scoping study, page-2

Highlights
• Strong economics with a base case pre-tax net present value of US$1.571 billion and an internal rate of
return of 53%.
• Low capital cost requirement of US$400 million (excluding contingency) with a payback period within the
first 3 years of production.
• Low operating cash costs of US$10.09 per kg Free on Board "FOB" for the first 5 years of production
with an average cost of $US11.05 per kg over 25 years.
• Annual average revenues of US$361 million at 10,000 tonne equivalent rare earth oxide production.
• Scoping study mine plans based solely on the Indicated and Measured portions of the Mineral Resource.
• Significant opportunity and available resource to upscale production to 40,000 tonnes per annum and
extend the mine life, as the base case scoping study mine plan exploits less than 10% of the total
Mineral Resource.
• The highest grade large scale rare earth deposit in Africa and the fifth largest deposit outside of China.
• Mineralisation is not radioactive and has the lowest levels of uranium (18ppm) and thorium (43ppm) of
any major rare earth deposit.
• Beneficiation and metallurgical process proven in laboratory test work with pilot plant work underway.
• Relatively simple metallurgical process utilising sulphuric acid leaching with no inherently troublesome
acid cracking or baking requirements.
• On target to begin production in Q1 2016.