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The Whitetail Ridge deposit occurs about 700 meters northwest of the Bull Hill deposit. The REE mineralization
consists of northwest- and north-striking FMR dikes, and an FMR stockwork zone that is also elongated
northeasterly, with dimensions of roughly 380 meters by 290 meters. The enveloping gravity and radiometric
geophysical anomalies and coincident soil geochemical anomalies are larger and may indicate a broader distribution
of REE mineralization beneath the extensive soil and colluvial cover.
Drilling conducted in 2011 through 2013
indicates that much of the mineralization is confined within the volume of the Whitetail Ridge diatreme.
Preliminary
mineralogical studies by the Company indicate that the REE mineralization occurs in REE fluorocarbonates
(bastnasite, parisite, and synchysite), cerianite [(Ce, Th)O2], and subordinate monazite (an REE-Th phosphate). The
Whitetail Ridge deposit mineralization is enriched in HREE, relative to the Bull Hill deposit, and both are enriched
in CREE.
Prefeasibility Study
In 2013 and 2014, we worked on optimizing the Bull Hill Mine plan, the mineral process methods and the project
economics. This resulted in the Company undertaking and completing an updated PFS to reflect these significant
changes.
The Company’s PFS as reported in the Technical Report dated October 9, 2014 for the Bear Lodge REE Project was
authored principally by Roche Engineering Inc. (“Roche”), which undertook the process engineering and mine and
mill capital and operating cost estimation for the project at that time.
This PFS for the Bear Lodge REE Project
reflects an increase in the Mineral Resource estimate, based on drilling and assay data.
The report dated October 9, 2014 is titled “Rare Element Resources Inc. Bear Lodge Project Canadian National
Instrument 43-101; Pre-Feasibility Study Report; Technical Report on the Mineral Reserves and Resources and
Development of the Bull Hill Mine” (the “Technical Report”) and is available under our profile at
The Technical Report was authored by Peter S. Dahlberg P.E. of Roche in Sandy, Utah
and all sections of the
Technical Report were prepared under his supervision
. Mr. Dahlberg is an independent Qualified Person, as defined
by NI 43-101. Other Qualified Persons, as defined by NI 43-101, who participated in the preparation of the
Technical Report are Jaye T. Pickarts, P.E., Chief Operating Officer for Rare Element, who confirms the NI 43-101
and Form 43-101F1 documents and Items 4, 5, 6, 19, and 20 of the Technical Report have been prepared in
compliance with the instrument and form; Alan C. Noble, P.E. of Ore Reserves Engineering in Lakewood,
Colorado, who contributed to the preparation of Chapters 7, 8, 9, 10, and 14 of the Technical Report; William L.
Rose P.E. of WLR Consulting Inc. in Lakewood, Colorado, who contributed Item 15 and portions of Item 16
(subsections 16.1, 16.2, 16.3 and 16.4) of the Technical Report; and Jeffrey A. Jaacks C.P.G of Centennial,
Colorado, who contributed Chapter 11 of the Technical Report, all under the supervision of Mr. Dahlberg, the
primary author.
The PFS estimated initial capital costs of approximately $290 million and life-of-mine capital costs (including
sustaining capital) of approximately $453 million.
Permitting Progress
We continue to support USFS’ efforts to prepare an Environmental Impact Statement (“EIS”) on the project in
accordance with the National Environmental Policy Act process. This process is key to securing the permits and
approvals necessary to move into production. In early 2012, we submitted the Plan of Operations for the project,
which was accepted by the USFS as complete in May 2013. Since then, the USFS has selected a project manager
and prime contractor for preparation of the EIS, published notice in the Federal Register and completed necessary
scoping work. The USFS currently is working on the evaluation of identified alternatives and preparation of the
draft EIS. The U.S. Army Corps of Engineers and the appropriate state and local government agencies are involved
in the EIS process as cooperating agencies. The schedule calls for completion of the draft EIS in the second half of
2015. The final EIS and draft ROD, the decision document that establishes the acceptable operating conditions, are
currently expected in early 2016, with the final ROD in anticipated in the first half of 2016.
