Market Overview

U.S. Rare Earths, Inc. Announces Strategic Review


U.S. Rare Earths, Inc. (“U.S. Rare Earths, Inc.” or the “Company”), a private company, announced today that it has initiated a review of strategic alternatives to enhance shareholder value, including those involving a possible merger, sale or other transaction. The Board of Directors of the Company has engaged Pope and Company Limited ("Pope") to act as the Company's financial advisor.

U.S. Rare Earths, Inc.’s Chief Executive Officer, Edward Cowle, explained that growing awareness by the U.S. government of Chinese dominance in the rare earth element (“REE”) market continues to increase the value of the Company’s REE reserves. In particular, the U.S. Government Accountability Office (“GAO”) report issued in April demonstrates the need for the Department of Defense to mitigate REE supply chain risks. Cowle stated, “The GAO has recognized U.S. Rare Earths, Inc.’s resources as a key component in the effort to expand domestic production of light and heavy REEs.”

U.S. Rare Earths, Inc. holds 169 unpatented mining claims of individual major vein deposits of REEs in the Diamond Creek and the Lemhi Pass areas of Idaho and Montana. The United States Geological Survey (“USGS”) reported total rare earth oxide (“TREO”) concentrations of 0.59 to 5.51% and an overall grade of resource of 1.22% TREO at Diamond Creek. TREO content of recent sampling of a number of the veins at Diamond Creek by U.S. Rare Earths, Inc. ranged from about 0.06 to 4.3% with an average TREO of about 1.2%. The USGS also reported average TREO concentration of 0.52% at Lemhi Pass.

According to reports by the USGS, the Company’s REE deposits are:

  • one of the two largest reported historical estimates of REEs in the U.S.;
  • one of only six proven, substantial deposits of REEs in the world outside of mainland China or Chinese control; and
  • the only significant U.S. REE deposit that has heavy REE (“HREE”) concentrations.

The following table summarizes the Company’s preliminary resources of REEs on its properties estimated from the respective USGS reported historical potential resources for the Diamond Creek and Lemhi Pass districts:

Preliminary Historical Resource Estimate(1)
  Diamond Creek   Lemhi Pass
Oxide   mt   %   mt   %

Cerium Oxide

22,400   32   61,017   19

Neodymium Oxide

17,125 25 57,806 18

Lanthanum Oxide

8,220 12 22,480 7

Praseodymium Oxide

3,425 5 9,634 3

Samarium Oxide

5,480 8 35,326 11

Gadolinium Oxide

3,425 5 35,326 11

Yttrium Oxide

4,795 7 67,440 21

Europium Oxide

1,370 2 12,846 4

Dysprosium Oxide

1,370 2 12,846 4

Terbium Oxide

685 1 1,606 1

Ytterbium Oxide

685 1 1,606 1

Holmium Oxide

685   1   1,606   1
68,495 100 321,688 100

TREO Contained
Resources (mt)

68,495 321,688

Note: Amounts rounded to whole numbers since preliminary estimates only; bold denotes HREEs. Amounts of individual HREE are relative and somewhat assumed amounts that result from rounding low concentrations of an individual HREE and are only inferred and therefore equal in some instances for consideration purposes.

(1) Reserve and Resource amounts provided are estimated from reported historical amounts under applicable definitions and standards used by the USGS or respective private company at the time such amounts were reported. Amounts provided are not compliant with applicable Canadian NI 43-101 or SEC Industry Guide 7 (SME) or other applicable laws. Amounts reported are for informational purposes to the CIM.

In addition, recent geologic investigation by the Company including age dating of mineralization and of igneous intrusive rock at Lemhi Pass indicates that the age of rare earth and thorium mineralization is Devonian (350 Ma) and that of previously unknown alkali complex intrusive rock as Cambrian (500Ma). Recent and ongoing work suggests the potential for a larger buried mineralized system possibly similar in nature to peralkaline REE-Th, IOCG/Fe-REE and/or carbonatite models of deposition. Historical and recent work by the Company at Diamond Creek suggests similarities to Lemhi Pass and also includes a potential for a larger buried Fe-REE-Th system.

“We are committed to finding a partner or buyer that has the financial capability and resources to ensure that the properties are developed as rapidly as possible,” said Cowle.

For further information regarding the strategic review process:
Pope & Company Limited
Grant White, 416-588-6139
Justin Sim, 416-588-9780
For further information regarding U.S. Rare Earths, Inc.:
U.S. Rare Earths, Inc.
Patrick Kennedy, 254-559-6464
Stern & Co.
Stephanie Stern, 212-888-0044

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