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Lynas Rare Earths Ltd HIGHLIGHTS QUARTERLY REPORT FOR THE PERIOD ENDING 31 DECEMBER 2020 • Record Quarterly Sales Revenue of A $ 119.4m ( Q1 FY21 : A $ 87.3m ) Production in line with guidance : • • • ○ NdPr Production : 1367 tonnes ( Q1FY21 : 1342 tonnes ) Cash conversion within the quarter was low О Reduced shipping schedules and delayed sailings ( due to COVID - 19 ) skewed sales to late in the quarter ○ Closing cash balance : A $ 512.6m ( Q1 FY21 : A $ 522.0 ) Progress on Kalgoorlie project continued including placing orders for key process equipment Exploration at Mt Weld identified potential REE mineralisation below the current Mt Weld Rare Earths pit ( announced 26 November 2020 ) CEO REVIEW I am pleased to present the results of a very productive quarter with excellent operating performance and substantive progress on our key growth projects . Our sales revenue of A $ 119.4m in the December quarter was the highest ever quarterly sales result for our company . Total NdPr production of 1,367 tonnes was in line with guidance at 75 % of Lynas NEXT capacity and we maintained a sharp focus on operating costs . The Lynas 2025 project teams continued to progress key growth initiatives including all elements of the Kalgoorlie project : approvals , engineering design and procurement . In addition , our proposed new facility in Texas , U.S. , has been the subject of recent announcements . While we cannot yet make a full assessment of the pandemic's impact on global demand , the Rare Earth market appears to have been less affected by the crisis compared to some markets . Demand for electric vehicles has accelerated in Europe and Asia , which has more than compensated for the overall decrease in the automotive market . Developing strategically reliable Rare Earth supply chains remains important to governments and end users . As the world's second largest producer of separated Rare Earths , and the only significant producer outside of China , Lynas is in an ideal position to support supply chain diversity . Lynas continues to actively Page 1 of 9