NYSE-Amex: REE & TSX-V: RES
VANCOUVER, May 16 /CNW/ - Rare Element Resources Ltd. (TSXV: RES) (NYSE Amex: REE) (the "Company" or "Rare Element") announced that its unaudited condensed consolidated interim financial
statements and Management's Discussion and Analysis for the nine months
ended March 31, 2011 have been filed on www.sedar.com. These financial statements were prepared using International
Financial Reporting Standards which Rare Element early adopted as of
July 1st, 2010. Note 17 in the financial statements reconciles the changes in
the comparative periods from Canadian Generally Accepted Accounting
Principles to International Financial Reporting Standards, which will
be fully adopted in Canada in 2011.
All dollar amounts stated below are in United States dollars.
Nine Months Ended March 31, 2011 Financial Highlights:
During the nine months ended March 31, 2011, $5,677,048 (2010 -
$2,007,676) was spent on the Bear Lodge Rare-Earth Project and
$1,021,285 (2010 - $nil) was spent on the Sundance Gold Project. Both
projects are located on the same property position.
Administrative expenditures, excluding the non-cash share-based payments
amounted to $1,392,410 (2010 - $920,516) for the period, up 51%
compared to the same period last year.
Loss for the period was $4,483,587 (2010 - $1,477,745) or $0.12 per
share (2010 - $0.04), up 203% from the same period in the prior year
due to non-cash share-based payments.
Cash and cash equivalents at March 31, 2011 were $73,523,043 (June 30,
2010 - $11,460,476), reflecting the $57.5 million financing completed
in December, 2010.
The geological team completed its 2010 rare-earth drilling and
exploration program on the Bear Lodge property in November, 2010 and
announced the final REE assay results on April 6, 2011. The complete
results from the 2010 drilling program will be incorporated into an
updated NI 43-101 compliant resource estimate scheduled for release
during the second quarter of 2011. The goal for these drill-hole
results is to upgrade a portion of the REE resources from the inferred
category to measured and indicated and to expand the resources.
The Company completed the NI 43-101 compliant Preliminary Economic
Analysis of the Bear Lodge REE deposit (the "Technical Report") as
announced on September 28, 2010 which shows that the project has an IRR
of approximately 40% using historical REO concentrate prices, which
have recently increased by approximately 700%. The Technical Report
was prepared by independent consultant, John T. Boyd Company with the
assistance of consultants Mountain States R&D International and Ore
Reserves Engineering. This press release highlights some of the
information contained in the Technical Report released on November 9,
2010 and for investors to fully understand the information in this
press release, they should read the Technical Report in its entirety,
including all qualifications, assumptions and exclusions that relate to
the information set out in this press release.
The Company announced its first NI 43-101-compliant inferred mineral
resource estimate for the 100% owned Sundance gold project in the Bear
Lodge Mountains on March 15, 2011.
Rare Element listed its common shares on the NYSE-Amex Stock Exchange
under the symbol "REE" in August, 2010.
Rare Element currently has 43,871,173 common shares outstanding, and
47,493,463 common shares outstanding on a fully diluted basis. Rare
Element currently has approximately US$73 million in cash and no debt.
The unaudited financial statements and management discussion and
analysis are available through the Canadian securities regulatory
authorities at www.sedar.com, and with the Securities and Exchange Commission at www.sec.gov. They are also available on the Company's website at www.rareelementresources.com. Hard copies of the unaudited condensed consolidated interim financial
statements and notes are available, free of charge, to shareholders
upon written request.
Transition to U.S. Domestic Issuer Reporting:
Effective July 1, 2011, the Company will begin filing reports with the
U.S. Securities and Exchange Commission (the "SEC") as a U.S. "domestic
issuer", as it is no longer a "foreign private issuer" under the
applicable rules of the SEC. As a domestic issuer under U.S. securities
laws, the Company will be required to file periodic reports and
registration statements on U.S. domestic issuer forms with the SEC,
including its annual report on Form 10-K for the fiscal year ended June
30, 2011. In addition, the Company will be required to file financial
statements prepared in accordance with U.S. generally accepted
accounting principles, beginning with the financial statements for the
fiscal year-ended June 30, 2011 (and comparative periods).
Rare Element Resources Ltd (TSX-V: RES & NYSE-Amex: REE) is a publicly traded mineral resource company focused on exploration and
development of rare-earth elements and gold on the Bear Lodge property.
Rare-earth elements are key components of the green energy technologies
and other high-technology applications. Some of the major applications
include hybrid automobiles, plug-in electric automobiles, advanced wind
turbines, computer hard drives, compact fluorescent light bulbs, metal
alloys, additives in ceramics and glass, petroleum cracking catalysts,
and a number of critical military applications. China currently
produces more than 95% of the 130,000 metric tonnes of rare-earths
consumed annually worldwide, and China has been reducing its exports of
rare earths each year. The rare-earth market is growing rapidly, and is
projected to accelerate if the green technologies are implemented on a
ON BEHALF OF THE BOARD
Donald E. Ranta, PhD, PGeo, President & CEO
Forward Looking Statements
Except for statements of historical fact, certain information contained
herein constitutes forward-looking statements. Forward looking
statements are usually identified by our use of certain terminology,
including "will", "believes", "may", "expects", "should", "seeks",
"anticipates", "has potential to", or "intends' or by discussions of
strategy or intentions. Such forward-looking statements involve known
and unknown risks, uncertainties and other factors which may cause our
actual results or achievements to be materially different from any
future results or achievements expressed or implied by such
forward-looking statements. Forward-looking statements are statements
that are not historical facts, and include but are not limited to,
estimates and their underlying assumptions; statements regarding plans,
objectives and expectations with respect to the effectiveness of the
Company's business model; future operations, products and services; the
impact of regulatory initiatives on the Company's operations; the size
of and opportunities related to the market for the Company's products;
general industry and macroeconomic growth rates; expectations related
to possible joint and/or strategic ventures and statements regarding
Forward-looking statements used in this discussion are subject to
various risks and uncertainties, most of which are difficult to predict
and generally beyond the control of the Company. If risks or
uncertainties materialize, or if underlying assumptions prove
incorrect, our actual results may vary materially from those expected,
estimated or projected. Forward-looking statements in this document are
not a prediction of future events or circumstances, and those future
events or circumstances may not occur. Given these uncertainties, users
of the information included herein, including investors and prospective
investors are cautioned not to place undue reliance on such
Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company
as an internal, technically Qualified Person. Technical information in
this news release has been reviewed by Dr. Ranta and has been prepared
in accordance with Canadian regulatory requirements that are set out in
National Instrument 43-101.
This news release was prepared by Company management, who take full
responsibility for content. Neither 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.
SOURCE Rare Element Resources Ltd.
For further information:
For information, refer to the Company's website at www.rareelementresources.com or contact:
Mark T Brown, CFO, (604) 687-3520 ext 242 firstname.lastname@example.org
Donald E Ranta, (604) 687-3520 email@example.com