it's happening...., page-52

The simple truth is that Lynas is a class operation. The fact exists that there has been extensive scientific, social and economic studies conducted on the entire Lynas project which spans multiple regions in South East Asia and has global implications. There are many eyes following every step of the process and the potential pitfalls and dangers have been identified and are well defined. Bottom line, the finish line is close.

That said, maybe it is time to look at the potential benefits that can arise from this project in it's operation.

One of the things that strikes me right off the bat its that LAMP is not a second rate facility designed to push Rare Earth products out the door without regard to the quality, and more importantly the safety of the finished oxides. The recent delays announced by Lynas are for the most part due to engineering deficiencies that are being corrected BEFORE production is to commence.

I hope everyone has had the opportunity to view the very recent and impressive photographs of the LAMP facilities in both Oz and Malaysia. The images reveal the details and quality of the installation. The lighting is bright, the superstructures are geometrically pleasing to the eyes, the cleanliness of the site is outstanding and the attention to the documentation that I have seen is meticuous. It is pretty easy to see that quality has been designed and built into this project from it's inception. The same professionalism continues into the execution of financial details including partnerships, assets and cash flow. I cannot recall any instances where there were major concerns around funding and or accounting issues. True the Crown event may have been a negative, but even the quick way it was resolved ended up being a value add in the long run...

Now compare this to some of the the other REE ventures in the development stage at this point. Moly is trying to construct a world class facility with project Phoenix a facility to be built on the site of a well used facility that has significant problems of it's own. There are questions concerning legal issues at Mt. Pass and the progress of the facility is also suspect at this point. While they seem well capitialized, are they? I hate to pick on GWM but I find it hard to think that the well documented progress of the Lynas REE processing project, which was well planned, engineered, constructed and CAPITALIZED took years to reach it's current nearly completed stage, will be trumped by GWM who plans to complete a separation facility in less than a year?

OK, things may look rough for the REE industry at this point. I like to consider myself as a forward thinking investor so my DD includes discussions with just where the future of the REE industry is heading. Demand is the key question here, and just what will that demand be? Large scale usage of RE's in the usual applications such as Lanthanum in hybrid batteries, Cerium as a catalyst, Dysprosium in magnets and so on are well understood. What is really interesting is the emergence of new applications.

I frequently visit the campus of the Colorado School of Mines where prospective engineers of all disipline research new applications for REE's. Their comments are frequently directed at the need for PURE quantities of the individual elements and note there is a big difference between purities from the producers. IMO this is where Lynas will really stand out. Not only is Lynas is the clear lead in bringing products to market, the quality of these oxides and the efficiency in creating these products will keep Lynas as the premier source for the REE's including the lights, heavies, critical and scarce elements. A metric ton of "4 9's" purity can be significantly more valuable than the same ton of less pure oxide.

There is really no processing facility that will be able to provide the quality product Lynas has positioned itself in this market. Will the demand be there? Apparently, the majority of production is already consigned but NC has reserved at least a portion of the production for alternative markets. With the increased demand of the scarce elements (Erbium, Holmium, and other elements) critical in application such as single mode laser applications used in the internet backbone or medical science applications, industry growth is poised to grow exponentially with the scarce element production that is certain to occur in the near future.

The bottom line is that Lynas is not only going to be first to market with the critical REE's, the quality of the product just may be significantly superior. Lynas continues to invent themselves as a world class company that is already efficiently organized to produce and grow through either organically of through M&A in a technology that is just getting started... The main hurdles have been conquered the rest is just noise....