|
Rare Element Resources Ltd. announced that its unaudited financial statements
and Management's Discussion and Analysis for the three months ended September 30, 2010 have been filed on www.sedar.com.
These financial statements were filed using International Financial Reporting
Standards which Rare Element early adopted as of July 1st,
2010. Note 16 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 as Canadian
GAAP in 2011.
All dollar amounts stated below are in United States dollars.
First Quarter Financial Highlights:
- Exploration expenses amounted to $2,839,204
(2009 - $486,749) during the three months
ended September 30, 2010, of which $2,307,444 (2009 - $486,749)
was spent on Bear Lodge Rare-Earth Project and $531,760
(2009 - $nil) was spent on the adjacent Sundance Gold Project. Both
projects are located on the same property position.
- Administrative expenditures, including the non-cash share-based
payments amounted to $700,860 (2009 - $554,163) for the period, up 26% compared to the
same period last year.
- Loss for the period was $675,740
(2009 - $545,193) or $0.02
per share (2009 - $0.02), up 24% from the
same period in the prior year.
- Cash and cash equivalents at September 30,
2010 were $11,060,969 (June 30, 2010 - $11,460,476),
reflecting the three financings completed in fiscal 2010 and the recent
exercises of options and warrants.
Business Highlights:
- Rare Element listed its common shares on the NYSE-Amex Stock
Exchange under the symbol "REE".
- The geologial team continued the
rare-earth drilling and exploration program on the Bear Lodge property
which started in June, 2010.
- The gold geological team began the gold drilling and exploration
program on the Sundance Gold Project at Bear Lodge in July, 2010.
- 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
greatly. 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.
Rare Element currently has 35,005,965
common shares outstanding, and 39,327,823 common
shares outstanding on a fully diluted basis. Rare Element has approximately US$11.7 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 financial statements and notes are available,
free of charge, to shareholders upon written request.
Rare Element Resources Ltd (TSX-V:RES.v - News) 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 broad scale.
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 future performance.
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 forward-looking statements.
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.
|
|