TSX: RES & NYSE AMEX: REE
VANCOUVER, Sept. 28, 2011 /CNW/ - Rare Element Resources Ltd. (TSX: RES) (NYSE-AMEX: REE) (the "Company" or "Rare Element") announced that its audited consolidated financial statements and
Management's Discussion and Analysis, and Form 10K, for the year ended
June 30, 2011 have been filed on www.sedar.com and www.sec.gov. In July, 2011, the Company became a domestic issuer in the United
States ("US") and transitioned from reporting according to Canadian
regulations with US secondary filings, to reporting according to the US
regulations with Canadian secondary filings. While this has no impact
on the value of the Company, shareholders will have to adapt to filings
based on US security regulations, such as Form 10-K, Form 10-Q and Form
8-K. As a result of these regulations, the Company has adopted US
generally accepted accounting principles ("US GAAP") in its first
annual filing under Form 10-K.
All dollar amounts stated below are in United States dollars.
Year Ended June 30, 2011 Financial Highlights:
During the year ended June 30, 2011, a total of $7,339,669 (2010 -
$2,724,518) was spent on the Bear Lodge Rare-Earth Project, including
$412,330 (2010 - $nil) on the pre-feasibility study and $1,172,678
(2010 - $69,713) was spent on the Sundance Gold Project. Both projects
are located on the same property.
Administrative expenditures, excluding amortization, non-cash
stock-based compensation and foreign exchange amounted to $2,056,536
(2010 - $1,145,906) for the period, up 79% compared to the previous
Loss for the period was $16,657,962 (2010 - $2,791,969) or $0.43 per
share (2010 - $0.09), up 497% from the previous year due to the
exploration programs conducted on both the Bear Lodge Rare-Earth
Project and the Sundance Gold Project in fiscal 2011 as well as the
non-cash mark-to-market loss on share purchase warrants in fiscal 2011.
Cash and cash equivalents at June 30, 2011 were $72,311,970 (June 30,
2010 - $11,460,476), reflecting the $57.5 million financing completed
in December, 2010 and the exercise of almost all of the Company's
Completed the National Instrument 43-101(NI 43-101)-compliant mineral
resource estimate on June 14, 2011.
Completed the 2010 drilling program on the Bear Lodge rare-earth element
("REE") project in November 2010. This drilling included 61 drill holes
and an additional 40 large diameter core holes. The large diameter core
provided a bulk sample for pilot-plant testing and assays from that
core provided the highest grades of REE found to date.
Advanced a preliminary REE metallurgical recovery process in July 2010,
with 80 percent estimated recoveries of rare-earth elements from the
Bear Lodge deposit to produce a 42-45 percent rare-earth-oxide ("REO")
Completed a Preliminary Economic Assessment (PEA), in compliance with
the NI 43-101, which shows positive economics using 3-year trailing
average prices for rare-earth concentrates.
Collected an 8.8 ton sample of REE mineralized material and additional
bulk sample material, which is currently being used in a pilot plant
test that commenced September, 2011.
Completed a 34-hole gold-focused drilling program in November, 2010 on
the Sundance project focusing on three main gold targets and announced
the Company's first NI 43-101-compliant inferred mineral resource
estimate on March 14, 2011.
Discovery of enriched heavy rare earths zones at Whitetail Ridge, East
Taylor and Carbon and high grade at East Taylor within the Bear Lodge
Successfully listed the Company's common shares for trading on the NYSE
Amex Stock Exchange headquartered in New York, NY, as well as
graduating the trading of our shares in Canada from Tier One of the TSX
Venture Exchange to the TSX main trading board.
Established an executive office in Denver, Colorado. Successfully hired
various key executives, including Chief Operating Officer, Chief
Financial Officer and VP of Government and Community Relations.
Rare Element currently has 44,096,674 common shares outstanding and
47,953,463 common shares outstanding on a fully diluted basis. As of
September 28, 2011, Rare Element has approximately $64.6 million in
cash and no debt.
The audited 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.
Rare Element Resources Ltd (TSX: 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 lights, metal
alloys, additives in ceramics and glass, petroleum cracking catalysts,
and a number of critical military applications. China currently
produces more than 95 percent 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 green technologies continue
to be implemented on a broad scale.
ON BEHALF OF THE BOARD
David P. Suleski, CFO
Neither TSX nor its Regulation Services Provider (as that term is
defined in the policies of the TSX) accepts responsibility for the
adequacy or accuracy of this release.
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
SOURCE Rare Element Resources Ltd.
For further information:
For information, refer to the Company's website at www.rareelementresources.com or contact:
Anne Hite, Director of Investor Relations (720) 278-2460 email@example.com .
Dave Suleski, (720) 278-2460 firstname.lastname@example.org