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RECENT CORPORATE DEVELOPMENTS
Accomplishments in 2014
2014 was a year of significant advancements for Rare Element and its Bear Lodge REE Project on a number of
critical fronts. The Company achieved a number of major milestones, including:
Finalized the update of the PFS on the Bear Lodge REE Project which indicates a 45-year project life. The
economics reflect the benefits of the project’s location in northeast Wyoming and the deposit’s rich
concentration of those REEs essential to critical magnet materials and high-demand phosphors.
Initiated the Environmental Impact Statement (“EIS”) under National Environmental Policy Act (“NEPA”)
process. The U.S. Forest Service (“USFS”), with support from the Company, started the process in February
2014 and held a public scoping meeting in April. Alternatives identification and assessment is underway,
with some sections of the draft EIS already completed.
Completed an approximately 70-meter trench on the Bull Hill mineralization that confirmed the location and
trending of the high-grade zone that is planned to be the source of initial feed for the project. Excavated a
907-tonne bulk sample to be used for large-scale test work. The bulk sample has an average total rare earth
(TREO) grade that exceeds 10%.
Significantly improved patent-pending recovery process technology and initiated test work on downstream
elemental separation. Improvements resulted in the filing of two additional patent applications. Advancements
included:
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In January 2014, announced the ability to selectively isolate and economically
remove nearly all of the naturally occurring thorium in the mineralization.
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In November 2014, completed test work on improvements to this technology that
eliminated thorium while greatly reducing the amount of cerium, the lowest value
rare earth, in the concentrate. This advancement resulted in improved purity
(99.999% in bench-scale testing) and reduced the mass of material that would go
through further separation, which is expected to reduce the associated costs.
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Bench-scale tested a post-recovery process on the concentrate that effectively
separated the concentrate into light and heavy rare earth fractions.
Joined the Critical Materials Institute (CMI), a major initiative sponsored by the DOE and committed to
ensuring a secure supply of the rare earths necessary to support evolving green technologies. Rare Element
became one of only seven industry participants (and the second REE company), along with several national
laboratories and research universities.
Plans for 2015
We plan to advance the Bear Lodge REE Project during 2015, including the following tasks and initiatives:
Continue to support the USFS’s efforts to prepare an Environmental Impact Statement (“EIS”) on the
project in accordance with the National Environmental Policy Act process. The draft EIS is currently
anticipated in the second half of 2015. The final EIS and draft record of decision (“ROD”) are expected in
early 2016, with the final ROD anticipated in the first half of 2016.
Submit applications for mine and industrial siting permits to the Wyoming Department of Environmental
Quality. These tasks are dependent upon completion of the alternative assessment portion of the EIS.
Test additional elemental separation methods directed at creating product baskets that meet end-users’
specific needs and maximize product value to the Company.
Initiate engineering studies, including rheology studies, final geotechnical confirmation of waste rock and
tailings characteristics to support the next phase of engineering for inclusion in the FS.
