Scandium Market Potential and Makuutu’s World Class Resource

Ionic Rare Earths Limited ("IonicRE" or "the Company") (ASX: IXR) is pleased to provide an update to marketing activities underway promoting the substantial upside potential of Scandium co-product from the Makuutu Rare Earths Project ("Makuutu") in Uganda.

Since the Company announced the initiation of scandium marketing activities on 28 January 2021, the Company has further increased the long life potential of Makuutu with a substantial near 4 fold increase in the contained Scandium Oxide (Sc2O3) resource from prior 2,300 tonnes to 9,450 tonnes as per the Mineral Resource Estimate announced 3 March 2021 (refer Table 1).

The Scoping Study announced 29 April 2021 provided an overview of the potential for Sc2O3 production from Makuutu, with initial production produced from 1 module of approximately 20-25 tonnes Sc2O3 in Year 1 ramping up to 90-100 tonnes by year 10. Negligible additional cost is incurred in the recovery and production of Sc2O3, which will report to the mixed rare earth carbonate (MREC) product at Makuutu. The low capex development at Makuutu is a clear differentiator to other potential scandium sources, and provides IonicRE with a tremendous advantage to help build and establish a key foothold in what the Company expects will be metal of high demand once initial supply can be demonstrated.