Corporate Overview and Management Presentation on Rare-Earth Elements and Gold Project
1. Corporate Overview
RARE-EARTH ELEMENTS
& GOLD Management Presentation
June 2010
1
2. Disclaimer
• The information contained herein, while obtained from sources which we believe are reliable, is not guaranteed as to
its accuracy or completeness. The company is an exploration company and its mineral project has yet to be proven to
be economic. Many references to geologic and technical information contained herein are historical or have been
generated by external consultants who may or may not be QPs under NI 43-101 and are therefore not in accordance
with the requirements under NI 43-101 or have to be prepared in accordance with a preliminary or final feasibility
study. The content of this presentation is for information purposes only and does not constitute an offer to sell or a
solicitation to purchase any securities referred to herein.
• Forward-looking statements: This presentation includes certain forward-looking statements about future events
and/or financial results which are forward-looking in nature and subject to risks and uncertainties. Forward-looking
statements include without limitation, statements regarding the company’s plan, goals or objectives and future mineral
projects, potential mineralization, resources and reserves, exploration results and future plans and objectives of Rare
Element Resources. Forward-looking statements can generally be identified by the use of forward-looking terminology
such as “may”, “will”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, or “continue” or the negative thereof or
variations thereon or similar terminology. There can be no assurance that such statements will prove to be accurate
and actual results and future events could differ materially from those anticipated in such statements. Important
factors that could cause actual results to differ materially from expectations include risks associated with mining
generally and pre-development stage projects in particular. Potential investors should conduct their own investigations
as to the suitability of investing in securities of Rare Element Resources.
• Cautionary Note to U.S. Investors Concerning Estimates of Measured, Indicated and Inferred Resources
This presentation uses the term “Inferred” Mineral Resources. U.S. investors are advised that while such terms are
recognized and required by Canadian regulations, the Securities and Exchange Commission does not recognize them.
“Inferred Resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their
economic and legal feasibility. It cannot be assumed that all or any part of an inferred resource will ever be upgraded
to a higher category. Under Canadian rules, estimates of Inferred Resources may not form the basis of feasibility or
other economic studies. U.S. investors are also cautioned not to assume that all or any part of an Inferred Mineral
Resource exists, or is economically or legally mineable.
2
3. Vision
Creating shareholder value through:
• A foundation in rare-earth metals development
• A future in gold exploration and development
3
4. Company Highlights
Exploring the Bear Lodge Property, which potentially hosts:
• One of the largest deposits of disseminated rare-earth elements (REEs)
in North America(1), with high-grade zones – “Bear Lodge Project”
• NI 43-101 inferred REE resource: 17.5 mm tons @ 3.46% REO(2)
• Carbonatite deposit; similar to Bayan Obo and Mountain Pass
• Scoping Study (PEA) to be completed in summer 2010
• Cripple Creek-style gold targeted – “Sundance Project”
• Excellent potential in multiple targets for near-surface low-grade and
possibility for deeper high-grade gold
Well financed with clean capital structure
• C$12.2 million cash on hand and no debt
Experienced management team with meaningful insider ownership
• 7.0% insider holdings
(1) US Geological Survey (Staatz, Professional Paper #1049-D, 1983)
(2) 1.5% REO cut-off-grade; prepared by Ore Reserves Engineering, April 2009
4
5. Bear Lodge
Location and Infrastructure
Bear Lodge Mountains, Wyoming, USA
Spearfish, SD
I-90
Power &
paved road Excellent Mining Infrastructure
Rail – 35 mi Black • Paved road and power lines within 2
Gillette, WY miles of project site
60 mi
• 35 miles to nearest railhead
Hills
• Skilled labor and water available
• Communications network nearby
• Major coal mining center 60 miles
West – Gillette, WY
• Top ranked mining jurisdiction(1)
(1) Wyoming ranked as one of the top worldwide locations favorable for mining by the Fraser Institute
5
6. Northern Black Hills Gold Belt
Bear Lodge
& Sundance
Projects
Bear Lodge
Mountains 40 M oz gold
9 M oz gold
Black
Hills
6
7. Bear Lodge Geology
& General Target Areas
Simplified Geologic Map
Corral
Carbon
Bull Hill
BH
Taylor
Richardson
Targets
Fracture-Fault Control Smith
Breccia Hosted
Sediment Hosted
Precambrian Granite
Hosted
Carbonatite Hosted
7
8. Bear Lodge
Rare-Earths Overview
• US Geological Survey(2): Bear Lodge Mountains contain “one of the
largest occurrences of disseminated rare earths in North America”
plus high-grade zones; USBM study & historic resource estimate
• Updated NI 43-101 inferred mineral resource of 17.5 mm tons @ 3.46%
REO(1) including 4.4 mm tons @ 6.65% REO; based on 46 holes drilled by
Rare Element, Hecla, Molycorp, Duval; excellent exploration potential
• Currently exploring for oxidized REE mineralization within the Bull Hill
carbonatites; inferred oxide resource of 8.0 mm tons @ 3.62% REO
which includes 2.3 mm tons @ 6.9% REO
• Metallurgical testing of known REE resource with significant success on
the near-surface oxide mineralization
• Preliminary mine, plant, and geotechnical engineering for a preliminary
engineering-economic assessment (Scoping Study)
(1) 1.5% REO cut-off-grade; prepared by Ore Reserves Engineering, April 2009
(2) US Geological Survey (Staatz, Professional Paper #1049-D, 1983)
8
10. Bull Hill Area
Geology & Target Areas
Carbon (Au)
Whitetail Bull Hill NW
Ridge REE resource
Bull Hill (after Newmont-2008)
Fault
Offset diatreme &
Taylor (Au) &Plug? REE resource
Smith (Au)
10
11. Bull Hill Area Drill Holes
Whitetail
Ridge Bull Hill NW Target 2009 Drill Holes,
Target 1-3 angle holes
from each site
Bull Hill Southwest
Resource Area
Fault
offset
Deep
Carbonatite
Southeast
Plug Target
Extension
Target
11
12. Dike-Swarm Section - Bull Hill
2009 holes
Old holes
Dikes
Low-grade
stockwork Inferred Mineral Resource
17.5 million tons @ 3.5% REO
(compliant with NI 43-101)
Fault
Plug?
12
13. 2004-08 Drilling Results
REE - Selected Intervals
Hole Oxide/Non-ox No. Dikes Agg. True Thick. REO (%)
RES04-1 oxide 3 8.47 m 8.70
non-oxide 6 16.61 m 4.14
RES04-2 non-oxide 1 36.27 m 4.06
RES05-2 oxide 2 2.65 m 9.84
non-oxide 5 19.35 m 3.92
RES07-1 oxide 1 5.58 m 4.19
non-oxide 3 28.53 m 4.81
RES07-2 oxide 3 24.02 m 3.62
non-oxide 2 11.28 m 2.75
RES07-3 oxide 1 7.92 m 10.20
RES08-1 oxide 1 16.55 m 4.86
RES08-2 oxide 2 36.83 m 3.00
RES08-3 oxide 2 54.24 m 4.62
non-oxide 1 2.19 m 2.89
13
14. 2009 Drilling Results
REE - Selected Intervals
Hole Oxide/Non-ox No. Intervals Agg. True Thick. REO (%)
RES09-1 oxide 2 21.04 m 3.88
RES09-2 oxide 2 13.11 m 3.70
RES09-3 oxide 1 25.00 m 6.78
RES09-3A oxide 2 24.70 m 7.70
including 1 10.91 m 9.24
RES09-6 oxide 2 21.95 m 5.62
including 1 8.64 m 11.83
RES09-14 oxide 1 20.79 m 2.97
RES09-15 oxide 2 8.39 m 3.00
RES09-17 oxide/non-ox 2 51.81 m 5.57
including 1 11.06 m 10.88
RES09-18 oxide 3 21.15 m 5.97
including 1 8.27 m 11.56
RES09-20 oxide 1 5.88 m 3.22
14
15. REE Mineralogy by Zone
Oxidized / Mineralized Body REE Mineralogy
Unoxidized
Oxide Zone FMR dikes and veins (FeOx + Bastnasite - group minerals
(0 to 150 m in MnOx + REE) + subord. monazite
depth) Loose and friable material Easily liberated
Transitional Partly oxidized dikes – Bastnasite - group minerals
Zone FMR/Carbonatite (FeOx + MnOx + ancylite + monazite
(mixed) + REE + barite + strontianite +
sulfides)
Unoxidized Zone Carbonatite and Ancylite + subord.
(below 180 m) silicocarbonatite dikes bastnasite-group +
(with ~10% iron sulfides) monazite
15
16. Bull Hill REE Mineralization -
FMR Dikes & Veins
Bull Hill Diatreme FMR with Bastnasite-Group Minerals
Breccia (light brown)
16
17. Typical Distribution of REE
Rare-Earth
Element Oxide Sample(1) Unoxidized Sample(1)
Lanthanum 29.3% 32.5%
Cerium 45.0% 46.4%
Praseodymium 4.8% 4.3%
Neodymium 16.8% 13.7%
Samarium 2.0% 1.4%
Europium 0.4% 0.3%
Gadolinium 0.8% 0.6%
Terbium 0.1% 0.0%
Dysprosium 0.2% 0.2%
Yttrium 0.5% 0.5%
Total 99.9% 99.9%
(1) From two composite metallurgical samples
17
18. Metallurgical Test Results
(Oxide Mineralization)
Scrubbing Comparison Showing Recovery, Grade & Wt-%
Project 6115-A: Scrubbing Characteristics Affecting the -500 mesh Fraction
1
10 min
2 3
60 min. 60 min
4
60 min
5
Crushing ?
No
Flotation Gentle Attrition Flotation
Scrubbing
Scrubbing
Machine Scrub Impeller Machine
Assay Grade (%) 14.33 14.80 14.25 13.46 12.95
Recovery (%) 40.4 58.7 70.3 81.0 90.2
Weight (%) 12.9 18.2 22.0 27.7 32.0
Screening (-500m)
Effect of Scrubbing Methods and Time on -500 mesh Product
Grade and Weight Plotted Against Recovery
35
60 Min.
Pre-concentrate of oxide
90% Recovery & 13% REO
32.0
30
Percent Grade and Weight
Float Machine
27.7
in 32 Wt-%
Projection
25
22.0
20 10 Min. Grade vs. Recovery
18.2 Weight vs. Recovery
15 14.3 14.8 14.3
12.9 13.5 13.0
10 (after Mountain States R & D, 2009)
1 2 3 4 5
5
0
35 45 55 65 75 85 95
Percent Recovery
18
19. Exploration Targets
WP-2 – 186 ft @ 9.5%
WP-1
Whitetail
Ridge REO
430 ft
Target
@2.4%
19
20. Milestones
Completed:
• 2004-2008 – Drilled 12 core holes in REE minz; in addition to 14 historic holes
• March 2009 – Estimated first NI 43-101 inferred resource
• July & September 2009 – Favorable metallurgical test results
• August – December 2009 – Drilled 20 core holes in REE mineralization
• October 2009 – Began a Scoping Study, a preliminary engineering-economic
assessment
Upcoming:
• June 2010 – Begin development drilling for reserves and expansion drilling
• Summer 2010 – Projected completion of Scoping Study on oxide portion of
resources with top quality consultants
• Q3 2010 – If Scoping Study is sufficiently positive, plan to initiate mine
permitting and a Prefeasibility Study
20
21. Bear Lodge - Gold Overview
• Rare Element and Newmont established Sundance gold exploration
venture on Bear Lodge property in 2006: Newmont advances the project,
withdraws in May 2010, and transfers claims, data and core
• The Bear Lodge property exposes upper levels of alkaline-igneous
complex, similar to Cripple Creek gold district, Colorado (23 million
ounces of gold produced to date)
• Goal to define 50 to 100 million tons @ 0.015 to 0.030 opt gold at
Carbon, Taylor, and Smith targets; plus other high-potential targets in
district; good metallurgy for heap leaching
• Excellent potential in multiple targets for near-surface low-grade gold
and possibility for deeper high-grade gold
• Gold resource estimate planned for early 2011; then consider all
options for gold project
21
22. Bear Lodge Geology -
Alkaline-Igneous Complex
• Bull Hill in core
area surrounded
Bull Hill by gold
occurrences
• Many similarities
to near-surface
low-grade gold
mineralization of
Cripple Creek
alkaline system
Source: Newmont, 2008
22
23. Geophysics & Geochemistry
• Newmont created
excellent exploration
Carbon database on
property
Bull Hill
Taylor
Smith
23
24. Carbon - Drill Holes and Trenches
• Example of
Newmont’s drilling
• Indicates potential
for a near-surface
low-grade bulk-
tonnage gold
deposit
• Newmont drilled
45 holes on
Carbon, Taylor,
and Smith targets
plus 13 holes more
24
26. Proven Management Team
Donald E Ranta, PhD, PGeo, President, CEO & Director
• 35 years of mining & corporate experience with successful
executive leadership roles in exploration and project evaluation
• Previously at Echo Bay, Phelps Dodge, AMAX and Kennecott
Mark T Brown, BComm, CA, CFO & Director
• President, Pacific Opportunity Capital Ltd, a financial-consulting &
merchant-banking firm focused on financial management and
capital raising for exploration companies
James G Clark, PhD, LGeo, VP Exploration
• Rare-earth geology expert with 30 years experience;
manages Bear Lodge Project field & laboratory studies
• Previously at Molycorp and Hecla Mining
26
27. Directors & Strategic Advisors
Directors:
• Norman W. Burmeister, PEng, President & CEO, Saratoga Gold
• M. Norman Anderson, PEng, Past Chairman & CEO, Cominco
• Stephen P. Quin, PGeo, President & CEO, Capstone Mining Corp
• Gregory E. McKelvey, PGeo, President & CEO, Animas Resources
Advisors:
• Jefferey D. Philips, President of Global Market Development
• Dr. Tony Mariano, consulting mineralogist & geologist
• Robert Bishop, former newsletter writer
• William H. Bird, PhD, PGeo, President of Medallion Resources Ltd.
• David Beling, PEng, Executive VP & COO of Geovic, Ltd.
• Matt Bender, PEng, Senior Director, Newmont Mining company
27
28. Bear Lodge Project
Technical Consultants
• Dr. Tony Mariano & Dr. Jim Clark, LGeo – Mineralogy & geology
• Dr. Ellie Leavitt, PGeo – REE geology & exploration
• John Ray – Gold geology & exploration
• Alan Noble, PEng – Resource estimation, Ore Reserves Engineering
• Michael Richardson, PEng – Mining engineering, John T Boyd Co.
• Thomas Kerr, PEng – Geotechnical engineering, Knight Piesold
• Dr. Roshan Bhappu, PEng – Metallurgy, Mountain States R&D
• Dr. Ronald Roman, PEng – Metallurgy, Mountain States R&D
• Dr. Richard Hammen, PEng – Extraction & separation, Intellimet
• Richard DeLong – Environmental & permits, Enviroscientists
• Mark Brown, CA – CFO, economics & finance
• Dudley Kingsnorth, PEng – Rare-earth markets
• George Byers – Government & community relations
28
29. Capital Structure
Shares Outstanding: 32,117,737
Fully Diluted: 35,878,487
(2,546,000 opts + 3,836,250 wts)
Market Capitalization: C$110 million
Share Price: $2.75 (52 week H/L 4.69/1.10)
Insider Holdings: 7.0%
Cash on Hand: C$12.2 million and no debt
(1) As at February 10, 2010
29
30. Comparable Companies Analysis
(All figures in C$ million unless otherwise denoted)
Contained Adj. Market Contained
Market Adj. Market Resource Grade REO REO Cap/REO Resource Value Stage of
(1) (1)(2)
Project Cap Cap (t million) (%) (t million) ($/t) (US$ million) Production
Mt. Weld (LYC) (A$) $ 819 $ 363 12.2 9.70 1.184 290 $ 16,681 Construction
Nolans Bore (ARU) (A$) $ 205 $ 181 30.3 2.80 0.850 201 $ 12,175 Metallurgy
Thor Lake (AVL) $ 194 $ 176 71.2 1.95 1.392 127 $ 29,785 Prefeasibility
Discovery
Strange Lake (QUC) $ 107 $ 100 14.3 1.30 0.186 535 Not av.
Delineation
Hoidas Lake/Rareco (GWG) $ 59 $ 49 3.1 3.15 0.097 324 $ 1,450 Metallurgy
Discovery
Sarfartoq (HUD) $ 40 $ 39 Not av. Not av. Not av. Not av. Not av.
Delineation
Discovery
Kutessay II (RUU) $ 38 $ 36 Not av. Not av. 0.063 575 $ 2,346
Delineation
Discovery
Bokan-Dotson Ridge (UCU) $ 28 $ 26 Not av. Not av. 0.165 156 Not av.
Delineation
(Updated) (16) 8.9 (3.5)4.07 (0.530)0.363
Bear Lodge (RES) $ 101 $ 95 261 $ 4,576 Scoping Study
Also, Mountain Pass (Molycorp) 20 8
(1) As at February 10, 2010
(2) Market Cap plus debt less working capital
30
31. Company Highlights
Exploring the Bear Lodge Property, which potentially hosts:
• One of largest deposits of disseminated rare-earth elements in North
America(1), with high-grade zones – “Bear Lodge Project”
• NI 43-101 inferred REE resource: 17.5 mm tons @ 3.5% TREO(2)
• Carbonatite deposit; similar to Bayan Obo and Mountain Pass
• Scoping Study to be completed in summer 2010
• Cripple Creek-style gold targeted – “Sundance Project”
• Excellent potential in multiple targets for near-surface low-grade and
possibility for deeper high-grade gold
Well financed with clean capital structure
• C$12.2 million cash on hand and no debt
Experienced management team with meaningful insider ownership
• 7.0% insider holdings
(1) US Geological Survey (Staatz, Professional Paper #1049-D, 1983)
(2) 1.5% TREO cut-off-grade; prepared by Ore Reserves Engineering, April 2009
31
32. For Further Information
Donald E Ranta, Phd, PGeo, President & CEO
don@rareelementresources.com
Mark T. Brown, CA, CFO
mtbrown@pacificopportunity.com
Rare Element Resources Ltd
Suite 410 - 325 Howe Street
Vancouver, BC V6C 1Z7
Tel: (604) 687-3520
www.rareelementresources.com
32
33. Appendix An Overview of Rare-Earth Elements
What are they?
What are their uses?
33
34. What are Rare-Earth Elements?
• REEs are a unusual group of metallic elements with unique properties: chemical,
catalytic, magnetic, metallurgical and phosphoricl
• REEs used in high-strength magnets, such as Neodymium, Praseodymium,
Dysprosium and Terbium, are high in demand
Periodic Table of REEs
REO Price
Rare Earths Commercial Use (USD/kg)
Scandium Stadium Lights Not Av.
Yttrium Lasers 11.30
Lanthanum Electric car batteries 6.12
Cerium Lens polishes 4.57
21
Sc
Praseodymium Searchlights, aircraft parts 28.38 39
Y
Neodymium High-strength magnets 29.49 57
Promethium Portable X-ray units Synthetic La
Samarium Glass 4.50
Europium Compact fluorescent bulbs 480.00
Gadolinuim Neutron radiography 8.43
58 59 60 61 62 63 64 65 66 67 68 69 70 71
Terbium High-strength magnets 350.00 Ce Pr Nd Pm Sm Eu Gd Tb Dy Ho Er Tm Yb Lu
Dysprosium High-strength magnets 129.50
Holmium Glass tint Not Av.
- Heavy Rare Earths
Erbium Metal alloys 30.00
- Light Rare Earths
Thulium Lasers 790.00
- Other Rare Metals
Ytterbium Stainless steal 132.00
Lutetium None 288.42
Source: Metal-Pages as at February 4, 2010
34
35. What are Rare-Earth Elements?
• China accounts for 97% of the world’s current REE production
• Currently operating at capacity
• No significant non-Chinese supply sources available today
• Small and limited production in Russia (3,000 - 4,000 tpa)
• Beach sand processed by Indian Rare Earths, subsidiary of Atomic
Energy Agency (7% thorium banned elsewhere)
• Virtually all REE deposits have thorium content and hence are
environmentally challenging to unextractable, unless thorium minerals can
be sequestered or a buyer of thorium is found
• Development projects currently under study:
• Two projects at very advanced stage with production in 1-2 years
• Others mainly at an early stage with long lead times to realization
• New projects face economic and environmental hurdles
35
36. Key Applications of REE
• REEs are critical and enabling for many emerging Green Energy technologies, High
Tech applications and Defense Systems; examples include hybrid cars, plug-in
hybrid electric vehicles, wind power turbines, computer hard drives, missile guidance
systems, lasers and cell phones
Application Elements
• Compact fluorescent lights
Energy
Energy
Efficiency
Efficiency
• Weight reduction in cars
• Higher oil refinery yields
• Hybrid vehicles
Environmental • Auto catalytic converter
• Diesel additives
• Disk drives
Miniaturization
Technology • Digital cameras
• Flat panel displays
36
37. Major Applications of REE
Hybrid Cars
Nd magnets & La batteries
Wind Turbines
With Nd-Fe-B magnets
37
38. Applications are Driving Strong
Forecasted Demand
• Total demand for REE is expected to grow to ~210,000 tonnes by 2013,
representing a CAGR of 10% from 2008
2008 Demand by Application Growth Forecast by Application
Other
7% Growth rate 2013 demand
Ceramics Catalysts
5% 19% Application % p.a. tonnes
Phosphors &
Catalysts 6-8% 32-36,000
Pigments
8%
Glass Additive 1% 14,000
Glass
Polishing Powder 6-8% 21-25,000
Additive
10%
Metal Alloys 15-20% 50-55,000
Magnets Magnets 10-13% 45-50,000
21%
Polishing
Phosphors & Pigments 7-9% 14-15,000
Powder
12%
Ceramics 7-9% 10-11,000
Metal Alloys
18% Other 7-9% 13-14,000
Total = 132,500 tonnes Total 8-11% 205-215,000
Source: Dudley J Kingsnorth, IMCOA
38
39. Applications are Driving Strong
Forecasted Demand
• China wants to create major wind turbine, solar panel, and hybrid car industries
Chinese Government Policy Chinese Production Limits
• Strategic value of REO well understood • Largest REO mine Baotou (50% of
world supply) operating at capacity
• Mining quota of 74,680t (2% vs. 2006)
• REO is a by-product of iron mining
• Export quotas declining annually • Future ore selection forecast to result in
lower REO grades
• -10% since 2004 to 43,600t in 2007
• -13% to 38,000t in 2008 • Sichuan
• -16% to 31,888t in 2009 • Environmental issues
• Underground mining
• Raising export tariffs to 15-25%
• Jiangxi, Guangdong, Hunan, Fujian
• Key interest in maintaining long-term
• Fragile resource due to over exploitation
domestic supply for the Chinese
• Fragile environment due to mining methods
manufacturing industry
• Force high tech companies that need these
REEs to relocate production to China
Source: Metal-Pages
39
