Ucore Rare Metals Appoints Mine Permitting Manager for Bokan Mountain Project

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Ucore Rare Metals Inc.
TSX VENTURE : UCU
OTCQX : UURAF

March 19, 2012 08:41 ET

HALIFAX, NOVA SCOTIA--(Marketwire - March 19, 2012) - Ucore Rare Metals Inc (TSX VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or "the Company") is pleased to announce the appointment of Randy MacGillivray as Senior Mine Permitting Manager for the Bokan Heavy Rare Earth project on Prince of Wales Island in Alaska, USA.

Randy MacGillivray is an Environmental Geoscientist with over 20 years of environmental and geological management experience based in Alaska, Colorado, Idaho, Nevada, Canada, New Zealand, Chile, Guyana and Bolivia. Randy has mine project management experience involving the full-spectrum of permitting, compliance, reclamation, remediation, and water quality planning involving both active chemical and passive biological treatment systems.

Randy has experience in establishing and auditing environmental management systems, including community and First Nations consultation and engagement strategies. He has served as the Environmental Manager for Coeur Alaska at the Kensington Gold Project during the final round of permitting which obtained the successful Record of Decision and Corp of Engineers 404 operating permits. Randy graduated with a Bachelor of Science in Geology from the University of British Columbia and is a licensed Professional Geoscientist in British Columbia.

"We're excited to have attracted a senior representative with the depth of experience in permitting such a major Alaskan operation as Kensington," said Jim McKenzie, President & CEO of Ucore. "Few people would have the broad skill set and Alaska-specific knowledge that Randy brings to Ucore. He'll be working in close cooperation with the State of Alaska, the US Forest Service, and associated regulators to bring Bokan into production without delay. Randy represents the first of a comprehensive team of mine development specialists being assembled by Ucore COO Ken Collison, and we welcome him to the Ucore team."

Background
Ucore Rare Metals Inc. is a well-funded junior exploration company focused on establishing REE, uranium and other rare metal resources through exploration and property acquisition. With multiple projects across North America, Ucore's primary focus is the 100% owned Bokan - Dotson Ridge REE property in Alaska. The Bokan - Dotson ridge REE project is located 60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince Rupert, British Columbia and has direct ocean access to the western seaboard and the Pacific Rim, a significant advantage in expediting mine production and limiting the capital costs associated with mine construction.

The Bokan properties are located in an area reserved for sustainable resource development with an existing road network providing access to the main target areas. REE mineralization at the Bokan-Dotson ridge project occurs in a well-demarcated vein system related to a Mesozoic Bokan peralkaline granitic complex. However, a number of other occurrences of REE mineralization are also located within, or at the margins of the complex. Viewed in a geological and geophysical context, the Bokan complex is a distinctive circular structure and is highly prospective for rare earths deposits.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

Contact Information

Ucore Rare Metals Inc.
Mr. Jim McKenzie
President and Chief Executive Officer
(902) 482-5214
www.ucore.com

Ucore Takes Part in Congressional Briefing on US Domestic Rare Earth Supply Chain

Ucore Rare Metals Inc.

TSX VENTURE : UCU
Nasdaq - OTCQX : UURAF

HALIFAX, NOVA SCOTIA--(Marketwire - Nov. 10, 2011) - Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or the "Company") is pleased to report that the Company has taken part in a Congressional Briefing on the importance of establishing a domestic rare earth supply chain within the United States. The November 7 Washington DC – based event was hosted by Senator Lisa Murkowski (R-AK) and the Senate Energy and Natural Resources Committee. The briefing was for the benefit of U.S. Senate, House and Committee Staff and other Administration officials. A panel comprised of leaders of U.S. Magnetic Materials Association (USMMA), including Ucore President & CEO Jim McKenzie, discussed issues associated with the expedited building of a self contained critical rare earth supply chain on US soil, from mine to magnet.

Nearly 40 key staff and congressional decision makers attended the briefing, representing multiple states and committees, including Senate Foreign Relations, Senate Energy & Natural Resources, Senate Environment & Public Works, as well as House Science, Space, & Technology. Ucore's Bokan Mountain project received particular notice for its positioning as having supply source material in the form of the largest NI 43-101 compliant deposit of heavy rare earths in the United States, including near term access to dysprosium, a technology metal identified by the Department of Energy as being among the most highly sought after "critical materials" to the US. Ucore was also identified as having a favorable permitting environment in the state of Alaska, logistical advantages and ready access to capital, as well as a highly motivated geo-political environment for the re-establishment of the US as a leader in rare earth supply and manufacturing.

In his panel address, McKenzie warned of the emerging worldwide trend toward "resource nationalism" and protectionist policies toward critical rare earth supply sources around the globe. His thesis was that only the United States itself could be expected to look out for domestic interests in terms of ongoing access to these critical materials, and only an independent, integrated domestic supply chain can reliably be expected to achieve this end. Panelists discussed how the US' traditional means of securing supply through being the highest bidder in international markets was likely to fail as protectionist policies are implemented around the globe. McKenzie stressed that restarting the rare earth supply chain within the United States is essential not only for national security and clean technology, but also as a means to putting American-based ingenuity back to work and avoiding further degradation of the county's industrial base.

Fellow members of USMMA on the panel, representing downstream applications of the rare earth magnetics industry included Ed Richardson (President USMMA/Vice President, Thomas & Skinner), Jack Lifton (Principal Founder, Technology Metals Research) Peter Dent (Vice President Electron Energy Corporation) and Rob Strahs (Vice President Arnold Magnetic Technologies).
Background
Ucore Rare Metals Inc. is a well-funded junior exploration company focused on establishing REE, uranium and other rare metal resources through exploration and property acquisition. With multiple projects across North America, Ucore's primary focus is the 100% owned Bokan - Dotson ridge REE property in Alaska. The Bokan - Dotson ridge REE project is located 60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince Rupert, British Columbia and has direct ocean access to the western seaboard and the Pacific Rim, a significant advantage in expediting mine production and limiting the capital costs associated with mine construction.

The Bokan properties are located in an area reserved for sustainable resource development with an existing road network providing access to the main target areas. REE mineralization at the Bokan-Dotson ridge project occurs in a well-demarcated vein system related to a Mesozoic Bokan peralkaline granitic complex. However, a number of other occurrences of REE mineralization are also located within, or at the margins of the complex. Viewed in a geological and geophysical context, the Bokan complex is a distinctive circular structure and is highly prospective for rare earths deposits.

This press release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.

Contact Information

Ucore Rare Metals Inc.
Mr. Jim McKenzie
President and Chief Executive Officer
(902) 482-5214
www.ucore.com

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TNR Gold Corp. Options 100% Interest in Iron Ore Project, Northwestern Ontario

TNR Gold Corp.  (.05c)

TSX VENTURE EXCHANGE:

November  2011

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 2, 2011) - TNR Gold Corp. (TSX VENTURE:TNR) ("TNR" or the "Company") is pleased to announce that the Company has entered into a purchase option agreement (the "Agreement") on the acquisition of the Soules Bay Iron Ore project.
Key Highlights:

• Readily accessible: proximal to highway, power and rail;
• 12kms of highly magnetic iron formation strike length contained within the Property;
• Partially overlapping and adjacent to the west is a historical reserve* of 628 million tonnes grading 23.1% soluble iron**;
• 94.5 metre composite 1957 drill sample reports 24.9% soluble iron within and near the western boundary of the Property;
• Iron formation extending to the west has witnessed considerable exploration while limited exploration performed within Property boundary on same-trend magnetic anomaly; and
• The Company to acquire 100% interest.

"The acquisition of the Soules Bay Iron Ore project, encompassing 12 kilometres in strike length of a more extensive iron formation known to host a significant historical reserve, represents a remarkable opportunity for TNR to become a key player in the exploration and potential development of Canadian based Iron projects," states TNR President and CEO Gary Schellenberg.

A comprehensive exploration program consisting of a high resolution airborne magnetic survey, geologic mapping/prospecting and subsequently diamond drilling is planned to be performed throughout the Property along the extent of the highly prominent iron formation.

Under the terms of the Agreement, TNR will acquire a 100% interest in the Property by making aggregate cash payments of $99,065 and issuing an aggregate of 150,000 common shares over a four year period to the Optionor. The Optionor retains a 2% net smelter return royalty on the Property subject to TNR's right to purchase one-half (1/2) of the two percent (2%) for $1 million at any time. The Agreement is made between the Company and Perry English of Souris, Manitoba, an authorized agent for Rubicon Minerals Corporation (TSX:RMX) (the "Optionor").

The Agreement is subject to TNR obtaining approval from the TSX Venture Exchange.

Soules Bay Property
The 1904-hectare Property is located approximately 310 kilometres north of Thunder Bay and 45 kilometres south of Pickle Lake in northwestern Ontario. Provincial Highway 599, originating off the Trans-Canada Highway 17 from the town of Ignace to Pickle Lake, passes less than 300 metres southeast of the Property. An electrical grid is situated just east of the Property and a railway line is located approximately 96 kilometres south at Savant Lake station on Highway 599.

The Property occurs within the eastern Lake St. Joseph Greenstone Belt in the Uchi Subprovince of the Superior Province of the Canadian Shield. The main target area consists of a banded iron formation of considerable extent of which 12kms of strike length is contained within the Property limits. The on-strike extension of the iron formation, partially overlapping, adjacent and to the west of the Property, has witnessed considerable exploration by Steep Rock Iron Mines Ltd. ("Steep Rock") from 1957-1961 reporting a historical indicated reserve* of 628 million tonnes averaging 23.1% soluble iron** yielding a concentrate averaging 67.6% soluble iron signifying an 84.8% recovery at a concentration ratio of 3.4:1; or 29.3 weight percent (Goodwin 1965 and Taylor et al. 1972).

One of the 1957 drill holes (hole #2) utilized in the 1960 Steep Rock reserve calculation, situated within and proximal to the Property's western boundary, reported a 94.5 metre composite sample grading 24.9% soluble iron yielding a concentrate of 68.8% soluble iron signifying an 82.7% recovery at a concentration ratio of 3.3:1; or 29.9 weight percent.

The vast majority of the 12 kilometre long iron formation within the Property remains untested.
Ike Osmani, M.Sc., P.Geo., is the Qualified Person (QP) as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects and is responsible for the preparation of all technical information contained in this news release.

*The geology and assay results quoted above are from various historical reports and have not been verified by the Company. A Qualified Person (QP), as defined in NI 43-101, has not done sufficient work to classify this historical estimate as current mineral resources. TNR is not treating the historical estimate as current mineral resources, as defined in NI 43-101, and thus the historical estimate should not be relied upon. Furthermore, because no recent work has been done to evaluate the economics of the deposit, there is no guarantee that the quoted historic "reserve" figure is potentially economic. Economic studies done in 1960 do not mean the mineralized iron deposit would be found to be economic today. In accordance with NI 43-10, Sec 2.3 (2), the reader is cautioned that the estimate of the potential quantity and grade for the deposit is conceptual in nature and that there has not been sufficient exploration in this instance to define a current mineral resource nor is there certainty that further exploration will delineate the target as a mineral resource.

**Soluble iron is that partial component of total iron content that is acid (i.e. aqua regia) soluble. For clarification, the iron in iron oxides is classified as acid soluble, whereas iron-bearing silicates represent an example of material categorized containing insoluble iron.

About TNR Gold Corp.
TNR is a diversified international mineral exploration company focusing on the advancement of existing properties and identifying and acquiring new prospective projects. TNR has a portfolio of 18 active projects, of which 9 rare metals projects, including Mariana, is now held by TNR's recently listed subsidiary, International Lithium Corp. (TSX VENTURE:ILC). TNR remains a large shareholder in ILC at 28% of outstanding shares.

The recent acquisition of lithium, other rare metals, rare-earth elements and iron ore projects in Argentina, Canada, USA and Ireland confirms TNR and ILC's commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,
Gary Schellenberg, President

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.

CUSIP: #87260X 109

SEC 12g3-2(b): Exemption #82-4434

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

TNR Gold Corp.
Gary Schellenberg
President
(604) 687-7551 or Toll Free: 1-800-667-4470
(604) 687-4670 (FAX)
info@tnrgoldcorp.com
www.tnrgoldcorp.com

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Rare Earth Elements discovered by TNR Gold Corp.

TNR Gold Corp.

TSX VENTURE : TNR

October 25, 2011 10:13 ET

TNR Gold Corp.: Preliminary Results at Seabrook Niobium-Rare-Earth Elements Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2011) - TNR Gold Corp. (TSX VENTURE:TNR) ("TNR" or the "Company") is pleased to announce the Company has completed preliminary work at the Seabrook Niobium and Rare Earth Elements ("REE") Property (the "Property") in northern Ontario.
Key Highlights:

• Preliminary analyses confirms significant historical REE grades;
• 45% of samples report >0.20% TREO;
• Cerium, Neodymium, Lanthanum and Niobium oxide grades range up to:
  3,233 ppm Ce₂O₃, 1,779 ppm Nd₂O₃, 1,163 ppm La₂O₃, and 1,903 ppm Nb₂O₅; and
• Preliminary soil orientation survey completed, awaiting results.

"We are encouraged by the rare-earth element levels and the corroboration of historical results reported from this initial sampling program," states Gary Schellenberg, President and CEO of the Company. "This was the first step in a fully warranted comprehensive evaluation of the multi-commodity potential of the Property."
Seabrook Niobium – Rare-Earth Elements Project Update
Results from 22 geochemical and mineralogical characterization samples (grab samples*) are consistent with historical work by exploration companies and published work by Ontario government geologists. The following table summarizes samples containing greater than 0.20% Total Rare-Earth Oxides + Yttrium ("TREO+Y").

Sample ID	TREO%	CeO2 ppm	Nd2O3 ppm	La2O3 ppm	Nb2O5 ppm
16205	0.71	3233	1779	1163	594
16204	0.48	2026	1065	842	1903
16206	0.42	1851	799	903	302
16222	0.31	1242	549	634	436
16207	0.28	1283	702	365	144
16203	0.28	1236	500	585	388
16211	0.27	1277	552	568	346
16216	0.25	1032	545	486	104
16209	0.24	1113	367	620	396
16208	0.24	1089	321	677	714

The Seabrook Carbonatite Complex hosts Niobium and Rare-Earth Element mineralization with Light Rare-Earth Elements (LREEs) dominating. LREEs account for 94% of TREO+Y in samples with ≥0.20% TREO+Y. Three LREEs account for approximately 84% of TREO+Y in samples with ≥0.20% TREO+Y. These are Cerium (~44%), Neodymium (~20%) and Lanthanum (~20%).

This initial survey of the property was conducted under the supervision of Dr. Frederick Breaks, P. Geo., and the Company's special advisor on Rare - Earth Element ("REE") exploration. Further mineralogical work is underway. Subsequent to the identification of historical workings in the hematite alteration zone an orientation soil survey was conducted in this area. Results of the soil survey are pending.

*Note: grab samples are by definition selective and are unlikely to represent average grades on the property.

About the Seabrook Project
The Seabrook Project is located 100 kilometres northeast of Sault Ste. Marie in northern Ontario, covers 512 hectares and is accessible year round. The property encloses the Seabrook Carbonatite Complex which forms the area of prospective geology. Access to the property is by major paved highways with the final 10 kilometres on unpaved forest service road. Electrical transmission lines cross the southwest corner of the property.

The Seabrook Carbonatite is approximately 1.5 x 2.5 kilometres in area and elongated along a north-south trend forming a tadpole shaped complex consisting of sovite and silicocarbonatite in the bulbous northern portion and ijolite in the tail to the south. The entire complex is enveloped by a well developed aureole of fenitized granitic rocks.

Limited historical exploration of the Seabrook Carbonatite has indicated significant REE potential. In 1955, W. Bussineau reported 4 grab samples* grading 0.6, 1.5, 4.7 and 10.3% Nb₂O₅. In 1971, Canpac Minerals Ltd. and Gunnex Ltd. reported grab samples grading up to 0.90% Nb and outlined 3 areas of high Nb values that were never followed up by drilling. In 1977, as part of a geological survey of the Chapleau area for the Ontario Division of Mines, Thurston et al published data on a sample from a hematite-rich carbonate rock estimated to cover a 90m by 90m area and grading 0.47% Ce₂O₃ and 0.22% La₂O₃ where only those two Rare-Earth Elements (Ce and La) were analyzed.

Mr. John Harrop is the Company's qualified person on the Seabrook Project and as required under NI 43-101 and has reviewed the technical information contained in this press release.

Terminology used in this News Release
REE (Rare-Earth Element): any of Lanthanum (La), Cerium (Ce), Praesodymium (Pr), Neodymium (Nd), Samarium (Sm), Europium (Eu), Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), Holmium (Ho), Erbium (Er), Thulium (Tm), Ytterbium (Yb) and Lutetium (Lu) which form the Lanthanide series. Yttrium (Y) is also included as a REE.

TREO (Total Rare-Earth Oxides): The chemical component each REE is often given as an oxide rather than simple element. The combined total of La₂O₃, CeO₂, Pr₂O₃, Nd₂O₃, Sm₂O₃, Eu₂O₃, Gd₂O₃, Tb₂O₃, Dy₂O₃, Ho₂O₃, Er₂O₃, Tm₂O₃, Yb₂O₃ and Lu₂O₃ is given as an aggregate grade summary. TREO+Y indicates Y₂O₃has been included in the aggregate.
LREE (Light Rare-Earth Element): Elements Lanthanum to Europium
HREE (Heavy Rare-Earth Element): Elements Gadolinium to Lutetium and Yttrium.
RM (Rare Metal): A number of metallic elements not included in other groups such as REE, precious metals, base metals, etc. Although Rare Metals are not as rigorously defined as other groups and have quite different chemistry, they generally include Li, Be, Rb, Cs, Zr, Nb, Hf and Ta. Other elements are sometimes included.

ABOUT TNR GOLD CORP.
TNR is a diversified international mineral exploration company focusing on the advancement of existing properties and identifying and acquiring new prospective projects. TNR has a portfolio of 18 active projects, of which 9 rare metals projects, including Mariana, is now held by TNR's now-listed subsidiary, ILC. TNR remains a large shareholder in ILC at 28% of outstanding shares.

The recent acquisition of lithium, other rare metals and rare-earth elements projects in Argentina, Canada, USA and Ireland confirms the TNR and ILC's commitments to generating projects, diversifying its markets, and building shareholder value.

On behalf of the board,
Gary Schellenberg, President

Statements in this press release other than purely historical information, historical estimates should not be relied upon, including statements relating to the Company's future plans and objectives or expected results, are forward-looking statements. News release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in the Company's business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.
CUSIP: #87260X 109
SEC 12g3-2(b): Exemption #82-4434

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

• 
  
  TNR Gold Corp.
  Gary Schellenberg
  President
  (604) 687-7551 or 1-800-667-4470
  (604) 687-4670 (FAX)
  info@tnrgoldcorp.com
  www.tnrgoldcorp.com
  
  

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• TNR Gold gains strategic partner for International Lithium Spinoff IPO - Asian battery manufacturer buys 10% of offering. (retirefunds.blogspot.com)
• TNR Gold concentrating on Gold, Silver and Copper projects after Spinoff of ILC. (retirefunds.blogspot.com)
• International Lithium Corp IPO - AIP buying into new company spinning out of TNR Gold Corp. (retirefunds.blogspot.com)
• TNR Gold Corp. La Ortiguita Drill Program Expanded By 60% (retirefunds.blogspot.com)
• International Lithium Corp to begin trading on May 24th! (retirefunds.blogspot.com)

TNR Gold increases Rare Earth holdings in Canada.

TNR Gold Corp.
TSX VENTURE: TNR

Mar 01, 2011 08:30 ET

TNR Gold Corp.: Seabrook Ree Carbonatite Acquired; Sault Ste. Marie, Ontario

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 1, 2011) - TNR Gold Corp. ("TNR" or the "Company") (TSX VENTURE:TNR) is pleased to announce the acquisition of 100% ownership interest in the Seabrook Rare Earth Element Carbonatite Complex in northern Ontario (the "Property") through a combination of staking and option.
Key Highlights:

• 100% ownership and coverage of the Seabrook Carbonatite Complex;
• Significant REE potential indicated from previous operators' limited exploration;
• 4 grab samples grading 0.6, 1.5, 4.7 and 10.3% Nb₂O₅; and
• One sample grading 0.47% Ce₂O₅ and 0.22% La₂O₃ where only the Ce and La were analyzed for.

"The Seabrook Carbonatite Complex represents a significant addition to TNR's Rare Earth Elements property portfolio that also includes

Junior and Mid Tier Rare and Minor Metals Companies December Quarter 2010

Dec 01, 2010 06:00 ET

Resource Capital Research Report:

DENVER, CO--(Marketwire - December 1, 2010) -
Key Points

• Rare and minor metals (RMM) company share prices have climbed in the past three months (+56%), outperforming the ASX S&P 300 Metals and Mining Index (+12%), due to potential future metal shortages and price rises. Some recent gains were fueled by market speculation rather than fundamentals.
   
  
• The current market driver is China's policy of squeezing export quotas and raising tariffs, especially for the rare earth elements (REE).
   
  
• As we stated in 3Q10, demand for the RMM should increase in the next 4-5 years, which could benefit current and near-term producers, or exploration and development companies with projects that can be fast-tracked.
  

Resource Capital Research ("RCR"), an equity research company which focuses on small and mid size resource companies, today published its quarterly research report covering Rare and Minor Metals exploration, development and production companies.

The report covers TSX/V listed companies: Avalon Rare Metals Inc, Rodinia Lithium Inc.  Tnr Gold Corp. and ASX listed companies: Alkane Exploration Limited, Arafura Resources Limited, Globe Metals & Mining Limited, Greenland Minerals & Energy Limited, Gippsland Limited, Gunson Resources Limited, Galaxy Resources Limited, Icon Resources Limited, King Island Scheelite Limited.

RCR also publishes quarterly reviews of the Iron Ore, Uranium, Gold and Copper sectors. To access the free summary of the Rare and Minor Metals Report or to purchase the 56 page Subscribers report, go to www.rcresearch.com.au/reports.

The outlook for rare and minor metals


The past three months have seen considerable share price gains for some rare and minor metals (RMM) equities, as investors become aware of the potential for future supply shortages and consequent high metal prices. Speculation has cooled in the past month, but companies that have quality projects should retain some of their recent gains while prices remain above their pre-2H10 levels.

The main market driver is China, which is reforming its RMM sectors, by raising tariffs, reducing export quotas, and encouraging consolidation and vertical integration of production. China's stated aims are to increase domestic value-adding and use of the RMM, conserve resources, and improve industry monitoring and efficiency. China's actions could boost global RMM production.

Some examples of commodities with a stable to strong outlook for the next several years:

• Lithium: Increasing intensity of use is expected to require additional supply beyond 2014.
  
  
• Niobium: Industry forecasts are for FeNb consumption growth of ~15% per annum to 2014.
  
  
• Rare earth elements (REE): Forecasts are for 20-30% CAGR in prices to 2015. Export prices (China) up 510% year-on-year.
  
  
• Tantalum: A supply shortfall is expected to hand a competitive advantage to companies that provide a long-term supply of ethically produced tantalum.
  
  
• Tungsten: Supply shortages are indicated from 2013.
  
  
• Zircon/zirconium: A lack of greenfields projects could create supply shortages and boost prices in the near to medium term (1-3 yrs).
  

RMM deposits can take 5+ years to develop as mines, sometimes due to their geochemical complexity, and the challenge of financing projects that are considered to be outside the resources mainstream. This provides an opportunity for companies with projects that are advanced or can be fast-tracked, e.g. due to location, favorable chemistry, size and/or high grades.

Equity performances
Globally, RMM stocks have outperformed most exchange-based indices in the past 12 months. Share price performances have been studied, for 336 exchange-listed companies with one or more RMM projects (in six commodity groups: lithium, REE, tungsten, zirconium, niobium, tantalum). The unweighted average performance over 1 month (to November 17) was +11%, compared to 1% for Australia's ASX S&P300 Metals and Mining Index, and 0.1% for the ASX All Ords. Twelve-month performance was +56% (S&P300 MM, 12%). The average RMM company share price is 33% below its 12-month high and 155% above a 12-month low.

Analyst's Comment
"The past twelve months have overall been very strong for rare and minor metals markets," says RCR analyst Trent Allen. "The basket of stocks we looked at had an average share price increase of 56% over that period, beating most share market indices. This frenetic activity has raised the profile of rare and minor metals, which could help with future investment and project finance."

"As is so often the case with commodities, the force driving the market is Chinese policy. It's always difficult to be certain of China's intentions, so cuts in metal export quotas and talk of limiting production created a lot of uncertainty in 2010. This was compounded by China's willingness to use its dominant market position to gain political leverage, as shown by mention of the rare earth elements in recent trade and territorial disputes with Japan and the US.

"RCR recently attended the Sixth International Rare Earths Conference, organized by Roskill and Metal Events in Hong Kong, to try to gain a clearer picture of China's position on the RMM. It is apparently seeking to conserve mineral resources and add value to them in China, while simultaneously regulating its mining and metals industries to combat problems such as overcapacity, environmental damage and smuggling of high-value metals.

"This realization among investors, together with assurances from China about continue supply (again, focused on the REE), has taken some of the speculative heat out of RMM equities in the past month or so. RMM prices are unlikely to fall across the board for the foreseeable future, so long as fundamental market drivers remain in place, and companies with solid projects should on average retain the majority of their recent share price gains in the near to medium term.

"There should be opportunities for investors to profit from high-quality new RMM discoveries or from significant advances at existing projects, especially in terms of mineral processing and project funding."

About Resource Capital Research
Resource Capital Research ("RCR") (www.rcresearch.com.au) was founded in 2004 and is based in Sydney. RCR provides investors with in-depth reports on current investment opportunities in the mining sector both in Australia and globally. The focus is on small and mid cap resource companies, within the iron ore, uranium, gold, copper and rare/minor metals sectors, ranging from exploration stage, through development and production. John Wilson, the principal of the firm and analyst, has over ten years' experience analysing mining companies in Sydney and on Wall Street including for major investment banks. Dr. Trent Allen, Rare and Minor Metals Analyst, joined RCR in 2006. Trent has extensive experience as a mine geologist, academic and journalist.
The report is available at www.rcresearch.com.au. The next Rare and Minor Metals Company Review will be of the March Quarter, 2011.
For further information please contact:

Trent Allen
Rare and Minor Metals Analyst
(+61 (0) 438 873 682)

John Wilson
Managing Director

Resource Capital Research,
Phone: (+61- 2) 9252 9405

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