

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2010:

China announces efforts to

crack down on illegal production

that is non-compliant and

damaging the environment

Chinese export quotas almost

halved from previous years

1

2 Unsustainable price

increases for consumers

and excess inventories

impact demand and

prices

RE based production

shifts from outside China

to inside China

Increase in productivity

of RE based solutions in

some applications

Source: Metal Pages

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Where is the Rare Earths market today?

Customers working through large inventories of REs built up along the supply chain during the crisis

Demand reduced for REs in some end markets due to productivity improvements, formulation changes and some temporary „switch‟ back to older technologies

Slower global economic growth conditions impacting end market demand

Since the peak of the crisis when

prices became unsustainable for

consumers, prices decreased to levels

that are now unsustainable for

producers again, due to:

However,

there are

emerging

signs of

„green shoots‟

as the RE

market moves

towards the

right balance

First signs of improved supply discipline inside China, consolidation of numerous producers and moving towards more sustainable production practices

Reduced significant excess of inventories for both RE products and RE-based (semi) finished goods

End market applications continue to grow (cars, energy, electronics etc)

Since July, prices for a number of RE

products have moved again as a result

of:

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Mt Weld basket price May-November 2013

Recent Rare Earths price trends

Source: Asian Metals

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0

5

10

15

20

25

30

35

May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13

USD

/REO

kg

China domestic China FOB

China domestic basket price up 32%

since mid-2013

Prices recovered since June 2013

China domestic basket price up 32%

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Prices need to be higher to secure long term supply visibility to customers

2

The market will grow to its full potential when prices are sustainable for both customers and suppliers

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RE market outlook – key demand side trends

A number of key trends will drive the future growth of the global RE market

Energy efficient and green applications continue to accelerate strong NdPr demand growth

Wind energy, HEV/EVs, general auto, energy efficient drives for household and industrial applications

This will only occur under long term sourcing sustainability of raw materials – price and quantity

1

Higher vehicle demand and reduced emissions continue to support steady growth rates in large market segments

Autocatalyst market (Ce), FCC market (La), metallurgy & ferrosilicon market (La,Ce, mischmetal)

2

0

5

10

15

20

25

30

35

40

45

50

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

kt

RE

O

Other

Automation & Drives

Electronics

HEV/EV

Conventional Autos

Wind Turbines

2010-2020 CAGR: 9%

Estimated REO demand in magnet industry

Source: Lynas estimates and industry sources

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RE market outlook – key demand side trends

A number of key trends will drive the future growth of the global RE market

While currently tight, there are questions in relation to the long run outlook for HREs

Phosphors (Eu,Tb and Y) – how quickly will LED substitution take place globally? Or will the continued move to ban high energy consuming lamps globally grow the phosphors market?

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4

NiMH battery technology is continued to be used in HEVs, potentially securing La demand in the future

Chinese exports of lanthanum have risen strongly since 2011

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

2006 2007 2008 2009 2010 2011 2012 2013E

ton

ne

s R

EO

Chinese exports of lanthanum products (REO equivalent)

Source: Chinese customs statistics. Note: 2013 data annualised. Lanthanum products include metal, oxide, carbonate and chloride

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Rare Earths market outlook – summary

Based upon forecast demand in key end markets,

the global RE market could grow at 5-6% per annum to 2020

with demand for some elements growing at higher rates

However, the RE market will not grow to its full potential unless there is long term price visibility and sustainable volume security to justify investment by both customers and producers

Reduced volatility and “wild” fluctuations in RE prices

RE consumers: increased visibility of supply sustainability at price levels that remain competitive with alternative technologies

RE producers: increased visibility that RE prices support the environmentally sustainable development of RE resources to meet demand growth

Lynas‟ goal is to support the RE market in growing to its full potential

customers have been supportive so far

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Sales and marketing – customer agreements

Lynas has agreements to supply Rare Earths products to credit-worthy counterparties globally

Based on current customer agreements and negotiations, Lynas currently expects to sell its annual Phase 1 production

The Company has achieved more than 25 product qualifications across the customer portfolio

Lynas has offtake agreements in place with major Rare Earths consuming companies in Europe, Japan, USA, North and South East Asia

Market growth is expected to be secured through

growth in existing and new technology product applications

Lynas‟ long-term environmentally sustainable supply visibility

Estimated above-GDP growth rates in key product demand

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Company overview

Key Lynas strengths

World-scale Rare Earths production platform at the LAMP

• located within a well established and cost competitive industrial and petrochemical estate

Focus on cost efficiency and “right-sizing” business

• yet ready to respond to improved market conditions

Experienced management team

• from the Rare Earths and chemicals industries

Rare Earths experts from the main RE locations (Europe, China, Brazil, India)

• Industrial, Product development, Sales, Laboratory, Product Quality, Process control

Off-take arrangements through strong customer relationships

• Contracts, sustainability-based pricing

Favorable long-term market fundamentals

• estimated above-GDP growth rates in key product demand

High quality, long life assets

• more than 25 years of proven reserves in Australia and significant additional resources

ISO standards (Quality, Health & Safety and Environment) for both Lynas sites

• Sustainability-based customer audit implemented for the LAMP

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