Rare EarthsWE TOUCH THEM EVERYDAY

Diggers & Dealers Presentation

August 2011

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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 the Australian Securities and Investments Commission (ASIC).Not investment or financial product adviceThis 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 dataAll dollar values are in Australian dollars (A$) unless stated otherwise and financial data is presented within the financial year end of 30 June 2010 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.Past performancePast 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.Future performanceThis Presentation contains certain “forward-looking statements”. The words “expect”, “should”, “could”, “may”, “will, “predict”, “plan”, “scenario”, “forecasts”, “anticipates” 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 risksAn 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; construction risks; progressing risks; project developments; 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 offerThis Presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States. The securities to be offered and sold in the equity raising mentioned herein have not been, and will not be, registered under the U.S. Securities Act of 1933 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 unless the securities are registered under the Securities Act or pursuant to an exemption from, or in a transaction not subject to, registration.

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Lynas will offer the first new source of supply of Rare Earths outside of China

VISION: Be the leader in Rare Earths for a

sustainable future.

EXCHANGES: ASX (code LYC), OTC (code LYSDY)

INDICES: ASX 100, MSCI Australia

SHARES: 1,714m on issue

MARKET CAP: $3.7bn as at 29 July 2011

CASH: $433.9m (incl. restricted cash) as at 30 June 2011

DEBT: $212.3m (drawn but unused) as at 30 June 2011

LYNAS VITALS AT A GLANCE

Mount Weld

Concentration Plant

Lynas Advanced Materials PlantFor

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• ChemicalUnique electron configuration

• CatalyticOxygen storage and release

• MagneticHigh magnetic anisotropy and large

magnetic moment• OpticalFluorescence, high refractive index

• ElectricalHigh conductivity

• MetallurgicalEfficient hydrogen storage in

rare earths alloys

Rare Earths cannot be substituted in many applications

RARE EARTHS: LANTHINIDES PLUS YITTRIUM – UNIQUE PROPERTIES

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Rare Earths underpin new materials technology required to sustain the needs of today’s society

Energy efficiency through lower consumption

• Wind turbine • Auto catalytic converter• Diesel additives

• Compact Fluorescent Lights• Hybrid vehicle• Weight reduction in cars

Smaller yet more powerful digital technology

• Flat panel displays• Disk drives• Digital cameras

Environmental protection through lower emissions

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1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012F 2013F 2014F

Demand Other Supply Mt Weld Supply China Supply Price FOB China (Yearly Ave) Price 2011$

Supply shortfall and increasing prices are a result of structural change as China addresses environmental and mining issues

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HISTORIC AND FORECAST SUPPLY, DEMAND AND PRICING

US$232.68/kg29 July 2011

Source: Industry resources and Lynas research

t REO US$/kg

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The mine is within the Central Lanthanide Deposit (CLD), a Resource of 9.9 million tonnes at 10.7% for 1.1 million tonnes of contained REO

Central Lanthanide Deposit &Duncan Deposit at Mount Weld Tenements

Category Tonnes Mt

Grade %REO

Tonnes (kt) REO

CLD 9.88 10.7 1,057

Duncan 7.62 4.8 366

Total 17.49 8.1 1,416

Current reserves are 2.04Mt @15.2% TLNO

Following further drilling, reserves are expected to be updated late 2011 / early 2012

Low Thorium content, 44ppm ThO2/1% REO

CLD & Duncan Mineral Resource (2.5% REO cut-off)

CENTRAL LANTHANIDE DEPOSIT AND DUNCAN DEPOSIT RESOURCES

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Latest drilling program at Mount Weld is very encouraging with a number of significant results

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MOUNT WELD RESOURCE IMAGE AND LATEST DRILLING CAMPAIGN

Mount Weld inferred resource blocks >8% REO from wide-spaced drilling

Latest drilling campaign at Mount Weld

Recent significant results include: 60 m @ 12.36%REO, 67m @ 9.07%REO, 43.5m @ 11.34%REO and 44m @ 10.29%REOF

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Mount Weld Rare Earths initial mining campaign complete, loss-time-injury-free, on budget

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DUNCAN DEPOSIT (DD) Offices

8%13%

17%26%

15%13%

20%21% Conc.

Plant1.5km

773,000t on stockpiles

MOUNT WELD STOCKPILES WITH RARE EARTH OXIDE PERCENTAGES

DD CLD DEPOSIT

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The Concentration Plant commenced feed of ore in May 2011

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OVERHEAD VIEW OF THE CONCENTRATION PLANT

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Commissioning progressing well; grade in line with, and recovery exceeding, planned ramp up schedule

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Flotation cells with initial feed

MOUNT WELD CONCENTRATION PLANT

Concentrate cake discharging from filter press

Plant throughput rates continue to ramp up

Ramp-up to nameplate throughput to be synchronised with the ramp-up of the Lynas Advanced Materials Plant in Malaysia.

Concentration Plant Performance

July 2011 MTD

July ramp-up plan

Final concentrate grade 36.0% 36.0%

Recovery 68.7% 45.0%

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Fully permitted for operations Inferred Resource of 107,000 tonnes REO at an

average grade of 4.24% REO, with a 3.5% cut-off grade.

At a 3% REO cut-off grade the resource increases to 180,000 tonnes REO and remains open at depth

Extremely low thorium levels for a Rare Earths deposit, 11ppm ThO2 / 1% REO

Pilot plant completed for gravity concentration process

Unassembled gravity separation concentration equipment included in sale

Lynas has completed the acquisition of additional Rare Earths resources in Malawi, Africa

KGK

Key points for Kangankunde (KGK)

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Commencement drilling program to confirm existing resource estimate and investigate potential expansion along strike and at depth.

Mintek to carry out metallurgical test work program to confirm viability of the previously defined concentration flow sheet

Cracking and separation test work shall commence on the concentrate

Concentrate may be processed in Africa to produce a mixed Rare Earths product which may be shipped to Malaysia for separation

Lynas now has two JORC compliant deposits, test work has commenced on Kangankunde

The Kangankunde Carbonatite Next steps for the Kangankunde RE deposit

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Containers of Rare Earths concentrate will be trucked to Fremantle for shipping to Malaysia

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• Mount Weld to Fremantle = 1000km

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INDUSTRIAL INFRASTRUCTURE Energy, chemicals, water, industrial land

KNOWLEDGE INFRASTRUCTURE Engineering, trade skills and services

GOVERNMENT INFRASTRUCTURE Including FDI incentives (12 years tax exemption for pioneer status)

Gebeng, Malaysia, has exceptional infrastructure required for a Rare Earths separation facility

PROCESSING HUB WITH EXCEPTIONAL INFRASTRUCTURE

GebengIndustrial Estate, East Coast Malaysia

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Schematic - Lynas Advanced Materials Plant core process, which uses mature industry technology

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The Lynas Advanced Materials Plant (LAMP) is 0.8km wide (N-S) and 1.4 km long (E-W)

JULY 2011 OVERVIEW OF LEACHING, UP AND DOWNSTREAM SEPARATION ANDPRODUCT FINISHING WORKSHOPS

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Piping and electrical installation is well underway and installation of equipment is ongoing

Secondary Leaching

Gas TreatmentCracking (Rotary Kiln)

Primary Leaching

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All major tanks are now in place and the tunnel furnaces are progressing well

Upstream Extraction Downstream Extraction

Post Treatment Tunnel Furnaces

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Ancillary services are also progressing well

Maintenance Workshop

TNB Substation

Maintenance Workshop

Admin Building

Reagent Storage and Preparation

Reagent Storage

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Phase 1 construction costs are fully funded, indicative term sheet received for debt facility to meet working capital requirements

ESTIMATED CONSTRUCTION AND OTHER CAPITAL COSTS FORECAST TOTALA$m

SPEND TO 30/06/11A$m

FUTURE SPENDA$m

Mount Weld Concentration Plant 76.8 69.0 7.8

Lynas Advanced Materials Plant, Malaysia 267.8 149.8 118.0

Engineering and Project Management Costs 148.5 127.4 21.1

Other Capex including Land in Malaysia 63.0 54.2 8.8

Contingency 13.4 - 13.4

Total Construction & Other Capital Costs $569.5 $400.4 $169.1

ESTIMATED PRODUCTION RAMP-UP COSTS UNTIL 31 DECEMBER 2011 A$m

Mount Weld Concentration Plant 17.1

Lynas Advanced Materials Plant, Malaysia 36.6

Finance, Admin, Marketing, Technical and Corporate Overheads 14.9

Total $68.6

TOTAL ESTIMATED CASH REQUIREMENTS TO 31 DECEMBER 2011 $237.7

ESTIMATED CASH REQUIREMENT TO 31 DECEMBER 2011

Cash on Hand 30 June 2011 (excluding Phase 2 Funding) 198.5

Working Capital to 31 December 2011 39.2

TOTAL $237.7

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IAEA report confirms the LAMP is expected to be safe and fully compliant with international standards

IAEA Recommendation Lynas actions Required for pre-operating licence

1

Lynas to submit, before the start of operations, a plan setting out its intended approach to the long term waste management, in particular management of the water leach purification (WLP) solids after closure of the plant, together with a safety case in support of such a plan. The RIA plan should be updated accordingly.

• Plan submitted to AELB on 18 July 2011

• Safety case work underway, planned to be submitted with updated RIA to AELB in August 2011

Yes

2

Lynas to submit, before the start of operations, a plan for managing the waste from the decommissioning and dismantling of the plant at the end of its life. The RIA and decommissioning plan should be updated accordingly.

• Plan and updated RIA submitted to AELB on 18 July 2011 Yes

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Lynas, as the party responsible for the safety of the proposed rare earths processing facility, should be urged to intensify its communication with interested and affected parties in order to demonstrate how it will ensure the radiological safety of the public and environment.

• Intensify Lynas communication with interested and affected parties –activity already underway

Yes

IAEA RECOMMENDATIONS REQUIRED FOR PRE-OPERATING LICENCE

Lynas anticipates completion of the required submissions to the AELB in August 2011. The AELB will then take a period of time to complete an assessment of compliance. Subject to a normal compliance process

the Company expects first production from the LAMP by the end of 2011.

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The Strategic Alliance with Sojitz shall provide a stable and long term source of supply for the Japanese market

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LYNAS, SOJITZ AND JOGMEC HAVE EXECUTED DEFINITIVE AGREEMENTS

Sojitz – LynasStrategic Alliance

Financing Agreement

• Funding for Phase 2 expansion to 22,000t• US$225M loan from JOGMEC and Sojitz• 6 year loan at LIBOR plus 2.75%, principal

repayments begin in year 4 • US$25M subscription for new fully paid

ordinary shares in Lynas at a price of A$2.12 per share

• Funds drawn in May 2011

Availability Agreement

• Minimum 8,500t (+/-500t) per annum

• Allocated to Japanese Customers

• 10 year allocation

Distribution & Agency Agreement

• Joint marketing by Sojitz and Lynas

• Customer commitment will determine Phase 2 products suite

• Professional organisation, speed, understanding of requirements, transparent communicationsF

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Letter of Intent signed with Siemens to establish a JV company for the sustainable production of neodymium-based Rare Earths magnets

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LYNAS AND SIEMENS INTEND TO FORM A JOINT VENTURE FOR MAGNET PRODUCTION

LYNAS

JV COMPANY(SIEMENS 55% : LYNAS 45%)

SIEMENS

The partnership between Lynas and Siemens will secure a long-term and sustainable end-to-end supply chain from mine to magnet to end application

Long term supply contract for Nd/Pr oxide and Nd/Pr metal

Magnet technology and manufacturing capabilities

Supply of Nd-based rare earth magnets to Siemens (and third parties)

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Eight customer agreements have been signed; Strategic Alliance with Sojitz to provide stable supply to Japanese customers

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8th Customer Agreement – Supply Contract• Long term contract• Product from Phase I & II

2nd Customer Agreement -Supply Contract

• ~US$200M¹• Long term 5 year

contract, Phase 1• Neodymium &

Praseodymium

3rd Customer Agreement - Supply Contract

• ~US$20M¹• Long term multiple year contract• Product from Phase I & Phase II

5th Customer Agreement – Letter of Intent• ~US$80M¹• Long term multiple year contract• Product from Phase I & Phase II

4th Customer Agreement – Supply Contract• Long term multiple year contract• Product from Phase I & Phase II

SEVEN SUPPLY CONTRACTS AND ONE LETTER OF INTENT SIGNED 1 Values reflect market prices at signing of contract

6th Customer Agreement - Supply Contract• Long term multiple year contract• Product from Phase I & Phase II

7th Customer Agreement – Supply Contract• Multi - year contract• Product from Phase I

Strategic Alliance with Sojitz Minimum of 8,500t (+/-500t)

of product distributed into Japan market

Rhodia Customer Agreement -Supply Contract

• >US$200M¹• Long term 10 year contract,

Phase I• Cerium, Europium, Terbium &

Lanthanum

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Lynas – online in 2011, delivering Rare Earths globally

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• Our vision is to be the leader in Rare Earths for a sustainable future.

• We are close to realising this vision.

• Lynas will be online in 2011, delivering Rare Earths globally. This is the first new production outside of China.

• The LAMP is scheduled to come online with a Phase 1 production capacity of 11,000tpa REO.

• Work for Phase 2 is underway for an additional 11,000tpa REO.F

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NOTE

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Brendan Shand, who is a member of The Australasian Institute of Mining and Metallurgy. Brendan Shand is an employee of Lynas Corporation Limited. Brendan Shand has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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’. Brendan Shand consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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