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The NRC, pursuant to its authority under the Atomic Energy Act, oversees the regulatory framework
governing the control of radioactive materials, including mining, beneficiation and processing of rare earth
elements that contain uranium and thorium. The NRC is responsible for issuing licenses for source
material involving concentrations of uranium or thorium that exceed 0.05% by weight. If a proposed
action, including waste generation, results in materials with concentrations of uranium and thorium that
equal or exceed 0.05% by weight, a license to receive title to, possess, use, transfer, or deliver source and
byproduct materials may be required. We are required to follow the regulations pertaining to a license
application for the Bear Lodge REE Project. The licensing process, including NEPA review relating to the
NRC licensing, may cause delays or result in changes to the project design to mitigate impacts as required
under the licensing issuance.
Under the Comprehensive Environmental Response, Compensation, and Liability Act, as amended, also
known as CERCLA or the Superfund law, and similar state laws, responsibility for the entire cost of
cleanup of a contaminated site, as well as natural resource damages, can be imposed upon current or former
site owners or operators, or upon any party who released one or more designated “hazardous substances” at
the site, regardless of the lawfulness of the original activities that led to the contamination. CERCLA also
authorizes EPA and, in some cases, third parties to take actions in response to threats to public health or the
environment and to seek to recover from the potentially responsible parties the costs of such action. We
may also be an owner or operator of facilities at which hazardous substances have been released by
previous owners or operators. We may be responsible under CERCLA for all or part of the costs of
cleaning up facilities at which such substances have been released and for natural resource damages. We
have not, to our knowledge, been identified as a potentially responsible party under CERCLA, nor are we
aware of any prior owners or operators of our properties that have been so identified with respect to their
ownership or operation of those properties.
The Federal Resource Conservation and Recovery Act (“RCRA”), and comparable state statutes, govern
the disposal of “solid” and “hazardous” waste and authorize the imposition of substantial fines and
penalties for noncompliance, as well as requirements for corrective actions. Although certain mining,
beneficiation, and mineral processing wastes currently are exempt from regulation as hazardous wastes
under RCRA, EPA has limited the disposal options for certain wastes designated as hazardous wastes under
RCRA. It is possible that certain wastes generated by our potential future operations that currently are
exempt from regulation as hazardous wastes may in the future be designated as hazardous wastes, and may
therefore become subject to more rigorous and costly management, disposal and clean-up requirements.
The Clean Air Act, as amended (“CAA”), and comparable state statutes, restricts the emission of air
pollutants from many stationary and mobile sources, including mining and processing activities. Our
planned mining operations may produce air emissions, including fugitive dust and other air pollutants from
stationary equipment, storage facilities, and the use of mobile sources such as trucks and heavy
construction equipment that are subject to review, monitoring, control requirements and emission limits
under the CAA and state air quality laws. New facilities may be required to obtain permits before work can
begin, and existing facilities may be required to incur capital costs to remain in compliance. In addition,
permitting rules and issued permits may impose limitations on production levels or result in additional
capital expenditures to comply. In certain circumstances, private citizens may also sue sources for alleged
violations of the CAA.
The Clean Water Act (“CWA”) and comparable state statutes impose restrictions and controls on the
discharge of pollutants into waters of the United States. These controls generally have become more
stringent over time, and it is possible that additional restrictions will be imposed in the future. Violation of
the CWA and similar state regulatory programs can result in civil, criminal and administrative penalties for
unauthorized discharges of hazardous substances and other pollutants. They also can impose substantial
liability for the costs of removal or remediation associated with such discharges. The CWA also regulates
stormwater handling at mining facilities, requires a stormwater discharge permit for certain activities, and
requires the implementation of a Stormwater Pollution Prevention Plan establishing best management
practices, training, periodic monitoring of covered activities, and monitoring and sampling of stormwater
run-off. The CWA and regulations implemented thereunder also prohibit discharges of dredged and fill
material in wetlands and other waters of the United States unless authorized by a permit issued by the U.S.
Army Corps of Engineers.
