Australian Rare Earths Limited (ASX: AR3 or the Company) is pleased to advise that it has

received firm commitments to raise approximately $6 million (before costs) via a share

placement (Placement) to institutional, sophisticated and professional investors.

Highlights:

• Strong investor support: The Placement was strongly supported by both new and existing

  institutional and professional investors.

• Strategically aligned funding: Approximately $6 million of funding secured with the issue of ~32.4 million new fully paid ordinary shares at $0.185 per share (Offer Price), representing an 11.9% discount to the last closing price of $0.21 per share on 28 January 2026.

• Execution focused: Funding will provide significant runway to execute upon near-term objectives including the completion of the Koppamurra Rare Earths Project’s (Koppamurra) pre-feasibility study, operation of the Koppamurra pilot plant, submission of a mining lease application and continued exploration activities.

• Strengthened Balance Sheet: Placement proceeds, together with existing cash and AR3’s $3.25 million government grant to be received upon completion of grant milestones, provides balance sheet strength to deliver on significant project objectives.

• Engage with this announcement at the AR3 investor hub.

  AR3 Managing Director and CEO, Travis Beinke, said:

  “AR3 has delivered strong progress over the past 12 months, and this $6 million placement

  provides a robust runway to execute our near-term milestones. The level of investor support

  reflects growing confidence in our strategy and the increasing demand for heavy rare earths

  critical to the global energy transition.

  “With this additional funding we are well-positioned to focus on delivering on our key milestones.

  Our recent technical breakthrough in January 2026, which successfully established a pathway to

  producing a 98.6% pure Mixed Rare Earth Oxide (MREO) through a low-risk oxalate precipitation

  process, reinforces the strength of our strategy. In parallel, being selected as the Australian

  Nuclear Science and Technology’s (ANSTO) first customer for its new pilot-scale rare earth

  processing facility in Sydney, places the Company in a strong position to materially advance the

  Koppamurra Project through 2026. We are in the vanguard of new, diversified non-China supply

  options for light and heavy rare earths feedstocks and this placement allows us to maintain

  momentum as we move into our next phase of execution.

  “While there is more work ahead, we remain confident in our ability to deliver on our milestones

  and create long-term value for our stakeholders.”