Rare Element Resources
Bear Lodge Project
Canadian NI 43-101 Technical Report
October 9
th
, 2014
10135-200-46 – Rev. 0
1-18
Table 1.9 - TREO Product Pricing Used in PFS
Based on average LOM Project Output
Element
Recovered
Distribution / Kg
TREO (g/kg)*
Adjusted TTM
Export Value
/ kg
Value /
kg
Neodymium (Nd)
182
$71.26
12.97
Europium (Eu)**
7
$948.23
6.64
Praseodymium (Pr)**
50
$96.97
4.85
Dysprosium (Dy)**
4
$654.87
2.62
Lanthanum (La)
283
$6.77
1.91
Cerium (Ce)**
416
$4.54
1.89
Terbium (Tb)
1
$745.32
0.75
Gadolinium (Gd)
16
$46.50
0.74
Yttrium (Y)
10
$22.14
0.22
Samarium (Sm)
30
$5.50
0.17
Erbium (Er)
1
$50.36
0.05
1,000 g
Price / kilogram
$32.81
After Discount 25%
$24.60
*
Reflects concentrate grade, adjusted for anticipated recoveries and is based on a discounted basket price of
$24.60/kg. Resources, reserves and economics were all calculated using a $24.60/kg basket price; however,
elemental distribution and prices vary between resource models and the PFS economic model. Excludes
ytterbium, holmium, thulium and lutetium that occur in negligible amounts and were not considered in the
calculation of a basket price.
**Adjusted downward to reflect current market conditions
1.13 Sensitivity Analysis
The PFS includes a sensitivity analysis on the key factors of the Bear Lodge Project
which are outlined in Table 1.10:
Table 1.10 – NPV Sensitivity Analysis (Based on pre-tax NPV)
(USD Millions)
Rare Earth Prices
Operating Costs
Capital Cost
NPV
-20%
Base
+20%
-20%
Base
+20%
-20%
Base
+20%
@ 8% Discount
$176
$563
$949
$771
$563
$355
$624
$563
$502
@ 10% Discount
$117
$426
$735
$587
$426
$264
$483
$426
$368
@ 12% Discount
$73
$327
$581
$456
$327
$197
$381
$327
$272
