Rare Element Resources Ltd.

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(1) SEC Industry Guide 7 does not require designation of a Qualified Person.
(2) For SEC Industry Guide 7 purposes, the feasibility study must include adequate information on mining,
processing, metallurgical, economic and other relevant factors that demonstrate, at the time of reporting, that
economic extraction is justified.
(3) This category is substantially equivalent to the combined categories of Measured Mineral Resource and
Indicated Mineral Resource specified in NI 43-101.
Additional Definitions
assay – a measure of the valuable mineral content.
bastnasite – a mixed lanthanide fluoro-carbonate mineral (LaCO3F) that currently provides the bulk of the
world’s supply of the LREEs. Bastnasite and monazite are the two most common sources of cerium and other
REEs. Bastnasite is found in carbonatites, carbonate rocks of igneous derivation.
beneficiation – operations that concentrate and separate mineral values in ore from waste material, and
typically include, but are not limited to, crushing, grinding, washing, filtration, and leaching.
cerium (“Ce”) – a soft, silvery, ductile metallic element that easily oxidizes in air. Ce is the most
abundant of the REEs and is found in a number of minerals, including monazite and bastnasite. Ce has two
relatively stable oxidation states (Ce3+ and Ce4+), enabling both the storage of oxygen and its widespread use in
catalytic converters. Ce is also widely used in glass polishing.
concentrate – a mineral beneficiation product that generally describes the material that is produced after
crushing and grinding ore, effecting significant separation of gangue (waste) minerals from the desired metal and/or
metallic minerals, and discarding the waste minerals. The resulting “concentrate” of minerals typically has an order
of magnitude higher content of minerals than the beginning ore material.
critical rare earth elements (“CREE”) – Nd, Eu, Dy, Tb and Y were identified by the U.S. Department of
Energy (“DOE”) as “critical” in its 2011 Critical Materials Strategy Report. CREEs are those projected by the DOE
to have the greatest economic importance for clean energy development and the highest risk of supply disruption.
The Company includes Pr as a CREE because of its use in conjunction with Nd in didymium as a raw material for
high-intensity permanent magnets.
cut-off grade – when determining economically viable Mineral Reserves, it is the lowest grade of
mineralized material that qualifies as ore (i.e., that can be mined and processed at a profit).
didymium – a mixture of the elements and . It is used in for
and , especially when a gas ) powered is used, where it provides a
which selectively blocks the emitted by the hot in the glass, without having a
detrimental effect on general vision, unlike dark welder’s glasses.
dysprosium (“Dy”) – a soft metallic element of the lanthanide series, mainly used in high-performance,
permanent magnets. Dy has a high melting point and absorbs neutrons well. It is therefore also used in nuclear
control rods to help control nuclear reactions. Dy is also used in laser materials.
europium (“Eu”) – a very rare metallic element that is the softest member of the lanthanide series. It is
used in making color television tubes and lasers and as a neutron absorber in nuclear research. It is desirable due to
its photon emission. Excitation of the Eu atom, by absorption of electrons or by UV radiation, results in changes in
energy levels that create a visible emission. Almost all practical uses of Eu utilize this luminescent behavior.
fault – a surface or zone of rock fracture along which there has been displacement.
Feasibility Study (“FS”) – a comprehensive study of a mineral deposit in which all geological,
engineering, legal, operating, economic, social, environmental and other relevant factors are considered in sufficient
detail that it could reasonably serve as the basis for a final decision by a financial institution to finance the
development of the deposit for mineral production.