Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 – Rev. 0
1-1
1 Executive Summary
Rare Element Resources, Inc. (“Rare Element” or the “Company”), a wholly-owned
subsidiary of Rare Element Resources Ltd., is progressing with technical work at its
Bear Lodge rare earths property in Crook County, Wyoming. The purpose of this
Preliminary Feasibility Study (PFS) is to provide the Company a preliminary plan for
the development of a rare earth element (REE) mining operation at the Bull Hill Mine
of the Bear Lodge Project, located in the Bear Lodge Mountains, Crook County,
Wyoming, and the processing facility located near Upton, Weston County, Wyoming.
This Preliminary Feasibility Study (PFS) was commissioned to provide a technical
report that contains: 1) the mineral reserve and resource model; 2) the technical
activities of the rare earth exploration program; 3) establishment of a mineable
reserve and an open pit mine plan; 4) a detailed description of mineral concentration
and hydrometallurgical processing; and 5) an economic analysis of the rare earth
project. These data are presented in this National Instrument 43-101 compliant report
titled: “Technical Report on the Mineral Reserves & Development of the Bull Hill
Mine”. The results of the PFS show that the Bear Lodge Project is technologically
feasible with favorable returns on invested capital. Key metrics of the updated PFS
are summarized in Table 1.1.
Rare Element will be required to obtain permits to operate the Bull Hill Mine and the
Hydromet plant and tailings storage facility from the United States Forest Service
(USFS) and the Wyoming Department of Environmental Quality (WDEQ). In
addition, a source materials possession license will be required from the United
States Nuclear Regulatory Commission (NRC). In accordance with RER’s
Environmental, Health, and Safety Policy, Rare Element will comply with applicable
federal and state environmental statutes, standards, regulations, and guidelines in
the permitting of the Bull Hill Mine and Hydromet plant/tailings storage facility (TSF).
The issuance of a permit to mine on USFS land will be a major federal action that is
triggered because of the proposed mine’s effects on the quality of the human
environment in the project area. The permitting process requires the preparation of
an environmental impact statement (EIS) under the National Environmental Policy
Act (NEPA), Council of Environmental Quality (CEQ) guidelines, and USFS NEPA
