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LYNAS CORPORATION FY20 Results

Investor Presentation

17 August 2020

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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 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 shares.

Financial data

All dollar values are in Australian dollars (A$) unless stated otherwise and financial data is presented within the year ending 30 June 2020 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.

Future 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. This Presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “will, “predict”, “plan”, “scenario”, “forecasts”, “anticipates” “estimates” 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 shares 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; operations risks; project development risks; 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. Any securities described in this Presentation have not been, and will not be, registered under the U.S. Securities Act of 1933 (the “Securities Act”).

Disclaimer

Lynas and its affiliates, officers, employees, agents and advisers have not authorised, permitted or caused the issue, dispatch or provision of this Presentation to any third party. Lynas, its related bodies corporate and their respective affiliates, officers, employees, agents and advisers to the maximum extent permitted by law, expressly disclaim all liabilities in respect of any expenses, losses, damages or costs incurred by you as a result of the information in this Presentation being inaccurate or due to information being omitted from this Presentation, whether by way of negligence or otherwise, and make no representation or warranty, express or implied, as to the fairness, currency, accuracy, reliability or completeness of information. The information in this Presentation remains subject to change without notice.

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Solid revenue & positive operating cash flowsRevenue $305.1m

(FY19: $363.5m)

EBITDA $59.8m

(FY19: $100.7m)

Total REO Produced14,562t (FY19: 19,737t)

NdPr Produced 4,656 tonnes

(FY19: 5,898 tonnes)

EBIT ($6.2)m

(FY19: $56.4m)

Gross Profit$47.8m

(FY19: $90.5m)

Cash at year end $101.7m

(FY19: $89.7m)

Cash flows from operating activities$32.1m (FY19: $104.1m)

• FY20 Production and Revenue affected by• Annual processing limit production halt (December 2019)• COVID-19 temporary shutdown (March-May 2020)• Decision to restart after the COVID-19 temporary shutdown at 70% of

Lynas NEXT rates • Plant restarted in May at 70% of Lynas NEXT rates and operating at 75%

since June• Matched to market demand• Original nameplate capacity delivered cost effectively with 75% asset

utilisation• Expect to maintain this rate until COVID-19 uncertainty is resolved

• Cost base was adjusted in shutdown period to mitigate financial effect of the COVID-19 shutdown

• Further reduction in total debt• US$1.5m of the issued bonds converted during the year and the

remaining US$12.2m of issued bonds was converted in August 2020• As of 3 August 2020, the only remaining debt is the JARE loan facility

with a principal amount of US$145 million

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FY20 Results

-150

-100

-50

0

50

100

FY15 FY16 FY17 FY18 FY19 FY20

NPAT (A$m)

-50

0

50

100

150

FY15 FY16 FY17 FY18 FY19 FY20

EBITDA (A$m)

20

70

120

170

220

270

320

370

420

FY15 FY16 FY17 FY18 FY19 FY20

Sales Revenue (A$'m) COVID-19 production halt

-60-40-20

020406080

100120140

FY15 FY16 FY17 FY18 FY19 FY20

Cash Flow (A$'m) (excl. AELB, Interest received)

Net investing CF

Net operating CF

Operating & investing CF

2,257 3,896 5,223 5,444 5,898 4,6560

5,000

10,000

15,000

20,000

25,000

FY15 FY16 FY17 FY18 FY19 FY20

Production Volume (REOt)

NdPr (RTS) Others (RTS) Total RTS Volume

COVID-19 production halt

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FY20 Sales Volume & Revenue were affected by temporary production halts

20

40

60

80

100

120

Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20

Sales Revenue (A$'m)

0

1,000

2,000

3,000

4,000

5,000

6,000

Q1 FY19 Q2 FY19 Q3 FY19 Q4 FY19 Q1 FY20 Q2 FY20 Q3 FY20 Q4 FY20

Sales Volume (REOt)

NdPr Others Total Sales Volume

December production halt

COVID-19 production halt

December production halt

COVID-19 production halt

NdPr market prices remained low throughout the financial year

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Key achievements in FY20

Lynas 2025 growth vision

Progress on key Lynas 2025 projects

• Kalgoorlie selected as location for new Rare Earth Processing Facility

• Kalgoorlie project awarded Major Project Status from the Australian government and lead agency status from the WA State government

• Lynas selected by U.S. Dept of Defense for Phase 1 of U.S. Heavy Rare Earths separation facility

• Dedicated project teams for each key project in place and working well

Sustainability

Awarded Gold EcoVadisCSR rating

• Gold medal EcoVadisrating puts Lynas Malaysia in top 5% of companies evaluated as part of global supply chain sustainability assessments

• Lynas Malaysia received the Best in CSR Award from Lang International

• Inaugural Sustainability Report published

Regulatory

Lynas Malaysia operating licence renewed for 3 years

• Operating licence renewed to March 2023 subject to acceptable conditions that Lynas expects to be able to satisfy

• The State Government of Pahang issued its consent to a site for the Permanent Deposit Facility for Water Leach Purification (WLP) residue

• Lynas appointed a turnkey contractor to manage the entire PDF project

People

Excellent safety outcomes

• 12-month rolling lost time injury frequency rate was 0.8 per million hours worked (2019: 0.9 per million hours)

• Strict COVID-19 health & safety protocols implemented March 2020 to protect the health & wellbeing of our people

• Lynas continued to pay all employees during the COVID period whether they were working from home, working on site, or not rostered on

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Caring for our people, our communities and the environment

FY20 Achievements

• Excellent safety record continued• 12-month rolling lost time injury frequency rate was 0.8 per million hours worked

(2019: 0.9 per million hours) • Both sites were proactive in complying with industry best practices

• Annual geotechnical audit of the Mt Weld tailings storage facilities (TSFs) completed, with all three TSFs compliant with regulatory requirements.

• Certification maintained by Western Australian and Malaysian operations to OHSAS 18001 (Occupational Health and Safety Management Systems), ISO 14001 (Environmental Management Systems) and ISO 9001 (Quality Management Systems) standards

• Government recommended COVID-19 protocols were implemented immediately and remain in place

• Lynas Malaysia received a gold medal CSR rating from EcoVadis, ranking in the top 5% of companies evaluated

• Lynas Malaysia awarded ‘Best in Corporate Social Responsibility’ in Lang International Awards

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Delivering safe and sustainable production• FY20 Production throughput was affected by 2 temporary production halts

• 6 week temporary shutdown of the Lynas Malaysia plant from 22 March 2020 in line with the Malaysian government’s COVID-19 Movement Control Order

• A temporary production halt in December 2019 once Lynas Malaysia reached the annual (calendar year) lanthanide concentrate processing limit

• Effect of shutdowns were felt during the production halt as well as during the ramp down and restart periods

• Production after the significant COVID-19 shutdown ramped up to 75% of Lynas NEXT rates in June• Strict COVID-19 protocols remain in place at both sites• Expect to maintain current production rates until COVID-19 uncertainty is resolved• Matches market demand whilst capturing key cost efficiencies

• Upgrades were completed during FY20 to improve product processing and quality• Circuit upgrades completed at Lynas Malaysia for new product development and quality

improvements• Optimisation of circuit changes at Mt Weld dealt with increased carbonate and crandallite in the ore

and led to noticeable improvements in Cracking and Leaching performance at Lynas Malaysia• Processing of Duncan ore has increased the proportion of Heavy Rare Earths in the ore blend

• Increased Dysprosium and Terbium content SEG (heavy rare earth compound)• Mining campaign 3 completed

• Approximately 560,000 tonnes of ore extracted

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Quality initiatives are delivering positive outcomes in a challenging Rare Earths market

• COVID-19 has heightened the spotlight on Rare Earths • Increased appetite for reliable, diversified RE supply chain

• Lynas is a proven, reliable supplier to key markets• Continuing to engage with end users and governments

• Average NdPr market price decreased in FY20• Market prices reduced and stayed low throughout the year• May take a few quarters to clarify effects of COVID-19 pandemic on demand

• Successful development of value added products in FY20• New grades of La & Ce piloted and under qualification by selected customers• Opportunity for substantial margin improvement with decreased dependence on market

prices• Mitigated effects of low market pricing

• Focus on serving customer demand and supporting development of the market outside China

• Only 10% of separated Rare Earth sales realized in China in March quarter

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Malaysian operating licence renewed for 3 years

• Lynas Malaysia’s operating licence was renewed for three years to March 2023 with key conditions that Lynas expects to be able to satisfy (27 February 2020)

• The licence renewal provides the foundation for continued operation of Lynas Malaysia as well as resolution on the management of our two residue streams

• The State Government of Pahang issued its consent to a site for a Permanent Deposit Facility (PDF) for the Water Leach Purification (WLP) residue (30 January 2020)

• Lynas Malaysia appointed Gading Senggara Sdn Bhd as turnkey contractor to manage the entire PDF project (30 January 2020)

• Atomic Energy Licensing Board audit found Lynas Malaysia’s operations were “very satisfactory”, the highest rating available and the third time the company has achieved this rating (November 2019)

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Coming through COVID-19 in good shape

Social distancing

Temperature testing

Disinfecting surfaces

• Lynas entered the COVID-19 pandemic in robust financial shape as a result of a number of years of prudent capital management

• Both sites rapidly implemented recommended government safety and health recommendations and industry best practices in March 2020

• All employees continued to be paid through the shutdown period

• Operations restarted in May 2020 at 70% and ramped up to 75% of the Lynas NEXT production rates in June - sufficient to refill supply chains and to restock depleted inventories while maintaining new COVID-related health and safety protocols

• Demonstrated ability to adjust the cost base to mitigate the effects of the COVID-19 shutdown and optimise efficiencies at 75% production

• There is continued demand for Rare Earths in the markets in which we operate • While the automotive market has been affected by COVID-19, the International Energy

Agency1 estimates sales of EVs (battery electric cars and plug hybrid cars) will remain broadly at 2019 levels

1. IEA (2020), Global EV Outlook 2020, IEA, Paris

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Supplying essential materials to exciting growth industries

Key Investment Drivers

• Global Climate Change Policy

• Industrial Automation

• Desire for Sustainable Mobility

• Increased global significance of Rare Earths

• Heightened focus on resilient supply chains

• Technology Incentives and R&D Subsidies

Electric Vehicles (EV) – Including Electric drive components, Hybrid motor technology, Electric public transport and Electric aviation Benefits: Lighter and more efficient high-performance motorsRare Earth products: NdPr, Dy, Tb

Consumer Electronics – Including smartphones and computer componentsBenefits: Driving the evolution of smaller, lighter, cheaper and more efficient consumer devices Rare Earth products: NdPr, Dy, Tb, Ce, La

Robotics, Appliances & Medical Devices – Including robotics, drones, household appliances, medical diagnostic equipment Benefits: Improving energy efficiency and medical diagnosesRare Earth products: NdPr, Dy, Tb

Green Technologies – Including automotive Catalytic Converters to reduce NOx, CO gases and new generation direct drive Wind TurbinesBenefits: Making vehicle emissions cleaner, and wind turbines lighter, more reliable, cheaper to maintain and lower energy production costsRare Earth products: NdPr, Dy, Tb, Ce

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Progress on key Lynas 2025 projects

• Increasing Dysprosium (Dy) and Terbium (Tb) content of SEG by blending Duncan ore into the feed

• Optimising circuit changes • Pre-leach to reduce

carbonate levels in concentrate

• Kiln drying of concentrate

• Kalgoorlie selected as location for new Facility

• Project awarded Lead Agency status by the Govt of Western Australia and Major Project status by the Australian Government

• Opportunity to create over 500 jobs during construction and over 100 new ongoing jobs

• Longest lead item (kiln) tender released (awarded July 2020)

• La and Ce quality improvements for higher value products

• Scale benefits and cost efficiencies delivered by the Lynas NEXT initiative provide production flexibility to ramp up/down in line with demand

• Lynas was selected by U.S. Dept of Defense for Phase 1 contract for U.S. Heavy Rare Earths separation facility

• Phase I contract signed with U.S. Department of Defense in July 2020 for completion of a detailed market study, and planning and design work for a U.S. Heavy Rare Earths separation facility

FY2020 Progress

Mt Weld, WA: Production ramp up to meet forecast demand growth

Kalgoorlie, WA: Building a new Rare Earth Processing Facility

Malaysia: Investing in increased downstream processing, product range, recycling

United States: Filling a market gap with new separation and product finishing capability

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FY20 achievements for our planned Kalgoorlie Rare Earth Processing Facility

3D render, Lynas Kalgoorlie Rare Earth Processing Facility

Dedicated project team in place and working effectively

• Construction expected to commence in mid 2021, subject to

approvals

• Facility will process Rare Earth concentrate from Mt Weld to

produce mixed Rare Earth carbonate that will undergo further

processing at Lynas Malaysia

• Lynas has exercised a sublease for an industrial zoned

property from the City of Kalgoorlie-Boulder

• Project environmental studies completed and awaiting

regulatory approvals

• High-level design completed in-house based on learnings from

the Lynas Malaysia plant

• Front-end Engineering Design completed for critical areas

• Order placed for the rotary kiln (the most critical long lead item)

• Lynas is seeking regulatory approvals to commence

Preliminary Works in H2 CY2020

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Heavy Rare Earth separation is an attractive strategic project

• Blending Duncan ore into the feedstock is increasing the Dysprosium (Dy) and Terbium (Tb) content of our SEG product

• Opportunities to optimize HRE recoveries

• HRE Process design led by Lynas team members with operational experience of design and operation

• Design now finalized following extensive work

• Process benchmarked with best in class separation

• Lynas and U.S. partner Blue Line are undertaking detailed planning and design work as part of Phase 1 contract with U.S. Department of Defense

• Strong demand for Dy/Tb supply from magnet makers and magnet buyers

• Opportunities for customized downstream RE compounds

• Key markets include USA, Japan, Korea and Europe

Mt Weld, WA:Maximising our Heavy Rare

EarthsProcess design finalized Detailed planning & design in

progressMarket: Strong appetite for

separated HREs outside China

FY2020 Progress

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Organizational changes to support the Lynas 2025 vision

Pol Le Roux

VP, Downstream

Kam Leung

VP, Upstream

• Lynas is entering an exciting period of transformation and growth as we deliver on the Lynas 2025 vision. To support this change, global operations have been restructured into two new operations units:

• Upstream Operations unit: Accountable for all operations in Western Australia, including our Mt Weld Mining and processing operations and all WA based development work, including the Kalgoorlie project

• Kam Leung is appointed to the role of VP Upstream (formerly VP Production)

• Downstream Operations and Sales unit: Accountable for Lynas’ advanced manufacturing plant in Kuantan, Malaysia, and all Sales and Marketing activities as well as business development projects outside of Australia including the proposed Heavy Rare Earths separation plant.

• Pol Le Roux is appointed to the role of VP Downstream and Sales (formerly VP Sales & Marketing)

• These changes also respond to the challenges presented by COVID-19 travel restrictions as executives will reside in the country of the primary operations they are leading

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Meeting our customers’ needs for sustainably produced Rare Earths

We care for our people:• The health & safety of our

people, our communities and the environment is always our first priority

• We develop our people through training, education & promotions

• Certified to OHSAS 18001 (Occupational Health and Safety Management Systems)

We care for the environment:• Environmentally-responsible

Rare Earths producer by design• Mine to magnet traceability• Life Cycle Assessment with

selected partners• Certified to ISO 14001

(Environmental Management Systems)

We care for our communities:• Making a positive contribution to

local employment, skills, education, and health

• Prioritising local suppliers• Keeping our communities informed• Being a trusted & productive

community member

Our sustainability has been recognised:• Gold EcoVadis CSR rating for

Lynas Malaysia, ranking in top 5% of companies evaluated (July 2019)

• ‘Best in CSR Award’ to Lynas Malaysia in Lang International Awards (November 2019)Lynas Rare Earth materials are used in industries where

environmental provenance and sustainability matter

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The Rare Earths Company of Choice

Market Opportunities Unique Market Position

Established Operations with Significant IP

Growth & Expansion Opportunities

Proven Team

• Long term demand outlook for key Rare Earths products including NdPr remains strong1

• COVID-19 has increased customer and governmental appetite for diversified and resilient Rare Earths supply

• World’s second largest Rare Earths producer

• Only significant producer of separated Rare Earths outside of China

• Established & trusted relationships with strategic customers in global supply chains

• Active support from Australian, Japanese and US governments

• Proven and profitable business

• Strong capital and operating cost culture

• Significant Technical, Engineering and Processing IP

• Track record of delivering projects on time and on budget

• Mt Weld – Tier 1 Deposit with an existing 25+ year Reserve life

• Planned Kalgoorlie Rare Earth Processing Facility provides foundation for Lynas 2025 growth initiatives

• Corporate culture founded on capable and resilient people

• Rigorous focus on building long term shareholder value

1. Roskill, Rare Earth Outlook to 2029, 28th Edition, 31 December 2019

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Visit our Investor Centre at:www.lynascorp.com

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Appendix A: JORC ComplianceThe information in this presentation is extracted from the report entitled Lynas Corporation 2019 Annual Report created on (October 2 2019) and is available to view on (https://www.lynascorp.com/wp-content/uploads/2019/10/191002-Annual-Report-Appendix-4G-and-Corporate-Governance-Statement-1979978.pdf).

The company confirms that it is not aware of any new information or data that materially affects the information included in theoriginal market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.