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Rare
Element Resources Ltd. (TSX-V: RES and 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 six months ended December 31, 2010 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.
Six
Months Ended December 31, 2010
Financial Highlights:
- Exploration expenses amounted
to $5,634,144 (2009 - $2,653,690) during the six months ended
December 31, 2010, of which $4,684,275 (2009 - $1,646,439) was spent on the Bear Lodge
Rare-Earth Project and $910,237
(2009 - $nil) was spent on the Sundance Gold Project. Both projects are
located on the same property position.
- Administrative expenditures,
including the non-cash share-based payments amounted to $1,553,394 (2009 - $1,056,777) for the period, up 47%
compared to the same period last year.
- Loss for the period was $1,482,214 (2009 - $1,039,150) or $0.04 per
share (2009 - $0.04), up 43% from the same
period in the prior year.
- Cash and cash equivalents at December 31, 2010 were $67,008,719 (June
30, 2010 - $11,460,476),
reflecting the $57.5 million
financing completed in December, 2010.
Business
Highlights:
- The geological team completed
its 2010 rare-earth drilling and exploration program on the Bear Lodge
property in November, 2010. The Company received positive assay
results from the Bull Hill Southwest resource area and Whitetail Ridge
target area. Assays are pending from another 14 drill holes.
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 resource area.
- The gold geological team
completed the 2010 gold drilling and exploration program on the Sundance
Gold Project at Bear Lodge in November, 2010. All the assay results were
encouraging and the Company's evaluation effort on the gold system is to
culminate in an NI 43-101 compliant resource estimate that is scheduled
for completion early in 2011.
- 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 listed its
common shares on the NYSE-Amex Stock Exchange under the symbol
"REE" in August, 2010.
Rare
Element currently has 43,170,423 common shares outstanding,
and 46,508,463 common shares outstanding on a fully diluted basis. Rare
Element currently has approximately US$69 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.
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 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.
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