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Lynas Corporation Limited

Wednesday, August 8th, 2007

The Directors of Lynas Corporation Limited are pleased to announce the completion of a $60 million share placement at $1.15 per share. This completes a $300 million debt and equity funding package for the Rare Earths project raised over the last month.
The placement was lead managed by Austock Corporate Finance with Patersons Securities Limited appointed as co-broker to the issue. Strong demand from both domestic and international investors resulted in the placement being significantly oversubscribed. Settlement and allotment of all shares under the placement will occur on 10 August 2007.
Upon completion of the placement, Lynas will have approximately 560 million ordinary shares on issue. Participants in the placement represent a broad range of global institutional investors consisting of existing institutional holders and a number of new institutional shareholders that have been attracted onto the register.
The Directors are also able to announce the final amount to be drawn down from the Indus Capital Partners, LLC, convertible note facility announced on 6 July 2007, shall be $80 million, leaving a $35 million standby facility available as additional contingency for the project.
The funding package for the Rare Earths project therefore comprises of the share placement, the convertible note facility, the US$105 million bank debt facility underwritten by Bayerische Hypo- und Vereinsbank AG announced by the company on the 27 July 2007 and a cash balance of $60 million.
Lynas Executive Chairman, Nicholas Curtis said: “The Directors are very pleased to finalise the complete fund requirements of the Rare Earths project taking into account prudent gearing ratios for the company whilst minimising dilution for existing shareholders. This package shall fund the capital and all project costs for the development of the mine at Mt Weld, the processing plant in Malaysia, contingencies, working capital requirements and corporate costs.”

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