Cummins Range Rare Earths Project

December 2011

DISCLAIMER

The information contained in this presentation is not financial product advice. The presentation is for information purposes and is of a general and summary nature only. It does not constitute an offer. Kimberley Rare Earths Limited (KRE) gives no warranties in relation to the statements and information in this presentation. Investors should seek appropriate advice on their own objectives, financial situation and needs.

This presentation contains certain statements which may constitute “forward-looking statements”. Such statements are only predictions and are subject to inherent risks and uncertainties which could cause actual values, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements.

KRE disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise. Investors are cautioned that forward-looking statements are not guarantees of future performance and investors are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty therein.

This presentation does not constitute or form any part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities in the Company nor shall it or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment or investment decision relating to any securities in the Company. Any decision regarding any proposed subscription for securities in the Company must be made solely on the basis of information on the Company that is publicly available.

This presentation does not constitute an offer of securities for sale.

COMPETENT PERSONS STATEMENT

Information in this presentation that relates to exploration or exploration results is based on information compiled by Mr Geoff Collis, who is a member of the Australasian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which are being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Mr Collis consents to the inclusion of these estimates in the form and context in which they appear.

Information in this presentation that relates to Mineral Resources is based on a resource estimate at Cummins Range performed by Dr Phillip Hellman FAIG, who is a Director of Hellman and Schofield Pty Ltd and who has had sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which are being undertaken to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore Reserves”. Dr Phillip Hellman consents to the inclusion of these estimates in the form and context in which they appear.

Company Snapshot

ASX:KRE

List Date 18 May 2011

List Price $0.20

Shares on Issue 127 million

Shares Quoted 112 million

Options ($0.30) 6.75 million

Options ($0.25) 5.0 million

Current Share Price $0.10

Current Market Cap* $12.7 million

Current Cash* $14.3 million

TOP 10 SHAREHOLDERS

NAVIGATOR RESOURCES LIMITED 8.8%

JP MORGAN NOMINEES AUSTRALIA 7.2%

CITICORP NOMINEES PTY LIMITED 6.7%

BT PORTFOLIO SERVICES LIMITED 2.5%

GREGORACH PTY LTD 2.4%

MERRIWEE PTY LTD 2.0%

HSBC CUSTODY NOMINEES 1.9%

BANNABY INVESTMENTS PTY LTD 1.8%

IE PROPERTIES PTY LTD 1.8%

NAVIGATOR RESOURCES LIMITED** 1.7%

OFFICE

Suite 1, 83 Havelock Street WEST PERTH 6005

Western Australia

** Trust account holding on behalf of NAV shareholder * At 30 November 2011

Market Momentum

Since KRE Listing Date (18 May 2011)

NYSE: Dow Jones Industrial Average 8%

ASX: All Ordinaries Index 11%

Bloomberg Rare Earths Mineral Resources Index 47%

KRE 50%

Bloomberg Rare Earths Mineral Resources Index (BNREMRS:IND)

RARE EARTHS A new market sector finding its feet

$0

$50

$100

$150

$200

$250

On a LINEAR Scale

CUMMINS RANGE RARE EARTH OXIDE BLEND PRICE

A note on “falling rare earth prices”

Lynas project funding

secured at these prices

Market reacted to this fall…

…and recent expert views

of future oversupply

$1

$10

$100

$1,000

On a LOG Scale

CUMMINS RANGE RARE EARTH OXIDE BLEND PRICE

An order of magnitude shift in REO

Pricing

A note on “falling rare earth prices”

Lynas project funding

secured at these prices Market

reacted to this fall

Cummins Range – Western Australia

Northern Australia is the nearest future REO region to Japan (5,500km) and China (4,500km)

The Highway

The Locals

The Site Camp

2 mines

5 projects

9 projects (including Cummins Range)

9 projects

73 projects

93 prospects

Of the 191 rare earth assets in the Infomine database - over

85% are still at early exploration stage or are just

raw prospects

Operating

Advanced Exploration

Early Exploration

Raw Prospect

Data: Infomine – 28 August 2011

M+I Resources

Inferred Resources

One of few rare earth deposits worldwide

Known geology and mineralogy

SAME AS MT WELD

Rare earths enriched in the weathered zone of a carbonatite pipe

Rare earths hosted mainly in monazite, the traditional source of rare earths historically

MINERAL: Monazite

One of only 3 minerals commercially processed for rare earths

GEOLOGY: Carbonatite A common host of rare earth

mineralisation globally

Shallow, flat and at surface

No pre-stripping needed

Simple and cheap mining

proposition

Clear potential to convert

most of Resource into

mineable ore

Opportunity to commence

with higher grade Stage 1

pit

INFERRED RESOURCE: 4.17 Mt @ 1.72% TREO (1% cut off) = 72 kt REO

11.15 Mt @ 1.08% TREO (0.5% cut off) = 120 kt REO

Recent drilling confirms quality

• Mineralisation continues to NW and SE

• Mineralisation continues at depth in NW

Intercept Length (m)

Grade (% TREO)

From (m)

Hole ID Hole Type

41 3.85 11 KRC112 Infill

61 2.04 2 KRC114 Infill

30 2.93 37 KRC101 Extension

Intercept Length (m)

Grade (% TREO)

From (m)

6 10.84 24

4 7.23 5

2 12.33 47

Long intersections at above resource grade Including high grade zones

Rare earth metallurgy is complex, and key

Mining Concentration Cracking Upgrading Separation

Upstream concentration metallurgy needs defining for this ore

Flotation tests on 2007 drill samples commenced

Larger test program on new drill samples to take place over summer

Downstream cracking, upgrading and separation metallurgical technology is mature

for monazite-hosted rare earths

Rare Earth Ore

Rare Earth Products

Mine to Market

Time line

PFS Pre-Feasibility Study

by Q4 2013 BFS Bankable Feasibility Study by Q2 2015 PRODUCTION

Production in 2017

SCOPING Preliminary

Evaluation Study by Q3 2012

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

LYNAS – Mt Weld

Project Farm In

Resource Drilling

Scoping Study Feasibility

Study Peer Review Project Funding

GFC

Refinancing Construction PRODUCTION >>>

Time line comparison

MT WELD (Lynas) • 1966 – Mt Weld discovered by airborne survey • 1991 – Ashton feasibility study commenced • 1999 – Lynas farm in & new feasibility studies commenced

12 years from purchase to production

CUMMINS RANGE (KRE) Has benefits of second mover: • Shorter development time, and lower development cost • Maturing new market outside of China

6 years from purchase to production

KRE – Cummins Range

Drilling / Scoping

PFS BFS Financing /

Construction

PRODUCTION >>>

KIMBERLEY RARE EARTHS LTD

$14 million cash | Experienced metallurgical team | Development focussed

RARE EARTH MARKET

PRICES Finding the new balance after paradigm shift

SUPPLY China supply shrinking, still no new production from outside

DEMAND Strong growth expected in line with history

KRE ASSETS

CUMMINS RANGE – Advanced Australian rare earth Resource ready to develop

MALILONGUE – Exciting heavy rare earths exploration project in Mozambique

KRE FOCUS

Rapidly advancing rare earth projects through exploration and development into production

Take aways

Focused On Rare Earths

Principal Place of Business

Suite 1, 83 Havelock Street WEST PERTH 6005 Western Australia

Registered Office

Level 7, The Quadrant, 1 William Street PERTH 6000 Western Australia

Contact Details

Telephone: +61 (8) 9486 4326 Facsimile: +61 (8) 9486 4327

www.kimberleyrareearths.com.au