(Initially published on Jan 4, 2024)

I want to take this opportunity to reflect back on 2023 and the many things we accomplished during the year that allowed us to get to the significant point of starting construction in December on our demonstration plant.  I also want to look forward to the opportunities and challenges I see for 2024.

In 2023, the majority of the Company’s efforts were focused on moving our demonstration plant from engineering to construction. This included finalizing the plant design, navigating the process to acquire the numerous project-related permits and licenses required, participating in two National Environmental Policy Act (NEPA) reviews, securing state grant funding, site cleanup, ordering and beginning offsite assembly of long-lead equipment, transporting the mineralized sample to the plant site, and selecting a general contractor and ­­­­­­­mobilizing them to the site, all while continuing to strengthen our relationship with our technology team, led by General Atomics and including the Department of Energy (DOE).  I am pleased to say that all of these efforts allowed us to start construction in December now that we have received next-phase budget approval from the DOE.

Why is the demonstration plant so important to the Company and our shareholders? We believe our technology has the ability to modernize the rare earth recovery industry – one that is ripe for innovation. One of the largest private technology companies in the world, General Atomics, along with our partners have focused a great deal of time and talent on advancing and refining our technology. They have designed a closed system to reduce waste and lower water consumption - two issues associated with projects where traditional recovery methods are used. I cannot emphasize enough how important I think these improvements are going to be in ensuring we can address the issue of establishing a secure, domestic supply of rare earths while meeting the high environmental and operating standards of the U.S.

Our technology could prove key as China continues to protect its dominance over the industry, most recently by banning the export of critical materials extraction and separation technology for rare earth metals and alloy materials as well as the technology to prepare rare earth magnets. This additional bold step by China should serve as a call to action for the U.S. to quickly develop domestic sources of rare earth and to continue to support advanced, innovative recovery technologies like ours to ensure rare earths are available to support key high-tech, defense and green applications.

Our construction contractor started site preparation in early December and will begin construction activities in earnest this month. The work is expected to take seven to 10 months, with plans calling for the plant to then operate for eight to 10 months, taking us into 2025. Operations will be overseen by RER’s team and key personnel from our project team. As with any innovative technology, operations will allow for further refinement of the process and provide the opportunity for additional improvements. This same team will then take the operational and economic data generated and apply it to the design of a commercial facility, ultimately supporting our goal of being the cornerstone for a domestic rare earth supply chain.

I see 2024 as a year with great promise and a lot of work to be done, most importantly delivering on our demonstration plant program plans. In addition, we are looking to progress our Bear Lodge Project, including updating the resource model. To fund these efforts, we announced our intention to launch a rights offering in mid-December through which we will look to raise up to $35.7M. The funds from the rights offering will be used for the demonstration plant as well as to advance the Bear Lodge Project; both of which will allow us to support our country’s stated objectives for the implementation of green technologies and help ensure national security through access to a domestic supply of rare earths minerals.

Advancing our carbon reduction goals and keeping our national security strong cannot happen without mining. Many critical defense and green technology applications require heat-resistant, permanent magnet motors, and they require the addition of certain rare earth minerals to operate. Increased adoption of these technologies across the globe means demand for magnet-related rare earths is expected to increase – I have seen projections of more than 500% – over the next 30 years. That demand cannot be met by existing mines or recycling and that is why it is so important to advance new sources like the Bear Lodge Project.

The requirements to develop a mine in the U.S. are rigorous. The process involves multiple agencies at both the state and the federal levels, as well as extensive data collection and evaluation. The process is open and transparent, with clear public involvement. While we in the mining industry remain frustrated by the length of time it generally takes to permit a new mine, we do not argue against the thoroughness of the process and are committed to ensuring all the necessary requirements are met.

As we begin the new year, I want to thank our partners for all their hard work in 2023 and their continued commitment to our plans for 2024. I want to acknowledge Wyoming’s leadership for their ongoing support as we work to build something great together. And I want to express my gratitude to our shareholders for sharing our vision of what the Bear Lodge Project can be and how it can help America address its foreign dependence for critical rare earths.

I look forward to 2024 being a year filled with opportunity and marked by continued progress for the Company.