Rare Element Releases Prefeasibility Study for Bear Lodge Project

Rare Element Resources Ltd. (TSX:RES,NYSEMKT:REE) announced a prefeasibility study for its Bear Lodge rare earths project in Northeast Wyoming. It incorporates “significant resource expansion and numerous operational improvements” announced over the last few months.

Highlights of the study include:

• Low initial capital cost of $290 million.
• Mining of high-grade zone in Years 1 – 9 boosts initial cash flows and results in a 2.9-year payback from the start of production.
• After-tax net present value (NPV) of $330 million at a 10% discount rate, and after-tax internal rate of return (IRR) of 29%.
• 45-year Project life based on the expanded Measured and Indicated (M&I) mineral resource – additional upside possible from Inferred mineral resource, including the potential delineation of additional high-grade mineral resource, and heavy rare earth (HRE)-enriched exploration targets.
• A proprietary recovery process that consistently produces a 97+% pure, near thorium-free, total rare earth oxide (TREO) concentrate.
• Average annual production of over 7,500 tons (6,800 tonnes) of TREO concentrate.

Randall J. Scott, president and CEO of Rare Element, commented:

We have made great progress over the last two years by significantly expanding the mineral resource at Bear Lodge, developing a proprietary recovery process that consistently produces a 97+% pure, near thorium-free TREO concentrate in repeated pilot plant testing, and advancing permitting with the formal start of the EIS process.

During this same timeframe, we have seen the rare earth marketplace change significantly and have gained a better understanding of customer needs. The PFS incorporates all this and demonstrates the potential for solid returns for our shareholders even in the current weak rare earth price environment.

Click here to read the full Rare Element Resources Ltd. (TSX:RES,NYSEMKT:REE) press release.