Rare Element Resources Plans Major Booth # 2910

www.rareelementresources.com
REE Drilling Program at Bear Lodge 604.687.3520
oxide metallurgy ended up having very attractive infrastructure gets to be really important. If you
Rare Elements Resource metallurgical characteristics. Between the report have to develop your own infrastructure it gets to
we got in July and then another in September, be very burdensome, especially on rare earth de-
we keep improving on the metallurgy, especially posits because most of them aren’t mined at bulk
on this oxide zone. Since then, we more than tonnage rates. It’s not a huge production rate, but
doubled the number of drill holes in the deposit if you have to move a lot of concentrates or the
with a very successful drill program in the fall and chemicals, it ends up being a problem.
I think that has helped the stock price as well.
RI: What is it about your present infrastructure
From the geopolitical side, China announced last that ameliorates that?
spring that they might be cutting back on their
REE exports and that got everybody in the west-DR: Our infrastructure is outstanding. The de-
ern world a bit nervous about where they were posit itself is only about twelve miles from a
going to get their REEs to continue production major interstate highway. It’s thirty five miles
outside of China. from a railhead. We have water nearby and there
is power within two miles of the project site.
Plus a whole series There is a major min-
of newsletter writ- ing center just a short
ers caught onto distance to the west
that before the “Our infrastructure is in Gillette, Wyoming.
mainstream press. It’s mainly coal min-
Don Ranta Newsletter writers outstanding. The de- ing, but nevertheless
President & CEO
certainly recognize
Rare Element Re-
posit itself is only about they have a lot of the
same skilled laborers
When Resource Intelligence TV last
sources because we twelve miles from a ma- that we would need.
have the second
interviewed our next guest in June highest grade de- jor interstate highway. Being in northeastern
Wyoming where there
2009, his company’s shares were trading
at about $1.50 per share. Since then the
posit in North
America and one
It’s thirty five miles from is lots of infrastructure
nearby, is an ideal loca-
market has caught on to the potential that is perceived as a railhead. We have wa- tion plus Wyoming, at
size and grade of Rare Element Resourc- better than some
es’ (TSXV: RES) huge Bear Lodge project of the others. ter nearby and there is least in the Fraser In-
stitutes ranking, ranks
and have bid the price above $3.45 per
RI: Explain how power within two miles #2 in the world.
share. Perhaps this is a reaction to the
sizzling rare earths (REE) sector, but also
important metal- of the project site. There RI: What are the grades
lurgy is. You that you are getting at
reflects Rare Element’s consistent high- mentioned that is a major mining center Bear Lodge and what
grade results at its Bear Lodge project you’re getting
and the acquisition of the Nuiklavik REE great results. Can
just a short distance to do they tell you?

Project in Labrador. Rare Element Re- you explain how
sources’ President and CEO Don Ranta is important that is,
a Doctor of geology and this year led his particularly with a
company to the 2010 TSX Venture 50 list. rare earth project
like yours?
the west...” DR: A lot of holes are
getting grades any-
~President & CEO Don Ranta where from 3% to 8%
and we obviously love
to see those higher-

R
esource Intelligence: Your stock has outper-
formed the market substantially in the last
12 months. So much so that Rare Element
Resources was recently named to the TSX Ven-
ture 50, which is a ranking of the strongest per-
formers listed on the Venture Exchange. What
are you doing that others are failing to do?
Don Ranta: The answer has several different parts to
it. First on the technical side, it all came together
when we completed a 43-101 resource estimate
that showed that we had about 8.9 million metric
tonnes of over 4% rare earth oxide (REE) and
that caught the market’s interest.
Secondly, we started getting metallurgical results
back, especially on the oxide, near surface min-
eralization, which is about half the deposit. The
grade holes. It’s interesting that with our drilling
DR: The two key things with most rare earth pro- results from this year, some of the best results
jects are metallurgy and infrastructure. Every rare were actually on the margins of our drilling, so
earth deposit around the earth has variable min- that means that it’s still open for continued ex-
eralogy and variable metallurgical characteristics, pansion. We are very pleased with that. The 3%
so every one ends up being a research and de- to 8% grades, with average of a little over 4% on
velopment project unto itself. That’s why we got our resource estimate, represents a very signifi-
an R&D metallurgy lab to work on our material. cant value per tonne. Our resource report indi-
It’s some of the same people that did the initial cated that the average rate was around 265 dol-
work for Mountain Path and Molycorp years lars per tonne, but since then the rare earth prices
ago—two of the largest molybdenum companies have gone up, plus if we take into account some
in the world, until the Chinese drove them out of of the elements that we did not consider before.
business in the 1990s. John Kaiser has recently done a recalculation and
The second crucial aspect of REE projects is put out a notice that the rare earth at Bear Lodge
infrastructure. There has to be quite a bit of would be more like 370 dollars per tonne. That is
transportation either of concentrates or of chem- especially in this oxide zone where we are getting
icals, to a common location and because of that good metallurgical results.

88 See page 96 for Disclosure, Disclaimers & Info on Mineral Resource and Reserves
Rare Element Resources
- Continued
RI: What is the target size for the project that you
are projecting now?
DR: We are hoping and expecting that we are
going to increase the oxide resource especially.
We focused on the oxide this year because that’s
where we’re having the best metallurgical results.
I anticipate that we may have as much as a doub-
ling of the oxide resource. I’m not positive of that,
but we’ll just have to wait and see what comes
out of our resource estimate. We should have that
new resource report done sometime in the spring.
I am hoping by the end of the first quarter, but it
could be March or April.
RI: You are also doing a scoping study or is that
the same report?
DR: The scoping study would be a follow-on re-
port. We feel we will do the resource estimate
first and we feel that the increase is going to be
material to the company and we’ll report that and
have a separate report coming out for that and
then we’ll have a follow-on report, probably some
time in the summer. Sometime this summer we
should have that scoping study done.
Free Revolutionary Online Investment Calculators and all 43-101 data with sources and project values www.resourceintelligence.net
RI: Those scoping studies are crucial, particularly
to the investor who likes to get their hands dirty
and figure out evaluations, because at that point
you are going to get into the economics.
DR: Basically, in oxide we expect to double the
resource or somewhere around there. I think ul-
timately we will double the total resource, 8.9
million metric tonnes and there is a potential
that we could triple it with our continued drill-
ing. That may be after the 2010 drilling program
or it might even be in 2011. The ultimate goals
are to at least double or triple the total tonnage.
RI: How much acreage does the project comprise
and how much of it are you focused on?
DR: All the rare earths that we found of any sig-
nificance in the Bear Lodge area are within about
one square mile, which is roughly the equivalent
of three sq. km. It’s a relatively small area, but
it’s interesting that surrounding it are all these
gold targets that Newmont is working on. There
seems to be some kind of geological zoning there
that we don’t fully understand at this point, but
nevertheless, that’s what we’ve seen—rare earths
Booth # 2910
www.rareelementresources.com
604.687.3520
centrally located, with gold targets almost com-
pletely surrounding the rare earths.
RI: These gold showings surrounding your Bear
Lodge project are called the Sundance project,
which is a joint venture deal with Newmont.
You’re working on the rare earths; they are work-
ing on the gold.
DR: Newmont is earning a 65% interest in the
Sundance venture. It’s basically the same prop-
erty as the rare earths, but the rare earths are ex-
cluded from the Sundance venture. If Newmont
found copper or silver that would be part of the
deal with them. They can earn 65% in the first
phase by spending $5 million over five years.
They have to spend $3.5 million by June 1st and
up through about the middle of winter they’ve
spent about $2.7 million. So there is a bit of a
shortfall there and it will be interesting to find
out how or if they plan to go forward.
RI: What kind of results have they had?
DR: They have had some good results. They are
finding lots of low-grade mineralization. Their
drill hole spacing is quite broad at 100 to 200
meter spacing. They are not looking for a re-
source, they are looking for a Newmont sized
deposit. There is a question in my mind whether
or not that deposit is actually there, although we
are confident that there is going to be a small
deposit, maybe one to two million ounces that
could be defined fairly easily.
RI: How well-funded are you?
DR: We have enough money for this year. If we
ran into a market problem we would have about
$5 million in the bank and that would be enough
to complete a very serious program on the Bear
Lodge project. We’re going to raise an additional
$10 million before summertime or when our
major drilling program starts around June 1.
Milestones:
• New 43-101 resource estimate
completed by Q2 2010
• Newmont must spend $3.5
million by June 1 (Sundance
project)
• Commence major drilling
program by June 1 (Bear Lodge)
• Preliminary Economic
Assessment completed by
summer 2010
• Triple resource size at Bear
Lodge by end of 2011
89