Investor Presentation

PDAC Conference Toronto

A Major New Source of Rare Metals
and Heavy Rare Earths

March 2011
 IMPORTANT INFORMATION
All currency amounts are in AUD$ unless stated otherwise.

Disclaimer
This presentation has been prepared by Hastings Rare Metals Limited (“Company”). It does not purport to contain all the information that a prospective investor may require in connection with
any potential investment in the Company. You should not treat the contents of this presentation, or any information provided in connection with it, as financial advice, financial product advice or
advice relating to legal, taxation or investment matters.

No representation or warranty (whether express or implied) is made by the Company or any of its officers, advisers, agents or employees as to the accuracy, completeness or reasonableness of
the information, statements, opinions or matters (express or implied) arising out of, contained in or derived from this presentation or provided in connection with it, or any omission from this
presentation, nor as to the attainability of any estimates, forecasts or projections set out in this presentation.

This presentation is provided expressly on the basis that you will carry out your own independent inquiries into the matters contained in the presentation and make your own independent
decisions about the affairs, financial position or prospects of the Company. The Company reserves the right to update, amend or supplement the information at any time in its absolute
discretion (without incurring any obligation to do so).

Neither the Company, nor its related bodies corporate, officers, their advisers, agents and employees accept any responsibility or liability to you or to any other person or entity arising out of
this presentation including pursuant to the general law (whether for negligence, under statute or otherwise), or under the Australian Securities and Investments Commission Act 2001,
Corporations Act 2001, Competition and Consumer Act 2010 or any corresponding provision of any Australian state or territory legislation (or the law of any similar legislation in any other
jurisdiction), or similar provision under any applicable law. Any such responsibility or liability is, to the maximum extent permitted by law, expressly disclaimed and excluded.

Nothing in this material should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities. It does not include all available information and should not be used in
isolation as a basis to invest in the Company.

Future matters
This p
presentation contains reference to certain intentions,, expectations,
p , future plans,
p , strategy
gy and prospects
p p of the Company.
p y

Those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or on which views may differ
and may be affected by known and unknown risks. The performance and operations of the Company may be influenced by a number of factors, many of which are outside the control of the
Company. No representation or warranty, express or implied, is made by the Company, or any of its directors, officers, employees, advisers or agents that any intentions, expectations or plans
will be achieved either totally or partially or that any particular rate of return will be achieved.

Given the risks and uncertainties that may cause the Company’s actual future results, performance or achievements to be materially different from those expected, planned or intended,
recipients should not place undue reliance on these intentions, expectations, future plans, strategy and prospects. The Company does not warrant or represent that the actual results,
performance or achievements will be as expected, planned or intended.

Competent Person’s Statement

The information in this presentation that relates to Mineral Resources is based on information compiled by Simon Coxhell. Mr Coxhell is employed as a consultant to the Company and a member
of the Australian Institute of Mining and Metallurgy. Mr Coxhell has sufficient experience relevant to the styles of mineralisation and types of deposits which are covered in this presentation and
to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and
Ore Reserves’ (“JORC Code”). Mr Coxhell consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

Exploration Targets
The terms “Target” or “Exploration Target” where used in this presentation should not be misunderstood or misconstrued as an estimate of a Mineral Resource as defined in the JORC Code and
th
therefore
f the
th terms
t have
h nott been
b used
d in
i this
thi context.
t t Exploration
E l ti T
Targets
t are conceptual
t l iin nature,
t th
there has
h been
b insufficient
i ffi i t exploration
l ti tto d
define
fi a Mineral
Mi lRResource and
d it is
i uncertain
t i
further exploration will result in the determination of a Mineral Resource.

US disclosure
This document does not constitute any part of any offer to sell, or the solicitation of an offer to buy, any securities in the United States or to, or for the account or benefit of any “US person” as
defined in Regulation S under the US Securities Act of 1993 (“Securities Act”). The Company’s shares have not been, and will not be, registered under the Securities Act 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 or to any US person without being so registered or pursuant to an exemption from
registration including an exemption for qualified institutional buyers.
Corporate
Prospectivity
Summary Directors Management Location Highlights

 ASX Code: HAS

 Shares on Issue: 58,500,000
 Performance Shares: 12,500,000 (on satisfaction of performance hurdles)

 Performance Options: 15,000,000 (on satisfaction of performance hurdles)

 Options on Issue: 37,500,000 (strike of 25 cents and 40 cents)

 Market Capitalisation: $23,400,000 (at 40 cents)

 Fully Diluted: $47,400,000 (at 40 cents)

 Top 20 Shareholders: 62%

 Cash Circa: $6,000,000
 Fully Diluted Cash: $17,625,000
 100% owner of Hastings Rare Metals and Heavy Rare Earths Project
Corporate
Summary Title 2
Directors Management Location Highlights

David Nolan (Non-Executive Chairman)

Mr Nolan is a corporate lawyer with over 13 years experience advising on corporate acquisitions, capital
raisings and financing for mining companies. Mr Nolan is a partner in the Sydney corporate advisory
practice of Mills Oakley Lawyers and was previously a senior adviser at the London Stock Exchange. Mr
Nolan holds a Bachelor of Laws (Hons) and Bachelor of Arts from Bond University in Queensland.

Mathew Walker (Executive Director)

Mr Walker has extensive experience in private and public company management and in the provision of
corporate advice. Specialising in the natural resources sector, Mr Walker has served as executive
Chairman or Managing Director for public companies with resource interests in North America, South
America, Africa, Eastern Europe, Australia and Asia. He currently serves as Chairman of Tango Petroleum
Limited. He is also a Director of boutique investment banking firm Alto Capital and Chairman of corporate
advisory firm Cicero Corporate Services. Mr Walker is a member of the Australian Institute of Company
Directors and holds a Bachelor of Business from the University of Technology, Sydney.

James Robinson (Non-Executive Director and Company Secretary)

Mr Robinson gained extensive capital markets experience during 10 years with one of Western Australia
Australia’s
s
leading corporate advisory and stockbroking firms. He currently serves as a Director of Blue River Mining
Limited, Company Secretary of Tango Petroleum Limited and is also a Director of corporate advisory firm
Cicero Corporate Services. He is a member of the Australian Institute of Company Directors and holds a
Bachelor of Economics from the University of Western Australia.
Corporate
Summary Directors Management Location Highlights

Andy Border (Exploration Manager)

Mr Border is a geologist with over 30 years experience in the exploration and mining industry covering a
wide range of commodities and projects from grass-roots exploration through to development and
mining. In the last 20 years he has held roles including Exploration Manager, Chief Operating Officer and
Managing Director of a number of ASX-listed companies with projects in Australia and overseas.

Simon Coxhell (Consultant Geologist)

Mr Coxhell is a geologist with 25 years of diverse experience encompassing all aspects of the resource
sector including exploration, development and mining. He has specialist skills in computer mining and
exploration skills and extensive operational experience in the Kimberley where he has evaluated and
assessed numerous projects including gold,
gold copper,
copper iron ore,
ore diamonds,
diamonds vanadium and rare earths.
earths Simon
was formerly Executive Director of Navigator Resources and Venus Metals Corporation.
Project
Summary Directors Management Location Highlights

HASTINGS RARE  The Hastings Rare Metals deposit lies 18km to the
METALS LOCATION
PLAN
south-east of Halls Creek in the Kimberley Region of
Western Australia
 The deposit contains multiple rare
elements:
• Niobium
• Tantalum
• Zirconium
• Yttrium
• Hafnium
• Gallium
• Erbium
• Ytterbium
• Dysprosium
 The deposit contains an extremely high
proportion of the higher value heavy
rare earth oxides at 76%.
Project
Summary Directors Management Location Highlights

 JORC compliant resource of over 22M tonnes comprising 8.8M tonnes in the
indicated category and 13.2M tonnes in the inferred category.
 Heavy rare metal grades of 0.79% ZrO2, 0.31% Nb2O5, 0.023% Ta2O5 and heavy
rare
a e earth
ea th grades
g ades of 0.10%
0 10% Y2O3 .
 Historical analysis did not systematically assay for other rare metals or rare earths.
 Previous drill hole data and studies suggest potential exists to host significant
quantities of other rare elements including hafnium, gallium, erbium, ytterbium
and dysprosium.
 The deposit is readily accessible, from surface and open along strike and down dip.
 In-situ value of approximately $8B with signification potential to increase.
 An extensive drilling program is scheduled for June Quarter 2011.
 A revised resource calculation expected in the September Quarter 2011.
Market Overview
Project
Prospectivity
Rare Metals Rare Earths Supply-Demand Price Trend
Summary
 Zirconium occurs predominantly as the silicate mineral zircon ZrO2. 2 Used mostly in ceramics, foundry
applications, opacifiers and refractories. Main growth areas are advanced ceramics and auto-exhaust
catalysts. Significant use in nuclear energy industry in fuel rods and reactor vessel construction.

 Niobium and tantalum commonly occur in the associated minerals columbite (Fe,Mn)Nb2O5 and tantalite
(Fe,Mn)Ta2O5. Main source of niobium however is pyrochlore NaCaNb2O6F. Niobium is an important alloying
element in steels and FeFe-Ni-Co
Ni Co based superalloys.
superalloys Lesser use in diverse areas such as camera lenses and
coating of glass for computer screens.
“4kg of niobium used in the manufacture of a mid-sized vehicle would save 100kg of steel,
and translates into fuel savings of half a litre per 100km¹”
 Tantalum occurs in wide range of minerals but any tantalum-bearing concentrate is commonly termed
tantalite Highly corrosion resistant and refractory.
tantalite. refractory Used in cutting tools,
tools mobile phones,
phones high temperature
alloys and furnace parts to computer hard drive discs.

1. “Niobium Demand, Price Stays High, Despite Steel

Weakness”, Mining Weekly.com, 7 November 2008
Market Overview
Project
Rare Metals Title
Rare 2
Earths Supply-Demand Price Trend
Summary

• Rare earths are a collection of seventeen chemical elements in the periodic table,
specifically the fifteen lanthanoids plus scandium and yttrium.

• Rare Earth Elements (REE) are considered either Light Rare Earth Elements (LREE),
which
hich include
incl de elements from
f om lanthanum
lanthan m to samarium,
sama i m and Heavy
Hea Rare
Ra e Earth
Ea th Elements
(HREE), which include elements from europium to lutetium plus yttrium and scandium.

• Light Rare Earths are more common than Heavy Rare Earths.
• A wide
id range off REE-bearing
REE b i minerals
i l are off potential
t ti l economic
i significance.
i ifi

• Diverse range of highly specialised applications including catalysts (35%), glass and
ceramics (30%) and in metallurgical applications (30%).

• Increasing
I i demand
d d in
i automobile
t bil pollution
ll ti catalysts,
t l t permanentt magnets
t and
d
rechargeable batteries.

• Increasing use of many REE such as dysprosium in a number of green energy

products.
Market Overview
Project
Rare Metals Rare Earths Supply-Demand Price Trend
Summary

Rare Earth Oxide Supply & Demand Forecasts

“Demand growth needs to be met by supply outside of China...”

So ce IMCOA,
Source: IMCOA Roskill
Market Overview
Project
Rare Metals Rare Earths Supply-Demand Price Trend
Summary

Recent Price Trends

Current price 3mth % 12mth %

Rare Earths 16-Nov-10 16-Feb-10
US$/kg change change
Lanthanum 73.0 49.0 5.5 49 1227
Cerium 71.0 49.0 4.2 45 1611
Light Rare
Praseodymium 114.5 76.5 25.8 50 345
Earths
Neodymium 124.5 73.5 26.8 69 365
Samarium 61.0 34.5 4.5 77 1256
Europium 650.0 650.0 480 3 35
Gadolinium 73.5 44.5 7.7 65 861
Heavy Rare
Dysprosium 410.0 295.0 132.5 39 209
Earths
Terbium 630.0 605.0 350.0 4 80
Yttrium 92.5 50.5 10.3 83.0 802.0
USD FOB ex-China kg, 99.999% purity; prices are bid-offer mid points. Source: Metal Pages, 16 Feb 2011

“Critical supply shortages in HREE continues to drive prices...”

Project Summary
Project
Rare Metals Rare Earths Supply-Demand Price Trend
Summary

JORC Category Tonnes Ta2O5 ppm Nb2O5 ppm Y2O3 ppm ZrO2- ppm

Indicated 8,834,000 215 3,068 922 7,597

Inferred 13,250,000
, , 239 3,200
, 1,000
, 8,100
,
Totals 22,084,000 230 3,120 997 7,900

Table 1: Current JORC Resource Estimates for Hastings (Sept. 2010)

• Significant potential exists to expand both the size of the resource and its in
in-situ
situ value

• Deposit remains open along strike and down dip

• Limited assay of other rare metals and rare earths but historical records indicate
excellent and potentially economic concentrations of hafnium
hafnium, gallium,
gallium dysprosium and
erbium.

• 76% of total rare earth oxides are the higher value heavy rare earth oxides
Project Geology
Mineralisation Longitudinal Hastings Value
Prospectivity
Trend
Cross Section
Section Composition
Exploration

Mineralisation Trend on Existing and Proposed Holes

• The favourable volcaniclastic unit

hosting REE mineralisation can be
traced
d over a strike
k length
l h off 3.5km
k
with ample outcrop. The unit varies
in width to 35m and has a vertical
or steep easterly dip.

• Minerals hosting rare metals at

Hastings include bertrandite,
bastnaesite, calcian-bastnaesite,
parisite and synchisite. Potassium
mica is the host for gallium which is
found within the lattice structure.
The potential ore minerals are found
dispersed throughout the quartz,
Click to
potassium mica and albite host.
Enlarge
MINERALISATION TREND
Project Geology
Mineralisation Longitudinal Hastings Value
Trend Title
Cross 2
Section
Section Composition
Exploration

Hastings Project Cross Section

• Only minor faulting is evident,

evident
and diamond drilling has
established continuity of the
unit to a vertical depth of
250m. Weathering is limited,
with
ith oxidation
id ti observed
b d only
l
down to depths of 20-30m

Click to Click to
Enlarge Enlarge
HASTINGS PROJECT CROSS SECTIONS
Project Geology
Mineralisation Longitudinal Hastings Value
Cross Section Exploration
Trend Section Composition

Hastings Project Longitudinal Section

Drilling has confirmed ore body is open at depth (resource estimate calculated at depth of
70m however drilling shows mineralisation down to 200m)

Click to
Enlarge
HASTINGS PROJECT LONGITUDINAL SECTION
 Value Composition
Mineralisation Longitudinal Hastings Value
Cross Section Exploration
Trend Section Composition

Monazite Apatite Loparite Bastnaesite Ion Adsorption Clays

Zunwu, Longnan,
Nangan, Baiyun Obo, Moutain Pass,
Hastings Mt Weld, Guangdong, Nolan's Bore, Lovozersky, Guangdong, Jiangxi Jiangxi
Guangdong, Mongolia, California,
Deposit Australia China Australia Russia China Province, Province,
China China USA
China China
Lanthanum 5.8 25.5 24 23 20.4 28 25 33.2 30.4 43.4 1.82
Cerium 16.8 46.74 42.7 42.7 48.32 57.5 50 49.1 1.9 2.4 0.4
LIGHT
T
REO

Praseodymium 0.1 6.32 4.1 4.1 5.91 3.8 5.1 4.3 6.6 9 0.7
Neodymium 0.4 18.5 17 17 21.06 8.8 16.7 12 24.4 31.7 3
Samarium 0.3 2.27 3 3 2.37 0.96 1.2 0.8 5.2 3.9 2.8
Europium 0.0 0.44 0.1 0.1 0.37 0.13 0.2 0.12 0.7 0.5 0.1
Gadolinium 0.4 Trace 2 2 0.95 0.21 0.7 0.17 4.8 3 6.9
Terbium 0.1 0.07 0.7 0.7 0.08 0.07 Trace Trace 0.6 Trace 1.3
D
Dysprosium
i 10 4
10.4 0 12
0.12 08
0.8 08
0.8 0 34
0.34 0 09
0.09 T
Trace T
Trace 36
3.6 T
Trace 67
6.7
HEAVY

Holmium 0.2 Trace Trace 0.12 0.05 0.03 Trace Trace Trace Trace 1.6
REO

Erbium 7.7 0.03 0.3 0.3 0.09 0.07 Trace Trace 1.8 Trace 4.9
Thulium 0.1 Trace Trace 0.01 Trace Trace Trace Trace Trace 0.7
Ytterbium 5.0 0.06 2.7 2.4 0.05 0.29 Trace Trace Trace 0.3 2.5
Lutetium 0.1 Trace 0.14 0.01 0.05 Trace Trace Trace 0.1 0.4
Yttrium 52.4 0.35 2.6 2.4 1.48 Trace 0.2 2.6 20 8 65
Total 100 100 100 99 100 100 100 100 100 100 99

“Hastings has the highest HREO as a percentage of TREO of the known deposits outside of China”

Source: US Geological
g Survey
y and Company
p y Reports
p
Exploration Program 2011
Mineralisation Longitudinal Hastings Value
Cross Section Exploration
Trend Section Composition

Exploration Program for 2011

 Objective - To increase the resource in three key areas with respect to:
• Size
• Confidence level,, and
• In-situ value; and
• Commence feasibility studies for its potential economic exploitation.

 Strategy - This will be achieved by:

• A limited number of key historical diamond and RC drill holes will be twinned
• Pattern
P tt drilling
d illi the
th currentt Indicated
I di t d Resource
R block,
bl k and d
• Extending drilling to a +200m depth in the current Inferred Resource block.

 Key Activities –
• A 55 hole diamond and RC drilling program to commence Q2 2011 totaling 10,000 metres
• Revised resource estimation Q3 2011
• Metallurgical test work commencing Q2 2011
Hastings Summary
Prospectivity
Summary Contact Details

Hastings Summary and Investment Proposition

 JORC resource of over 22Mt from surface which remains open along strike and
down dip.
 Potential for significant upgrade to the value of the deposit by the systematic assay
of rare metals hafnium and gallium and the heavy rare earths dysprosium,
ytterbium and erbium, which are all represented in historical data but do not form
part of the JORC resource estimation.
 The deposit is readily accessible and only 18kms from the major township of Halls
Creek.
 Near term exploration activity in Q2 2011 and revised resource calculation Q3
2011.
 Experienced corporate and technical team.
team
 Strong cash position of circa $6M.
 Current market capitalisation of $23M provides excellent leverage relevant to
industry peers.
Hastings Contact Details
Summary Title
Contact 2
Details Contact Details

ASX Code: HAS

Street Address: Postal Address:

Suite 9, 1200 Hay Street PO Box 281
WEST PERTH WA 6005 WEST PERTH WA 6872

Phone: +61 8 6460 4960

Facsimile: +61 8 9324 3045
Website: www.hastingsraremetals.com
Email: admin@hastingsraremetals.com