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Tantalus Rare Earths AG: NI 43-101 Technical Report and updated Resource Estimate by SGS published (news with additional features) - Seite 2

analogous Chinese deposits.

In addition to the previously explored Caldera and surrounding region, the
new report includes exploration results from the north-western parts of
Tantalus' concession. Analysed samples show similar concentration of TREO
in the north-west as in the Caldera, thereby significantly increasing the
mine-life of the project.

For safety reasons the pits at the Tantalus project were not excavated
deeper than 10 metres from the surface, with an average of 5.68 metres.
Thereby the thickness used in this updated Resource Estimate is app. 6
metres. However, the regolith profile in the Tantalus project area ranges
in thickness from 0 metres to more than 40 metres and based upon the
available drilling and test pitting data, the average thickness is
approximately 13.5 metres. The entire regolith profile contains rare earth
mineralisation, and general trends are present with rare earth content
typically increasing with depth and then decreases approaching the
un-weathered bedrock.

The Tantalus project displays a pervasive and well-balanced rare earth
distribution that is prevalent throughout the deposit. The deposit includes
appreciable amounts of critical rare earths Dysprosium, Europium,
Neodymium, Terbium, and Yttrium as defined by the U.S. Department of
Energy. In the 2011 Critical Materials Report from the U.S. Department of
Energy, it was revealed that five of the 16 rare earth elements were found
to be critical in terms of supply risk. Their scarcity combined with
anticipated growth in demand, makes these higher valued elements the ones
expected to experience the best price performance over the next decade.
These five rare earth elements are used in magnets for wind turbines and
electric vehicles or phosphors in energy-efficient lighting. Since 2013
there has been a significant drop in the prices of all rare earths, however
the critical rare earths have retained their value better than their
"non-critical" counterparts.
Hydrometallurgical tests made at SGS Lakefield, University of Toronto and
Outotec show high levels of extraction for rare earth elements, with the
exception of Cerium, with the simple and proven method of using ammonium
sulphate as reagent. It should be noted, that in all tests, extractions for
thorium and uranium were negligible.

Based on metallurgical tests the Technical Report shows that after
leaching, in the distribution in the concentrate, Neodymium (33%),
Praseodymium (19%) and Dysprosium (16%) represent 68 per cent of the
potential revenues. These three rare earths are used in magnetic