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laws and regulations related to exports, taxes and fees;
labor standards and regulations related to occupational health and mine safety;
laws and regulations relating to environmental protection concerning waste management,
transportation, and disposal of toxic and radioactive substances, land use and the protection of
threatened and endangered species; and
other matters.
We believe we hold, or are in the process of obtaining, all licenses and permits necessary to carry on the activities
that we are currently conducting or propose to conduct in the near term under applicable laws and regulations. Such
licenses and permits are subject to changes in regulations and changes in various operating circumstances. There
can be no guarantee that we will be able to obtain all necessary licenses and permits that may be required to
maintain the current or planned exploration, development and mining activities including constructing mines and/or
beneficiation and processing facilities, and commencing operations at the Bear Lodge REE Project. In addition, if
we proceed to production on the Bear Lodge REE Project or any other properties that we may acquire in the future,
we must obtain and comply with permits and licenses that may contain specific operating or other conditions. There
can be no assurance that we will be able to obtain such permits and licenses or that we will be able to comply with
any such conditions. Costs related to applying for and obtaining permits and licenses may be prohibitive and could
delay planned exploration and development activities. Failure to comply with applicable laws, regulations and
permitting requirements may result in enforcement actions, including orders issued by regulatory or judicial
authorities causing operations to cease or be curtailed, and may include corrective measures requiring capital
expenditures, installation of additional equipment or remedial actions.
Parties engaged in mining operations may be required to compensate those suffering loss or damage by reason of the
mining activities and may be subject to civil or criminal liability, fines or penalties imposed for violations of
applicable laws or regulations. Amendments to current laws, regulations and permits governing operations and
activities of mining companies, or more stringent implementation thereof, could have a material adverse impact on
our operations, cause increases in capital expenditures or production costs, or require abandonment or delays in
development of the Bear Lodge REE Project.
Our activities are subject to environmental risks and compliance with environmental regulations that are
increasing and costly.
Our business and activities are subject to environmental regulation in the jurisdictions in which we operate.
Environmental legislation at the local, state and federal level is evolving in a manner that will require stricter
standards and enforcement, increased fines and penalties for non-compliance, more stringent environmental
assessments of proposed projects and a heightened degree of responsibility for companies and their officers,
directors and employees. These laws address emissions into the air, discharges into water, management of waste and
hazardous substances, protection of natural resources, antiquities and endangered species and reclamation of lands
disturbed by mining operations. Compliance with environmental laws and regulations at the local, state and federal
level and future changes in these laws and regulations may require significant capital outlays and may cause material
changes or delays in our current and planned operations and future activities. It is possible that future changes in
these laws or regulations could have a significant adverse impact on our Bear Lodge REE Project or some portion of
our business, causing us to reevaluate those activities at that time.
Examples of some of the current U.S. federal laws that may affect our business and planned operations include, but
are not limited to, the following:
NEPA requires federal agencies to integrate environmental considerations into their decision-making
processes by evaluating the environmental impacts of proposed actions, including issuance of permits to
mining facilities, and assessing alternatives to those actions. If a proposed action could significantly affect
the environment, the agency must prepare an EIS. The U.S. Environmental Protection Agency will, and
other federal agencies and any interested third parties can, review and comment on the scope of the EIS and
the adequacy of and findings set forth in the draft and final EIS. As required, we have begun to undertake
the NEPA process for the Bear Lodge REE Project. The NEPA process can cause delays in issuance of
required permits or result in changes to a project to mitigate potential environmental impacts , which in turn
can impact the economic feasibility of a proposed project, including the ability to construct or operate the
Bear Lodge REE Project or other properties entirely.
