AMR MINERAL METAL INC. TECHNICAL REPORT ON THE AKSU DIAMAS RARE EARTH ELEMENT AND MINOR METALS, ISPARTA DISTRICT, SOUTHWEST TURKEY

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1 MS Continental Metallurgical Services dba Todd Fayram Metallurgical Engineer AMR MINERAL METAL INC. TECHNICAL REPORT ON THE AKSU DIAMAS RARE EARTH ELEMENT AND MINOR METALS, ISPARTA DISTRICT, SOUTHWEST TURKEY NI Report Qualified Persons: Jason J. Cox, P.Eng. Katharine M. Masun, P.Geo. Todd Fayram, B.S. Eng., Continental Metallurgical Services LLC May 16, 2013 RPA Inc. 55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 I T + 1 (416)

2 Report Control Form Document Title Client Name & Address Technical Report on the Aksu Diamas Rare Earth Element and Minor Metals Project, Isparta District, Southwest Turkey AMR Mineral Metal Inc. Document Reference Project 1863 Status & Issue No. Final Version 0 Issue Date May 16, 2013 Lead Author Jason J. Cox Katharine M. Masun Todd Fayram (Signed) (Signed) (Signed) Peer Reviewer Graham Clow (Signed) Project Manager Approval Jason J. Cox (Signed) Project Director Approval Rick Lambert (Signed) Report Distribution Name No. of Copies Client RPA Filing 1 (project box) Roscoe Postle Associates Inc. 55 University Avenue, Suite 501 Toronto, Ontario M5J 2H7 Canada Tel: Fax: mining@rpacan.com

3 TABLE OF CONTENTS PAGE 1 SUMMARY Executive Summary Technical Summary INTRODUCTION RELIANCE ON OTHER EXPERTS PROPERTY DESCRIPTION AND LOCATION ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY HISTORY GEOLOGICAL SETTING AND MINERALIZATION Regional Geology Local Geology Property Geology Mineralization Physical Characteristics Grade Characteristics DEPOSIT TYPES EXPLORATION Exploration Summary DRILLING Open Hole Drilling Auger Drilling Diamond Core Drilling SAMPLE PREPARATION, ANALYSES AND SECURITY Sample Preparation Quality Control/Quality Assurance DATA VERIFICATION Verification Sampling Database Compilation and Validation MINERAL PROCESSING AND METALLURGICAL TESTING General QEMSCAN Analyses Gravity/Magnetic Separation Testwork Flotation Testwork SGS Testwork Pyro- and Hydro-metallurgical Testwork Technical Report NI May 16, 2013 Page i

4 Other Studies Future Testwork Conclusions and Interpretation Recommendations MINERAL RESOURCE ESTIMATE General Statement Database Compilation and Validation Geological Interpretation and Wireframes Statistics of Assays and Composites Variography and Interpolation Parameters Cut-off Grade Bulk Density Block Model Grade Estimation Model Validation Mineral Resource Estimate and Classification MINERAL RESERVE ESTIMATE MINING METHODS Introduction Open Pit Mining Plan Conclusions and Interpretation Recommendations RECOVERY METHODS Processing Plan Gravity/Flotation Plant Metals Recovery Process Plant Design Process Design Review Recommendations PROJECT INFRASTRUCTURE MARKET STUDIES AND CONTRACTS Market Studies Contracts ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT CAPITAL AND OPERATING COSTS Capital Costs Operating Costs ECONOMIC ANALYSIS ADJACENT PROPERTIES OTHER RELEVANT DATA AND INFORMATION INTERPRETATION AND CONCLUSIONS Technical Report NI May 16, 2013 Page ii

5 26 RECOMMENDATIONS REFERENCES DATE AND SIGNATURE PAGE CERTIFICATE OF QUALIFIED PERSON LIST OF TABLES PAGE Table 1-1 Budget for Project Advancement Table 1-2 After-Tax Cash Flow Summary 800 tph Base Case Table 1-3 Sensitivity Analyses 800 tph Base Case Table 1-4 After-Tax Cash Flow Summary 3,800 tph Sensitivity Case Table 1-5 Inferred Mineral Resource Estimate for ÇANAKLI 1 and 2 April 2, Table 1-6 Average Çanakli 1 Flotation Recovery Table 1-7 Final Elemental Metal Recovery from Gravity/Flotation Concentrate (800 tph) 1-27 Table 1-8 REO Forecast Prices vs. Current Spot Prices Table 1-9 Recent Prices for Zirconium Products Table 1-10 Capital Costs Table 1-11 Operating Costs Table 4-1 Summary of Group IV Exploration and Operating Licences held by AMR Madencilik (as of April 19, 2013) Table 6-1 Aksu Diamas Exploration History Table 7-1 Çanakli 1 Pit and Core Sample Grades by Type Table 9-1 Exploration Summary Table 10-1 Kuyubasi Open Hole Drilling Summary Table 10-2 Çanakli 1 and Çanakli 3 Auger Drilling Summary Table 10-3 Kuyubasi Diamond Core Drilling Summary Table 10-4 Çanakli 1 Diamond Core Drilling Summary Table 10-5 Çanakli 2 Diamond Core Drilling Summary Table 11-1 Çanakli QA/QC Summary Table 11-2 Çanakli 2 QA/QC Summary Table 11-3 CRM Summary Table 11-4 Expected Values and Ranges of OREAS CRMs Table 11-5 Summary of the CRM Results for Nd and Dy Table 11-6 Summary of the CRM Results for TRE Table 12-1 RPA Independent Sampling Results Table 13-1 Relative Proportions of Heavy Minerals in Different Magnetic Fractions Table 13-2 Relative proportions of Heavy Minerals in Different Magnetic Fractions Table 13-3 Downer EDI Testwork, Phase 1: Assay Grades for Different Size Fractions Table 13-4 Downer EDI Testwork, Phase 1: Distribution of Oxides and Metals in Different Size Fractions Table 13-5 Flotation Results of the Best Tests with Three Different Concentrates Table 13-6 Assay % Test Results for Test F Table 13-7 Distribution % Test Results for Test F Table 13-8 Chemical Analyses for Shaking Table Concentrate Sent to SE Minerals Testwork Table 13-9 Mineralogy of the Gravity Concentrate Sent to SE Minerals For Testwork Technical Report NI May 16, 2013 Page iii

6 Table HCl Treatment Results of Caustic Cracked Gravity Concentrate (Hydrometallurgical Studies on Processing of AMR Ore Preconcentrate) Table Chemical Consumption Estimate - REE and Other Valuable Co-product Recovery Table Chemical Consumption Estimate for Th/Ce Recovery Table Wet Magnetic Separator Test Work Table 14-1 Inferred Mineral Resource Estimate for Çanakli 1 and 2 April 2, Table 14-2 Çanakli 1 Drill Hole Database Selected Assay Statistics Table 14-3 Çanakli 1 Ten Metre Composite Selected Assay Statistics (Comps >4 m) Table 14-4 Çanakli 1 Ten Metre Composite Physical Statistics Table 14-5 Çanakli 2 Selected Assay Statistics Table 14-6 Çanakli 2 Ten Metre Composite Selected Assay Statistics Table 14-7 Çanakli 2 Ten Metre Composite Physical Statistics Table 14-8 Çanakli Block Model Table 14-9 Çanakli 1 Block Model Grade Statistics Table Çanakli 1 Block Model Physical Statistics Table Çanakli 2 Block Model Grade Statistics Table Çanakli 2 Block Model Physical Statistics Table Inferred Mineral Resource Estimate for Çanakli 1 and 2 April 2, Table 16-1 Open Pit Mine Plan Parameters Table 16-2 Open Pit Mining Fleet Table 17-1 Çanakli In Situ Grades Table 17-2 Magnetite Product (800 tph) Table 17-3 Average Çanakli 1 Flotation Recovery Table 17-4 Gravity/Flotation Concentrate Grind Size Table 17-5 Elemental Recovery to RECL 3 Solution (800 tph) Table 17-6 Final Iron Pigment Product (800 tph) Table 17-7 Final Elemental Metal Recovery from Gravity/Flotation Concentrate (800 tph) Table 19-1 Distribution of Rare Earths by Source China Table 19-2 REO Forecast Prices vs. Current Spot Prices Table 19-3 Recent Prices for Zirconium Products Table 21-1 Capital Costs Table 21-2 Mining Capital Cost Estimate Table 21-3 Processing Facility/Metal Recovery Capital Cost Estimate Table 21-4 Processing Plant Capital Costs Table 21-5 Operating Costs Table 21-6 Mine Operating Cost Summary Table 21-7 Salary and Hourly Personnel Costs Table 21-8 Salary and Hourly Personnel Costs (3,800 tph) Table 21-9 Consumable Supply Prices Table Daily Equipment Operating Costs (800 tph Base Case) Table Daily Equipment Operating Costs (3,800 tph Sensitivity Case) Table Average Unit Operating Costs Life of Mine Table Salary and Hourly Personnel Wages (800 Tph) Table Average Unit Operating Costs Metals Recovery Table Caustic Cracking Operating Cost Table Separation Costs for Titanium, Zirconium, and Uranium Table HREE Separation Costs Table LREE Separation Costs Table G&A Operating Costs Table 22-1 After-Tax Cash Flow Summary 800 tph Base Case Technical Report NI May 16, 2013 Page iv

7 Table 22-2 Sensitivity Analyses 800 tph Base Case Table 22-3 After-Tax Cash Flow Summary 3,800 tph Sensitivity Case Table 26-1 Budget for Project Advancement LIST OF FIGURES PAGE Figure 1-1 Sensitivity Analysis 800 tph Base Case Figure 1-2 Gravity/Flotation Flowsheet Figure 1-3 Titanium Dioxide Price Trend Figure 4-1 Location Map Figure 4-2 Project Area Figure 7-1 Regional Geology Figure 7-2 Çanakli Project Area Geology Figure 7-3 Deposit Mineral Example Figure 7-4 REE Proportions in Different Fractions, Çanakli Figure 9-1 Outline of Surface Pit for Bulk Density Sample at Çanakli Figure 9-2 Excavated Surface Pit Material Being Weighed Figure 9-3 Location of Çanakli Surface Pits for Density Measurements Figure 10-1 Çanakli Drill Hole Location Map Figure 11-1 Çanakli Deslime Duplicate Samples TRE15 Analyses Figure 11-2 Çanakli HM Duplicate Samples TRE15 Analyses Figure 11-3 Çanakli Duplicate Sample Deslime Proportion Figure 11-4 Çanakli Duplicate Sample HM Proportion Figure 11-5 Çanakli Duplicate Sample Moisture Percent Figure 11-6 Box plot of TRE15 Analyses of Blank Samples Figure 11-7 Histogram of TRE15 analyses of Blank Samples Figure 11-8 OREAS146 Control Chart Figure 11-9 OREAS123 Control Chart Figure OREAS100a Control Chart Figure 13-1 Qemscan Results Liberation Testing Chevkinite Figure 13-2 Qemscan Results Liberation Testing Allanite Figure 13-3 Qemscan Results Liberation Testing Sphene Figure 13-4 Çanakli Demonstration Plant Flowsheet Figure 13-5 Gravity/Magnetic Demonstration Plant Figure 13-6 Mineral Technologies Gravity/Magnetic Flowsheet Figure 13-7 Test Results for Test C-F Figure 13-8 Test Results for Test C-F Figure 13-9 Test Results for Test C-F Figure Test Results for Test C-F Figure SGS Flowsheet for Testing Çanakli Gravity Concentrate Figure 14-1 Çanakli 1 Location and Drill Holes Figure 14-2 Çanakli 2 Location and Drill Holes Figure 16-1 Current Site Layout Map Figure 16-2 Mining Cells Figure 16-3 Typical Mining Sequence Figure 17-1 Gravity/Flotation Flowsheet Figure 17-2 Caustic Cracking/Water Leaching/Hydrochloric Acid Leaching Figure 17-3 Iron Recovery Technical Report NI May 16, 2013 Page v

8 Figure 17-4 Separation of Titanium, Zirconium, and Uranium Figure 17-5 Recovery of Zirconium, Titanium, and Uranium Figure 17-6 Cerium Recovery Figure 17-7 Preparation of Pure La-Oxide Figure 19-1 Rare Earth Reserves and Production by Country Figure 19-2 Zircon Applications Figure 19-3 Current Zircon Consumption by End Market Figure 19-4 Forecast Zirconium Chemical Demand Figure 19-5 TiO2 Consumption by End Market Figure 19-6 Titanium Dioxide Price Trend Figure 21-1 Flotation Cost Curve vs. Tonnage Figure 22-1 Sensitivity Analysis 800 tph Base Case Technical Report NI May 16, 2013 Page vi

9 1 SUMMARY EXECUTIVE SUMMARY Roscoe Postle Associates Inc. (RPA) and Continental Metallurgical Services LLC (CMS) were retained by AMR Minerals Metals Inc (AMR) to prepare an independent Technical Report on the Aksu Diamas Rare Earth Element (REE) and Minor Metals Project, near Isparta, in southwest Turkey. The purpose of this report is to support an Initial Public Offering (IPO), reverse takeover, qualifying transaction, or other going public event. This Technical Report conforms to NI Standards of Disclosure for Mineral Projects. RPA visited the property from April 24 to April 26, AMR is a British Columbia incorporated company which owns 99.77% of the mining rights to six unique heavy mineral sands-like REE and minor metals deposits in southern Turkey. At the Aksu Diamas Project, AMR has carried out hydro-mining and processing at a pilot-scale, 100 tonnes per hour (tph) gravity/magnetic concentration plant, producing a saleable magnetite product, and a rare earths concentrate that also contains other iron oxides, titanium, zirconium, and niobium. This Technical Report is considered by RPA to meet the requirements of a Preliminary Economic Assessment (PEA) as defined in Canadian NI regulations. The economic analysis contained in this PEA is based on Inferred Resources and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that the development, production, and economic forecasts on which this PEA is based will be realized. For the purposes of this PEA, RPA is responsible for the geology, Mineral Resource, mining, infrastructure, environment, cost, and economic analysis aspects and CMS is responsible for metallurgical testing and mineral processing aspects of the Technical Report. CONCLUSIONS The PEA is based on the Mineral Resource estimates for two sub-areas of the Çanakli deposit termed by AMR as Çanakli 1 and Çanakli 2 and evaluates conventional open pit Technical Report NI May 16, 2013 Page 1-1

10 mining and processing by gravity, magnetic separation, and flotation concentration, followed by caustic cracking, water leaching and hydrochloric acid leaching, and finally, precipitation and separation of various oxides. Products include separated light rare earths, a mixed heavy rare earth precipitate, titanium oxide, zirconia, niobium, magnetite, and an iron oxide precipitate. Cash flows were evaluated for production rates of 800 tph and 3,800 tph. The PEA indicates that positive economic results can be obtained for the Aksu Diamas Project, and RPA and CMS conclude that further advancement of the Project is merited. Specific conclusions by area are as follows: GEOLOGY AND MINERAL RESOURCE In RPA s opinion, results of the diamond drill holes are suitable for estimation of Inferred Mineral Resources at Çanakli 1 and 2. Overall, RPA is of the opinion that the Çanakli 1 and 2 assay results and drill hole database are adequate to support the current resource estimate. All of the mineral resources are classified as Inferred Mineral Resources because of the relatively wide drill hole spacing, because analyses of samples need to be carried out prior to desliming and preparation of heavy mineral concentrate (HMC), and because there is uncertainty about the bulk density used. RPA has prepared an Inferred Mineral Resource estimate for Çanakli 1, totalling 80 Mt at grades of 808 ppm total rare earth oxides (TREO), 0.72% TiO 2, and 490 ppm ZrO 2. Inferred Mineral Resources for Çanakli 2 total 414 Mt at grades of 676 ppm TREO, 0.70% TiO 2, and 414 ppm ZrO 2. In order to estimate Indicated Mineral Resources, drill hole spacing of 400 m or less is needed, with assaying of in situ cored material and surface sampling for bulk density measurements. MINING Open pit mining appears to be fairly simple and straightforward, due to the shallow depth of the deposit, large area, and a minimal amount of waste stripping. No attempt has been made to be selective in determining the production schedule the entire resource has been utilized, at average resource grade throughout the mine life. Given the large resource, with potential for more, it is likely that improvements could be obtained by sacrificing some tonnage in exchange for higher grades. Mine planning is not yet optimized in terms of cell design, maximum ore removal, and minimum material remaining between cells, haul road location, and tailings line routing back to completed mining cells. Technical Report NI May 16, 2013 Page 1-2

11 Water requirements and tailings storage requirements need to be determined in order to maximize the use of pits as storage. METALLURGICAL TESTING AND RECOVERY METHODS Demonstration plant testwork has demonstrated that gravity/magnetic separation upgrades the REEs and other valuable related co-products concentration by a factor of up to 20 times (from approximately 0.1% TREE in the feed to approximately 1.0% to 2.0% TREE in the final gravity concentrates). The largest single loss of REE and other valuable related co-products recovery during gravity/magnetic separation is associated with the -25 µm fines which account for 40% to 50% of the REE and other co-products in run of mine material. Flotation may provide additional recovery from the -25 µm +10 µm (or some similar cut) fraction of the fine material rejected from the gravity circuit, as well as facilitating physical upgrading of the gravity concentrates. In this regard, the flotation testwork initiated by AMR is an important next step in the Project evaluation. The flotation of the final gravity concentrate identified a TREE grade increase of 100% to 300% with a 60% drop in the total quantity of material. Very little increase was noted when the rougher concentrate was cleaned. Caustic cracking with HCl leaching has proven to be effective in the recovery of REEs and other related co-products of titanium, zirconium, and potentially gallium and niobium. A flowsheet has been identified that is effective in recovery of REEs and other valuable co-products. Further work should be completed to identify alternatives and potential cheaper processes and recovery methods. Locked cycle pilot plant testwork should be developed to test all of the REE and other related co-products of titanium, zirconium, and potentially gallium and niobium. ENVIRONMENTAL CONSIDERATIONS An Environmental Impact Assessment (EIA) was completed for the demonstration plant currently in operation at site. The full Project is at an early stage and therefore AMR has not yet begun environmental baseline work or community consultation. Despite that, RPA and CMS do not anticipate any fatal flaws regarding environmental issues with the Project as proposed. The challenges normal to permitting and developing an open pit mine in Turkey are expected to be manageable. An EIA will need to be completed for the Project. MARKETS Rare earth prices were selected from a range of available forecasts, and average $35/kg of REO (net of separation charges). Although prices for individual oxides vary, the Q spot price average, for comparison, is also $35/kg REO (net). Technical Report NI May 16, 2013 Page 1-3

12 RPA considers these rare earth prices to be appropriate for a PEA-level study, however, RPA notes that the recent market volatility introduces considerably more uncertainty than a comparable base or precious metals project. Rare earths (including scandium and yttrium) comprise approximately 58% of the net revenue for the Project, with neodymium as the largest contributor. Other products, and their contribution to net revenue, are as follows: o Titanium Oxide 17%, pigment quality, commanding a premium price. o Magnetite 9%, priced like iron ore (fines). o Iron Oxide 7%, pigment quality, commanding a premium price. o Zirconia 6%, chemical grade, commanding a premium price. o Niobium 3%, priced in a manner similar to large niobium producers. RPA notes that non-magnetic iron is not currently part of the resource estimate, due to data issues regarding the in situ iron species. Iron production in the Project cash flow is based on testwork results, which tracked iron content throughout the process. ECONOMIC ANALYSIS RPA conducted an economic analysis of the Project for mining and processing of Mineral Resources for Çanakli 1, at a production rate of 800 tph, for a mine life of 13 years. o The initial capital cost is approximately $65 million. The average operating cost over the life of the Project is approximately $7.90 per tonne mined. o The economic analysis shows that the Project yields a pre-tax and after-tax net present value (NPV) at a 10% discount rate of $227 million and $194 million, respectively. Total pre-tax undiscounted cash flow is $559 million. Over the life of mine, the pre-tax and after-tax Internal Rate of Return (IRR) is 61% and 58%, respectively. The pre-tax payback period is 1.3 years and the after-tax payback period is 1.4 years. RPA conducted a sensitivity analysis for a larger-scale operation, mining and processing Mineral Resources for Çanakli 1 followed by Çanakli 2, at a production rate of 3,800 tph, for a mine life of 17 years. o The initial capital cost is approximately $190 million. The average operating cost over the life of the Project is approximately $6.90 per tonne mined. o The economic analysis shows that the Project yields a pre-tax and after-tax NPV at a 10% discount rate of $1,190 million and $973 million, respectively. Total pre-tax undiscounted cash flow is $3,104 million. Over the life of mine, the pre-tax and after-tax IRR is 97% and 90%, respectively. The payback period is nine months. RECOMMENDATIONS Based on discussions with AMR personnel and review of available information, RPA and CMS offer the following recommendations. Technical Report NI May 16, 2013 Page 1-4

13 GEOLOGY AND MINERAL RESOURCE Adopt a data management software system. Sample in situ cored material for new core drill holes and for remaining unsampled core of existing drill holes. Submit replicate samples to a second independent laboratory. Obtain certified blank material to use in future drilling campaigns. Develop a custom reference material for Çanakli that is certified for REE, Zr, Ti, U, and Th. Prepare a field standard of known magnetite concentration. Carry out Davis tube tests on magnetic concentrate samples. Investigate a low bias in the TRE15 results from all CRM samples to determine whether the laboratory is understating TRE15 analyses. Initiate a program of trenching with a backhoe or small excavator to collect samples with measured volumes that can be weighed wet, dried, and weighed dry to calculate bulk density and moisture content. RPA recommends that drill core moisture and density values not be used for resource estimation. Use a drill hole spacing of 400 m or less to convert Çanakli 2 Inferred Mineral Resources to Indicated Mineral Resources. Investigate alternative core drilling systems such as triple tube or Sonic drilling to improve consistency of core recovery. MINING METHODS Grade distribution should be incorporated into mine planning in order to optimize pit layout and scheduling. Detailed geotechnical interpretation needs to be completed to ensure highwall and pit floor stability. This should include a review of highwall stability and mining using trucks and loaders in the tuffs below the water table. Further in-fill drilling needs to be completed to optimize mine planning, haul road locations, tailings line routing, and cell location. Reclamation planning and proper fill of the pits needs to be reviewed to maximize mining cell size and requirements. Based on the actual mine plans, further detailed equipment evaluation and costing needs to be completed. A personnel wage survey needs to be completed to optimize cost estimating. Technical Report NI May 16, 2013 Page 1-5

14 METALLURGICAL TESTING A small pilot plant using the final developed flowsheet should be constructed and tested. The pilot plant should consider both the mineral processing and metallurgical recovery of the REEs and other related co-products of titanium, zirconium, and potentially gallium and niobium. Systematic sampling and chemical and physical analyses of the different process streams in the pilot plant should be established in order to build up an adequate database for assessing the distribution of REEs and other co-products in the different process streams. Appropriate sampling and quality control procedures should be identified and implemented. Other gravity methods such as Knelson and Falcon concentrators, Mosley Separators, etc., should be pursued to maximize recovery of the REEs and other valuable co-products. The existing demonstration plant provides a platform for continuing work to develop a combination of processes for satisfactory recovery of REEs and other related coproducts of titanium, zirconium, and potentially gallium and niobium. The spirals in the plant should be changed to the expected design to ensure that the current design is compatible with expected equipment. Demonstration plant test work should be continued with flotation added to optimize the overall recovery of REEs and related co-products to the concentrate which will provide the feed for the hydrometallurgical plant. Testwork should be completed using ion exchange technology for REE recovery instead of solvent extraction. Significant progress has been made on ion exchange recovery of REEs and may be very effective for the Project. Further research should be completed on all alternatives to the current outlined process structure to ensure there are not simpler and/or easier methods that provide higher recovery. Additional pyro- and hydro-metallurgical testwork is required to demonstrate production of a saleable or economically refineable REE and other related coproducts of titanium, zirconium, and potentially gallium and niobium products. RECOVERY METHODS Detailed comminution testing is required to identify and ultimately design the milling facilities. Lock cycle tails leach testing is required to identify and finalize the necessary operating, flotation, leaching kinetics, chemical usage, and neutralization requirements. Specific issues include the chemical requirements which may significantly affect the operating cost and the leaching kinetics which may significantly affect the amount of capital. Caustic cracking testing needs to be completed on the expected concentrate to ensure that all of the leaching kinetics are identified, to finalize leaching and process parameters, and to identify any issues associated with recovery. Significant in the concentrate leach tests is the development and recycling of caustic. Technical Report NI May 16, 2013 Page 1-6

15 Based on the solution chemistry identified in leach and acid purification, testing will need to be completed to maximize recycle of acid and caustic. A complete review and design will be required by Cytec or equivalent firm to ensure the solvent extraction/electrowinning design is properly set-up and all appropriate bleeds, flows, and recycled flows are developed. Recovery testing for niobium and gallium should be undertaken as these are high dollar products that have a relatively high concentration. Detailed scandium recovery methods need to be outlined, finalized, and tested in conjunction with lock cycle tests. HREE separation development should be completed using Intellimet, ion exchange, or by solvent extraction techniques developed by the Chinese and others. Tailings dam requirements and engineering will be required based on the final location or cell design. Dry stacked tails conveyed to a tailings storage facility may create options for water reuse. Additional work on the metals recoveries bleeds will be required to ensure proper disposal of all final products. ENVIRONMENTAL CONSIDERATIONS AMR should initiate collection of baseline environmental and social data for the EIA. MARKETS Product pricing and specifications should be confirmed with letters of interest from prospective buyers. BUDGET A budget for these recommendations has been estimated in two phases, as summarized in Table 1-1. Phase I focuses on advancing the base case for mining of Çanakli 1, by increasing the confidence level of the resource estimate, continued metallurgical testwork, and completion of studies. Phase II addresses the larger-scale sensitivity case, including infill drilling for Çanakli 2, and advanced engineering studies. Phase II is contingent upon the positive results of Phase I. Technical Report NI May 16, 2013 Page 1-7

16 TABLE 1-1 BUDGET FOR PROJECT ADVANCEMENT AMR Mineral Metal Inc. Aksu Diamas Project Item Cost (C$ 000s) Phase I Upgrade Exploration Procedures 30 Re-assay of Core 50 Bulk Density Sampling 20 Mineral Resource Update 100 Geotechnical Investigation 50 Pilot Plant Programs 300 Marketing Product Survey 50 Engineering Studies 150 Environmental Studies 50 Total Phase I $800 Phase II Infill drilling (3,000 $120/m) 350 Mineral Resource Update 100 Engineering Studies 250 Environmental Studies 50 Subtotal Phase II $750 Demonstration Plant Expansion (optional) $750 Total Phase II $1,500 The Phase I pilot plant programs consist of optimizing the gravity/magnetic demonstration plant at site, conducting flotation work in Turkey, and continuing hydrometallurgical piloting. The Phase II demonstration plant budget is for adding flotation and hydrometallurgical units to the plant at site, to recover individual oxides on a continuous basis. AMR will proceed with this expansion of the demonstration plant, anticipated to cost between $500,000 and $1 million, if it appears advantageous for advancing the Project. RPA agrees that demonstrating the processes on site will increase confidence for potential investors in the Project. ECONOMIC ANALYSIS An after-tax Cash Flow Projection has been generated from the base case 800 tph Life of Mine production schedule and capital and operating cost estimates, and is summarized in Table 1-2. A summary of the key criteria is provided below. Technical Report NI May 16, 2013 Page 1-8

17 REVENUE 800 tonnes per hour mining (six million tonnes per year). Metallurgical recovery of magnetite is 78%. Gravity and Flotation recovery of rare earths averages 27% Hydro-metallurgical recovery of rare earths averages 78%. Metal prices: o Magnetite is $130/dmt, based on recent forecasts for iron ore. o REE prices are based on separated oxides and purity. o Niobium is $55.00/kg o Zirconium is $7.50/kg o Titanium oxide is $3.00/kg No revenue is included for Ho, Lu, and Tm, as the markets for those rare earths are so small that it is unlikely that revenue can be realized. Exchange rate US$1.00 = C$1.00. Royalty of 2% on magnetite and flotation concentrate. Revenue is recognized at the time of production. COSTS Pre-production period: two years. Mine life: 13 years. Pre-production capital cost of $65 million, which includes $13 million in contingency. $6.1 million in sustaining capital and $5.0 million in closure and reclamation costs. Average operating cost over the mine life is $7.89 per tonne mined. Refining charge for separation of scandium of $35.00/kg and for HREE of $12.50/kg TAXATION 40% tax credit on initial capital costs, which is applicable for an 80% reduction in taxes during production. Income tax is calculated at 20% after the 40% credit is utilized (starting Year 4). Technical Report NI May 16, 2013 Page 1-9

18 Date: April 12, 2013 Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I TABLE 1-2 AFTER-TAX CASH FLOW SUMMARY 800 TPH BASE CASE AMR Mineral Metal Inc. - Aksu Diamas Project INPUTS UNITS TOTAL Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 MINING Pit Operation Operating Days 350 days 4, Tonnes milled per day tonnes / day 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 Tonnes moved per day tonnes / day 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 17,280 Production '000 tonnes 78,624 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 Waste '000 tonnes Total Moved '000 tonnes 78,624 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 Stripping Ratio PROCESSING Plant Feed '000 tonnes 78,624 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 6,048 Scandium 11 g/t Yttrium 32 g/t Lanthanum 170 g/t Cerium 294 g/t Praesodymium 30 g/t Neodymium 104 g/t Samarium 15.0 g/t Europium 3.7 g/t Gadolinium 9.4 g/t Terbium 1.2 g/t Dysprosium 5.9 g/t Holmium 1.0 g/t Erbium 2.9 g/t Thulium 0.4 g/t Ytterbium 2.8 g/t Lutetium 0.4 g/t Zirconium 363 g/t Niobium 42 g/t Uranium 9 g/t Thorium 45 g/t Titanium Oxide 0.72 % Iron Oxide 7.5 % Magnetite Product LIMS Feed 85.0% % of Insitu 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% Magnetite 1.66% % of Deslimes 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% 1.66% Recovery 78% % 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% Product '000 tonnes % % Fe 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% Gravity + Flotation Concentrate Recovery Scandium 2.0% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Yttrium 19.5% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Lanthanum 36.1% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% Cerium 34.3% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% Praesodymium 37.2% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% Neodymium 34.7% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% Samarium 30.9% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% Europium 23.6% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% Gadolinium 31.1% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% Terbium 25.8% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% Dysprosium 23.3% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% Holmium 25.4% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Erbium 23.8% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% Thulium 25.3% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Ytterbium 26.1% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% Lutetium 29.4% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% Zirconium 37.0% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% Niobium 21.6% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% Uranium 41.3% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% Thorium 26.4% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% Titanium Oxide 14.8% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Iron Oxide 1.6% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% HMC Mass Fraction 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% 3.23% Flotation Conc Mass Fraction 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% Concentrate Tonnage tonnes 1,015,822 78,140 78,140 78,140 78,140 78,140 78,140 78,140 78,140 78,140 78,140 78,140 78,140 78,140 Grades in Concentrate Scandium g/t Yttrium g/t Lanthanum g/t 4, , , , , , , , , , , , , ,750.0 Cerium g/t 7, , , , , , , , , , , , , ,805.1 Praesodymium g/t Neodymium g/t 2, , , , , , , , , , , , , ,793.2 Samarium g/t Europium g/t Gadolinium g/t Terbium g/t Dysprosium g/t Holmium g/t Erbium g/t Thulium g/t Ytterbium g/t Lutetium g/t Zirconium g/t 10, , , , , , , , , , , , , ,395.5 Niobium g/t Uranium g/t Thorium g/t Titanium Oxide % Iron Oxide % Hydrometallurgical Separation Recovery Scandium 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% Yttrium 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% Lanthanum 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Cerium 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% Praesodymium 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% Neodymium 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% Samarium 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% Europium 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% Gadolinium 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% Terbium 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% Dysprosium 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Holmium 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% Erbium 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% Thulium 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% Ytterbium 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% Lutetium 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% Zirconium 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% Niobium 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% Uranium 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% Thorium 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% Titanium Oxide 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% Iron Oxide 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Total Material Recovered (Element) kg 25,230,879 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 1,940,837 Scandium kg 17,042 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 1,311 Yttrium kg 412,206 31,701 31,701 31,701 31,701 31,701 31,701 31,701 31,701 31,701 31,701 31,701 31,701 31,701 Lanthanum kg 4,710, , , , , , , , , , , , , ,258 Cerium kg 6,891, , , , , , , , , , , , , ,997 Praesodymium kg 827,611 63,648 63,648 63,648 63,648 63,648 63,648 63,648 63,648 63,648 63,648 63,648 63,648 63,648 Neodymium kg 2,415, , , , , , , , , , , , , ,739 Samarium kg 318,940 24,528 24,528 24,528 24,528 24,528 24,528 24,528 24,528 24,528 24,528 24,528 24,528 24,528 Europium kg 43,124 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 3,317 Gadolinium kg 228,061 17,539 17,539 17,539 17,539 17,539 17,539 17,539 17,539 17,539 17,539 17,539 17,539 17,539 Terbium kg 15,314 1,178 1,178 1,178 1,178 1,178 1,178 1,178 1,178 1,178 1,178 1,178 1,178 1,178 Dysprosium kg 105,405 8,106 8,106 8,106 8,106 8,106 8,106 8,106 8,106 8,106 8,106 8,106 8,106 8,106 Holmium kg 10, Erbium kg 49,936 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 Thulium kg 1, Ytterbium kg 53,620 4,124 4,124 4,124 4,124 4,124 4,124 4,124 4,124 4,124 4,124 4,124 4,124 4,124 Lutetium kg 4, Zirconium kg 7,879, , , , , , , , , , , , , ,981 Niobium kg 527,227 40,547 40,547 40,547 40,547 40,547 40,547 40,547 40,547 40,547 40,547 40,547 40,547 40,547 Uranium kg 143,557 11,040 11,040 11,040 11,040 11,040 11,040 11,040 11,040 11,040 11,040 11,040 11,040 11,040 Thorium kg 582,043 44,763 44,763 44,763 44,763 44,763 44,763 44,763 44,763 44,763 44,763 44,763 44,763 44,763 Titanium Oxide kg 71,732,927 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 Iron Oxide kg 92,670,884 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 Total Material Recovered (Oxide) kg 195,883,805 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 15,067,985 Sc 2O 3 kg 26,133 2,010 2,010 2,010 2,010 2,010 2,010 2,010 2,010 2,010 2,010 2,010 2,010 2,010 Y 2O 3 kg 523,361 40,259 40,259 40,259 40,259 40,259 40,259 40,259 40,259 40,259 40,259 40,259 40,259 40,259 La 2O 3 kg 5,522, , , , , , , , , , , , , ,846 CeO 2 kg 8,463, , , , , , , , , , , , , ,034 Pr 6O 11 kg 999,673 76,898 76,898 76,898 76,898 76,898 76,898 76,898 76,898 76,898 76,898 76,898 76,898 76,898 Nd 2O 3 kg 2,816, , , , , , , , , , , , , ,643 Sm 2O 3 kg 369,765 28,443 28,443 28,443 28,443 28,443 28,443 28,443 28,443 28,443 28,443 28,443 28,443 28,443 Eu 2O 3 kg 49,924 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 Gd 2O 3 kg 262,809 20,216 20,216 20,216 20,216 20,216 20,216 20,216 20,216 20,216 20,216 20,216 20,216 20,216 Tb 4O 7 kg 18,009 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 1,385 Dy 2O 3 kg 120,946 9,304 9,304 9,304 9,304 9,304 9,304 9,304 9,304 9,304 9,304 9,304 9,304 9,304 Ho 2O 3 kg 12, Er 2O 3 kg 57,088 4,391 4,391 4,391 4,391 4,391 4,391 4,391 4,391 4,391 4,391 4,391 4,391 4,391 Tm 2O 3 kg 1, Yb 2O 3 kg 61,044 4,696 4,696 4,696 4,696 4,696 4,696 4,696 4,696 4,696 4,696 4,696 4,696 4,696 Lu 2O 3 kg 4, ZrO 2 kg 10,641, , , , , , , , , , , , , ,542 Nb 2O 5 kg 754,046 58,004 58,004 58,004 58,004 58,004 58,004 58,004 58,004 58,004 58,004 58,004 58,004 58,004 U 3O 8 kg 169,254 13,020 13,020 13,020 13,020 13,020 13,020 13,020 13,020 13,020 13,020 13,020 13,020 13,020 Th 2O 3 kg 642,103 49,393 49,393 49,393 49,393 49,393 49,393 49,393 49,393 49,393 49,393 49,393 49,393 49,393 TiO 2 kg 71,717,165 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 5,516,705 Fe 2O 3 kg 92,650,522 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 7,126,963 Technical Report NI May 16, 2013 Page 1-10

19 Date: April 12, 2013 Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I Canakli I TABLE 1-2 AFTER-TAX CASH FLOW SUMMARY 800 TPH BASE CASE AMR Mineral Metal Inc. - Aksu Diamas Project INPUTS UNITS TOTAL Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 REVENUE Metal Prices Input Prices Magnetite $ 130 US$/dmt $ $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 Sc 2O 3 $ 2,000 US$/kg $ 2,000.0 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 Y 2O 3 $ 70 US$/kg $ 70.0 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 La 2O 3 $ 10 US$/kg $ 10.0 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 CeO 2 $ 10 US$/kg $ 10.0 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 Pr 6O 11 $ 75 US$/kg $ 75.0 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Nd 2O 3 $ 80 US$/kg $ 80.0 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 Sm 2O 3 $ 15 US$/kg $ 15.0 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 Eu 2O 3 $ 1,500 US$/kg $ 1,500.0 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 Gd 2O 3 $ 55 US$/kg $ 55.0 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 Tb 4O 7 $ 1,200 US$/kg $ 1,200.0 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 Dy 2O 3 $ 750 US$/kg $ $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 Ho 2O 3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Er 2O 3 $ 75 US$/kg $ 75.0 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Tm 2O 3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Yb 2O 3 $ 50 US$/kg $ 50.0 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 Lu 2O 3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ZrO 2 $ 7.50 US$/kg $ 7.5 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 Nb 2O 5 $ 55 US$/kg $ 55.0 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 U 3O 8 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Th 2O 3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TiO 2 $ 3.00 US$/kg $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 Fe 2O 3 $ 0.90 US$/kg $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 Gross Revenue Magnetite US$ '000 $ 112,349 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 $ 8,642 H Sc 2O 3 US$ '000 $ 52,265 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 $ 4,020 H Y 2O 3 US$ '000 $ 36,635 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 $ 2,818 L La 2O 3 US$ '000 $ 55,230 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 $ 4,248 L CeO 2 US$ '000 $ 84,634 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 $ 6,510 L Pr 6O 11 US$ '000 $ 74,975 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 $ 5,767 L Nd 2O 3 US$ '000 $ 225,309 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 L Sm 2O 3 US$ '000 $ 5,546 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 $ 427 H Eu 2O 3 US$ '000 $ 74,886 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 $ 5,760 H Gd 2O 3 US$ '000 $ 14,454 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 $ 1,112 H Tb 4O 7 US$ '000 $ 21,610 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 $ 1,662 H Dy 2O 3 US$ '000 $ 90,709 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 $ 6,978 H Ho 2O 3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - H Er 2O 3 US$ '000 $ 4,282 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 $ 329 H Tm 2O 3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - H Yb 2O 3 US$ '000 $ 3,052 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 $ 235 H Lu 2O 3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ZrO 2 US$ '000 $ 79,808 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 $ 6,139 Nb 2O 5 US$ '000 $ 41,473 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 $ 3,190 U 3O 8 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Th 2O 3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TiO 2 US$ '000 $ 215,151 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 $ 16,550 Fe 2O 3 US$ '000 $ 83,385 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 $ 6,414 Total Contained Revenue US$ '000 $ 1,275,757 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 $ 98,135 Total Charges Additional Oxide Separation Cost LREE Separation $.00US/kg $ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Sc Separation $35.00US/kg $ '000 $ 915 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 HREE Separation $12.50US/kg $ '000 $ 13,665 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 $ 1,051 TiO2 Separation $.00US/tonne $ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ZrO2 Separation $.00US/tonne $ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Charges $ '000 $ 14,579 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 $ 1,121 Gross Less Charge $ '000 $ 1,261,177 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 $ 97,014 Royalty 2% $ '000 $ 5,775 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 $ 444 Net Smelter Return $ '000 $ 1,255,402 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 $ 96,569 Unit NSR $/t mined $ $ $ $ $ $ $ $ $ $ $ $ $ $ OPERATING COST Mining $1.19/t moved $/t moved $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 $ 1.19 Gravity/Flotation $.85/t milled $/t feed $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 $ 0.85 Hydrometallurgy $5.23/t milled $/t feed $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 G&A $/t feed $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 $ 0.62 Total Unit Operating Cost $/t feed $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 $ 7.89 Mining $ '000 $ 93,301 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 $ 7,177 Gravity/Flotation $ '000 $ 67,066 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 $ 5,159 Hydrometallurgy $ '000 $ 411,204 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 $ 31,631 G&A $ 3,745 $ '000 $ 48,685 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 $ 3,745 Total Operating Cost $ '000 $ 620,256 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 $ 47,712 Operating Cashflow $ '000 $ 635,146 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 $ 48,857 CAPITAL COST Mining 12,112 $ $ '000 12,112 $ 4,037 $ $ 8,075 $ 9,935 Gravity/Flotation Plant 14,903 $ $ '000 14,903 $ 4,967 $ $ 11,439 Hydrometallurgical Plant 17,159 $ $ '000 17,159 $ 5,720 $ $ 1,873 Infrastructure 2,810 $ $ '000 2,810 $ 937 $ $ 31,322 Total Direct Cost $ '000 46,983 $ 15,661 $ Other Costs EPCM 5,020 $ '000 5,020 $ 2,510 $ $ 2,510 $ 33,832 Subtotal Costs $ '000 52,003 $ 18,171 $ $ 8,458 Contingency 25% $ '000 13,001 $ 4,543 $ $ 42,290 Initial Capital Cost $ '000 65,004 $ 22,714 $ Sustaining 1% $ '000 6,108 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ $ 470 5,000 Reclamation and closure $ '000 5,000 $ $ $ 5,470 Total Capital Cost $ '000 76,112 22,714 $ 42,290 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ 470 $ $ PRE-TAX CASH FLOW Net Pre-Tax Cashflow $ '000 $ 559,034 $ (22,714) $ (42,290) $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 48,388 $ 43,388 Cumulative Pre-Tax Cashflow $ '000 $ (22,714) $ (65,004) $ (16,616) $ 31,771 $ 80,159 $ 128,546 $ 176,934 $ 225,321 $ 273,709 $ 322,097 $ 370,484 $ 418,872 $ 467,259 $ 515,647 $ 559,034 20% $ '000 $ 111,807 $ - $ - $ 8,764 $ 8,756 $ 8,748 $ 8,738 $ 8,728 $ 8,716 $ 8,703 $ 8,687 $ 8,668 $ 8,645 $ 8,614 $ 8,567 $ 7,473 Taxes Not Collected 40% $ '000 $ 26,002 $ 9,085 $ 16,916 Tax Rate Reduction 80% $ '000 Credit Used $ '000 $ 26,002 $ 7,011 $ 7,005 $ 6,998 $ 4,987 Credit Remaining $ '000 $ - $ 18,990 $ 11,985 $ 4,987 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Net Taxes $ '000 $ 85,805 $ 1,753 $ 1,751 $ 1,750 $ 3,752 $ 8,728 $ 8,716 $ 8,703 $ 8,687 $ 8,668 $ 8,645 $ 8,614 $ 8,567 $ 7,473 After-Tax Cashflow $ '000 $ 473,229 $ (22,714) $ (42,290) $ 46,635 $ 46,636 $ 46,638 $ 44,636 $ 39,660 $ 39,671 $ 39,685 $ 39,700 $ 39,719 $ 39,743 $ 39,774 $ 39,821 $ 35,915 Cumulative After-Tax Cashflow $ '000 $ (22,714) $ (65,004) $ (18,369) $ 28,267 $ 74,905 $ 119,541 $ 159,201 $ 198,872 $ 238,557 $ 278,257 $ 317,976 $ 357,719 $ 397,493 $ 437,314 $ 473,229 PROJECT ECONOMICS Pre-Tax IRR % 61% Pre-tax NPV at 7.5% discounting 7.5% $ '000 $280,826 Pre-tax NPV at 10% discounting 10% $ '000 $227,265 Pre-tax NPV at 15% discounting 15% $ '000 $151,933 After-Tax IRR % 58% After-Tax NPV at 7.5% discounting 7.5% $ '000 $239,008 After-Tax NPV at 10% discounting 10% $ '000 $193,630 After-tax NPV at 15% discounting 15% $ '000 $129,528 Technical Report NI May 16, 2013 Page 1-11

20 CASH FLOW ANALYSIS Considering the 800 tph base case scenario on a stand-alone basis, the undiscounted pretax cash flow totals $559 million and the after-tax cash flow totals $473 million over the mine life, and simple payback occurs during the second year of commercial production. The after-tax Internal Rate of Return (IRR) is 58% and the after-tax Net Present Value (NPV) at a various discount rates is as follows: $239 million at 7.5% discount rate $194 million at 10% discount rate $130 million at 15% discount rate The economic analysis contained in this report is based on Inferred Resources, and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that economic forecasts on which this Preliminary Economic Assessment is based will be realized. SENSITIVITY ANALYSIS Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities: Head Grade Recovery Metal Price Operating Cost Capital Cost NPV sensitivity over the base case has been calculated for -20% to +20% variations. The sensitivities are shown in Figure 1-1 and Table 1-3. Technical Report NI May 16, 2013 Page 1-12

21 FIGURE 1-1 SENSITIVITY ANALYSIS 800 TPH BASE CASE $350,000 Pre-Tax NPV at 10% Discount Rate (C$ '000) $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 Head Grade Recovery Metal Price Operating Cost Capital Cost $0-30% -20% -10% 0% 10% 20% 30% Percent Change From Base Case TABLE 1-3 SENSITIVITY ANALYSES 800 TPH BASE CASE AMR Mineral Metal Inc. Aksu Diamas Project Factor Change Head Grade (Total REE) After-Tax NPV at 10% ($ millions) % % % % % 278 Note: applied to all elements, TREE shown as example Factor Change Recovery (Nd example) After-Tax NPV at 10% ($ millions) -10% 26.1% 144-5% 27.8% 169 0% 29.5% 194 5% 31.3% % 33.0% 243 Note: applied to all elements, Nd shown as example Technical Report NI May 16, 2013 Page 1-13

22 Factor Change Metal Price After-Tax NPV at 10% ($ millions) 0.8 $ $ $ $ $ Factor Change Operating Cost After-Tax NPV at 10% ($ millions) 0.8 $ $ $ $ $ Factor Change Capital Cost After-Tax NPV at 10% ($ millions) 0.8 $60, $68, $76, $83, $91, ,800 TPH SENSITIVITY CASE The base case for the Aksu Diamas Project is based on an 800 tph mining operation. Due to the large size of the mine when the two Çanakli deposits are combined, an alternative case was considered for a 3,800 tph mining operation. RPA generated an after-tax Cash Flow Projection based on the 3,800 tph Life of Mine production schedule and capital and operating cost estimates, and is summarized in Table 1-4. A summary of the key criteria is provided below. Costs have been scaled from the 800 tph base case. Differences from the 800 tph base case are summarized below. Physicals: 3,800 tonnes per hour mining (28.7 million tonnes per year). Pre-production period: two years. Mine life: 17 years. Technical Report NI May 16, 2013 Page 1-14

23 Costs: Pre-production capital cost of $190 million, which includes $38 million in contingency. $22 million in sustaining capital and $10 million in closure and reclamation costs. Average operating cost over the mine life is $6.88 per tonne mined. Considering the 3,800 tph sensitivity case on a stand-alone basis, the undiscounted pre-tax cash flow totals $3,104 million and the after-tax cash flow totals $2,517 million over the mine life, and simple payback occurs during the first year of commercial production. The after-tax Internal Rate of Return (IRR) is 90% and the after-tax Net Present Value (NPV) at a various discount rates is as follows: $1,204 million at 7.5% discount rate $973 million at 10% discount rate $660 million at 15% discount rate The economic analysis contained in this report is based on Inferred Resources, and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that economic forecasts on which this Preliminary Economic Assessment is based will be realized. Technical Report NI May 16, 2013 Page 1-15

24 Date: April 12, 2013 Canakli I Canakli I Canakli I&II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Technical Report NI May 16, 2013 Page 1-16 TABLE 1-4 AFTER-TAX CASH FLOW SUMMARY 3,800 TPH SENSITIVITY CASE AMR Mineral Metal Inc. - Aksu Diamas Project INPUTS UNITS TOTAL Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 MINING Pit Operation Operating Days 350 days 5, Tonnes milled per day tonnes / day 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 Tonnes moved per day tonnes / day 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 82,080 Production - Canakli I '000 tonnes 79,956 28,728 28,728 22,500 Production - Canakli II '000 tonnes 408,420 6,228 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 Waste '000 tonnes Total Moved '000 tonnes 488,376 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 Stripping Ratio PROCESSING Plant Feed Canakli I '000 tonnes 488,376 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 28,728 Scandium 11 g/t Yttrium 32 g/t Lanthanum 170 g/t Cerium 294 g/t Praesodymium 30 g/t Neodymium 104 g/t Samarium 15 g/t Europium 3.7 g/t Gadolinium 9.4 g/t Terbium 1.2 g/t Dysprosium 5.9 g/t Holmium 1.0 g/t Erbium 2.9 g/t Thulium 0.4 g/t Ytterbium 2.8 g/t Lutetium 0.4 g/t Zirconium 363 g/t Niobium 42 g/t Uranium 9 g/t Thorium 45 g/t Titanium Oxide 0.72 % Iron Oxide 7.5 % Magnetite Product Deslimes 85.0% % of Insitu 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% 85.0% Magnetite 1.66% % of Deslimes 0.94% 1.66% 1.66% 1.47% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% 0.80% Recovery 78% % 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% 78% Product '000 tonnes 3, % % Fe 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% Gravity & Flotation Concentrate Recovery Scandium 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% Yttrium 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% 20% Lanthanum 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% 36% Cerium 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% 34% Praesodymium 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% Neodymium 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% Samarium 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% Europium 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% Gadolinium 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% 31% Terbium 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% Dysprosium 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% 23% Holmium 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Erbium 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% 24% Thulium 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% Ytterbium 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% Lutetium 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% 29% Zirconium 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% 37% Niobium 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% 22% Uranium 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% 41% Thorium 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% 26% Titanium Oxide 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% Iron Oxide 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% 2% HMC Mass Fraction 3.23% 2.53% 3.23% 3.23% 3.05% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% 2.39% Flotation Conc Mass Fraction 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% Concentrate Tonnage tonnes 4,937, , , , , , , , , , , , , , , , , ,640 Grades in Concentrate Scandium g/t Yttrium g/t Lanthanum g/t 5, , , , , , , , , , , , , , , , , ,513.2 Cerium g/t 8, , , , , , , , , , , , , , , , , ,754.4 Praesodymium g/t Neodymium g/t 3, , , , , , , , , , , , , , , , , ,049.0 Samarium g/t Europium g/t Gadolinium g/t Terbium g/t Dysprosium g/t Holmium g/t Erbium g/t Thulium g/t Ytterbium g/t Lutetium g/t Zirconium g/t 11, , , , , , , , , , , , , , , , , ,881.8 Niobium g/t Uranium g/t Thorium g/t Titanium Oxide % Iron Oxide % Hydrometallurgical Separation Recovery Scandium 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% Yttrium 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% 84% Lanthanum 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Cerium 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% 87% Praesodymium 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% Neodymium 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% 85% Samarium 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% 88% Europium 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% Gadolinium 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% 99% Terbium 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% 63% Dysprosium 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Holmium 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% 53% Erbium 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% 92% Thulium 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% 12% Ytterbium 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% 93% Lutetium 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% 46% Zirconium 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% 75% Niobium 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% 74% Uranium 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% 52% Thorium 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% 62% Titanium Oxide 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% 86% Iron Oxide 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% 98% Total Material Recovered (Element) kg 1,044,692,762 69,276,399 69,276,399 67,248,189 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 59,920,841 Scandium kg 105,831 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 6,225 Yttrium kg 2,292, , , , , , , , , , , , , , , , , ,758 Lanthanum kg 25,798,690 1,720,724 1,720,724 1,668,060 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 1,477,799 Cerium kg 36,710,392 2,517,483 2,517,483 2,424,665 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 2,089,340 Praesodymium kg 4,279, , , , , , , , , , , , , , , , , ,864 Neodymium kg 12,586, , , , , , , , , , , , , , , , , ,597 Samarium kg 1,649, , , ,458 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 93,208 Europium kg 219,386 15,754 15,754 15,015 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 12,347 Gadolinium kg 1,315,495 83,312 83,312 81,774 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 76,221 Terbium kg 81,850 5,594 5,594 5,392 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 4,662 Dysprosium kg 598,917 38,505 38,505 37,656 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 34,589 Holmium kg 65,373 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 3,845 Erbium kg 292,225 18,242 18,242 17,969 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 16,984 Thulium kg 5, Ytterbium kg 313,101 19,588 19,588 19,284 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 18,189 Lutetium kg 25,693 1,576 1,576 1,559 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 1,499 Zirconium kg 42,619,963 2,878,409 2,878,409 2,782,142 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 2,434,357 Niobium kg 2,817, , , , , , , , , , , , , , , , , ,499 Uranium kg 733,629 52,442 52,442 50,034 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 41,336 Thorium kg 2,942, , , , , , , , , , , , , , , , , ,373 Titanium Oxide kg 435,125,544 26,204,349 26,204,349 26,046,546 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 Iron Oxide kg 474,112,177 33,853,075 33,853,075 32,306,977 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 Total Material Recovered (Oxide) kg 1,078,493,810 71,572,929 71,572,929 69,464,815 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 61,848,796 Sc2O3 kg 162,324 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 9,548 Y2O3 kg 2,911, , , , , , , , , , , , , , , , , ,325 La2O3 kg 30,256,004 2,018,019 2,018,019 1,956,256 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 1,733,122 CeO2 kg 45,094,078 3,092,410 3,092,410 2,978,395 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 2,566,490 Pr6O11 kg 5,170, , , , , , , , , , , , , , , , , ,212 Nd2O3 kg 14,680,514 1,029,056 1,029, , , , , , , , , , , , , , , ,161 Sm2O3 kg 1,912, , , , , , , , , , , , , , , , , ,085 Eu2O3 kg 254,032 18,241 18,241 17,386 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 14,297 Gd2O3 kg 1,516,262 96,026 96,026 94,255 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 87,854 Tb4O7 kg 96,270 6,580 6,580 6,342 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 5,483 Dy2O3 kg 687,369 44,192 44,192 43,217 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 39,698 Ho2O3 kg 74,886 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 4,405 Er2O3 kg 334,155 20,859 20,859 20,547 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 19,421 Tm2O3 kg 6, Yb2O3 kg 356,526 22,304 22,304 21,959 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 20,711 Lu2O3 kg 29,217 1,792 1,792 1,773 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 1,704 ZrO 2 kg 57,569,841 3,888,074 3,888,074 3,758,039 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 3,288,261 Nb 2O 5 kg 4,030, , , , , , , , , , , , , , , , , ,597 U 3O 8 kg 865,143 61,843 61,843 59,004 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 48,747 Th2O3 kg 3,247, , , , , , , , , , , , , , , , , ,478 TiO2 kg 435,125,544 26,204,349 26,204,349 26,046,546 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 25,476,450 Fe2O3 kg 474,112,177 33,853,075 33,853,075 32,306,977 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361 26,721,361

25 Date: April 12, 2013 Canakli I Canakli I Canakli I&II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Canakli II Technical Report NI May 16, 2013 Page 1-17 TABLE 1-4 AFTER-TAX CASH FLOW SUMMARY 3,800 TPH SENSITIVITY CASE AMR Mineral Metal Inc. - Aksu Diamas Project INPUTS UNITS TOTAL Year -2 Year -1 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 REVENUE Metal Prices Input Prices Iron $ 130 US$/dmt $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 $ 130 Sc2O3 $ 2,000 US$/kg $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 $ 2,000 Y2O3 $ 70 US$/kg $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 $ 70 La2O3 $ 10 US$/kg $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 CeO2 $ 10 US$/kg $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 $ 10 Pr6O11 $ 75 US$/kg $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Nd2O3 $ 80 US$/kg $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 $ 80 Sm2O3 $ 15 US$/kg $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 $ 15 Eu2O3 $ 1,500 US$/kg $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 $ 1,500 Gd2O3 $ 55 US$/kg $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 Tb4O7 $ 1,200 US$/kg $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 $ 1,200 Dy2O3 $ 750 US$/kg $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 $ 750 Ho2O3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Er2O3 $ 75 US$/kg $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 $ 75 Tm2O3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Yb2O3 $ 50 US$/kg $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 $ 50 Lu2O3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ZrO 2 $ 8 US$/kg $ 8 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 $ 7.50 Nb 2O 5 $ 55 US$/kg $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 $ 55 U 3O 8 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Th2O3 $ - US$/kg $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TiO2 $ 3.00 US$/kg $ 3.0 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 $ 3.00 Fe2O3 $ 0.90 US$/kg $ 0.9 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 $ 0.90 Gross Revenue Magnetite US$ '000 $ 394,106 $ 41,051 $ 41,051 $ 36,419 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 $ 19,685 Sc2O3 US$ '000 $ 324,647 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 $ 19,097 H Y2O3 US$ '000 $ 203,773 $ 13,386 $ 13,386 $ 13,023 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 $ 11,713 L La2O3 US$ '000 $ 302,560 $ 20,180 $ 20,180 $ 19,563 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 $ 17,331 L CeO2 US$ '000 $ 450,941 $ 30,924 $ 30,924 $ 29,784 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 $ 25,665 L Pr6O11 US$ '000 $ 387,819 $ 27,395 $ 27,395 $ 26,207 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 $ 21,916 L Nd2O3 US$ '000 $ 1,174,441 $ 82,324 $ 82,324 $ 78,892 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 $ 66,493 L Sm2O3 US$ '000 $ 28,690 $ 2,027 $ 2,027 $ 1,939 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 $ 1,621 H Eu2O3 US$ '000 $ 381,049 $ 27,362 $ 27,362 $ 26,080 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 $ 21,446 H Gd2O3 US$ '000 $ 83,394 $ 5,281 $ 5,281 $ 5,184 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 $ 4,832 H Tb4O7 US$ '000 $ 115,524 $ 7,896 $ 7,896 $ 7,611 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 $ 6,580 H Dy2O3 US$ '000 $ 515,526 $ 33,144 $ 33,144 $ 32,413 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 $ 29,773 H Ho2O3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - H Er2O3 US$ '000 $ 25,062 $ 1,564 $ 1,564 $ 1,541 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 $ 1,457 H Tm2O3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - H Yb2O3 US$ '000 $ 17,826 $ 1,115 $ 1,115 $ 1,098 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 $ 1,036 H Lu2O3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ZrO 2 US$ '000 $ 431,774 $ 29,161 $ 29,161 $ 28,185 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 $ 24,662 Nb 2O 5 US$ '000 $ 221,703 $ 15,153 $ 15,153 $ 14,606 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 $ 12,628 U 3O 8 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Th2O3 US$ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TiO2 US$ '000 $ 1,305,377 $ 78,613 $ 78,613 $ 78,140 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 $ 76,429 Fe2O3 US$ '000 $ 426,701 $ 30,468 $ 30,468 $ 29,076 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 $ 24,049 Total Contained Revenue US$ '000 $ 6,790,913 $ 466,142 $ 466,142 $ 448,857 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 $ 386,412 Total Charges Refining Cost by $/kg LREE Separation $.00US/kg $ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Sc Separation $35.00US/kg $ '000 $ 5,681 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 $ 334 HREE Separation $12.50US/kg $ '000 $ 76,946 $ 4,993 $ 4,993 $ 4,872 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 $ 4,435 TiO2 Separation $.00US/tonne $ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - ZrO2 Separation $.00US/tonne $ '000 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Charges $ '000 $ 82,627 $ 5,327 $ 5,327 $ 5,206 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 $ 4,769 Gross Less Charge $ '000 $ 6,708,286 $ 460,815 $ 460,815 $ 443,651 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 $ 381,643 Royalty 2% $ '000 $ 23,337 $ 1,730 $ 1,730 $ 1,638 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 $ 1,303 Net Smelter Return $ '000 $ 6,684,949 $ 459,085 $ 459,085 $ 442,013 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 $ 380,340 Unit NSR $/t milled $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ OPERATING COST Mining $.68/t moved $/t moved $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 $ 0.68 Gravity/Flotation $.76/t milled $/t feed $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 $ 0.76 Hydrometallurgy $5.23/t milled $/t feed $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 $ 5.23 G&A $/t feed $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 $ 0.21 Total Unit Operating Cost $/t feed $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 $ 6.88 Mining $ '000 $ 329,883 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 $ 19,405 Gravity/Flotation $ '000 $ 372,631 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 $ 21,919 Hydrometallurgy $ '000 $ 2,554,206 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 $ 150,247 G&A $ 6,000 $ '000 $ 102,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 $ 6,000 Total Operating Cost $ '000 $ 3,358,720 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 $ 197,572 Operating Cashflow $ '000 $ 3,326,228 $ 261,513 $ 261,513 $ 244,442 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 $ 182,769 CAPITAL COST Direct Cost Mining $ 35,837 $ '000 $ 35,837 $ 11,946 $ 23,891 Process Plants $ 95,427 $ '000 $ 95,427 $ 31,809 $ 63,618 Infrastructure $ '000 $ 6,000 $ 2,000 $ 4,000 Total Direct Cost $ '000 $ 137,264 $ 45,754 $ 91,510 Other Costs EPCM $ 14,932 $ 14,932 $ 7,466 $ 7,466 Subtotal Costs $ '000 $ 152,196 $ 53,220 $ 98,976 Contingency 25% $ '000 $ 38,049 $ 13,305 $ 24,744 Initial Capital Cost $ '000 $ 190,245 $ 66,525 $ 123,720 Sustaining 1% $ '000 $ 21,962 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 Reclamation and closure $ '000 $ 10,000 $ 10,000 Total Capital Cost $ '000 $ 222,207 $ 66,525 $ 123,720 $ - $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 1,373 $ 11,373 PRE-TAX CASH FLOW Net Pre-Tax Cashflow $ '000 $ 3,104,021 $ (66,525) $ (123,720) $ 261,513 $ 260,140 $ 243,069 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 181,396 $ 171,396 Cumulative Pre-Tax Cashflow $ '000 $ (66,525) $ (190,245) $ 71,268 $ 331,408 $ 574,477 $ 755,873 $ 937,269 $ 1,118,665 $ 1,300,061 $ 1,481,457 $ 1,662,853 $ 1,844,249 $ 2,025,645 $ 2,207,041 $ 2,388,437 $ 2,569,833 $ 2,751,229 $ 2,932,625 $ 3,104,021 20% $ '000 $ 663,246 $ - $ - $ 52,303 $ 52,303 $ 48,888 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 34,554 Taxes Not Collected 40% $ '000 $ 76,098 $ 26,610 $ 49,488 Tax Rate Reduction 80% $ '000 Credit Used $ '000 $ 76,098 $ 41,842 $ 34,256 Credit Remaining $ '000 $ - $ 34,256 $ - $ - Net Taxes $ '000 $ 587,148 $ 10,461 $ 18,047 $ 48,888 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 36,554 $ 34,554 After-Tax Cashflow $ 2,516,873 $ (66,525) $ (123,720) $ 251,052 $ 242,094 $ 194,181 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 144,842 $ 136,842 Cumulative After-Tax Cashflow $ (66,525) $ (190,245) $ 60,807 $ 302,901 $ 497,082 $ 641,924 $ 786,766 $ 931,608 $ 1,076,451 $ 1,221,293 $ 1,366,135 $ 1,510,978 $ 1,655,820 $ 1,800,662 $ 1,945,504 $ 2,090,347 $ 2,235,189 $ 2,380,031 $ 2,516,873 PROJECT ECONOMICS Pre-Tax IRR % 97% Pre-tax NPV at 7.5% discounting 7.5% $ '000 $1,475,769 Pre-tax NPV at 10% discounting 10% $ '000 $1,190,454 Pre-tax NPV at 15% discounting 15% $ '000 $805,699 After-Tax IRR % 90% After-Tax NPV at 7.5% discounting 7.5% $ '000 $1,204,138 After-Tax NPV at 10% discounting 10% $ '000 $973,038 After-tax NPV at 15% discounting 15% $ '000 $660,303

26 TECHNICAL SUMMARY PROPERTY DESCRIPTION AND LOCATION The Aksu Diamas Project Area is located approximately 50 km south of the town of Isparta or 100 km north of the city of Antalya in southern Turkey. The Project area consists of several licence areas within a radius of approximately 50 km of Isparta. LAND TENURE AMR Madencilik, a subsidiary of AMR, currently holds 11 Exploration Licences and two Operating Licences for Group IV Minerals (energy, metal, and industrial minerals) in the Project area. Operating Licences are in good standing. Exploration Licences are either in good standing, or under application for upgrade to Operating Licences. EXISTING INFRASTRUCTURE The Project Area has an established transport infrastructure and a well-developed electricity network. Water is available from the perennially flowing river systems within the Project Area and from shallow bores and other excavations made in the valley areas. HISTORY There was no significant exploration undertaken in the Aksu Diamas Project Area prior to AMR. Regional-scale geological mapping and some high altitude geophysical surveys took place under the auspices of government agencies such as Maden Tetkik ve Arama Genel Müdürlüğü (MTA) (the General Directorate of Mineral Research and Exploration). In 2005, the Komurcu Group commenced diamond exploration in the Project Area, which included HMC analysis from soil sampling. In 2007, Aral Group joined Komurcu Group and founded AMR. AMR s focus broadened to include the investigation of the thorium, uranium, and REE potential of the area. Since 2008, AMR has focused predominately on REE, thorium, and magnetite. In 2008, exploration consisted of pit sampling and auger drilling. In 2009, core drilling began, as well as metallurgical testwork on physical separation of minerals. In 2010, the physical demonstration plant was permitted, designed, constructed, and began operation. In 2011, heavy mineral concentrate was generated for hydrometallurgical testwork, and magnetite Technical Report NI May 16, 2013 Page 1-18

27 was test-marketed. A mineral resource was estimated by AMEC, and documented in a NI Technical Report. In 2012, flotation and hydrometallurgical testwork was undertaken. Core drilling began at Çanakli 2. In 2012, AMR engaged RPA and CMS to provide technical assistance, update the Mineral Resource estimate at Çanakli and complete a PEA on the Aksu Diamas Project. GEOLOGY AND MINERALIZATION The oldest rocks identified in the area are schists and meta-sandstones of Pre-Cambrian age which crop out to the east of the Project Area. They are overlain by Palaeozoic successions of quartzite, limestone, dolomite, shale, sandstone, and conglomerate and by mainly Mesozoic carbonate sequences, of which the Beydaglari (or Beydag) series forms the main bedrock unit in the majority of the Project Area. Four main geological units are present in the Isparta area, including: Allochthonous Mesozoic clastic-dominated sedimentary rocks Mesozoic carbonate units Late Miocene sedimentary units Quaternary and Recent sediments Unconsolidated weathered tuffs, alluvial and elluvial deposits which host the mineralization of interest. Rifting and associated continental volcanism is evident at numerous locations within the Aksu Diamas Project Area, especially along the line of the Isparta-Antalya Fault Zone. Subvolcanic emplacements, dyke structures, lava flows, ignimbrite, and large accumulations of pyroclastic ash-fall materials of late-tertiary to Recent age are abundant and predominantly hyper-alkaline in composition. The Gölcük volcanic centre is situated about eight kilometres southwest of Isparta. The Gölcük Formation consists of volcanic and volcaniclastic rocks including tuff, tuffite, and pumice. Although repeated eruption and deposition of pyroclastic material from Gölcük seems a likely source of the mineralized pyroclastic deposits at Çanakli, recent field studies and as yet unpublished age determinations suggest that the first volcanic activity at Gölcük was ca. 2 Technical Report NI May 16, 2013 Page 1-19

28 Ma. Field mapping and structural interpretation indicate that the Aksu Diamas unconsolidated weathered tuffs were deposited ca. 7-8 Ma, implying that the Gölcük volcano is not the source, which remains unknown. The structure of the Project Area is dominated by north-south faulting, which controls the location and size of the depressions in which the mineralized tuffs have been preserved. AMR has named sub-areas in the Çanakli area in accordance with drilling programs: Çanakli 1 This area is the main focus of current activity and includes the small embayment off the main depression located approximately three kilometres eastsoutheast of Çanakli village. This area extends approximately 1.4 km east-west and 400 m north-south. Depth of the unconsolidated material ranges from 25 m to >80 m. Çanakli 2 Recently targeted with 11 drill holes, this area lies to the north of Çanakli within the main depression. The current resource at Çanakli 2 covers approximately 2.9 km 2, and extends approximately 2.5 km east-west and 1.2 km to 1.6 km northsouth. Depth of the unconsolidated material ranges from 25 m to >160 m. Çanakli 3 Refers to the undrilled area west of Çanakli 2 within the main depression, extending to Çanakli village at the eastern boundary of AMR s exploration licence. The potential area that can be targeted at Çanakli 3 is approximately 2 km east-west and 1.5 km north-south. MINERALIZATION Mineralization on the Aksu Diamas project is investigated by: 1. Removal of coarser fraction (>2mm). 2. Desliming (removal of -25 µm fines). 3. Heavy mineral separation (HMS) using a heavy liquid (tetrabromoethane) to recover particles with a density greater than 2.97 g/cm Separation into three magnetic fractions (highly magnetic, weakly magnetic and nonmagnetic) using a hand-held magnet. The highly magnetic fraction recovered at the demonstration plant on site is very high in iron and dominantly composed of magnetite. The main REE bearing minerals have been identified as allanite, chevkinite, titanite and apatite. Three thorium and uranium bearing minerals, namely thorite, uranothorite and betafite, have been identified. Zirconium is recovered from zircon, a nesosilicate. Technical Report NI May 16, 2013 Page 1-20

29 PHYSICAL CHARACTERISTICS The Aksu Diamas mineralized tuffs have a number of similarities to heavy mineral sand deposits; however, they have a significantly higher fines (also referred to as slimes, <45 µm at Çanakli 1 and <25 µm at Çanakli 2) content of approximately 50% to 60% as opposed to less than 10% in typical heavy mineral sand deposits. The tuffs have average moisture content of 26%, expressed as a percentage of the dry weight. RPA note that a significant amount of water was added during the drilling process and the moisture content may not be reliable. The drill core samples have an average dry density between 1.50 g/cm 3 and 1.68 g/cm 3. RPA notes that the measurements taken by AMR from the drill core under represents the density of the in situ material by 15% to 20% based on surface density measurements. The average heavy mineral content (recovered from tetrabromoethane heavy liquid separation) of the tuff is fairly similar for Çanakli 1 and 2 at 3.8% and 2.7%, respectively. On a per sample basis, a wide range of variation may be seen in the amount of magnetite concentrate (which is comprised predominantly of magnetite) in the heavy mineral fraction. On average, Çanakli 1 and Çanakli 2 contain 16.5% and 12.8% magnetite concentrate in the heavy mineral fraction, which amounts to between 0.6% and 0.3% of the in situ tuff. EXPLORATION STATUS AMR has carried out reconnaissance mapping, structural and tectonic interpretations, satellite imagery interpretations and mineralogical studies. Since mid-2007, work has targeted the magnetite and REE mineralized unconsolidated tuffs with test pits, auger drilling, and core drilling at Çanakli 1 and 2. HMC tests were carried out on three different magnetic fractions (heavily magnetic, weakly magnetic, and non-magnetic) obtained from reconnaissance samples and pits. The following features can be observed from the HMC test work: The highly magnetic fraction contains high iron (87% to 96% Fe 2 O 3,), moderate titanium (2% to 6% TiO 2 ), and low TREE15 (130 ppm to 670 ppm TREE15) grades. This confirms that this fraction is generally composed mostly of magnetite. The non-magnetic fractions are generally strongly enriched in zirconium (1.5% to >5% Zr), TREE15 (6,000 ppm to 21,000 ppm TREE15), thorium (400 ppm to 6,300 ppm), uranium (100 ppm to 1,700 ppm), and niobium (300 ppm to 2,500 ppm). Technical Report NI May 16, 2013 Page 1-21

30 The weakly magnetic fractions show a lower degree of enrichment in REEs and other elements of interest compared to the non-magnetic fraction. The results of the analyses indicate the potential for recovering magnetite and upgrading the REE mineralization using gravity and magnetic separation. BULK SAMPLING A demonstration gravity and magnetic plant was constructed at Çanakli in 2010 and trial mining and the processing of large scale bulk samples commenced by AMR in November An excavator and hydraulic monitors are currently being used to excavate material from the Çanakli 1 deposit to feed the demonstration plant. MINERAL RESOURCES RPA has estimated Mineral Resources for the Çanakli 1 and 2 deposits as summarized in Table 1-5. The Çanakli 1 Mineral Resource estimate is based on a drill hole database consisting of 22 diamond drill holes, comprising 425 samples. Pit and trench data were not utilized. Çanakli 1 test work and the resource estimate are based on three physical components of the deposit: Deslime fraction (+45 µm to-2 mm) Slime fraction (-45 µm) HMC in the deslime fraction The Çanakli 2 drill hole database consists of 11 diamond drill holes, comprising 380 samples. Çanakli 2 test work and the preliminary resource estimate is based on three physical components of the deposit: Deslime fraction (+25 µm to -2 mm) Slime fraction (-25 µm) HMC in the deslime fraction In situ values are calculated from the three components. Despite not being based on in situ values, RPA is satisfied that the present Çanakli drill hole database is suitable to support an Inferred Mineral Resource estimate. As the resource database expands with additional drilling to support an Indicated and Measured Resource, RPA strongly recommends that AMR adopt a data management software system and analyze the in situ values directly. Technical Report NI May 16, 2013 Page 1-22

31 TABLE 1-5 INFERRED MINERAL RESOURCE ESTIMATE FOR ÇANAKLI 1 AND 2 APRIL 2, 2013 AMR Mineral Metal Inc. Aksu Diamas Project ÇANAKLI 1 ÇANAKLI 2 Total/Average Contained Tonnage Mt tonnes Oxide Units LREO ppm ,208 HREO ppm ,110 TREO ppm ,812 ZrO 2 ppm ,938 TiO 2 % ,458,000 Fe 2 O 3 % ,393,000 Sc 2 O 3 ppm ,398 U 3 O 8 ppm ,051 ThO 2 ppm ,760 Nb 2 O 5 ppm ,688 Ga 2 O 3 ppm ,844 Size Fractions Slime fraction Wt.% 62.8% 63.7% - Deslime fraction Wt.% 35.6% 34.2% - Oversize fraction Wt.% 1.6% 2.1% 2.0% HMC fraction Wt.% 3.8% 2.7% - Magnetite Concentrate Wt.% 0.6% 0.3% - Notes: 1. CIM Definition Standards were followed for Mineral Resources. 2. All material within the delineated tuff unit is included in the Mineral Resource. 3. Numbers may not add due to rounding. 4. HREO and, LREO are total oxides of heavy and light rare earth elements respectively, and TREO is the sum of HREO and LREO. 5. Slime fraction is reported at -45 µm for Çanakli 1 and -25µm for Çanakli Deslime fraction is reported at -2000/+45 µm for Çanakli 1 and -2000/+25 µm for Çanakli Oversize fraction is reported at µm. 8. HMC fraction is reported for the deslime fraction only. 9. Magnetite concentrate is reported from the HMC fraction only. Technical Report NI May 16, 2013 Page 1-23

32 MINERAL RESERVES Mineral Reserves have not been estimated for the Project. MINING METHOD Most of the Aksu Diamas mineralized material is relatively low grade and will generally be mined using high-tonnage truck and loader open pit methods. Blasting will not be required as the material is mostly unconsolidated and can be readily track-hoed or dozer trapped to a loading point. The shallow depth of the deposits allows mining to be organized into individual cells or pits that will allow for mining in one cell, reclamation in another cell, and replacement of the rejected material into a third cell. The preliminary pit was designed with five metre working benches with an overall pit slope of 45. Additional work will be required to determine the final overall pit slope design. This work will include geotechnical evaluation of the pyroclastic tuffs, pit optimization, pit design, production schedule, and pit productivity. The open pit mine plan assumes a nominal 800 tph mining operation. Due to the large size of the mine when the Çanakli deposits are combined, a 3,800 tph operation was considered as an alternate scenario which would benefit from reduced cost opportunities due to the increased size. Mining activities will take place year round. Seasonal conditions are generally moderate, although inclement weather conditions can occur for brief isolated periods. Stockpiles will be required and would be located near the processing facility. MINERAL PROCESSING AMR has completed a significant amount of metallurgical and process work on the Çanakli deposits. The mineralization consists of oxide mineralization containing elevated levels of REEs, titanium, zirconium, and other valuable minerals that are readily concentrated by gravity, magnetic separation, and flotation into a relatively high grade concentrate (3% to 4% REOs). Technical Report NI May 16, 2013 Page 1-24

33 Based on information gained in part from the AMR testing and past experience, the following parameters were used to develop a realistic flowsheet, including: Delumping and pulping Gravity recovery to include magnetic separation Flotation Caustic cracking Water leaching Hydrochloric acid leaching REE and other valuable product recovery No crushing or comminution is expected to be required for the project. The gravity/flotation flowsheet is summarized in Figure 1-2. The low intensity magnetic separation product is expected to contain at least 94% magnetite and will contain approximately 65% iron and will be dewatered dried and bagged for sale. The recovery of iron as magnetite is expected to be approximate 78%. The final non-magnetic concentrate produced after magnetic separation is expected to contain approximately 2% to 3% of the total mass. The flotation circuit was developed using non-magnetic gravity concentrate from the gravity circuit produced from the demonstration plant at Çanakli 1. The flotation circuit was added as an attempt to increase the grades of the REEs and other valuable minerals in the final concentrate grade and further reduce the mass of the final concentrate prior to the final metals recovery process. The flotation concentrate was optimized at 40% recovery of the material mass which allowed for an increase in grade of approximately 2.1 to 1. The recovery of the REEs, titanium, zirconium and other valuable minerals was approximately 90% of that identified in the low iron gravity product. Technical Report NI May 16, 2013 Page 1-25

34 RUN OF MINE COARSE µm SIZE SEPARATION (SCREENS AND HYDROCYCLONES) -710 µm +25µM TAILINGS FINES -25 µm GRAVITY CIRCUIT GRAVITY SEPARATION (SPIRALS) HEAVY MINERALS 8.99% TAILINGS LIGHT MINERALS WET LOW INTENSITY MAGNETIC SEPARATION LOW IRON HEAVY MINERALS CONCENTRATE PRODUCT MAGNETITE 78% Recovery of Iron as Magnetite GRAVITY SEPARATION (SHAKING TABLES) GRAVITY CONCENTRATE MIDDLINGS RETURN TO SPIRALS FLOTATION TAILINGS LOW REE AND VALUBLE MINERALS FLOTATION PRODUCT REE S AND VALUABLE MINERALS 3.5% TREO Figure 1-2 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Gravity/Flotation Flowsheet May

35 The expected recovery through flotation for the REEs, titanium, zirconium, and other valuable minerals is estimated in Table 1-6: TABLE 1-6 AVERAGE ÇANAKLI 1 FLOTATION RECOVERY AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 Nb Th U Zr Fe 2 O 3 * Sc Y La Ce Pr Overall Recovery 14.8% 21.6% 26.4% 41.3% 37%** 1.6% 2.0% 19.5% 36.1% 34.3% 37.2% *Note: Iron recovery estimated through back calculation. After magnetite recovery. Overall Recovery Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu 34.7% 30.9% 23.6% 31.1% 25.8% 23.3% 25.4% 23.8% 25.3% 26.1% 29.4% **The recovery of Zr in testwork was greater than 100% due to the potential of contamination during assaying. Estimated recovery based on recovery of other elements is 37%. METALS RECOVERY Based on initial testwork completed by AMR, metal recovery work by SE Minerals identified and tested a process that recovered and produced metal or salable concentrate of the heavy minerals and metals from the final flotation concentrate. The metals recovery circuit consists of the following: Size Reduction to 90 microns Caustic Cracking Water Leaching Hydrochloric Acid Leaching Iron Solvent Extraction Zirconium, Titanium and Uranium Precipitation TREE and Thorium Precipitation Neutralization Table 1-7 lists the expected final metal recovery from the gravity/flotation concentrate. TABLE 1-7 FINAL ELEMENTAL METAL RECOVERY FROM GRAVITY/FLOTATION CONCENTRATE (800 TPH) AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 Nb Th U Zr Fe 2 O 3 Sc Y La Ce Pr Recovery, % kg/day recovered 13, ,731 19, ,008 1, Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Recovery, % kg/day recovered Technical Report NI May 16, 2013 Page 1-27

36 The elemental recovery is based on the various processes as developed by SE Minerals of the REEs, titanium, zirconium, and other valuable mineral products. The recoveries are developed based on individual recoveries through each process. Products of the overall process include magnetite, separated rare earth oxides, pigmentquality titanium oxide, chemical-grade zirconia, pigment-quality iron oxide, and niobium oxide. PROJECT INFRASTRUCTURE The surface infrastructure area will be concentrated near the process plant, proposed for a central location between Çanakli 1 and Çanakli 2. In addition to the plant, surface infrastructure will consist of a site office and administration building, warehouse, maintenance shops, diesel storage facility, electrical transformer and site distribution, secure storage for uranium and thorium, water supply, and a lined residue facility, with road access connecting all facilities to the active mining cells. MARKET STUDIES RARE EARTH PRICING The market for rare earth products is relatively small, and information on pricing and sales terms is difficult to obtain. REO price forecasts for the LOM plan were obtained from a number of sources, which covered a wide range of values. The prices used in the Project cash flow are described in Table 1-8. The prices were applied as a constant throughout the LOM schedule. Technical Report NI May 16, 2013 Page 1-28

37 TABLE 1-8 REO FORECAST PRICES VS. CURRENT SPOT PRICES Rare Earth Oxide AMR Mineral Metal Inc. Aksu Diamas Project Base Case (US$/kg) Q Spot* (US$/kg) Ce 2 O La 2 O Nd 2 O Pr 2 O Sm 2 O Eu 2 O 3 1,500 1,500 Gd 2 O Sc 2 O 3 2,000 - Y 2 O Yb 2 O Dy 2 O Er 2 O Ho 2 O 3-77 Lu 2 O 3-1,316 Tb 4 O 7 1,200 1,230 Tm 2 O * Source: Metal-Pages.com Markets for holmium, lutetium, and thulium are limited, and there is no assurance that the Project will realize revenue from those oxides, so none has been included in the cash flow. The average rare earth oxide price used in the LOM cash flow analysis is $35/kg, which matches the recent average spot price. NIOBIUM PRICING Prices for FeNb have been historically stable. From 1990 until 2006 the average export price of Brazilian ferro-niobium remained within the range of US$12,500/t to US$13,500/t contained Nb. There was an adjustment in and prices increased and in some markets doubled. The increase in price for FeNb reflected the very strong price increases for other steel raw materials and for steel in the same period. Prices declined in 2009 along with the decline in the world steel industry. The forecast price for niobium pentoxide used in the cash flow analysis is US$55.00/kg. Technical Report NI May 16, 2013 Page 1-29

38 ZIRCONIUM PRICING China is the dominant world supplier of zirconium chemicals and as a result sets world prices for the various zirconium chemical products. A range of recent prices for some zirconium products is noted in Table 1-9: TABLE 1-9 RECENT PRICES FOR ZIRCONIUM PRODUCTS AMR Mineral Metal Inc. Aksu Diamas Project Product ZrO 2 (%) Q (US$/tonne) Q (US$/tonne) Q (US$/tonne) Zircon (producer/trader) 65% 900 1,150 1,500 2,100 1,700 2,750 (100% ZrO 2 basis) 100% 1,440 1,840 2,400 3,360 2,720 4,400 ZOC (zirconium oxychloride) 36% 1,350 1,450 2,300 2,600 3,600 4,000 (100% ZrO 2 basis) 100% 3,750 4,025 6,400 7,200 10,000 11,111 ZBS (zirconium basic sulphate) 33% 1,770 3,000 6,000 (100% ZrO 2 basis) 100% 5,360 9,100 18,200 ZBC (zirconium basic carbonate) 40% 2,100 3,400 5,400 (100% ZrO 2 basis) 100% 5,250 8,500 13,500 Fused Zirconia 98.5% 2,900 3,100 4,100 4,400 6,000 7,000 Chemical Zirconia 99.5% 4,200 4,400 7,200 7,500 10,000 12,000 Chemical Zirconia 99.5% 5,300 5,500 8,500 10,500 12,000 15,000 Source: Alkane Resources Ltd. A price of US$7.50/kg, representing chemical zirconia of high purity, was selected for use in the cash flow analysis. TITANIUM PRICING Titanium dioxide pricing is widely available. Figure 1-3 shows the titanium dioxide price trend since August Technical Report NI May 16, 2013 Page 1-30

39 FIGURE 1-3 TITANIUM DIOXIDE PRICE TREND TiO 2 Price (US$/kg) Low High Average 10-Oct Feb Jul Nov Apr Aug Dec-14 Source: Date A price of US$3.00/kg TiO 2 was selected for use for the cash flow analysis IRON PRICING The Project will produce two iron products: magnetite and iron oxide precipitate. AMR is currently producing and selling magnetite from the demonstration plant. Prices used in the cash flow analysis for magnetite reflect iron price forecasts for European fines of high iron content. A price of US$130/dmt is used for the cash flow analysis. Prices for pigment-quality iron oxide (Fe 2 O 3 ), a high-purity precipitate produced in the hydrometallurgical process, are based on a chemical product that commands a premium price. AMR has contacted a Turkish manufacturer of liquid pigment and inks, and obtained price indications ranging from US$1.00/kg to US$1.25/kg). A more conservative price of US$0.90/kg Fe 2 O 3 was selected for use in the cash flow analysis. ENVIRONMENTAL, PERMITTING AND SOCIAL CONSIDERATIONS PROJECT PERMITTING The Project will require an EIA under current Turkish legislation including the Environmental Act and the EIA Regulation. The General Directorate of Environmental Impact Assessment Technical Report NI May 16, 2013 Page 1-31

40 and Planning of the Ministry of Environment and Forestry (MoEF) is responsible for the implementation of EIA legislation in Turkey. It is expected that the EIA will cover the following topics: Project description Outline of project alternatives Baseline social and environmental data, including: o o o o o o o o Air quality Ground and surface water Terrestrial, avian, and aquatic life Sound monitoring Historic, heritage, and archeological sites Rare plants and animals Local people, communities, and resources Land use Description of benefits and impacts and mitigation measures Proposed monitoring program EXISTING PERMITS AMR has indicated that it has the necessary permits to carry out exploration activities on the property, and have completed an EIA for the demonstration plant on site. AMR also holds an operating licence for part of the Çanakli project area. ENVIRONMENTAL MANAGEMENT STRATEGIES A number of waste streams will be generated by the Project, and disposed of in an appropriate manner: Gravity Plant rejects: includes coarse material, slimes, and light minerals. Coarse material will be backhauled to completed pit cells by truck, dumped, and reclaimed. Slimes and light minerals will be pulped and pumped to completed pit cells, allowed to settle, and will be reclaimed. Flotation Tailings: will be pumped to completed pit cells, allowed to settle, and will be reclaimed. Caustic Cracking Residue: will be neutralized, dried, and disposed of in completed pit cells. Other Hydrometallurgical Solutions: filtrates and other solutions that cannot be recycled will be managed in a lined pond facility near the hydrometallurgical plant. Technical Report NI May 16, 2013 Page 1-32

41 Thorium and Uranium: small quantities of radioactive oxides (ThO 2 and U 3 O 8 ) will be produced by the hydrometallurgical process. Although no revenue for these products has been included in the PEA, these oxides may be saleable. They will be stored in steel drums in a secure location on site, and transported to a government facility or customer, in accordance with Turkish Atomic Energy Authority (TAEA) guidelines and regulations. CLOSURE AND RECLAMATION COSTS Closure and reclamation costs of $5 million have been included for the 800 tph base case, and $10 million for the 3,800 tph sensitivity case. Ongoing reclamation of individual mining cells will occur during operations, and costs for this are included in operating costs. CAPITAL AND OPERATING COST ESTIMATES CAPITAL COSTS A summary of the estimated capital costs is presented in Table All costs are in Q US dollars. The overall level of accuracy is approximately ±35%. TABLE 1-10 CAPITAL COSTS AMR Mineral Metal Inc. Aksu Diamas Project 800 tph Base Case (US$ million) 3,800 tph Sensitivity Case (US$ million) Mining Gravity/Flotation Plant Hydromet Plant Infrastructure 3 6 EPCM 5 15 Contingency Subtotal Construction Sustaining 6 22 Closure 5 10 Total A contingency amount of 25% was applied to direct and indirect capital costs. OPERATING COSTS LOM operating costs are summarized in Table Operating costs do not include taxes or VAT. All estimates are ± 35% accuracy. Technical Report NI May 16, 2013 Page 1-33

42 TABLE 1-11 OPERATING COSTS AMR Mineral Metal Inc. Aksu Diamas Project Area 800 tph Base Case ($/t mined) 3,800 tph Sensitivity Case ($/t mined) Mining Gravity/Flotation Hydrometallurgy G&A Total Technical Report NI May 16, 2013 Page 1-34

43 2 INTRODUCTION Roscoe Postle Associates Inc. (RPA) and Continental Metallurgical Services LLC (CMS) were retained by AMR Minerals Metals Inc (AMR) to prepare an independent Technical Report on the Aksu Diamas Rare Earth Element (REE) and Minor Metals Project, near Isparta, in southwest Turkey. The purpose of this report is to support an Initial Public Offering (IPO), reverse takeover, qualifying transaction, or other going public event. This Technical Report conforms to NI Standards of Disclosure for Mineral Projects. RPA visited the property from April 24 to April 26, AMR is a B.C. incorporated company which owns 99.77% of the mining rights to six unique heavy mineral sands-like REE and minor metals deposits in southern Turkey. At the Aksu Diamas Project, AMR has carried out hydro-mining and processing at a pilot-scale (100 tonnes per hour) gravity/magnetic concentration plant, producing a saleable magnetite product, and a rare earths concentrate that also contains other iron oxides, titanium, zirconium, and niobium. This report is considered by RPA to meet the requirements of a Preliminary Economic Assessment (PEA) as defined in Canadian NI regulations. The economic analysis contained in this report is based on Inferred Resources, and is preliminary in nature. Inferred Resources are considered too geologically speculative to have mining and economic considerations applied to them and to be categorized as Mineral Reserves. There is no certainty that the development, production, and economic forecasts on which this Preliminary Economic Assessment is based will be realized. SOURCES OF INFORMATION A site visit was carried out by Ms. Katharine Masun, P.Geo., RPA Senior Geologist, from April 24 to 26, Discussions were held with the following personnel from AMR: Mr. Tumerk Komurcu., Advisor/Consultant Prof. Atilla Aykol, Geology and Exploration Manager Ms. Guliz Komurcu, General Coordinator, and License & Permitting Katharine Masun is responsible for Sections 4 through 12, 14, 23, 24, and shares responsibility for Sections 1, 2, 3, 25, 26, and 27. Mr. Jason Cox, P.Eng., RPA Principal Mining Engineer, is responsible for Sections 15, and 18 through 22, and shares responsibility Technical Report NI May 16, 2013 Page 2-1

44 for Sections 1, 2, 3, 16, 25, 26, and 27. Mr. Todd Fayram, QP MMSA, CMS Principal Metallurgist, is responsible for Sections 13, and 17, and shares responsible for Sections 1, 16, 18, 20, 25, 26, and 27. The documentation reviewed, and other sources of information, are listed at the end of this report in Section 27 References. A key source of information is a 2011 NI Technical Report by AMEC. LIST OF ABBREVIATIONS Units of measurement used in this report conform to the metric system. All currency in this report is US dollars (US$) unless otherwise noted. a annum kwh kilowatt-hour A ampere L litre bbl barrels lb pound Btu British thermal units L/s litres per second C degree Celsius m metre C$ Canadian dollars M mega (million); molar cal calorie m 2 square metre cfm cubic feet per minute m 3 cubic metre cm centimetre µ micron cm 2 square centimetre MASL metres above sea level d day µg microgram dia diameter m 3 /h cubic metres per hour dmt dry metric tonne mi mile dwt dead-weight ton min minute F degree Fahrenheit µm micrometre ft foot mm millimetre ft 2 square foot mph miles per hour ft 3 cubic foot MVA megavolt-amperes ft/s foot per second MW megawatt g gram MWh megawatt-hour G giga (billion) oz Troy ounce ( g) Gal Imperial gallon oz/st, opt ounce per short ton g/l gram per litre ppb part per billion Gpm Imperial gallons per minute ppm part per million g/t gram per tonne psia pound per square inch absolute gr/ft 3 grain per cubic foot psig pound per square inch gauge gr/m 3 grain per cubic metre RL relative elevation ha hectare s second hp horsepower st short ton hr hour stpa short ton per year Hz hertz stpd short ton per day in. inch t metric tonne in 2 square inch tpa metric tonne per year J joule tpd metric tonne per day k kilo (thousand) US$ United States dollar kcal kilocalorie USg United States gallon kg kilogram USgpm US gallon per minute km kilometre V volt Technical Report NI May 16, 2013 Page 2-2

45 km 2 square kilometre W watt km/h kilometre per hour wmt wet metric tonne kpa kilopascal wt% weight percent kva kilovolt-amperes yd 3 cubic yard kw kilowatt yr year In this report, the following REE abbreviations are used: HREE - Heavy Rare Earth Elements LREE - Light Rare Earth Elements Total Rare Earth Elements (TREE) = sum of HREE and LREE LREO and HREO refer to oxides of light and heavy rare earth elements respectively. In this document, TREO (Total Rare Earth Oxides) refers to LREO and HREO collectively. Technical Report NI May 16, 2013 Page 2-3

46 3 RELIANCE ON OTHER EXPERTS This report has been prepared by Roscoe Postle Associates Inc. (RPA) and Continental Metallurgical Services LLC (CMS) for AMR. The information, conclusions, opinions, and estimates contained herein are based on: Information available to RPA and CMS at the time of preparation of this report, Assumptions, conditions, and qualifications as set forth in this report, and Data, reports, and other information supplied by AMR and other third party sources. For the purpose of this report, RPA has relied on ownership information provided by AMR, including a legal opinion on status of mining licences from Aksu Savaş Çalişkan Law Office. RPA has not independently researched property title or mineral rights for the Aksu Diamas Rare Earth Element and Minor Metals Project and expresses no opinion as to the ownership status of the property. RPA has relied on AMR for guidance on applicable taxes, royalties, and other government levies or interests, applicable to revenue or income from Aksu Diamas Rare Earth Element and Minor Metals Project. Except for the purposes legislated under provincial securities laws, any use of this report by any third party is at that party s sole risk. Technical Report NI May 16, 2013 Page 3-1

47 4 PROPERTY DESCRIPTION AND LOCATION The Aksu Diamas Project Area is located approximately 50 km south of the town of Isparta or 100 km north of the city of Antalya in southern Turkey (Figure 4-1). The Project Area consists of several licence areas within a radius of approximately 50 km of Isparta (Figure 4-2). Regular scheduled flights are available from Istanbul to Isparta and Antalya. Antalya is linked to Isparta by a well maintained modern highway. AMR holds a 99.77% interest in the Aksu Diamas Project, with the remainder held by several minority outside shareholders to satisfy Turkish corporate requirements. AMR has two material subsidiaries, AMR Madencilik İşletmeleri Sanayi ve Ticaret Anonim Şirketi (AMR Madencilik) and AMR Metalurji Sanayi ve Ticaret Anonim Sirketi (AMR Metalurji) incorporated under the laws of Turkey; AMR Metalurji is a subsidiary of AMR Madencilik. AMR s interest in the Aksu Diamas Project is held through AMR Madencilik. The Aksu Diamas Project is a rare earth element (REE), minor metals project. The main REE bearing minerals of interest are allanite, chevkinite, apatite, and sphene (titanite). In addition to containing magnetite suitable for use in coal washing applications, other coproducts include zirconium, titanium, scandium and potentially niobium and gallium. The Project is composed of a number of topographic depressions containing unconsolidated volcanic tuffaceous materials with no overburden. The mineralized REE deposits and prospects include Çanakli, Kuyubaşi, Çobanisa, Kuzca, and Kurucaova. AMR constructed and commissioned a 100 tonnes per hour (tph) demonstration processing plant in late 2010 incorporating gravity separation and magnetic concentration to produce a magnetite product and a heavy mineral concentrate (HMC). The plant is located at Çanakli. MINERAL TENURE All mineral resources in Turkey are the property of the Turkish State and are subject to Exploration Licenses, Operation Licenses, and Operation Permits issued under the auspices of the General Directorate of Mining Affairs (MIGEM, Maden Ýþleri Genel Müdürlüðü), a unit Technical Report NI May 16, 2013 Page 4-1

48 of the Ministry of Energy and Natural Resources. Mineral licenses are grouped into six groups based on mineral type. Aksu Diamas is a Mineral Group IV (energy, metal and industrial minerals, including rare earths) and a Group VI project (radioactive materials, including uranium and thorium). The Project will be subject to a royalty payment of 2% or 4% on the value of the raw material(s), depending on the mineral type, at the point of extraction payable to the State. Royalties are increased by 30% on mining activities on land held by the Treasury or under the control or possession of the State. Operation License holders are also required to pay an annual fee to the General Directorate of Mining Affairs. In 2006, exploration licences were initially issued for energy, metal, and industrial minerals (Group IV) and partly overlapping licences for precious metals and gemstones (Group V) in the Aksu Diamas Project Area. The western block of licences was issued to the Komurcu Group in January 2006 and an eastern block to the Aral Group in August AMR (companies and individuals associated with the Komurcu and Aral Groups) held: 49 Group IV licences covering an area of 76,982 hectares; and 90 Group V licences covering an area of 83,678 hectares. The majority of licences were relinquished following regional exploration. AMR Madencilik, a subsidiary of AMR, currently holds 11 Exploration Licences and two Operating Licences for Group IV Minerals in the Project Area, as summarized in Table 4-1 and shown in Figure 4-2. Technical Report NI May 16, 2013 Page 4-2

49 TABLE 4-1 SUMMARY OF GROUP IV EXPLORATION AND OPERATING LICENCES HELD BY AMR MADENCILIK (AS OF APRIL 19, 2013) AMR Mineral Metal Inc. Aksu Diamas Project Prospect Type Licence Number Held Since Expiry Area (Ha) Annual Fee 2013 (Turkish Lira) Çanakli Operating Jul Jul-19 2,000 4, Çanakli Exploration Apr Apr Çanakli Operating Licence Sep Sep-12 2, applied Kuyubasi Operating Oct Oct Cobanisa Operating Licence Oct Oct-12 2, applied Aug Aug Operating Aug Aug Kurucaova Licence Aug Aug-11 1, applied Aug Aug Aug Aug Kuzca Operating Licence applied Aug Aug Aug Aug-11 1, Aug Aug Total Exploration 8,550 17, Notes: 1. One Turkish Lira approximately equivalent to CND $0.56 AMR notes that licences past the expiry dates in the above table are in the process of being upgraded to operating licences, and expects that they will be issued in due course. AMR provided a legal opinion on status of mining licences from Aksu Savaş Çalişkan Law Office (ASC Law, 2013). SURFACE TENURE The majority of the surface rights are held under private ownership in the principal areas of interest with the Project Area. Technical Report NI May 16, 2013 Page 4-3

50 4-4 l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l Vraca Lovec Balcik Tyrnyauz Urukh Shali Targoviste Sumen Beslan Mahackala Soci Gantiadi Kaspijsk Teteven Digora Vladikavkaz Bujnaksk Sevlievo Veliko Tarnovo Devnja Varna Gudaut'a Mestia Pitsunda Sadon Sovetskoye Botlikh Karlovo Gabrovo Izberbash Sliven N Ihtiman Ajtos Sukhum Tkvarcheli Bulgaria Black Sea Oni Jambol Gali Gunib Chkhorotsku Kvaisi Almasiani Kumukh Pazardzik Ochamchira Stara Zagora Burgas Russia Plovdiv Cirpan Sredec Kutais Cchinvali Dimitrovgrad Senaki Suram Akhmeta Asenovgrad Gori Telav Balakon Haskovo P'ot'i Ureki Georgia Signakh Akhty Smoljan Kardzali Kirklareli Sinop Inebolu Kakhi Pinarhisar Achalciche T'bilisi Rustavi GreeceMomcilgrad Edirne Amasra Ayancik Gerze Batum Arkhiloskalo Saki Cide Luleburgaz Akhalkalak Poyli Xanthi Devrekani Bartin Hopa Shamlug Mingacevir Res. Komotini Zonguldak Boyabat Bafra Mayis Kavala Uzunkopru Muratli Cerkezkoy Findikli Eregli Artvin Safranbolu Pazar Ardahan Mingacevir Sile Ipsala Tekirdag AraÁ Step'anavan Ijevan Istanbul Samsun Tauz Karabuk Altinkaya Karasu Kastamonu Baraji Unye Ardesen Yevlax Cildir Golu Alexandroupoli Kesan Malkara Marmara Alapli Terme Tosya Kargi Persembe Trabzon Iyidere Kumajri Pendik Ganca Vezirkopru Ereglisi Kocaeli Eskipazar Armenia Duzce Kumru Osmancik Suluova Tirebolu Rize Gaglayan Chiragidzor Naftalan Sarkoy Sea of MarmaraGebze Bolu Kursunlu Ilgaz Ordu Art'ik Merzifon Sevana Gelibolu Gerede Oltu Razdan Azerbajan Orhangazi Sakarya Giresun Kars Cankiri Bayat Amasya Ispir Lich Imroz Erdek Bandirma Golkoy Sarikamis Biga Gemlik Aybasti Tarakli Mudurnu Gumushane Kel'badzhar Narman Echmiadzin Agdam Tortum Yerevan Plaka Iznik Golu Turhal Limnos Gonen Bursa Kizilcahamam Corum Alucra Xankandi Canakkale Bilecik Tokat Cubuk Resadiye Siran Kagizman Oktember'an Nallihan Horasan Kodias Ulubat Golu Sungurlu Alaca Zile Tuzluca Ararat Lachin Fizuli Ezine Mustafa Kemalpasa Inegol Ankara Bayburt Susehri Kelkit Igdir Vajk' Aydincik Yesilyurt Ayvacik Edremit Kepsut Zara Bozuyuk Tercan Askale Erzurum Agri Eskisehir Dogubeyazit Goris Kubatly Sincan Kirikkale Yozgat Sivas Erzincan Sarur Azerbajan Ayvalik Burhaniye Tavsanli Karayazi Kapan Golbasi Sigrion Balikesir Akdagmadeni Mahmudiye Beylikova Keskin Turkey Polatli Yerkoy Hinis Patnos Lesbos Soma Bala Sarikaya Naxcivan Zangelan Altinova Sindirgi Kutahya Kaman Divrigi Kigi Malazgirt Agry Sivrinisar Haymana Hirfanli Sarkisla Karliova Ercis Muradiye Mitilini Bergama Kangal Meghri Baraji Akhisar Kirsehir Bogazliyan Gemerek Tunceli Varto Aliaga Demirci Emirdag Bulanik Mucur Arapkir Ahar Keban Baraji Bingol Adilcevaz Aegean Manisa Selendi Sere ikochisar Felahiye Mus Ahlat Marand Usak Afyon Yunak Hekimhan Tuz Keban Van Golu Turgutlu Bolvadin Kovancilar Palu Sea Eber Golu Golu Talas Pinarbasi Gurun Hoy Hios Kula Cihanbeyli Kayseri Karakaya Baraji Tatvan Van Chios Salihli Sivasli Sandikli Ortakoy Baskil Cesme Ulubey Aksehir Golu Urla Tomarza Sahpur Alasehir Aksehir Ergani Hazro Gevas Andros Torbali Egirdir Golu Ilgin HaniLice Kulp Tabriz Izmir Elazig Tanir Sason Kiraz Aksaray Nevsehir Malatya Karahalli Kozluk Bitlis Develi Afsin Tire Dinar Gelendost Elbistan Baskale Silvan Panormos Kusadasi Evciler Nazilli Kadinhani Sultanhani Yahyali Dogansehir Siirt Pervari Goksun Besiri Evdilos Sarkikaraagac Nurhak Diyarbakir Denizli Eruh Chora Soke Konya Nigde Aydin Isparta Emirgazi Bor Marage Honaz Beysenir Golu Camardi Golbasi Tut Adiyaman Siverek Bismil Batman Orumiye Daryacheh-ye Tavas Beysehir Karapinar Sirnak Orumiyeh Cyclades Yenihisar Burdur Hakkari Ataturk Baraji Cumra Besni Koronos Milas Yenisarbademli Yatagan Ulukisla Kahramanmaras Midyat Cizre Uludere Semdinli Eregli Pazarcik Miyandoab Seydisehir Hilvan Kale Acipayam Pozanti Kozan Mardin Bucak Kadirli Bozova Nagade Imamoglu Araban Viransehir Idil Silopi Cukurca Narli Kalimnos Bodrum Tefenni Derebucak Nusaybin Mahabad Bozkir Kiziltepe Zahu Al-'Amadiya Mugla Karaman Sanliurfa Amorgos Kardamaina Marmaris Akseki Suruc Boukan Ortaca Antalya Serik Hadim Adana Osmaniye Gaziantep Ceylanpinar Al-Qamisli Dahuk Rawanduz Dalaman Manavgat Islahiye Nizip Datca Elmali Icel Ceyhan Fethiye Taskent Basyayla Akcakale Saqqez Kilis Kemer Mut Tarsus Al Mawsil Alanya Yakacik Hassa Jarabulus Rodos Elvanli Tall Abyad Tall'Afar (Mosul) Iran Kumluca Ermenek Karatas Rodhos Finike Iskenderun Al Bab Al-Hasaka Irbil Silifke Sea of Crete Kale Gazipasa Hatay Halab Bozyazi Buhayrat al-asad Lachania Ar-Raqqa As Sulaymaniyah Anamur Samandagi Idlib As Sa rah Iraklio Karpathos Sabkhat al-jabbul Neapolis Yayladagi Madinat ath Thawrah Kirkuk Rizokarpaso Al-Ladiqiya Crete AKSU DIAMAS PROJECTNorth Cyprus Al Haffah Maarrat an Numan Zakros Kyrenia Aigialousa Dair az-zaur Saqlabiyah Nicosia Jablah Muhradah Syria Iraq Famagusta Baniyas Al Mayadin Lefka Hamah Qasr-e Shirin Pol-e Zahab Polis Dali Paralim Tartus Lefkara Larnaca Sa ta Salamiyah Paphos Hims Anah Tadmur Abu Kamal Mediterranean Sea Cyprus Limassol Samarra' Eslamabad Tarabulus Al Qusair Sakarya Kizil Cekerek Kizil Yesil Kelkit Coruh Tigris R. Khabur Euphrates R Aras Tigris R. Kur Diyala Aras Legend: International Boundary National Capital Oblystar Capital Major City Railroad Road Miles Kilometres Figure 4-1 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Location Map May 2013

51 4,200,000 4,190,000 4,180,000 4,170,000 4,160,000 4,150,000 4,140,000 4,130, , , , , , ,000 4,160,000 4,170,000 4,180,000 4,190,000 4,200,000 ÇOBANISA EXPLORATION LICENCE KURUCAOVA OPERATING LICENCE APPLIED ÇANAKLI OPERATING LICENCE APPLIED KUZCA OPERATING LICENCE APPLIED ÇANAKLI EXPLORATION LICENCE N ÇANAKLI OPERATING LICENCE 4,140,000 4,150,000 KUYUBASI OPERATING LICENCE 4,130,000 Figure 4-2 AMR Mineral Metal Inc. Legend: Exploration Licence Operating Licence Applied Operating Licence Kilometres UTM Projection Zone 36N Aksu Diamas Project Southwest Turkey Project Area May 2013 Source: AMR Mineral Metal Inc.,

52 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ACCESSIBILITY The Project Area is accessed from Antalya, Isparta, and Burdur via a network of asphalt roads. Well maintained dirt roads connect the smaller villages, and numerous farm and forest tracks access much of the Project Area. Access to the Çanakli, Kuyubaşi, Çobanisa, and Kuzca licence areas is excellent with surfaced roads. Kurucaova lies a few kilometres from the nearest surfaced road and is accessed using an unsurfaced farm/forest track. CLIMATE The Project Area has a climate typical of continental environments and the central Anatolian region of Turkey, rather than a Mediterranean climate. Winter, spring and autumn are generally cold and rainy, and the summer is generally hot and dry. Precipitation (which mostly falls as snow at higher elevations) is approximately 70 cm per year. The high mountainous terrain results in a wide range between summer and winter temperatures, which vary between 40 C and -25 C, respectively; the average temperature in the Çanakli area is approximately 12 C. Exploration and operating activities can be carried out all year round. LOCAL RESOURCES Isparta and Burdur act as an exploration base for the project and provide a full range of support services in terms of local skilled manpower, equipment, and consumable supplies. The town of Bucak, which lies closer to the Çanakli deposit, also has a wide range of facilities. INFRASTRUCTURE The Project Area has an established transport infrastructure and a well-developed electricity network. Technical Report NI May 16, 2013 Page 5-1

53 Water is available from the perennially flowing river systems within the Project Area and from shallow bores and other excavations made in the valley areas. Results from drilling at Çanakli and Kuyubaşi indicate that the water table is generally at around 10 m to 15 m depth; it is likely to be similar in other valley areas. Groundwater for the Çanakli demonstration plant is currently obtained from water wells adjacent to the plant which capture water from the saturated unconsolidated sediments that fill the Çanakli depression. Elsewhere in the main depression to the east-northeast of Çanakli village, groundwater supplies from the same geological unit are used for irrigation purposes and to provide potable water for the local village. PHYSIOGRAPHY The physiography of the Isparta area is typified by highly contrasting relief. The high mountains, particularly in the north of the Project Area, exceed 2,000 m in elevation and are interspersed by valleys with an elevation of about 800 masl. In the southern part of the Project Area (i.e. the northern fringes of the Aksu Basin), elevations decrease to about 300 m in height. The majority of the river tributaries are ephemeral, with only the major river systems providing year-round sources of water for irrigation and industrial purposes. The principal rivers are the Isparta and Belonu Rivers which flow southeastwards into the Aksu Basin and towards the coast. Vegetation is mostly governed by altitude, the severity of the winter climate, and agricultural land-use. The valley and low hilly areas are extensively covered by a wide variety of trees, whereas the highlands are generally treeless with sparse grasslands and bare, scree-strewn hills. The wider valley lowlands are mostly farmed for summer and winter wheat or set out for pasture; fruit and vegetable farming increases with proximity to the coastal population centres. Technical Report NI May 16, 2013 Page 5-2

54 6 HISTORY There was no significant exploration undertaken in the Aksu Diamas Project Area prior to AMR. Regional-scale geological mapping and some high altitude geophysical surveys took place under the auspices of government agencies such as Maden Tetkik ve Arama Genel Müdürlüğü (MTA) (the General Directorate of Mineral Research and Exploration). In 2005, the Komurcu Group commenced diamond exploration in the Project Area, which included HMC analysis from soil sampling. A number of potential kimberlite structures were identified in the Beşkonak and Kuyubaşi areas. A number of samples gave positive kimberlite indicator minerals (KIMs) results and exploration licences covering 75,000 ha for gemstones and metals were applied for in In 2007, Aral Group joined Komurcu Group and founded AMR. AMR s focus broadened to include the investigation of the thorium, uranium, and REE potential of the area. Since 2008, AMR has focused predominately on REE, thorium, and magnetite. Table 6-1 summarizes the history of the Aksu Diamas Project. Technical Report NI May 16, 2013 Page 6-1

55 Date TABLE 6-1 AKSU DIAMAS EXPLORATION HISTORY AMR Mineral Metal Inc. Aksu Diamas Project Main Activity Nov 2005 Diamond exploration initiated Feb 2006 Presence of KIMs confirmed Exploration licences granted Feb 2006 May 2007 Regional KIM exploration over 2,500 km 2 KIM laboratory established Microdiamonds and moissanites discovered Enrichment of REEs and thorium in HMC from volcanic tuffs noted Detailed mineralogical studies May July 2007 Diamond and REE/thorium exploration continued in parallel Spectrometer surveys initiated Technical agreement with AMEC Aug Dec 2008 First AMEC site visit and independent sampling Several REE/thorium prospects identified and sampled Jan May 2008 Water well drilling at Kuyubasi (11 holes) Sampling of several other prospects April July 2008 Pitting (16 pits) and auger drilling (3 holes) at Çanakli 1 Physical and chemical analysis of pit samples Resistivity surveys at Çanakli 1 and Beskonak Aug Nov 2008 Further AMEC site visits Spectrometry survey and further pitting (22 pits) at Çanakli 1 Physical and chemical analysis of pit samples Samples sent to CF Mineral Research Ltd (CFMR) Canada for caustic fusion analysis Dec 2008 July 2009 Çanakli 1 core drilling program (22 holes) Physical and chemical analysis of drill core samples Metallurgical characterisation of Çanakli 1 mineralization by Downer EDI in Australia Preliminary resource modelling by AMEC July 2009 Mar 2010 Operating licence for Çanakli obtained Necessary permits for trial mining and demonstration plant obtained Site preparation work started Equipment ordered Mar 2010 CFMR report on caustic fusion test results received Negotiations on hydrometallurgy with Star Earth Minerals Pvt. Ltd. (SE Minerals) in May Nov 2010 India Demonstration plant equipment received and installed Production started Dec 2010 Mar 11 Test mining and demonstration plant tests continued Test marketing of magnetite Stockpiling of heavy mineral concentrate for hydrometallurgical test work Laboratory scale hydrometallurgical test work commenced in India Hydrogeological Survey report completed on Çanakli 1 April July 2011 AMEC site visit and technical review Chemical analysis of remaining Çanakli 1 core samples Update resource model for Çanakli 1 Technical Report NI May 16, 2013 Page 6-2

56 Date October 2011 Nov 2011 Mar 2012 April 2012 Dec 2012 Jan Mar 2013 Main Activity NI Technical Report completed by AMEC SGS Lakefield engaged for flotation and hydro-metallurgical test work Mineral Technologies Pty, Ltd (Mineral Technologies) completed pilot tests at Çanakli with MT Spirals Drilling commenced and nine holes completed at Çanakli 2 (Apr Jun) Demonstration Plant test work completed by Mineral Technologies Flotation Lab Scale tests completed with IIT İzmir & SGS Lakefield. Flow sheet developed Hydrometallurgy & SX flow sheet test work advanced by SE Minerals Qualitative samples produced La, Ce, Y, and Zr oxides Turkish Atomic Energy Authority contacted by AMR for radioactivity permitting Engaged IIT, Izmir for Pilot Scale Flotation test preparation High-purity Fe 2 O 3 recovered Lab Scale Hydrometallurgy &S X Flow Sheet development completed AMR advanced discussions with Turkish Atomic Energy Authority Two additional holes drilled at Çanakli 2 (Feb) In mid-2007 AMEC was engaged by AMR to provide technical assistance to the Aksu Diamas project. Much of the work presented in this report has been sourced from AMEC documentation and reports. In 2012, AMR engaged RPA and CMS to provide technical assistance, update the Mineral Resource estimate at Çanakli and complete a Preliminary Economic Assessment (PEA) on the Aksu Diamas project. Technical Report NI May 16, 2013 Page 6-3

57 7 GEOLOGICAL SETTING AND MINERALIZATION REGIONAL GEOLOGY The simplified geology of the Aksu Diamas project area is illustrated in Figure 7-1, based on a map published in Platevoet et al. (2008). The oldest rocks identified in the area are schists and meta-sandstones of Pre-Cambrian age which crop out to the east of the Project Area. They are overlain by Palaeozoic successions of quartzite, limestone, dolomite, shale, sandstone, and conglomerate and by mainly Mesozoic carbonate sequences, of which the Beydaglari (or Beydag) series forms the main bedrock unit in the majority of the Project Area. Four main geological units are present in the Isparta area, as illustrated in Figure 7-1, including the: Allochthonous Mesozoic clastic-dominated sedimentary rocks - Includes the Kizilcadağ melange and olistostrome (mixed lithologies), the Dutdere (limestone) and the Karakuştepe (clastic sediments) Formations. Mesozoic carbonate units - Includes the Beydağlari Formation which consists of massive carbonate rocks which have been overthrust by the allochthonous Mesozoic clastic-dominated sedimentary rocks. Late Miocene sedimentary units - Includes the Aksu Formation (Tertiary clastic sediments which thicken to the east and south in the Aksu Basin. Quaternary and Recent Sediments Unconsolidated weathered tuffs, alluvial and elluvial deposits which are present in most of the topographic depressions in the area (which host the mineralization of interest). Rifting and associated continental volcanism is evident at numerous locations within the Aksu Diamas Project Area, especially along the line of the Isparta-Antalya Fault Zone. Subvolcanic emplacements, dyke structures, lava flows, ignimbrite and large accumulations of pyroclastic ash-fall materials of late-tertiary to Recent age are abundant and predominantly hyper-alkaline in composition; the Gölcük volcanic complex is dated as having last erupted approximately 45,000 years ago. Technical Report NI May 16, 2013 Page 7-1

58 Gonen Lake Egridir N Lake Burdur Cobanisa Legend: Quaternary [and Continental Neogene] also Pliocene Çanakli Kuyubasi Kurucaova Kuzca Miocene - Sediments Carbonate Platform Allochthons [Antalya, Lycian and Hoyran-Beysehir-Hadim Complexes] Thrust Faults Lakes and Sea AMR Licences Antalya Gulf Kilometres Figure 7-1 Note: The presumed Quartenary tuffaceous sediments at most of AMR s prospects are of very limited extent and are not shown at this map scale. May 2013 Source: AMEC, Modified after Platevoet et al., AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Regional Geology 7-2

59 The Gölcük volcanic centre is situated about eight kilometres southwest of Isparta at the apex of the Isparta Angle as indicated in Figure 7-2. Recent work suggests that the rocks forming the extinct volcano are mostly Pleistocene in age and have been dated from 200,000 to 24,000 years old (Platevoet et al, 2008). The Gölcük Formation consists of volcanic and volcaniclastic rocks including tuff, tuffite and pumice. The pyroclastic flow deposits are reported as occasionally separated by palaeosoils. The volcanic activity of Gölcük is thought to have impacted the region with violent major caldera-forming eruptions; pumice or ash fall deposits have been identified as far as 30 km away from the volcano (Platevoet et al, 2008). The Gölcük volcanic centre belongs to the post-collisional alkali-potassic to ultrapotassic magmatism active along a north-south trend from Kirka, to Afyon in central Anatolia to the north, to the Isparta-Bucak area in the south. Three main periods of volcanic activity, younging southwards have been identified, namely: Kirka (21-17 Ma) Afyon (14-8 Ma) Isparta ( Ma) In all of these localities, volcanic deposits begin with a rhyolitic-trachytic main part (potassic K ), followed by high potassic or ultra-potassic dykes and domes. Southward younging of the Kirka-Afyon-Isparta volcanics is proposed to be the result of periodically northward tectonic movement of the Anatolian Plate with magmatic conditions generated by astenospheric uplifting or movement of the plate over a plume or hot spot zone (Savascin and Oyman, 1998). Based on field inspection of the Project Areas and a brief review of recent publications on the geology of the area, AMEC (2011) considered that the most likely source of the mineralized pyroclastic deposits at Çanakli and the majority of the other AMR prospects is the repeated eruption and deposition of pyroclastic material from Gölcük. Recent field studies and as yet unpublished age determinations suggest that the first volcanic activity at Gölcük was ca. 2 Ma. Field mapping and structural interpretation, however, indicate that the Aksu Diamas unconsolidated weathered tuffs were deposited ca. Technical Report NI May 16, 2013 Page 7-3

60 7-8 Ma, implying that the Gölcük volcano is not the source of the Çanakli resource and the other AMR prospects in the Aksu Diamas project area (A. Aykol, pers. comm.). RPA believes that on the basis of the available information, AMR s theory cannot be ruled out and the source of the Aksu Diamas unconsolidated weathered tuffs is still unknown. LOCAL GEOLOGY The structure of the Project Area is dominated by north-south faulting, with possibly older east-west and northwest-southwest structures, and by thrust faults associated with the transgressive nappe formations. The north-south faulting is dominated by the Isparta- Antalya Fault Zone and the Kovada Graben. With respect to the REE mineralization, structure is important in controlling the location and size of the depressions in which the mineralized tuffs have been preserved. The larger depressions at Çanakli and Çobanisa may be graben or half-graben structures. A number of topographic depressions containing unconsolidated materials with a distinctive reddish colour at Çanakli, Kuyubaşi, Çobanisa, Kuzca and Kurucaova areas have been identified as REE targets. PROPERTY GEOLOGY ÇANAKLI The geology of the Çanakli area is shown in Figure 7-2. AMR has named sub-areas in the Çanakli area in accordance with drilling programs: Çanakli 1 This area is the main focus of current activity and includes the small embayment off the main depression located approximately three kilometres eastsoutheast of Çanakli village. This area extends approximately 1.4 km east-west and 400 m north-south. Çanakli 2 Recently targeted with 11 drill holes, this area lies to the north of Çanakli within the main depression. The current resource at Çanakli 2 covers approximately 2.9 km 2, and extends approximately 2.5 km east-west and 1.2 km to 1.6 km northsouth. Çanakli 3 Refers to the undrilled area west of Çanakli 2 within the main depression, extending to Çanakli village at the eastern boundary of AMR s exploration licence. Technical Report NI May 16, 2013 Page 7-4

61 The potential area that can be targeted at Çanakli 3 is approximately 2 km east-west and 1.5 km north-south. The bedrock of the Çanakli prospect areas can be summarised as: Mesozoic carbonate rocks of the Beydaglari Formation which forms rocky hills surrounding the depressions. Such areas generally lack permanent surface drainage and there is evidence of the development of some karst-like features. Small inliers of Mesozoic clastic sedimentary rocks outcropping immediately north of Çanakli 1(forming a low hill) and at Çanakli village. Unconsolidated material fill depressions that are thought to represent east-west and northwest-southeast trending grabens. These unconsolidated deposits host the REE mineralization. The age of the deposits has not been determined but, based on the results of regional geological studies (Karaman, 2000, Platevoet et al, 2008) it is AMR s opinion that they are likely to be Pleistocene in age, and RPA concurs. Pumice fragments and other indicative tuffaceous deposit features have been observed in exposures and drill core, as have the presence of several darker organic rich horizons or palaeosoils. The unconsolidated material at Çanakli 1 has a depth ranging from 25 m (near the edge of the graben) to > 80 m. At Çanakli 2, the unconsolidated material can reach depths of > 160 m. KUYUBAŞI Kuyubaşi consists of a slightly curved elongate depression extending approximately 4.5 km from east to west and varies from 50 m to 400 m across. The flat lying lower ground is underlain predominately by unconsolidated tuffaceous material (which appears to be infilling a valley with no evidence for major faults). The surrounding hills are composed of massive limestone crags with no permanent surface drainage. Karstic pinnacles are noted on the southern edge towards the west end of the depression where the unconsolidated material has been eroded away. Some surficial breccias (possibly cemented scree of carbonate boulders) outcrop immediately east of Kuyubaşi village but do not appear to be related to the mineralization. Technical Report NI May 16, 2013 Page 7-5

62 N 87 Legend: Paleo Fan Neo Fan Eluvyal Material Limestone Village Section Terminal Valleys May 2013 Source: AMEC, Geology from Published 1:250,000 Geology Map. 7-6 Figure 7-2 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Çanakli Project Area Geology

63 ÇOBANISA The Çobanisa prospect is represented by an elongate northwest to southwest trending depression extending approximately five kilometres along strike and with an average width of 1.2 km. The valley is interpreted as a graben structure with two normal faults, one to the west with a shallower dip (±30 o ) and the other to the east with a steeper dip (±70 o ). Results obtained from a resistivity survey and geological mapping completed in May 2011 show that most of the depression is underlain by unconsolidated weathered tuffs. Along the southeastern edge of the depression, the materials are overlain and inter-fingered by alluvial fans formed by water flows into the depression along steep gullies draining the high ground to the southeast (AMR, 2011a). Results from a resistivity survey indicate depths of 25 m to 50 m with some anomalously thicker zones along the south-eastern margin. KUZCA The Kuzca prospect is represented by two areas of unconsolidated tuffs sitting on massive limestones, namely: An area to the south-east, elongated in a northwest-southeast direction, which is approximately one kilometre long and 750 m across. In this area, there are numerous hummocks with scattered limestone boulders which are considered to reflect a shallow irregular underlying surface topography. A separate area to the north-west which is also elongated northwest-southeast and is approximately 2.5 km long by 500 m wide. This area also appears to be underlain by massive limestone bedrock, but the unconsolidated cover appears to be thicker with fewer rocky hummocks present. To date, no drilling or geophysical surveys have been done in this area and the thickness of unconsolidated material has been inferred from the available exposures and outcrops. KURUCAOVA The Kurucaova prospect consists of unconsolidated weathered tuffaceous material filling the bottom of a large enclosed depression which is presumed to be of karstic origin. The depression is elongated in a northwest to southeast direction and is approximately one kilometre long and 400 m across. AMEC observed a four metre deep sinkhole near the centre of the prospect during a site inspection. This would suggest that the unconsolidated material may not be thick. Technical Report NI May 16, 2013 Page 7-7

64 Along the south-eastern border of the depression frequent boulder hummocks were again noted suggesting that the unconsolidated materials are relatively shallow along this margin. To date no drilling or geophysical surveys have been done in this area: the thickness of unconsolidated material is a geological inference. MINERALIZATION AMR initially pursued primary diamond mineralization in kimberlites/lamproites, but in 2008 moved the focus to rare earth minerals (including allanite and chevkinite), thorium, uranium, niobium, titanium, zirconium, and magnetite. Mineralization on the Aksu Diamas project is investigated by: 5. Removal of coarser fraction (>2mm). 6. Desliming (removal of -25 µm fines). 7. Heavy mineral separation (HMS) using a heavy liquid (tetrabromethane) to recover particles with a density greater than 2.97 g/cm Separation into three magnetic fractions (highly magnetic, weakly magnetic and nonmagnetic) using a hand-held magnet. MAGNETITE The highly magnetic fraction recovered at the demonstration plant on site is very high in iron and dominantly composed of magnetite. Magnetic separation work in a report named Enrichment of Mineral Sample of the Absolute Amount Smaller than mm with Wet Magnetic Separator was completed by the Istanbul Technical University (ITU), Faculty of Mines, Mineral Processing Engineering Department (ITU, 2011). The report centered on the recovery of the -25 µm magnetic fraction of the HMC from the Çanakli 1 deposit. Ninety percent of the magnetic product was observed to be magnetite. REE BEARING MINERALS To date, the main REE bearing minerals have been identified as allanite, chevkinite, titanite, and apatite (Figure 7-3). Technical Report NI May 16, 2013 Page 7-8

65 FIGURE 7-3 DEPOSIT MINERAL EXAMPLE Allanite-Chevkinite (hand-picked sample from demonstration plant HMC) Titanite (hand-picked sample from demonstration plant HMC) Thorite (hand-picked sample from demonstration plant HMC) Technical Report NI May 16, 2013 Page 7-9

66 Allanite (orthite) is a sorosilicate group of minerals within the broader epidote group that contain a significant amount of REEs. It has the general formula A 2 M 3 Si 3 O 12 [OH] where the A sites can contain large cations such as Ca 2 +, Sr 2 +, and REEs and the M sites admit Al 3 +, Fe 3 +, Mn 3 +, Fe 2 +, or Mg 2 + among others. A large amount of additional elements, including Th, U, Zr, P, Ba and Cr, may be present in the mineral. Allanite can contain up to 30% REEs which is consistent with the results reported by Downer EDI (2009a), see Section 13. Allanite occurs mainly in metamorphosed clay rich sediments and felsic igneous rocks. The International Mineralogical Association lists three minerals in the allanite group, each recognized as a unique mineral: allanite-(ce), allanite-(la) and allanite-(y), depending on the dominant rare earth present, cerium, lanthanum, or yttrium. The general formulae for these three minerals are: Allanite (Ce) - (Ce,Ca,Y) 2 (Al,Fe+++) 3 (SiO 4 ) 3 (OH) Allanite (La) - Ca(REE,Ca)Al 2 (Fe++,Fe+++)(SiO 4 )(Si 2 O 7 )O(OH) Allanite (Y) - (Y,Ce,Ca) 2 (Al,Fe+++) 3 (SiO 4 ) 3 (OH) Chevkinite is defined as a group of complex and difficult-to-distinguish titanosilicates with the general formula of (Ca,Ce,Th) 4 (Fe,Mn) 2 (Ti,Fe) 3 Si 4 O 22. At least ten different individual minerals have been identified as belonging to the chevkinite group. Chevkinite may contain up to 35% REEs which is consistent with the results reported by Downer EDI (2009a), see Section 13. Chevkinite is regarded as a secondary mineral in titanium and cerium bearing rocks and also occurs as an accessory mineral in some granites. Titanite (sphene) is a calcium titanium silicate with the general formula of CaTiSiO 5. Titanite occurs as an accessory mineral in igneous rocks, schists, gneisses and other metamorphic rocks, and is also found as a detrital mineral in some sedimentary deposits. Apatite is a group of phosphate minerals, usually referring to hydroxylapatite, fluorapatite, and chlorapatite, named for high concentrations of OH, F, Cl or ions, respectively, in the crystal. Apatite is occasionally found to contain significant amounts of rare earth elements and can be used as an ore for those metals. This is preferable to traditional rare earth ores, as apatite is non-radioactive and does not pose an environmental hazard in mine tailings. Technical Report NI May 16, 2013 Page 7-10

67 THORIUM AND URANIUM BEARING MINERALS Although at very low levels in the in situ material, the uranium and thorium content of the mineralization is of economic significance as they are preferentially concentrated during processing of material and will be recovered along with REEs and other mineral products which would be subject to special controls. Results from mineralogical studies (Downer EDI, 2009a and other work) have identified three thorium and uranium bearing minerals, namely thorite, uranothorite and betafite (Figure 7-4). The general characteristics of these minerals are described below. Thorite - A thorium silicate which is a member of the zircon group and is mineralogically similar to zircon. It is given the general formula (Th,U)SiO 4 and may contain up to 72% Th if no uranium is present. It is reported as occurring in igneous pegmatites and volcanic extrusive rocks, hydrothermal veins and contact metamorphic rocks and is also known to occur as small grains in detrital sands. Uranothorite - Regarded as a variety of thorite which is rich in uranium. It is reported as an ore mineral in several uranium mines. Betafite - A mineral in the pyrochlore group, with the chemical formula (Ca,U) 2 (Ti,Nb,Ta) 2 O 6 (OH), and may contain up to 18% U. It is reported to occur mostly as a primary mineral in granite pegmatites, and more rarely in carbonatites. AMR have observed the presence of high density bright green thorite mineral grains (during the operation of the shaking table) which may represent additional economic interest. OTHER SCANDIUM Scandium (Sc) is present in most of the deposits of rare earth and uranium compounds, but it is extracted from these ores in only a few mines worldwide. At Çanakli, scandium-bearing minerals include chevkinite, amphibole and pyroxene. AMR is investigating its recovery from the heavy mineral concentrate. TITANIUM Titanium is a corrosion resistant metal with the highest strength-to-weight ratio of any metal. At Çanakli, Ti is recovered from titanite (AMR, 2011). Technical Report NI May 16, 2013 Page 7-11

68 ZIRCONIUM Zirconium is recovered from zircon, a nesosilicate. Its chemical name is zirconium silicate and its corresponding chemical formula is ZrSiO 4. Zirconium has several niche applications related to its resistance to corrosion and high reactivity with oxygen. NIOBIUM Niobium is a ductile transition metal often found in pyrochlore. Niobium is useful in alloys, where a small percentage improves the strength of the steel considerably. PHYSICAL CHARACTERISTICS AMR have undertaken a number of physical characterization tests including initial wet screening, dry screen analysis, heavy liquid separation of the screened fraction, and hand magnet separation of the concentrate obtained from the heavy liquid. The Aksu Diamas mineralized tuffs have a number of similarities to heavy mineral sand deposits; however, they have a significantly higher fines (also referred to as slimes, <45 µm at Çanakli 1 and <25 µm at Çanakli 2) content of approximately 50% to 60% as opposed to less than 10% in typical heavy mineral sand deposits. The tuffs have average moisture content of 26%, expressed as a percentage of the dry weight. RPA note that a significant amount of water was added during the drilling process and the moisture content may not be reliable. The drill core samples have an average dry density between 1.50 g/cm 3 and 1.68 g/cm 3. RPA notes that the measurements taken by AMR from the drill core under represents the density of the in situ material by 15% to 20% based on surface density measurements. Dry particle screen analyses highlight the very fine grained nature of the tuff, most holes having more than 50% of material within the slimes fraction. On average, the fine fraction (slimes) comprise approximately 60% of the tuff at Çanakli 1 (<45um) and 63% at Çanakli 2 (<25 um). Only one composite sample, however, from drill hole CN1DC05 has been subjected to a detailed particle size analysis in the finer fraction (using a Fritsch particle size analyzer at Istanbul Technical University). The results show a fairly continuous particle continuous size distribution down to less than 10 μm. RPA notes that the results do not Technical Report NI May 16, 2013 Page 7-12

69 include particles over one centimetre in size (i.e., pebbles). Such clasts are generally composed of hard rock carbonate lithologies which are much denser that the unconsolidated materials and are also unmineralized; as a result failure to take them into account during resource estimation will result in a negative bias in estimates of the tonnage, and positive biases in estimates of the grade, of in situ mineralization. The average heavy mineral content (recovered from tetrabromoethane heavy liquid separation) of the tuff is fairly similar for Çanakli 1 and 2 at 3.8% and 2.7%, respectively. On a per sample basis, a wide range of variation may be seen in the amount of magnetite concentrate (which is comprised predominantly of magnetite) in the heavy mineral fraction. On average, Çanakli 1 and Çanakli 2 contain 16.5% and 12.8% magnetite concentrate in the heavy mineral fraction, which amounts to between 0.6% and 0.3% of the in situ tuff. GRADE CHARACTERISTICS A summary of the results obtained from the pit samples (in situ material) and drill core samples for three different fractions from Çanakli 1 is presented in Table 7-1.The results show that, on average, the total REE content of the fines material (<45 µm) is about 25% higher than the total REE content of the deslimed material (>45 µm). The REEs are concentrated by a factor of between four and six (relative to the in situ grade) in the HMC obtained from the deslimed material. The average grades of in situ material from the pit samples, which were analysed directly rather than estimated from the grades of two separate analyses, is also indicated in Table 7-1. These grades are remarkably close to the average in situ grades for the core samples which have been estimated by combination of the analyses from the two different size fractions. Although these samples do not represent exactly the same volume, since the pits are only sampling the near surface material, these results indicate that the approach used for processing the core sample data is appropriate for mineral resource estimation. Technical Report NI May 16, 2013 Page 7-13

70 TABLE 7-1 ÇANAKLI 1 PIT AND CORE SAMPLE GRADES BY TYPE AMR Mineral Metal Inc. Aksu Diamas Project Grade Pits In situ (Analyzed) In situ (Estimated) Drill Hole Quarter Core Deslimed Fines (+45 µm, - (-45 µm) 2mm) Total HMC (>2.97 g/cm 3, >45 µm) No. Samples La ppm Ce ppm ,663 Pr ppm Nd ppm Sm ppm Eu ppm Gd ppm Tb ppm Dy ppm Ho ppm Er ppm Tm ppm Yb ppm Lu ppm Y ppm Sc ppm Th ppm U ppm Zr ppm ,617 Nb ppm Fe 2 O 3 % TiO 2 % LRE5 ppm ,522 HRE10 ppm TRE15 ppm ,817 The proportions of the individual REEs are relatively similar in the fines and deslimed fractions (work for this report shows that slimes have a slightly higher global grade); however, the results presented in Figure 7-4 indicate slight differences in the relative proportions of the REEs in the HMC. Technical Report NI May 16, 2013 Page 7-14

71 100% La 90% 80% Ce Pr Nd Proportion of Total (%) 70% 60% 50% 40% 30% Sm Eu Gd Tb Dy Ho Er 20% 10% Tm Yb Lu 0% In Situ (estimated) Slimes (-45 µm) Deslimed (+45 µm, -2mm) Total HMC (>2.97 g/cm3, 45 µm) Y Sample Type Figure 7-4 May 2013 Source: AMEC, AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey REE Proportions in Different Fractions, Çanakli

72 VERTICAL VARIABILITY AMEC studied the physical and chemical variability in two holes to determine vertical variability and made the following points: Considerable variability is seen in the heavy mineral content of the deslimed fraction and in the magnetite content of the concentrate. In situ grades are fairly constant over most of the profile for hole CN1DC04, but hole CN1DC20 shows lower grades from around 50 m to the end of the sampled interval. Grades of the HMC are much more variable and tended to be lower grade where the HMC content is higher. These higher grade intervals may represent zones with a greater degree of weathering; if the REE-bearing minerals are less resistant to weathering then they would be preferentially broken down into smaller grain sizes. Near the bottom of hole DC20, higher REE grades in the HMC coincide with lower overall in situ grades. REE grades in the fines and deslimed fraction appear to be much more comparable for this interval. The highest heavy mineral content of 23.5% which occurs from 43.2 m to 45.5 m in hole CN1DC04 coincides with a sandy layer immediately below a pebbly zone which is overlain by relatively fresh pyroclastic material. This may coincide with a stream channel deposit in an erosive period prior to a new eruption. The REE grades of the fines fraction are slightly higher grade than those of the deslimed fraction; but both fractions have similar proportions of the individual REEs. RPA concurs with AMEC s observations. Although vertical variation is observed within the Çanakli deposit, in general, the in situ grades are quite uniform. Technical Report NI May 16, 2013 Page 7-16

73 8 DEPOSIT TYPES The Aksu Diamas REE mineralized tuffaceous deposits are regarded as heavy mineral concentrations in unconsolidated pyroclastic materials. The source rocks are considered to represent weathered ash-fall tuffs. The deposit type is regarded as a primary deposit related to pyroclastic volcanism, with local variations in fines and heavy mineral content related to subsequent weathering, soil development and reworking by alluvial processes. The average chemical compositions of the drill hole and pit samples from Çanakli 1 are classed as peraluminous, not ultrapotassic. The mineralized tuffaceous material appears to be relatively recent in origin. AMEC (2011) suggested that the Gölcük volcano was the source of the Aksu Diamas unconsolidated pyroclastic material. However, when compared with deposits known to have been derived from the Gölcük volcano, the Aksu Diamas deposits appear to have a different source. Although age determination studies have not been completed, similar volcanic material in west and southwest Anatolia suggest the graben infill in the Aksu Diamas Project occurred in the Miocene, ca Ma. Consequently, a relatively simple exploration model has been applied in order to identify potential deposits including: Location of depressions where unconsolidated tuffs may have been preserved. Identification of the presence of the favourable lithologies and mineralization on the ground, including the presence of magnetite. Sample materials to confirm presence of target mineralization, initially using heavy mineral separation with subsequent confirmation using chemical analysis. The Aksu Diamas REE deposits appear to belong to a new class of deposit; from an exploration and evaluation perspective, they share characteristics with both heavy mineral sands deposits and with other REE deposits. Technical Report NI May 16, 2013 Page 8-1

74 9 EXPLORATION EXPLORATION SUMMARY AMR (under the auspice of the Komurcu Group) commenced diamond exploration in the Project Area in 2005, undertaking reconnaissance mapping, structural and tectonic interpretations, satellite imagery interpretations, and mineralogical studies. Since mid-2007, work has targeted the magnetite and REE mineralized unconsolidated tuffs, predominately at Çanakli 1, Çanakli 2, and Kuyubasi. Since the previous technical report (AMEC, 2011), AMR has dropped title to the Gölcük, Dereköy and the Gönen prospect area. Table 9-1 summarizes the REE and magnetite exploration and results completed on the current Aksu Diamas prospects. TABLE 9-1 EXPLORATION SUMMARY AMR Mineral Metal Inc. Aksu Diamas Project Prospect Work Completed Results Çanakli 1 Çanakli 2 Çanakli Çobanisa Kurucaova Kuzca Pitting, drilling, trial mining and demonstration plant operation. Surface inspection and reconnaissance spectrometer surveying. Eleven drill holes completed. Reconnaissance spectrometer surveying, pit sampling for bulk density. Spectrometer surveying, grab sampling, resistivity soundings, geological mapping. Surface inspection with limited sampling and spectrometer measurements. Surface inspection with limited sampling and reconnaissance spectrometer measurements. Inferred Resource of REEs, Zr, Ti and magnetite estimated; trail mining has confirmed ability to produce magnetite concentrate suitable for coal washing and a HMC-enriched in REEs and other potential byproducts. Presence of similar lithologies to those seen at Çanakli 1 confirmed. Large tonnage potential indicated by resistivity surveys and drill holes done for groundwater assessment. Drilling confirms the presences of REEs and other potential co-products. Presence of REE mineralization confirmed. Presence of REE mineralization confirmed. Significant volume of potential mineralization indicated by resistivity soundings. Presence and surface extent of REE mineralization confirmed. Depth not determined. Presence and surface extent of REE mineralization confirmed. Depth not determined. Technical Report NI May 16, 2013 Page 9-1

75 SPECTROMETER SURVEYS Hand-held spectrometer measurements have been taken to semi-quantitatively determine areas of REE, uranium, and thorium mineralization. Measurements are typically taken in shallow pits about 50 cm deep. Over 300 measurements have been taken at Kuyubasi, approximately 100 at Çanakli 1, over 900 reconnaissance measurements and in a number of vertical profiles in pits at Çanakli and Kuyubasi. GRAB SAMPLING Grab samples have been taken from areas with a high visual proportion of magnetic grains in soil and stream bed with elevated thorium and uranium spectrometer results. Size fraction analysis, HMC and chemical analysis have been undertaken on grab samples to identify the presence of magnetite and REE mineralization. RESISTIVITY AND MAGNETIC SURVEYS Resistivity surveys were performed at Çanakli in June 2008 and at Çobanisa in May 2011 to assess the depth of the mineralization. Six vertical electrical resistivity soundings performed at Çanakli indicated depths ranging from 50 m to 75 m for five locations with a single measurement of 125 m in the central part of Çanakli 1. Apart from a single deep value, the results of the other measurements have been confirmed by subsequent drilling. A magnetic survey was performed at Beşkonak (a licence that has been released) to test for the presence of intrusive volcanic rocks underlying the unconsolidated tuffs. PITTING AND TRENCHING Pits are excavated with a back hoe with a representative sample collected by coning and quartering a large sub-sample taken at 1.0 m or 1.5 m vertical intervals. Processing of the pit samples uses a similar process to that used for the drill hole samples as described in Section 13. Fifty pits have been excavated at Çanakli. Note, only 22 of the Çanakli pits were chemically assayed (at ACME Analytical Laboratories Ltd., Vancouver, Canada). The results confirmed the grades and continuity of surface mineralization. All the pits were subjected to spectrometer readings. Technical Report NI May 16, 2013 Page 9-2

76 HEAVY MINERAL CONCENTRATE TESTS HMC tests were carried out on three different magnetic fractions (heavily magnetic, weakly magnetic, and non-magnetic) obtained from reconnaissance samples and pits at Çanakli 1, Dereköy, and Kuyubasi. The following features can be observed from the HMC test work: The highly magnetic fraction contains high iron (87% to 96% Fe 2 O 3,), moderate titanium (2% to 6% TiO 2 ), and low TREE15 (130 ppm to 670 ppm TREE15) grades. This confirms that this fraction is generally composed mostly of magnetite. The non-magnetic fractions are generally strongly enriched in zirconium (1.5% to >5% Zr), TREE15 (6,000 ppm to 21,000 ppm TREE15), thorium (400 ppm to 6,300 ppm), uranium (100 ppm to 1,700 ppm), and niobium (300 ppm to 2,500 ppm). The weakly magnetic fractions show a lower degree of enrichment in REEs and other elements of interest compared to the non-magnetic fraction. The results of the analyses indicate the potential for recovering magnetite and upgrading the REE mineralization using gravity and magnetic separation. The results also confirm the general similarity of the mineralization in the three different prospects. BULK SAMPLING A bulk sample obtained from Çanakli 1 drill hole samples was sent to Downer EDI in Australia for metallurgical characterization in A demonstration gravity and magnetic plant was constructed at Çanakli in 2010 and trial mining and the processing of large scale bulk samples commenced by AMR in November An excavator and hydraulic monitors are currently being used to excavate material from the Çanakli 1 deposit to feed the demonstration plant. Details of the demonstration plant operation are given in Section 13. BULK DENSITY MEASUREMENTS In September 2008, six bulk density measurements were made by excavating and weighing material in one metre cubic pits (1 m by 1 m by 1 m) at Çanakli 1 (Figure 9-1). Material was extracted and loaded onto a trailer, which were driven across weighbridges with a tractor (Figure 9-2). The average sample density was 2.00 kg/m 3, and individual measurements ranged from 1.82 to 2.22 kg/m 3. In October 2012, 14 surface density measurements were Technical Report NI May 16, 2013 Page 9-3

77 made at Çanakli 2, using the same method as Çanakli 1. Locations of surface pits are shown in Figure 9-3. The average density at Çanakli 2 was also 2.00 kg/m 3, and individual sample measurements ranged from 1.68 to 2.38 kg/m 3. RPA notes that moisture measurements were not taken on the pit samples and that the sample density measurements overestimate the in situ bulk density of the material. It is RPA s opinion that the surface bulk density measurements better reflect the density of the unconsolidated weathered tuff at Çanakli than the drill hole samples. However, RPA has been unable to quantify the amount of moisture contained within the samples when they were weighed. It is likely that the average value of 2.0 g/cm 3 is overestimating the density of the unconsolidated tuff. RPA recommends that AMR obtains surface bulk density samples over the entire Çanakli resource. At a minimum, a sample should be taken at each drill hole, and the soil moisture content should be determined. AMR should investigate techniques and equipment that would allow bulk density samples and measurements to be taken below surface to allow estimation of bulk density variability with depth. ADDITIONAL WORK Additional exploration has included metallurgical and mineralogical sampling and geophysical surveys (resistivity and magnetic) at Çanakli 1. A detailed topographical survey was completed at Çanakli 1, and a more recently the survey was extended to included the entire Çanakli basin area. Technical Report NI May 16, 2013 Page 9-4

78 FIGURE 9-1 OUTLINE OF SURFACE PIT FOR BULK DENSITY SAMPLE AT ÇANAKLI 2 Technical Report NI May 16, 2013 Page 9-5

79 FIGURE 9-2 EXCAVATED SURFACE PIT MATERIAL BEING WEIGHED Technical Report NI May 16, 2013 Page 9-6

80 4,162,000m N ,000m E 288,000m E 289,000m E 290,000m E 291,000m E 4,160,000m N 4,161,000m N 4,162,000m N 4,161,000m N 4,160,000m N May ,000m E 288,000m E 289,000m E Figure 9-3 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Location of Çanakli Surface Pits for Density Measurements

81 10 DRILLING OPEN HOLE DRILLING Eleven holes were initially drilled at Kuyubaşi in January 2008 using a water well drill rig, and supervised by SGS Turkey as summarized in Table 10-1 and shown in Figure Sub- Area Original Hole ID TABLE 10-1 KUYUBASI OPEN HOLE DRILLING SUMMARY AMR Mineral Metal Inc. Aksu Diamas Database Hole ID Date Easting (UTM E) Northing (UTM N) Elevation (m) Total Depth (m) Depth to Bedrock (m) KBA KA-1 DW01 Jan >15.5 KBA KA-2 DW02 Jan KBA KA-3 DW03 Jan KBB KB-1 DW04 Jan KBB KB-2 DW05 Jan KBB KB-3 DW06 Jan KBB KB-4 DW07 Jan >15.75 KBB KB-5 DW08 Jan KBC KC-1 DW09 Jan KBC KC-2 DW10 Jan KBC KC-3 DW11 Jan Notes: All holes are vertical Holes renamed by AMEC for database entry. Samples were collected every three metres for size fraction analysis and heavy mineral separation. AMEC (2011) reviewed the data collected and concluded that the 2008 Kuyubasi open drill holes were not suitable for mineral resource estimation, but do confirm the continuation of mineralization to the depth of drilling (approximately 20 m). RPA concurs with AMEC s conclusion and agrees that down hole mixing of material during drilling and possible contamination and/or mixing of samples in the specific depth intervals seen during the drilling operation makes the sample data unsuitable for resource estimation. AUGER DRILLING In late 2008, an auger drill was used to complete three holes at Çanakli 1. Technical Report NI May 16, 2013 Page 10-1

82 TABLE 10-2 ÇANAKLI 1 AND ÇANAKLI 3 AUGER DRILLING SUMMARY AMR Mineral Metal Inc. Aksu Diamas Prospect Database Hole ID Date Easting (UTM E) Northing (UTM N) Elevation (m) Total Depth (m) Depth to Bedrock (m) Çanakli 1 CN1-DA01 May , n.a. Çanakli 1 CN1-DA02 May , n.a. Çanakli 1 CN1-DA03 May , n.a. Notes: 1. All holes are vertical. 2. Drill hole IDs renamed by AMEC for database capture. 3. Elevations estimated from 1:36,000 topographic map. AMEC (2011) concluded that the auger samples were not suitable for mineral resource estimation. As with open hole drilling, there is down hole mixing of material during drilling and possible contamination and/or mixing of samples in the specific depth intervals seen during the drilling operation. The auger holes, however, confirmed the thickness of the mineralization and the resultant HMC confirmed the nature of mineralization and the order of magnitude in chemical grades. RPA supports AMEC s conclusions. Sub-Area DIAMOND CORE DRILLING Eight holes were diamond core drilled in March 2009 at Kuyubasi as summarized in Table TABLE 10-3 KUYUBASI DIAMOND CORE DRILLING SUMMARY AMR Mineral Metal Inc. Aksu Diamas Project Original Hole ID Database Hole ID Date Easting (UTM E) Northing (UTM N) Elevation (m) Total Depth (m) Depth to Bedrock (m) KBA KADC04 DC04 Mar KBA KADC05 DC05 Mar KBA KADC06 DC06 Mar KBA KADC07 DC07 Mar >12 KBA KADC08 DC08 Mar KBC KADC09 DC09 Mar KBC KADC010 DC010 Mar >23.5 KBC KADC011 DC11 Mar Notes: 1. All holes are vertical. 2. Holes renamed by AMEC for database entry. Technical Report NI May 16, 2013 Page 10-2

83 AMEC (2011) stated that the 2009 Kuyubasi diamond core drill holes were not suitable for mineral resource estimation, but did not offer any further explanation to support their conclusion. From December 2008 to April 2009, 23 NQ diamond drill holes were drilled at Çanakli 1, see Figure 10-1 and Table In RPA s opinion, results of the diamond drill holes are suitable for estimation of Inferred Mineral Resources at Çanakli 1. TABLE 10-4 ÇANAKLI 1 DIAMOND CORE DRILLING SUMMARY AMR Mineral Metal Inc. Aksu Diamas Project Drillhole ID Easting (UTM E) Northing (UTM N) Elevation (m) Total Depth (m) Depth to Bedrock (m) DC , DC , DC , n.a. DC , DC , n.a. DC , DC , n.a. DC , DC , n.a. DC , n.a. DC , n.a. DC , DC , DC , DC , DC , DC , n.a. DC , DC , n.a. DC , n.a. DC , DC , n.a. DC , n.a. Notes: 1. All holes are vertical. 2. n.a. = Not applicable (bedrock not intersected). Technical Report NI May 16, 2013 Page 10-3

84 From March to June 2012, nine holes were diamond drilled at Çanakli 2, and two additional holes were completed in February Locations are as summarized in Table 10-5 and shown in Figure In RPA s opinion, results of the diamond drill holes are suitable for estimation of Inferred Mineral Resources at Çanakli 2. TABLE 10-5 ÇANAKLI 2 DIAMOND CORE DRILLING SUMMARY AMR Mineral Metal Inc. Aksu Diamas Drillhole ID Easting (UTM E) Northing (UTM N) Elevation (m) Total Depth (m) Depth to Bedrock (m) CN2DC , CN2DC , CN2DC , CN2DC , CN2DC , CN2DC , CN2DC , n.a. CN2DC , n.a. CN2DC , n.a. CN2DC , n.a. CN2DC , n.a. Notes: 1. All holes are vertical. 2. n.a. = Not applicable (bedrock not intersected). Technical Report NI May 16, 2013 Page 10-4

85 4,162,000m N ,000m E 288,000m E 289,000m E 290,000m E 291,000m E 4,160,000m N 4,161,000m N 4,162,000m N 4,161,000m N 4,160,000m N 287,000m E 288,000m E 289,000m E Figure 10-1 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Çanakli Drill Hole Locations May 2013

86 11 SAMPLE PREPARATION, ANALYSES AND SECURITY SAMPLE PREPARATION AMEC (2011) has a comprehensive section on sample preparation, analyses, and security which RPA has summarized below with the exception of Çanakli 2 quality assurance/quality control (QA/QC). QA/QC results for Çanakli 2 are reported for the first time. Three laboratories were used in the sample process stream, namely: AMR Isparta Undertook density and moisture content tests, and separated the sample material into fines, deslimed, and oversize fractions. Staffed by AMR personnel and not accredited. AMR Istanbul - Determination of the heavy mineral content, hand separation of three different magnetic fractions and dry screen analysis of the deslimed material. Staffed by AMR personnel and not accredited. ACME Analytical Laboratories Ltd. (ACME) in Vancouver, Canada Chemical analysis. Independent and ISO 9001:2008 accredited. In late 2007, pit and drill hole sampling procedures were standardized by AMR. In general, drilling was undertaken under the supervision of an AMR geologist with preliminary geological logging and core recovery recoded at site. Core was stored in one metre covered plastic core boxes and transported to AMR s laboratory in Isparta. The core was photographed in Isparta and logged in detail. One 15 cm sample per core box was subjected to a density and moisture content measurement. The core was quarter core sampled by a knife (builders trowel), with quarter core duplicates of the remaining core retained for inclusion in bulk sample composites. In situ material from Çanakli 1 was originally subjected to chemical analysis which was replaced by chemical analysis in different size and density fractions: Fines < 45 µm Deslimes > 45 µm, < 2 mm Heavy Mineral Concentrate > 2.97 g/cm 3, > 45 µm and < 2 mm. Test work on Çanakli 2 in 2012 has used a slightly lower bottom screen size of 25 µm; hence the Çanakli size and density fractions are: Technical Report NI May 16, 2013 Page 11-1

87 Fines < 25 µm Deslimes > 25 µm, < 2 mm Heavy Mineral Concentrate > 2.97 g/cm 3, > 25 µm and < 2 mm. Wet screening of the quarter core samples was done to split it into three separate size fractions (<45 µm or 25 µm; 45 µm to 2 mm or 25 mm to 2 mm; and > 2 mm). Samples were washed and disaggregated manually and passed through two sieves in sequence. Fines were collected by allowing the fine material to settle to the bottom of a large plastic bin overnight; most of the material settled out of suspension and it was considered that minimal loss of fines occurred. All samples were dried, weighed, and air freighted to AMR Istanbul for further processing. The Çanakli 1 samples were subjected to dry screen analysis of a 100 g sub-sample of the 45 µm to 2 mm size fraction through seven different sieve sizes (0.5 mm, 0.37 mm, 0.25 mm, 0.15 mm, 0.1 mm, mm, and 45 µm), undertaken by AMR Istanbul. Heavy liquid separation to produce a HMC was also undertaken by AMR Istanbul; a 100 g sub-sample of - 45 µm + 2 mm material was separated into light and heavy fractions using tetrabromethane (2.97 g/cm 3 density). Chemical analysis of the deslimed material, slimes (fines), and heavy mineral samples was performed by ACME. Sample preparation involved drying and pulverizing to 85% passing 200 mesh. The following analyses were obtained: ACME Group 4A analysis - Whole rock analysis (20 parameters, including loss on ignition at 1,000 C) was performed using Induced Coupled Plasma (ICP) emission spectrometry following a lithium metaborate/tetraborate fusion and dilute nitric acid digestion ACME Group 4B analysis - Total trace elements (45 elements) were determined using ICP mass spectrometry following a lithium metaborate/tetraborate fusion and dilute nitric acid digestion of a 0.1 g sample. In addition, a separate 0.5 g split was digested in Aqua Regia and analysed by ICP mass spectrometry to report precious and base metals (ACME Group 1DX 14 elements). Total carbon and sulphur were analysed using a Leco analyzer. QUALITY CONTROL/QUALITY ASSURANCE Quality assurance (QA) consists of evidence to demonstrate that the assay data has precision and accuracy within generally accepted limits for the sampling and analytical Technical Report NI May 16, 2013 Page 11-2

88 method(s) used in order to have confidence in the resource estimation. Quality control (QC) consists of procedures used to ensure that an adequate level of quality is maintained in the process of sampling, preparing and assaying the exploration drilling samples. In general, QA/QC programs are designed to prevent or detect contamination and allow analytical precision and accuracy to be quantified. In addition, a QA/QC program can disclose the overall sampling assaying variability of the sampling method itself. Accuracy is assessed by a review of assays of certified reference materials (CRM), and by check assaying at outside accredited laboratories. Assay precision is assessed by reprocessing duplicate samples from each stage of the analytical process from the primary stage of sample splitting, through sample preparation stages of crushing/splitting, pulverizing/splitting, and assaying. AMR QA/QC protocols consist of the regular insertion of blanks, duplicates, and multiple standards within each sample batch. Field duplicate samples are analyzed to determine the level of analytical and sampling sizing precision. Table 11-1 shows the number of Çanakli QC samples submitted to ACME, in Vancouver. No samples have been sent to other laboratories for check assaying. The precision levels are good for REE mineralization and the REE assays are accurate with no significant bias evident. Overall, RPA is of the opinion that the assay results are reliable and acceptable to support the current resource estimate. TABLE 11-1 ÇANAKLI QA/QC SUMMARY AMR Mineral Metal Inc. Aksu Diamas Blanks Duplicates Standards Failure Values outside No. Type No. Metals No. No. (%) 3SD (%) 43 4NA* Slimes 69 TRE Deslimes 69 TRE % HMC 64 TRE % Technical Report NI May 16, 2013 Page 11-3

89 No. TABLE 11-2 ÇANAKLI 2 QA/QC SUMMARY AMR Mineral Metal Inc. Aksu Diamas Project Blanks Duplicates Standards Failure Values outside Type No. Metals No. No. (%) 3SD (%) 43 U 79 Th 79 *see explanation on Blank sample results below During AMR s drilling campaigns at Çanakli 1 and 2, QA/QC samples have been inserted into the sample stream at the following intervals: ÇANAKLI Field duplicates (quarter core) - Approximately one in 10 original samples Analytical blanks (silica sand with a low iron content obtained from Fisher Scientific UK) Inserted at a rate of one per 50 heavy mineral samples by AMR. Iron analytical standards - Inserted at a rate of one per 50 heavy mineral samples by AMR at Çanakli 1. Thorium analytical standards - Inserted at a rate of one per 25 Çanakli 1 heavy mineral samples at ACME in 2009 and 2011 In 2011 only, a commercially-available REE analytical standard was obtained (OREAS146) and inserted at a rate of approximately 1 in 10. ÇANAKLI Field duplicates (quarter core) - Approximately one in 10 original samples Analytical blanks Inserted at a rate of one per drill hole. No blanks were inserted with samples from drill holes CN2DC02-1 and CN2DC02-2. Two analytical REE standards (OREAS100a, OREAS123) inserted at a rate of one each per drill hole. No analytical standards were inserted with samples from drill holes CN2DC02-1 and CN2DC Field duplicates (quarter core) - One field duplicate per original sample per drill hole Technical Report NI May 16, 2013 Page 11-4

90 Analytical blanks Two blank samples were inserted with samples from drill hole CN2DC02-11, no blanks were inserted with samples from drill hole CN2DC02-10 Two analytical REE standards (OREAS100a, OREAS123) inserted at a rate of one each per drill hole. No analytical standards were inserted with samples from drill holes CN2DC02-1 and CN2DC02-2. FIELD DUPLICATES Drill core (or field) duplicates help assess the natural local-scale grade variance or nugget effect and are also useful for detecting sample numbering mix-ups. Field duplicates help monitor the grade variability as a function of both sample homogeneity and laboratory error. In addition, field duplicates help monitor the homogeneity of the grain size distribution. RPA also reviewed moisture content and dry density results for duplicate pairs. RPA reviewed 69 duplicate pairs from Çanakli 1 and Çanakli 2: Results from deslime, slime and HM separation fractions were examined (Figures 11-1 to 11-4). RPA compared TRE15 assay results. Good correlation was observed for TRE15 analytical results, proportion of magnetite concentrate obtained and physical separation results (R 2 >0.92). One notable exception was the TRE15 analytical results for Çanakli 1, with an R2 value of 0.82, which is substantially lower than the R2 value of Çanakli 2 (Figure 11-1). In RPA s opinion, the duplicate results indicate that the chemical analytical procedures have good precision and are within acceptable limits. Technical Report NI May 16, 2013 Page 11-5

91 FIGURE 11-1 ÇANAKLI DESLIME DUPLICATE SAMPLES TRE15 ANALYSES FIGURE 11-2 ÇANAKLI HM DUPLICATE SAMPLES TRE15 ANALYSES Technical Report NI May 16, 2013 Page 11-6

92 FIGURE 11-3 ÇANAKLI DUPLICATE SAMPLE DESLIME PROPORTION FIGURE 11-4 ÇANAKLI DUPLICATE SAMPLE HM PROPORTION Technical Report NI May 16, 2013 Page 11-7

93 The Çanakli drill core moisture content and, as a consequence, density duplicates (not shown) show poor correlation (R2 values of 0.42 and 0.52 respectively, Figure 11-5). The moisture content variability is likely due to the introduction of drilling water, and RPA does not consider the variability to be within acceptable limits. Given the poor precision shown in the duplicate drill core samples and the large discrepancy between the values obtained from drill core versus surface pit measurements, RPA recommends that drill core moisture and density values not be used for resource estimation. FIGURE 11-5 ÇANAKLI DUPLICATE SAMPLE MOISTURE PERCENT In RPA s opinion, there is no systematic bias in the duplicate results, the chemical analyses and physical separation results have good precision and are within acceptable limits. BLANKS The regular submission of blank material is used to assess contamination during sample preparation and to identify sample numbering errors. The AMR QA/QC protocol called for blanks to be inserted in the sample stream at a rate of approximately 1 in 50 samples during the 2009 and 2011 drilling campaigns and at a rate of one per drill hole in 2012 and The blanks were inserted into the sample stream prior to Technical Report NI May 16, 2013 Page 11-8

94 shipment to the ACME laboratory in Vancouver. The blank material is a low iron silica sand sourced from Fisher Scientific UK. RPA received the results from 43 blank analyses, 28 from Çanakli 1 and 15 from Çanakli 2. An assay was considered as a failure if the TRE15 result was higher than the mean of the blanks plus two standard deviations. Using this cut-off, there was a single failure in Çanakli 2 (7%) and 2 failures in Çanakli 1 (7%) no blank failures (Figures 11-6 and 11-7). Examination of individual REE analyses reveals that the total failure rate is 11% at Çanakli 1 and 27% at Çanakli 2. Given that the material used is not a homogeneous certified analytical blank; the variation in REE is not known. In RPA s opinion, the results of the blanks are within acceptable limits and the data is suitable for resource estimation purposes. RPA recommends AMR obtain certified blank material to use in future drilling campaigns. FIGURE 11-6 BOX PLOT OF TRE15 ANALYSES OF BLANK SAMPLES Technical Report NI May 16, 2013 Page 11-9

95 FIGURE 11-7 HISTOGRAM OF TRE15 ANALYSES OF BLANK SAMPLES CERTIFIED REFERENCE MATERIAL (STANDARDS) Results of the regular submission of CRMs are used to monitor analytical accuracy and to identify potential problems with specific batches. In 2009 and 2011, AMR inserted iron and uranium CRM samples at a rate of one in 50 samples. In 2011, AMR obtained a commercially available REE CRM (OREAS146) and inserted the CRM at a rate of one per 25 samples (inserted at the assay laboratory). In 2012, AMR obtained two CRM uranium and thorium samples (OREAS100a and OREAS 123). The certificate of analysis for the CRMs included values for REEs within the range expected in the Çanakli deposit. RPA is of the opinion that the uranium and thorium CRM samples are more appropriate for monitoring laboratory analytical accuracy and identifying potential problems with samples submitted from the Çanakli deposit. In 2012 and 2012, AMR ceased using the CRMs from the 2009 and 2011 drilling programs (OREAS 146 was used in drill hole CN2DC02-3) and instead inserted OREAS100a and 123 at a rate of one each per drill hole. Although AMR failed to insert any CRMs with the samples submitted from drill holes CN2DC02-1, CN2DC02-2, the overall CRM insertion rate is adequate in RPA s view. Technical Report NI May 16, 2013 Page 11-10

96 The Çanakli drilling program employed standards FERCO01 FERCO02 and FERCO03; the 2011 Çanakli 1 program used FERCO-1, FERCO-2, FERCO-3 and OREAS146. The Çanakli 2 drilling program in 2012 used OREAS100A, OREAS123, and OREAS146 and the 2013 program used OREAS100A and OREAS123. Table 11-3 summarizes the CRMs used. TABLE 11-3 CRM SUMMARY AMR Mineral Metal Inc. Aksu Diamas Project Prospect Drill Program CRM Name No. CRM Inserted Metal(s) Çanakli FERCO-1 6 U, Th 2009 FERCO-2 6 U, Th 2009 FERCO-3 6 U, Th 2011 FERCO-1 8 U, Th 2011 FERCO-2 8 U, Th 2011 FERCO-3 7 U, Th 2011 OREAS REE, Th, U 2009 IRON 3 Fe 2 O IRON 16 Fe 2 O 3 Çanakli OREAS100A 8 REE, Th, U 2012 OREAS123 7 REE, Th, U 2012 OREAS146 4 REE, Th, U 2013 OREAS100A 2 REE, Th, U 2013 OREAS123 2 REE, Th, U AMEC reviewed the results of the 2009 and 2011 CRM results (AMEC, 2011) and found them within acceptable limits. RPA has only been able to obtain certificates of analyses for OREAS146, 100a and 123. RPA reviewed the analytical results from these CRMs only. Table 11-4 lists the recommended values for the standards acquired from Ore Research & Exploration (OREAs), Perth, Australia for TRE15, Th, and U. Certified Metal TABLE 11-4 EXPECTED VALUES AND RANGES OF OREAS CRMS AMR Mineral Metal Inc. Aksu Diamas Project OREAS 100a OREAS 123 OREAS 146 Certified Value Certified Value Certified Value 1 SD 1 SD (ppm by fusion) (ppm by fusion (ppm by fusion Ce , Dy Er Eu Gd SD Technical Report NI May 16, 2013 Page 11-11

97 Certified Metal OREAS 100a OREAS 123 OREAS 146 Certified Value Certified Value Certified Value 1 SD 1 SD (ppm by fusion) (ppm by fusion (ppm by fusion 1 SD Ho La , Lu Nd , Pr Sm Tb Tm Y Yb Th U TABLE 11-5 SUMMARY OF THE CRM RESULTS FOR Nd AND Dy AMR Mineral Metal Inc. Aksu Diamas Project Çanakli 1 OREAS146 Çanakli 2 OREAS146 Çanakli 2 OREAS123 Çanakli 2 OREAS100A Nd Dy Nd Dy Nd Dy Nd Dy No. Assays Minimum (g/t) 1,914 1,914 1, Maximum (g/t) 2,474 2,474 2, , Average (g/t) 2,128 2,128 2, CRM (g/t) 2, , SD (g/t) 1, , SD (g/t) 2, , No. values outside 3SD % outside 3SD 0% 0% 0% 0% 29% 17% 0% 0% Technical Report NI May 16, 2013 Page 11-12

98 TABLE 11-6 SUMMARY OF THE CRM RESULTS FOR TRE15 AMR Mineral Metal Inc. Aksu Diamas Project OREAS100a OREAS123 OREAS146 TRE15 (ppm) TRE15 (ppm) TRE15 (ppm) No. Assays Minimum (g/t) Maximum (g/t) 1, ,411 Average (g/t) ,596 CRM (g/t) 1, ,231-3SD (g/t) 1, , SD (g/t) 1, ,015 No. values outside 3SD % outside 3SD 0% 14% 0% In RPA s opinion, the REE CRM grades cover a reasonable range of grades with respect to the overall resource grade. Specific pass/fail criteria are determined from the standard deviations provided for each CRM. The conventional approach for setting standard acceptance limits is to use the mean assay ± two standard deviations as a warning limit and ± three standard deviations as a failure limit. Results falling outside of the ± three standard deviation failure limit must be investigated to determine the source of the erratic result, either analytical or clerical. The CRM results are discussed individually below. CRM OREAS146 The TRE15 control chart for Çanakli 1 and Çanakli 2 OREAS146 are shown in Figure Nd and Dy charts are not shown. The Nd and Dy sample values are reported within three standard deviations and show a fairly even distribution about the mean of the CRM indicating no analytical bias. However, TRE15 results tend to bias low. Technical Report NI May 16, 2013 Page 11-13

99 FIGURE 11-8 OREAS146 CONTROL CHART The TRE15 control chart for Çanakli 1 and Çanakli 2 OREAS146 are shown in Figure ND and Dy charts are not shown. The Nd and Dy sample values are reported within three standard deviations and show a fairly even distribution about the mean of the CRM indicating no analytical bias. However, TRE15 results tend to bias low. OREAS123 Two Nd and one Dy samples fell outside of established control limits for OREAS123. One TRE15 sample also fell outside of control limits and the analyses show a low bias. The TRE15 control chart for OREAS123 is shown in Figure Two Nd and one Dy samples are classified as failures because they assay outside three standard deviations of the CRM value. Four separate batches have one failure each. Given the very low grade of the CRM, RPA considers these results acceptable. Technical Report NI May 16, 2013 Page 11-14

100 FIGURE 11-9 OREAS123 CONTROL CHART CRM OREAS100A All of the Nd and Dy sample values are reported within three standard deviations and both Nd and Dy values show a fairly even distribution about the mean of the CRM indicating no analytical bias. The TRE15 sample control chart is shown in Figure and no failures are reported. Technical Report NI May 16, 2013 Page 11-15

101 FIGURE OREAS100A CONTROL CHART RPA OPINION In summary, the precision levels are good for REE mineralization and the REE assays are accurate. RPA has observed a low bias in the TRE15 results from all CRM samples and recommends that AMR investigate to determine whether the laboratory is understating TRE15 analyses. Overall, RPA is of the opinion that the assay results are reliable and acceptable to support the current resource estimate. Given the diverse spectrum of metals and minerals of economic interest, RPA recommends that AMR develop a custom reference material for Çanakli that is certified for REE, Zr, Ti, U and Th. RPA also recommends that a field standard of known magnetite concentration be prepared. EXTERNAL CHECK ASSAYS No external check assays were undertaken by AMR. Technical Report NI May 16, 2013 Page 11-16

102 12 DATA VERIFICATION VERIFICATION SAMPLING RPA took eight independent samples in April 2011 from four prospects (including Çanakli 1, Çobanisa, Kurucaova, and Kuzca). All samples were surface samples, with the exception of Çanakli 1 where samples were obtained from the trial mining excavation. The samples were assayed by SGS Mineral Services (Toronto) (SGS Toronto), conforming to ISO/IEC and are accredited with the Standards Council of Canada. SGS Toronto dried the three kilogram samples at 60 o C, dry soil screened the sample to -80 mesh (180 µm) with 0.1 g analyzed by inductively coupled plasma (ICP) (analytical package ICP95A ICP-OES) after LiBO 3 fusion and for trace element by lithium metaborate fusion (analytical package IMS95A). One duplicate was prepared and analyzed by the laboratory. The independent sample results are summarized in Table TABLE 12-1 RPA INDEPENDENT SAMPLING RESULTS AMR Mineral Metal Inc. Aksu Diamas Project Sample Name Weight (kg) Dy (ppm) Nd (ppm) TRE15 (ppm) Prospect Sample Location Çanakli 1 Quarry wall, 1m below surface RPA-AMR Çanakli 1 Quarry wall, 5m below surface RPA-AMR Cobanisa southern end RPA , Cobanisa northern end RPA Kurucaova southern end RPA Kurucaova northern end RPA Kuzca 1 western end RPA Kuzca 2 alluvial enrichment, eastern end RPA Duplicate of RPA-8 REP-RPA Overall, RPA is of the opinion that the assay results of the independent samples confirm mineralization at the Aksu Diamas REE Project, and are acceptable to support the current estimate of Inferred Resources. Technical Report NI May 16, 2013 Page 12-1

103 DATABASE COMPILATION AND VALIDATION The evaluation database used in preparation of the Çanakli mineral resource estimate was compiled by RPA using scans of original paper records (PDF files) or copied from digital files provided by AMR. All analytical data and laboratory certificates were sent to RPA by ACME laboratories for entry in the resource database. Results of regional exploration samples taken by AMR have not been incorporated into the resource database by RPA. RPA COMMENT Based on the observations made during the site visit in April of 2012, it is RPA s opinion that the exploration model is reasonable and sampling techniques employed are suitable for an Inferred Mineral Resource estimate. RPA is satisfied after reviewing the sampling and analytical QA/QC data that uncertainty is within acceptable levels to support an Inferred Mineral Resource. Echoing AMEC s observation in the 2011 Technical Report (AMEC, 2011), RPA has identified the moisture and density measurements obtained from drill core samples to be inaccurate. RPA recommends that AMR use moisture and density values obtained from surface pits, where a known volume of material is excavated and analyzed. How to obtain accurate density and moisture measurements below surface should be investigated by AMR. RPA compiled and verified the database used for resource estimation and corrected errors. RPA believes the database accurately reflects the original data provided by AMR in digital and scanned hardcopy format. RPA is satisfied that the database is adequate to support the current Inferred Resource estimate at Çanakli. RPA strongly recommends that AMR investigate options to consolidate field, analytical and QA/QC data and observations into a relational database. In order to progress the project and upgrade resources to Indicated and Measured status, AMR must implement a computerized collection, storage, retrieval, analysis and display system to manage project data and allow all information used in the estimation of the mineral resource to be extracted and verified directly from the database management system. Technical Report NI May 16, 2013 Page 12-2

104 13 MINERAL PROCESSING AND METALLURGICAL TESTING GENERAL Over the past several years, numerous studies have been commissioned by AMR to investigate the feasibility of extracting REE-bearing minerals and other related co-products, such as titanium, zirconium, and potentially gallium and niobium, from the Aksu Diamas Project area. Specifically, studies have focused mainly on the Çanakli 1 deposit. completed studies include the following: The QEMSCAN analyses performed by Intellection Pty (Intellection), of Australia, in March 2008 on HMCs from the Kuyubaşi deposit. QEMSCAN analyses performed by SGS Lakefield Oretest (Brisbane) on samples from the Çanakli deposit in December Metallurgical characterization of a 50 kg sample from the Çanakli deposit performed by Downer EDI (Australia) in January The sample was a composite of material obtained from six pits. Additional metallurgical characterization of the 50 kg sample from the Çanakli deposit performed by Downer EDI (Australia) in May The sample tested was a composite of material obtained from six pits. Construction and commissioning of a gravity-magnetic separation demonstration plant at Çanakli during 2010 and early 2011, with the production of HMCs for test marketing of magnetite and further optimization of recovery of REE and related coproducts by gravity concentration. The studies included results from ACME and internal AMR test conditions and results. Flotation testing of the gravity concentrate studies completed at the Izmir Advanced Technology Institute s (IYTE) laboratories in Turkey in February The objective of the studies was to assess the feasibility of upgrading the HMC and recovering additional REEs and other related co-products from the fine fraction. Testwork on a REE composite sample completed by SGS Canada Inc. (SGS) in August The testwork included mineralogy; fractional analysis; and Wilfley table, heavy liquid, and flotation tests. Hydrometallurgical studies on processing of AMR ore preconcentrate completed by SGS Lakefield, Star Earth Minerals Private Ltd. (SE Minerals), and the Çekmece Nuclear Research and Training Center in August Technical Report NI May 16, 2013 Page 13-1

105 Other studies and analyses performed at academic institutions and equipment vendors. CMS reviewed the studies, and presents summaries of the main results in the following sections. QEMSCAN ANALYSES KUYUBAŞI HMCs Two separate samples containing the non-magnetic and weakly magnetic fractions of the plus 3.3 g/cm 3 (methylene iodide, CH 2 I 2 ) HMCs obtained from samples from the Kuyubaşi deposit were sent to Intellection for analysis in March A summary of the results of the Intellection 2008 study is given below. MINERAL ABUNDANCE The relative heavy mineral abundance according to magnetic properties is shown in Table TABLE 13-1 RELATIVE PROPORTIONS OF HEAVY MINERALS IN DIFFERENT MAGNETIC FRACTIONS AMR Mineral Metal Inc. Aksu Diamas Project Mineral/Phase KINM Non-Magnetic Mass % K1WM Weakly Magnetic Mass% Zircon Ilmenite Sphene Garnet Pyroxenes Amphiboles Thorite Apatite Quartz K-feldspar Fe Oxides/Hydroxides Chevkinite Allanite Uranothorite Source: Intellection, 2008 Technical Report NI May 16, 2013 Page 13-2

106 ELEMENTAL DEPORTMENT Thorium: In sample K1NM, the thorium (1.51 mass %) reported almost entirely to thorite with trace amounts to uranothorite. In sample K1WM, the thorium (0.31 mass %) reported within allanite and chevkinite. Uranium: The uranium reported entirely to uranothorite in sample K1NM. Lanthanum: The lanthanum largely reported to sample K1WM (1.1 mass %) within chevkinite and allanite. In sample K1NM, the lanthanum was contained in trace amounts of chevkinite and allanite locked grains. Cerium: The cerium predominantly reported to sample K1WM (1.3 mass %) in chevkinite and allanite. In sample K1NM, it was present in trace amounts of chevkinite and allanite locked grains. Neodymium: Neodymium almost entirely reported in sphene in sample K1NM (0.25 mass %). In sample K1WM, 0.09 mass % of neodymium was distributed in sphene and chevkinite. ÇANAKLI MINERAL CONCENTRATES The metallurgical characterization work done by Downer EDI (Australia) included additional QEMSCAN analyses of HMCs from the Çanakli deposit (Downer EDI, 2009a and b). The results of these studies are summarized below. Three heavy sand magnetic fractions were supplied by Downer EDI Mining in November The Downer EDI samples were analyzed by QEMSCAN at SGS Mineral Services to characterize the mineralogy of the samples. MINERAL ABUNDANCE The relative heavy mineral abundance according to magnetic properties is shown in Table The non-magnetic and weakly magnetic mass (samples A4002 and A4003) size fraction for this test was -500/+45 µm. The slimes size fraction for this test was -45 µm. Technical Report NI May 16, 2013 Page 13-3

107 TABLE 13-2 RELATIVE PROPORTIONS OF HEAVY MINERALS IN DIFFERENT MAGNETIC FRACTIONS AMR Mineral Metal Inc. Aksu Diamas Project Mineral/Phase A4003 Non-Magnetic Mass % A4002 Weakly Magnetic Mass % A4004 Slime Mass % Zircon Ilmenite Sphene Garnet Pyroxenes Amphiboles Thorite/Uranothorite Apatite Quartz K-feldspar/Micas 1.9/ / /36.06 Fe Oxides/Hydroxides Chevkinite Allanite ELEMENTAL DEPORTMENT Thorium: In sample A4003 and 4003, the thorium reported almost entirely to chevkinite with trace amounts to thorite/uranothorite. In sample A4002, the thorium reported within thorite/uranothorite with traces to chevkinite. Uranium: The uranium entirely reported to uranothorite. Lanthanum: Approximately 50% of the lanthanum reported to sphene in samples A4004 and A4002, with the rest of the lanthanum split between chevkinite and allanite. In sample A4003, the lanthanum was contained almost entirely in sphene, with traces locked in chevkinite and allanite grains. Cerium: The cerium predominantly reported to sphene with trace amounts in chevkinite and allanite in all samples. Neodymium: Neodymium almost entirely reported in sphene, with trace amounts distributed in chevkinite and allanite. LIBERATION OF MINERALS OF INTEREST A liberation review of the minerals of interest (chevkinite, allanite, and sphene) was completed based on different size fractions. Figures 13-1, 13-2, and 13-3 show results of the liberation tests on the material from the deposit: Chevkinite: In the size fraction of -500/+45 µm for samples A4002 and A4003, a significant portion of the chevkinite is liberated. In the slime fractions of sample A4004, only approximately 50% of the chevkinite is liberated. Technical Report NI May 16, 2013 Page 13-4

108 Allanite: In almost all size fractions in all samples, allanite liberation is better than 80%. The slime sample is slightly less liberated. Sphene: In almost all size fractions in all samples, sphene liberation is better than 95%. The slime sample shows only slightly less liberation. The QEMSCAN analysis indicates that almost all of the REE minerals appear to be associated with chevkinite, allanite, and sphene. Thorite was found to be associated with uranothorite and chevkinite in various amounts in all samples. Technical Report NI May 16, 2013 Page 13-5

109 Mass Chevkinite % in Fraction Liberation of Chevkinite <= 20% <= 50% <= 80% <= 95% < 100% 100% 0 A/4002 A/4003 A/4004 Fraction May 2013 Source: Modified after SGS Lakefield Oretest Report Figure 13-1 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Qemscan Results Liberation Testing Chevkinite

110 Mass Allanite % in Fraction Liberation of Allanite <= 20% <= 50% <= 80% <= 95% < 100% 100% 0 A/4002 A/4003 A/4004 Fraction Allanite: In almost all size fractions in all samples, the Allanite is better than 80% liberated. The slime sample is less liberated. Figure 13-2 May 2013 Source: Modified after SGS Lakefield Oretest Report AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Qemscan Results Liberation Testing Allanite

111 Mass Sphene % in Fraction Liberation of Sphene <= 20% <= 50% <= 80% <= 95% < 100% 100% 0 A/4002 A/4003 A/4004 Fraction Sphene: In almost all size fractions in all samples, the Sphene is better than 95% liberated. The slime sample shows only slightly less liberation. Figure 13-3 May 2013 Source: Modified after SGS Lakefield Oretest Report AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Qemscan Results Liberation Testing Sphene

112 GRAVITY/MAGNETIC SEPARATION TESTWORK Two separate studies were performed by Downer EDI: 1. Metallurgical characterization study on a 50 kg sample from Çanakli completed in December 2008 and January 2009 (Downer EDI, 2009a). 2. Additional testwork on the same sample material carried out in the first half of 2009 (Downer EDI, 2009b). This work was focused on production of a thorium concentrate, and as the results are not relevant to the current objectives, they are not discussed in this Technical Report. The 50 kg sample used for the January 2009 study was obtained from six different pits (P05, P08, P09, P10, P12, and P15), with the amounts of material being equally distributed in order to provide a representative sample. The sample material was wet and dry screened into -2 mm +45 μm and -45 μm fractions, with subsequent density and electrostatic fractionation as well as sub-sieve size analysis. Based on the results presented in Downer EDI, 2009a, the conclusions are as follows: Following intensive low energy scrubbing to disperse clay fines, the received sample had the following particle size characteristics: o o o 44% of the sample was finer than 45 µm. 70% of the -45 µm fraction (30% of the total sample) was finer than approximately 10 µm. Contained valuables below 10 µm are considered to be unrecoverable using conventional separation methods. 3.2% of the sample was coarser than 2.0 mm (the +2 mm fraction contained a small quantity of residual clay balls). 53% of the sample was sand material sized between 2.0 mm and 45 µm. The d50 of the fraction was calculated to be 196 µm. The concentrations of ZrO 2, TiO 2, and Fe 2 O 3 in the received sample were 0.09%, 0.9% and 7.5% respectively. The concentrations of U and Th were 12 ppm and 52 ppm respectively, and the concentrations of REE were 418 ppm (Ce), 222 ppm (La), 44 ppm (Y), and 144 ppm (Nd). Assay analysis by size distribution indicated that the concentration of REE was relatively even throughout the full particle size range. The heavy mineral (HM, particle with specific gravity >2.85 g/cm 3 ) content of the prepared sand (-2.0 mm +45 µm) fraction was 12.5%. This fraction contained 47%, 34%, and 39% respectively of the ZrO 2, TiO 2, and Fe 2 O 3 from the feed, and between 21% and 37% of the individual REEs, as indicated in Table Approximately 50% of the REE and other related co-products were contained in fines (-45 µm) material. Tables 13-3 and 13-4 summarize the assay grades and distributions for the received sample processed through the preparation stages to produce HMCs. The calculated Technical Report NI May 16, 2013 Page 13-9

113 distributions and head assays vary slightly when calculated on an end stream only basis compared with stage by stage calculation. TABLE 13-3 DOWNER EDI TESTWORK, PHASE 1: ASSAY GRADES FOR DIFFERENT SIZE FRACTIONS AMR Mineral Metal Inc. Aksu Diamas Project XRF Assay (% for oxides, ppm for REE and single elements) Size Stage Stream % Mass ZrO 2 TiO 2 Fe 2O 3 U Th Ce La Y Nd -45 µm Feed prep Fines mm Feed Prep Oversize mm +45 µm HLS <2.85 SG (gangue) mm +45 µm HLS HMC (>2.85 SG) mm -2mm +45 µm HLS HMC (>2.85 SG) mm Total Measure Feed Modified after Downer EDI, 2009a TABLE 13-4 DOWNER EDI TESTWORK, PHASE 1: DISTRIBUTION OF OXIDES AND METALS IN DIFFERENT SIZE FRACTIONS AMR Mineral Metal Inc. Aksu Diamas Project XRF Assay (% for oxides, ppm for REE and single elements) Size Stage Stream % Mass ZrO 2 TiO 2 Fe 2O 3 U Th Ce La Y Nd -45 µm Feed prep Fines mm Feed Prep Oversize mm +45 µm HLS <2.85 SG (gangue) mm +45 µm HLS HMC (>2.85 SG) mm -2mm +45 µm HLS HMC (>2.85 SG) mm Total Modified after Downer EDI, 2009a An assay by density profile of the HM fraction indicated that the REEs are predominantly contained within minerals in the intermediate specific gravity (SG) range between 2.85 and This suggests that gravity separation methods are not well suited to producing high grade REE concentrates. Although the SG of allanite is 3.75, the other REE minerals have high SG values. Concentration of REE in the intermediate density range is mostly attributable to liberation characteristics of the REE minerals. Technical Report NI May 16, 2013 Page 13-10

114 Magnetic fractionation of the HM indicated that allanite and chevkinite were concentrated in magnetic fractions while uranothorite was concentrated into the nonmagnetic fraction. High concentrations of sphene were also contained in the nonmagnetic fraction. The sphene contained low levels of Ce, La, and Nd. ZrO 2 was predominantly recovered to the non-magnetic fraction. Electrostatic fractionation of HM resulted in elevated levels of REE contained in secondary conductor streams and the higher concentration in the non-conductor fraction. The primary conductor stream consisted predominantly of iron oxides and contained low REE levels. The strongly magnetic fraction contained 90% Fe 2 O 3 and 5% TiO 2. The levels of SiO 2 and Al 2 O 3 were both 2.2%. This fraction represents the magnetite concentrate, which has since been shown to be a marketable product suitable for coal washing. The results presented in Table 13-4 show recoveries of 25% to 37% of REEs into the HMC. Downer EDI concluded that the minimum acceptable grade and recovery would depend on the overall economics of the operation. ÇANAKLI DEMONSTRATION PLANT A summary of the demonstration plant program is as follows: Test production at a gravity/magnetic separation plant of 100 tph capacity began in November The plant has recovered magnetite and HMC. Magnetite has been test marketed and found to be suitable for coal washing plants in Turkey and other countries. The magnetite can also be sold as 65% iron ore to potential steel mills. An HMC product of the demonstration plant has been sent to India for pyro- and hydro-metallurgical testing. Test runs in the Çanakli demonstration plant were still ongoing at the date of this report. A generalized flowsheet for the Çanakli demonstration plant is presented in Figure Technical Report NI May 16, 2013 Page 13-11

115 ROM FEED 100 tph (TREO) COARSE +710µm SIZE SEPARATION (Screens & Hydrocyclones) -710µm +25µm FINES -25µm GRAVITY SEPARATION (Spirals) LIGHT MINERALS WET LOW INTENSITY MAGNETIC SEPARATOR HM CONCENTRATE PRODUCT: MAGNETITE GRAVITY SEPARATION (Shaking Tables) MIDDLINGS HM CONCENTRATE Figure 13-4 May 2013 Source: Izmar Institute of Technology, AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Çanakli Demonstration Plant Flowsheet 13-12

116 May 2013 Figure 13-5 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Gravity/Magnetic Demonstration Plant

117 The following is an excerpt from the AMEC October 2011 NI Report: The pilot plant facility at Çanakli was inspected by AMEC during the site visit made on 5 th and 6 th April 2011, first in an empty condition then through start-up and steady state operation. Start-up was relatively smooth and reasonably steady feed to the spirals was achieved within 30 minutes. Subsequent inspection of the oversize rejects from the primary screens revealed the presence of mud balls, indicating incomplete dispersion, and the persistent slime generation prevented visual observation of the spiral cuts, but overall the facility performed satisfactorily. The magnetic fraction was removed and the remaining gravity concentrate was stacked for a tabling test the following day. Results from initial pilot test runs provided by AMR (as summarized in Figure 13-4) indicate the following: 3% to 5% or the mm fraction of the feed is coarse reject material. 48% or the -25 µm fraction of the feed is slime reject material. The remaining 49% of the feed is fed to the gravity/magnetic separation circuit. 3.5% of the total material reports to the bulk REO concentrate after magnetite removal. Only 0.03% REO is in the magnetite product. 1.3% of the total material which contains 2.17% TREO is in the final HM Product. Testwork conducted by Mineral Technologies of Nerang, Australia, identified a more detailed flowsheet to improve the final concentrate and further minimize loss of TREO and other valuable minerals. Two plant sizes were developed, 150 tph and 2,000 tph. Figure 13-6 is the Mineral Technologies gravity/magnetic flowsheet. The REE balance provided by AMR is based on chemical analyses of samples from the different process streams. The demonstration plant will also be of considerable value for generating bulk samples for further testing of downstream processes. In particular, this includes: Selective froth flotation to maximize the REO (and possibly other payable metals, including scandium, titanium, zirconium, niobium, and thorium) content of concentrate for metallurgical processing. Bulk samples for pilot testing of pyro- and hydro-metallurgical extraction technologies. Material for large scale testing of dewatering technologies for waste materials may be generated by the demonstration plant. Technical Report NI May 16, 2013 Page 13-14

118 ROM Undersize Overflow Fines to Tailings Dam Field Coarse Fine 100 Screen Cyclones Cyclones Oversize Underflow Underflow Spiral Tailings 27 Coarse Spiral Circuit: 3 Stage, HC1RS and VHG Spirals Fine Spiral Circuit: 4 Stage, Fm1 Spirals Spiral Tailings 19 Magnetite Product UMS Spiral Concentrate HMS Non-Magnetics 1.1 UMS Magnetite Product 0.2 Non-Valuable HM Tailings 0.7 Non-Mag Spiral / Table Circuit Non-Mag Spiral / Table Circuit Non-Valuable HM Tailings HM / REO Concentrate 0.6 Figure 13-6 May 2013 Source: AMR Minerals Metals Inc., AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Mineral Technologies Gravity/ Magnetic Flowsheet 13-15

119 FLOTATION TESTWORK IZMIR ADVANCED TECHNOLOGY INSTITUTE Flotation tests were conducted at Izmir Advanced Technology Institute s (IYTE) mineral processing and chemistry laboratories in Turkey under the supervision of Professor Mehmet Polat through February 2012 (IYTE, 2012). Tests were conducted on samples from the in situ material, gravity concentrate sample from shaking tables, and tailings (slimes) stream. Flotation tests were mostly performed on the gravity concentrate for determining suitable flotation conditions in order to increase the REO content of the gravity concentrate material. Chemical and mineralogical testing was completed on the material to include zeta potential testing. Based on chemical, mineralogical, and zeta potential review, the following comments and concerns were identified: The mineral assemblages under X-ray diffraction (XRD), X-ray fluorescence (XRF), and energy dispersive X-ray spectroscopy (EDX) show good correlation to previous testwork and samples completed within the testing phase. Zeta potential data suggests that electrostatic (surface) attachment of surfactants will not be enough to selectively separate the oxide minerals from each other. Pyroxene and amphibole surfaces may have to be modified by use of depressants to prevent them from floating with the valuable minerals of chevkinite/allanite and titanite. FLOTATION TESTING Most of the flotation testing was completed on gravity concentrate samples. Flotation tests were designed to determine the best flotation and chemical addition procedure for selective flotation of the valuable mineral species. Typically, the samples were ground to a D90 of 160 µm from a sample size of approximately 400 µm using a Fritsch Pulverizette Rotating Cup Mill with 175 g sample in 50 ml water. Grinding time varied depending on desired fineness of the flotation sample. The flotation tests basically consisted of grinding, high shear mixing/dispersion, and desliming steps prior to flotation. Flotation consisted of conditioning in the presence of modifiers/depressants, conditioning in the presence of collectors, depressants and a frother, and subsequent froth removal. General conditions applicable to all flotation tests (unless otherwise stated) are as follows: Technical Report NI May 16, 2013 Page 13-16

120 Flotation Machine: Denver Impeller Speed: 1,000 RPM Pulp volume: 1 L Solids: 10% by weight Dispersants: Varied Dispersant Conditioning: 10 minutes (in a mixer) Desliming: ~ 10 µm Depressants: Varied Depressant Conditioning: three minutes ph: Varied (with H 2 SO 4 or NaOH) Collector: Varied Collector Conditioning: three minutes Frother: MIBC Frother Conditioning: one minute Flotation: three minutes Collectors specific to REO flotation from CYTEC and CLARIANT were used. Depressants such as citric, lactic, oxalic, and silicic acids in addition to sodium silicate and sodium sulphide were used in the various tests. Frother used was MIBC (methyl isobutyl carbinol). RESULTS Flotation tests were carried out with the gravity concentrates from AMR Madencilik Çanakli Gravity Demonstration Plant in order to improve the REO assay of this material. The particle size used in the flotation tests was mostly 90% passing 160 μm and was obtained by mild grinding. In some tests, a feed material with 90% passing 75 μm was also used. The slimes were removed after grinding prior to flotation and the feed to the flotation tests was mixed under high shear in the presence of dispersants to eliminate slime coating. Eighty-five flotation tests were completed using various depressants and collector mixtures from CLARIANT and CYTEC under different flotation conditions. The results of the best tests with three different concentrates are shown in Table Technical Report NI May 16, 2013 Page 13-17

121 TABLE 13-5 FLOTATION RESULTS OF THE BEST TESTS WITH THREE DIFFERENT CONCENTRATES AMR Mineral Metal Inc. Aksu Diamas Project Oxides Total REO Total Oxides Feed SK1 Conc. C F28 REO Assays (%) Conc. Feed C F42 MK1 Conc. C F84 Feed MK1a Test C F The initial flotation tests were developed using SK1 Gravity Concentrate Feed, a grind of 160 µm, and a total REO grade of approximately 0.85%. Tests C-F28 and C-F42 had ultimately the best recoveries as identified in Table The results of C-F28 and C-F42 are shown in Figures 13-7 and Further flotation tests were developed using MK1 and MK1A Gravity Concentrate Feed, a grind of 90 µm, and a total REO grade of approximately 0.99%. Tests C-F84 (MK1 feed) and C-F83 (MK1A feed) had ultimately the best recoveries. The results of C-F84 and C-F83 are shown in Figures 13-9 and FIGURE 13-7 TEST RESULTS FOR TEST C-F28 Source: Izmir Institute of Technology, 2012 Technical Report NI May 16, 2013 Page 13-18

122 FIGURE 13-8 TEST RESULTS FOR TEST C-F42 Source: Izmir Institute of Technology, 2012 FIGURE 13-9 TEST RESULTS FOR TEST C-F84 Source: Izmir Institute of Technology, 2012 FIGURE TEST RESULTS FOR TEST C-F83 Source: Izmir Institute of Technology, 2012 Technical Report NI May 16, 2013 Page 13-19

123 Results of the AMR testing indicate that significant upgrading of the REE and other related co-products can be achieved with standard flotation. SGS TESTWORK In August 2012, SGS completed testing of a REE composite sample (SGS, 2012a). This investigation reviewed the following: Head assay and mineralogy Fractional analysis Wilfley table testing Heavy liquid testing Flotation testing SGS s observations were as follows: Mineralogy The REE minerals and other related co-products were well liberated. Carbonate REE minerals in the composite sample were negligible. Mineralogy grade/recovery curves point toward the potential of high upgrading. Gravity Separation Large portion of the composite, over 83%, is composed of heavy minerals with a density over 3.1 g/cm 3. Only 15.6% of the mass has a density lower than 2.7 g/cm 3. Most of this mass fraction is expected to be quartz. Upgrading by rejecting was limited in the heavy liquid and Wilfley gravity tests. Flotation Twenty-seven tests were completed using different variations of flotation from the original AMR testing. Test F15 provided the best results using a rougher flotation only scenario. Cleaning tests show very little upgrade or mass reduction. Technical Report NI May 16, 2013 Page 13-20

124 Possible to reject up to 60% of the original mass and achieve a REE upgrading of 2.2 with a TREO grade of 3.4%. Flotation recoveries approach 90% of the TREO. Most of the zircon and significant amounts of the hematite and titanite reported to the concentrate. Table 13-6 shows the assay percent results of Test F15. TABLE 13-6 ASSAY % TEST RESULTS FOR TEST F15 AMR Mineral Metal Inc. Aksu Diamas Project Source: SGS, 2012 Table 13-7 shows the distribution percent results for Test F15. TABLE 13-7 DISTRIBUTION % TEST RESULTS FOR TEST F15 AMR Mineral Metal Inc. Aksu Diamas Project Source: SGS, 2012 SGS FLOTATION FLOWSHEET Figure shows the flotation test circuit used for testing Çanakli gravity concentrate. Technical Report NI May 16, 2013 Page 13-21

125 Sample as Received Stage Grinding with Closing Size of 30mm Citric Acid 800g/t Lactic Acid 800g/t Oxalic Acid 800g/t 5 min Conditioning Flotinor Collectors 400g/t Aero g/t 5 min Conditioning REE Rougher Conditioner 1 REE 1st Rougher Scavenger Flotinor Collectors 400g/t Aero g/t 5 min Conditioning Conditioner 2 Flotinor Collectors 400g/t Aero g/t 5 min Conditioning REE 2nd Rougher Scavenger 3 4 May 2013 Product Legend: REE Rougher Concentrate REE 1st Rougher Scavenger Concentrate REE 2nd Rougher Scavenger Concentrate REE Rougher Scavenger Tails Source: Modified after SGS Lakefield Oretest Report. Figure AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey SGS Flowsheet for Testing Çanakli Gravity Concentrate 13-22

126 SGS CONCLUSIONS Using flotation separation, it is possible to achieve a bulk REE and other related coproduct concentrate with a grade of 3.4% TREO and recovery of 87%, with a mass pull of approximately 49%. Ti and Zr recoveries of the bulk REE concentrate were 83% and 99%, respectively. Scandium recovery in the bulk flotation product ranged from 50% to 60%. Further flotation optimization may eliminate some of the reagents or collectors that may not play an important role in flotation. The effect of desliming ahead of flotation should be reviewed. The effects of cleaner testing should be reviewed with the objective to maintain high recovery and reject gangue minerals. PYRO- AND HYDRO-METALLURGICAL TESTWORK SCOPE OF WORK A metallurgical test program was started in January 2011 with SE Minerals in India, SGS Lakefield in Canada, and Çekmece Nuclear Research and Training Center (CNRTC) in Turkey for pyro- and hydro-metallurgical studies on a sample of the gravity/magnetic separation concentrate from the Çanakli demonstration plant. Testwork included the following: Laboratory scale studies Pilot scale studies Studies to design a continuous pilot scale metallurgical plant For the program, the following samples were sent to the different testing facilities: SGS Lakefield 1.4% TREO concentrate (AMR Ore Preconcentrate, AOP-I) SE Minerals 2.2% TREO concentrate (AOP-II) CNRTC 2.2% TREO concentrate (AOP-II) The laboratories performed the following work: Characterized the sample (size distributions, assay, etc.), completed batch leach tests with various components to evaluate amenability and leachability, and began optimization of processing conditions. Solid/liquid separation tests were included. Technical Report NI May 16, 2013 Page 13-23

127 Completed testing using different acids as the reagent as a comparison. Leach solutions were retained for laboratory scale batch solvent extraction tests, which began the characterization of the chemical separation steps required. Depending on the results of the laboratory program, a piloting program was proposed as well. The details of this program are dependent on the initial test results. SAMPLED MATERIALS The sample transmitted to SE Minerals has the general characteristics summarized in Tables 13-8 and TABLE 13-8 CHEMICAL ANALYSES FOR SHAKING TABLE CONCENTRATE SENT TO SE MINERALS TESTWORK AMR Mineral Metal Inc. Aksu Diamas Project Analyte Unit Grade Analyte Unit Grade SiO 2 % Y ppm Al 2 O 3 % 6.72 La ppm 5,247.9 Fe 2 O 3 % Ce ppm 8,514.7 MgO % 2.85 Pr ppm CaO % Nd ppm 2,674.8 Na 2 O % 1.12 Sm ppm K 2 O % 1.42 Eu ppm 56.2 TiO 2 % 8.02 Gd ppm P 2 O 5 % 1.73 Tb ppm 20.1 MnO % 0.3 Dy ppm 95.5 Cr 2 O 3 % Ho ppm 19.2 Ni ppm 55 Er ppm 62.7 Sc ppm 18 Tm ppm 9.7 LOI % 0.5 Yb ppm 75.6 Sum % Lu ppm 14.8 Ba ppm 964 TOT/C % 0.02 Be ppm 6 TOT/S % 0.03 Co ppm 41.2 Mo ppm 12.1 Cs ppm 0.8 Cu ppm 13.7 Ga ppm 16.4 Pb ppm 10 Hf ppm 1,007.8 Zn ppm 63 Nb ppm Ni ppm 17.4 Rb ppm 34.5 As ppm 6 Sn ppm 44 Cd ppm 0.1 Sr ppm 1,547.8 Sb ppm 1.2 Ta ppm 65.7 Bi ppm 0.2 Th ppm 1,903.3 Ag ppm <0.1 Technical Report NI May 16, 2013 Page 13-24

128 Analyte Unit Grade Analyte Unit Grade U ppm Au ppb <0.5 V ppm 514 Hg ppm <0.01 W ppm 17.1 Tl ppm <0.1 Zr ppm >50,000 Se ppm <0.5 Note: Single Sample Analyzed by ACME, Vancouver, Canada TABLE 13-9 MINERALOGY OF THE GRAVITY CONCENTRATE SENT TO SE MINERALS FOR TESTWORK AMR Mineral Metal Inc. Aksu Diamas Project Component Element, Wt. % Oxide, Wt. % Mineral Minerals, Wt. % Rare Earths Allanite-Chevkinite 4-5 Zircon Zircon 20 Titanium 8.02 Titanite 20 Thorium Thorite 0.3 Niobium Betafite 0.3 Uranium Betafite-Uranothorite 0.3 Hafnium Zircon 20 Iron Oxide Source: AMR, 2011 REE AND OTHER RELATED CO-PRODUCT RECOVERY RESULTS General REE and other related co-product recovery results were reported in Uzman (2012). The results are summarized below. MINERAL CRACKING The results of the mineral cracking testwork are as follows: Direct acid leaching tests using several acids (HCl, HNO 3, HF, and H 2 SO 4 ) were unsuccessful, both at room temperature and elevated temperatures. Typically, results showed low recovery (<45%) and high acid consumptions. Direct acid baking/roast used concentrated sulphuric acid baking/roasting of the mixture at approximately 280ºC for four hours. Water leaching of the baked/roasted material resulted in TREE and Ti recoveries in the 65% to 85% range with lower recoveries for Zr, Th, and U. Acid consumption was approximately 835 kg H 2 SO 4 per tonne. Similar results were obtained for both AOP I and II. Caustic cracking results obtained from fusion of the mineral concentrate with NaOH at 600 C have demonstrated that the refractory mineral matrix has been broken down using this approach. H 2 SO 4 leaching of the fusion or frit material was found to be ineffective with recovery rates for TREEs, Zr, and Ti less than 45%. H 2 SO 4 baking at 250ºC gave TREE recoveries over 90%, but the Ti and Zr recoveries were unacceptable. HNO 3 leaching of the fusion or frit material returned high TREE Technical Report NI May 16, 2013 Page 13-25

129 recoveries (>95%), but the Zr and Ti recoveries were lower at approximately 65% to 70%. HCl treatment of the cracked concentrate showed all valuable elements having recoveries of 85% or higher. Acid consumption was estimated at 750 kg/t. Table shows the recovery using HCl leaching: TABLE HCL TREATMENT RESULTS OF CAUSTIC CRACKED GRAVITY CONCENTRATE (HYDROMETALLURGICAL STUDIES ON PROCESSING OF AMR ORE PRECONCENTRATE) AMR Mineral Metal Inc. Aksu Diamas Project Recovery of REEs and Other Related Co-products using Caustic Crack and HCl Testing (%) La Ce Pr Nd Sm Eu Gd Tb Dy Ho Y Er Tm Yb Lu Sc Zr Nb Ti PRECIPITATION TESTS The precipitation results identified very little separation between most of the elements in solution. Several of the elements co-precipitated at ph below 0.5 with almost all of the valuable elements starting to precipitate at ph 1.0. Because of the co-precipitation of several elements at the same time, precipitation was unsuccessful. SE MINERALS A REE and other related co-product recovery flowsheet and results developed by SE Minerals were reported in SE Minerals (2013). SE Minerals (2013) conducted intensive laboratory studies on the AMR gravity concentrate and developed a hydrometallurgical flowsheet for extracting valuable constituents from the material. The results of that report are summarized below. Through intensive testwork completed since August 2011, the following steps have been identified to extract the valuable minerals from the gravity concentrate: 1. Ball milling to a P 90 of 200 mesh. 2. High temperature (600ºC) caustic cracking for four hours of milled concentrate to obtain a frit of the concentrate. 3. Water leaching, washing, and drying of frit to remove sodium compounds of silica, aluminium, gallium, etc. 4. Recovery of sodium hydroxide component. 5. Dissolution of dried frit cake in hydrochloric acid (35%) to extract valuable elements and REE in chloride form (RECL 3 ). 6. Filtration and neutralization of above frit residue to make it suitable for tailings disposal. Technical Report NI May 16, 2013 Page 13-26

130 7. Removal and recovery of pigment grade iron oxide using tributyl phosphate (TBP) to separate iron from crude RECL 3 filtrate to get a low iron RECL3 filtrate comprising all valuables and REEs. 8. Precipitation and recovery of zirconium, titanium, and uranium from pure RECL 3 solution by chemical precipitation, caustic recovery, and solvent extraction. Reclamation of chemicals from above precipitate and individual recovery of titanium, zirconium, and uranium from solvent extraction to include: o Precipitation of titanium values from its solution, filtration of titanium hydroxide cake and its calcination to get titanium oxide. o Precipitation of zirconium values from its solution, filtration of zirconium hydroxide cake and its calcination to get zirconium oxide. o Precipitation of uranium values as ammonium di-uranate and converting it to U 3 O Precipitation and filtration of REE and thorium from filtrate obtained in step 8 (chemical precipitation filtrate) by oxalic acid. 10. Metathesis of oxalate precipitate by sodium hydroxide to convert REE-Oxalate into REE-hydroxide. 11. Filtration of REE-hydroxide slurry. 12. Separation of thorium by ph regulation from the RECL 3 solution. 13. Thorium hydroxide dissolution in nitric acid for further purification of thorium by using solvent extraction or H 2 O Dissolution of REE-hydroxide in hydrochloric acid to prepare chloride solution containing thorium, cerium, lanthanum, neodymium, praseodymium, and HREE. 15. Reclaiming oxalic acid from filtrate (sodium oxalate) in step Cerium (IV) oxide precipitation by peroxide method from the chloride solution leaving lanthanum, neodymium, praseodymium, and HREE in filtrate or cerium recovery by solvent extraction. o Drying of cerium hydroxide cake 17. Solvent extraction and separation of lanthanum, then separation of neodymium and praseodymium from HREE. o Precipitation of lanthanum and its conversion to lanthanum oxide. o Precipitation of neodymium+praseodymium as their hydroxides or carbonates. 18. Preparation of HREE concentrates. Based on the testwork at SE Minerals, the chemical consumption was estimated for processing REEs based on treating 1,000 kg of gravity concentrate (Table 13-11). Technical Report NI May 16, 2013 Page 13-27

131 TABLE CHEMICAL CONSUMPTION ESTIMATE - REE AND OTHER VALUABLE CO-PRODUCT RECOVERY AMR Mineral Metal Inc. Aksu Diamas Project Source: SE Minerals, 2013 S.NO. Chemical Quantity 1 Sodium Hydroxide 1,350 KG 2 Hydrochloric Acid (100%) 1,750 L 3 Nitric Acid (60%) 160 L 4 Tri-Butyl Phosphate 2 KG 5 Kerosene 3 L 6 PC-88A 0.2 L 7 Chemical Precipitant 30 KG 8 Oxalic Acid 28 KG 9 Lime 1,000 KG Notes: Once recycled NaOH consumption is 350 kg. The lime used is for recycling of the NaOH. The consumed HCl rate is ~ 65%, remaining is potentially recycled. ALTERNATE RECOVERY OF THORIUM AND CERIUM FROM REES AND THORIUM OXALATE CAKE SE Minerals identified an alternate recovery process of thorium and cerium without converting the elements to their nitrate form. Oxidation of Ce (III) to Ce(IV) and subsequent precipitation of CeO 2.2H 2 O are achieved by adding concentrated hydrogen peroxide solution to warm solution of the REEs chloride solution after Th removal. The ph is regulated by a sodium hydroxide solution. Recovery of CeO 2 is approximately 90%, and the product has a saleable specification (+95% of CeO 2.2H 2 O) or can be further purified by solvent extraction. Remaining chloride solution, which is free of Th and Ce, can be processed by solvent extraction in multi-stage mixer-settler units for La, Nd, Pr, and HREEs individual separation. Chemical consumption based on previous experiments is listed as Table Technical Report NI May 16, 2013 Page 13-28

132 TABLE CHEMICAL CONSUMPTION ESTIMATE FOR TH/CE RECOVERY AMR Mineral Metal Inc. Aksu Diamas Project Chemical Hydrochloric Acid (100%) Sodium Hydroxide (100%) Hydrogen Peroxide (50% Solution) Nitric Acid (68%) Water Source: SE Minerals, 2013 Quantity 330 g 3,030 g 170 ml 20 ml (for Th purification) 32 L (washing included) OTHER STUDIES MAGNETIC SEPARATION Magnetic separation work was completed and reported by the Istanbul Technical University (ITU), Faculty of Mines, Mineral Processing Engineering Department (ITU, 2011). The ITU report centred on the recovery of the 25 µm and smaller magnetic fraction. A minus mm sample (2.8% magnetite) was fed to a banded wet magnetic separator at 17% solids by weight to create a magnetic and non-magnetic product. The magnetic product was cleaned twice to make a magnetic and non-magnetic product. The non-magnetic product was cleaned once to make a magnetic and intermediate product. The results are shown in Table TABLE WET MAGNETIC SEPARATOR TEST WORK AMR Mineral Metal Inc. Aksu Diamas Project Sample Name Amount (%) Magnetite (%) Magnetic Product Intermediate Product Non Magnetic Product Source: Istanbul Technical University, 2011 Results indicate that there is the potential to remove significant quantities of magnetite from the slimes fraction for sale. Technical Report NI May 16, 2013 Page 13-29

133 FUTURE TESTWORK CMS recommends the following testwork to improve the flowsheet and recovery of the REE and other valuable related co-products: Testwork should be completed using hydro-cyclone technology only to upgrade the TREEs. Work should be concentrated on the -25 µm to improve overall REE and other related co-products of titanium, zirconium, and potentially gallium and niobium. Limited work should also be completed on the larger size fractions to see if a significant improvement in recovery can also be obtained. Small diameter cyclone concentration has shown to be very effective in upgrading high specific gravity material in the oil industry. Mineral Technologies recommends that specific site testing be completed with its spiral technology to finalize water and material balances and identify whether its HC1 and MT VHG spiral cleaner technology may be more effective than the currently used technology. Separate confirmatory testing on the magnetic separator is required to finalize the magnetic separator balances and size requirements. Work should be completed using Knelson and Falcon centrifugal concentrators. Knelson concentrators have been shown to be very effective in separating higher specific gravity material in coarse size fractions while the Falcon concentrator has been very effective in upgrading high specific gravity material in the fine size fractions down to 10 µm. High intensity screening should be reviewed to optimize the screen fractions of the coarse, product, and fine fractions. Typical hydro-cyclone technology allows significant entrainment of both coarser and finer particles if not effectively designed. Further flotation work should be completed to optimize the chemical additions of the current testing. Flotation testing with the slime fraction included should be tested to see if there is an opportunity to increase the final recovery of the TREEs. Flotation testwork should be carried out on only the slime portions (-25 µm) of the tailings to identify if significant recovery of the REEs and other valuable related coproducts can be achieved. Significant work with ultrafine grinding and flotation has been completed on other products that may provide insight into the effective flotation of -25 µm material. Pyro- and hydro-metallurgical testwork by SE Minerals in India and at the CNRTC in Turkey should be continued to optimize chemical and heat additions. Further work should be completed on NaOH and acid recovery to optimize recycle and ensure proper environmental recovery and disposal is identified. Work on alternative REE recovery should be completed. Work should be started on the initial design of the concentrator and metals recovery plant. Detailed review for sodium hydroxide and sodium nitrate recovery should be completed to review feasibility and to optimize the plant design. Technical Report NI May 16, 2013 Page 13-30

134 Further work on the final magnetite product should be completed to ensure a saleable product. Review of the local cement manufacturers should be completed as alternative sales location for use in Portland Type A and B cement. Further work on HREE and scandium should be completed to ensure the production of a saleable product. CONCLUSIONS AND INTERPRETATION Based on the information available to the date of this Technical Report, CMS makes the following conclusions and interpretations: Demonstration plant testwork has shown that gravity/magnetic separation upgrades the concentration of REEs and other valuable related co-products by a factor of up to 20 times (from approximately 0.1% TREE in the feed to approximately 1.0% to 2.0% TREE in the final gravity concentrates). The largest single loss of REE and other valuable related co-products during gravity/magnetic separation is associated with the -25 µm fines, which account for 40% to 50% of the REE and other co-products in run of mine material. Flotation may provide additional recovery from the -25 µm +10 µm (or some similar cut) fraction of the fine material rejected from the gravity circuit, as well as facilitating physical upgrading of the gravity concentrates. In this regard, the flotation testwork initiated by AMR is an important next step in the Project evaluation. The flotation of the final gravity concentrate identified a TREE grade increase of 100% to 300% with a 60% drop in the total quantity of material. Very little increase was noted when the rougher concentrate was cleaned. Caustic cracking with HCl leaching has proven to be effective in the recovery of REEs and other related co-products of titanium, zirconium, and potentially gallium and niobium. SE Minerals has developed an effective flowsheet for recovery of REEs and other valuable co-products. Further work should be completed to identify alternatives and potential cheaper processes and recovery methods. Locked cycle pilot plant testwork should be developed to test all of the REE and other related co-products of titanium, zirconium, and potentially gallium and niobium. Additional pyro- and hydro-metallurgical testwork is required to demonstrate production of a saleable or economically refineable REE and other related coproducts of titanium, zirconium, and potentially gallium and niobium. RECOMMENDATIONS On the basis of the information available at the date of this Technical Report, CMS recommends the following: Technical Report NI May 16, 2013 Page 13-31

135 A small pilot plant using the final developed flowsheet should be constructed and tested. The pilot plant should consider both the mineral processing and metallurgical recovery of the REEs and other related co-products of titanium, zirconium, and potentially gallium and niobium. Systematic sampling and chemical and physical analyses of the different process streams in the pilot plant should be established in order to build up an adequate database for assessing the distribution of REEs and other by-products in the different process streams. Appropriate sampling and quality control procedures should be identified and implemented. Other gravity methods such as Knelson and Falcon concentrators, Mosley Separators, and other gravity methods should be pursued to maximize recovery of the REEs and other valuable co-products. The existing demonstration plant provides a platform for continuing work to develop a combination of processes for satisfactory recovery of REEs and other related coproducts of titanium, zirconium, and potentially gallium and niobium. The spirals in the plant should be changed to the expected design to ensure that the current design is compatible with expected equipment. Demonstration plant test work should be continued with flotation added to optimize the overall recovery of REEs and related co-products to the concentrate which will provide the feed for the hydrometallurgical plant. Testwork should be completed using ion exchange technology for REE recovery instead of solvent extraction. Significant progress has been made on ion exchange recovery of REEs and may be very effective for the Project. Further research should be completed on all alternatives to the current outlined process structure to ensure that there are not simpler and/or easier methods that provide higher recovery. Technical Report NI May 16, 2013 Page 13-32

136 14 MINERAL RESOURCE ESTIMATE GENERAL STATEMENT RPA has estimated Mineral Resources for the Çanakli 1 and 2 deposits as summarized in Table TABLE 14-1 INFERRED MINERAL RESOURCE ESTIMATE FOR ÇANAKLI 1 AND 2 APRIL 2, 2013 AMR Mineral Metal Inc. Aksu Diamas Project Description Çanakli 1 Çanakli 2 Total/Average Total Contained Oxides (t) Tonnage (Mt) Oxide Grade LREO (ppm) ,208 HREO (ppm) ,110 TREO (ppm) ,812 ZrO 2 (ppm) ,938 TiO 2 (ppm) ,458,000 Fe 2 O 3 (%) ,393,000 Sc 2 O 3 (%) ,398 U 3 O 8 (ppm) ,051 ThO 2 (ppm) ,760 Nb 2 O 5 (ppm) ,688 Ga 2 O 3 (ppm) ,844 Size Fractions (Wt.%) Slime fraction Deslime fraction Oversize fraction HMC fraction Magnetite Concentrate Notes: 1. CIM Definition Standards were followed for Mineral Resources. 2. All material within the delineated tuff unit is included in the Mineral Resources. 3. Numbers may not add due to rounding. 4. HREO and, LREO are total oxides of heavy and light rare earth elements respectively, and TREO is the sum of HREO and LREO. 5. Slime fraction is reported at -45 µm for Çanakli 1 and -25 µm for Çanakli Deslime fraction is reported at -2000/+45 µm for Çanakli 1 and -2000/+25 µm for Çanakli Oversize fraction is reported at µm. 8. HMC fraction is reported for the deslime fraction only. 9. Magnetite concentrate is reported from the HMC fraction only. Technical Report NI May 16, 2013 Page 14-1

137 Block models have been constructed using geological and analytical information in drill holes, as described in the following sections. DATABASE COMPILATION AND VALIDATION AMR provided RPA with the following data: 1. Drill hole data from 22 drill holes at Çanakli 1 and 11 drill holes at Çanakli 2. The data from each drill hole were stored in an Excel workbook that included drill hole summary, lithology log, grain size analysis, density measurements, and a large number of physical and chemical variables for three different sample fractions: slimes, deslimes, and HMC. 2. Photographs of drill core. 3. Summaries of field procedures, where available. RPA compiled the drill hole data into a single MS Access database using data from digital files provided by AMR. RPA assigned each drill hole sample interval size fraction a unique identifier (sample number) that was related back to the ACME analytical results. The Çanakli 1 Mineral Resource estimate is based on a drill hole database consisting of 22 diamond drill holes, comprising 425 samples. Pit and trench data were not utilized. Çanakli 1 test work and the resource estimate are based on three physical components of the deposit: Deslime fraction (+45 µm to-2 mm) Slime fraction (-45 µm) HMC in the deslime fraction The Çanakli 2 drill hole database consists of 11 diamond drill holes, comprising 380 samples. Çanakli 2 testwork and the preliminary resource estimate is based on three physical components of the deposit: Deslime fraction (+25 µm to -2 mm) Slime fraction (-25 µm) HMC in the deslime fraction RPA is satisfied that the present Çanakli drill hole database is suitable to support an Inferred Mineral Resource estimate. As the resource database expands with additional drilling to Technical Report NI May 16, 2013 Page 14-2

138 support an Indicated and Measured Resource, RPA strongly recommends that AMR adopt a data management software system. GEOLOGICAL INTERPRETATION AND WIREFRAMES The Çanakli 1 and 2 deposits are bounded by the present topographic surface and by the bottom of the unconsolidated weathered tuffs hosting the mineralization. The bottom of the weathered tuff is marked by a regolith developed on the bedrock surface, as logged in the drill core and observed in the drill core photographs. The lateral limits are defined by either maximum projection distances from drill holes or by sides of the basin that contains the weathered tuff. RPA used point data provided by AMR to build a surface topography model. Drill hole intercepts were used to build surfaces for the top of regolith and the bedrock surface for Çanakli 1 and 2. RPA constructed 3D wireframes to constrain the mineral resources by the topography and regolith surfaces, which enclosed the weathered tuff. For the Çanakli 1 deposit, lateral limits were defined by the local sub-basin that contains the hosts the weathered tuff. Figure 14-1 illustrates the outline of the Çanakli 1 wireframe in plan view and drill hole locations. The Çanakli 1 deposit has an aerial extent of approximately one km 2. For the Çanakli 2 deposit, located to the north of Çanakli 1, the lateral limits were defined by a distance of approximately 250 m from drill holes on the outer edge of the deposit (Figure 14-2). The Çanakli 2 deposit covers an area of approximately 4.0 km 2. As in Çanakli 1, the Çanakli 2 mineralization wireframe was constructed from the topographic surface and the top of the regolith that marks the bottom of the weathered tuff, constrained laterally by the deposit outline. Technical Report NI May 16, 2013 Page 14-3

139 4,160,500m N ,161,500m N 287,000m E 287,500m E 288,000m E 288,500m E 289,000m E 289,500m E 290,000m E 4,161,500m N 4,160,000m N 4,160,500m N 4,161,000m N 4,161,000m N 4,160,000m N 4,159,500m N 287,000m E 287,500m E 288,000m E 288,500m E 289,000m E Legend: Inferred Mineral Resource CN1DC19 Drill Hole Location with Number May 2013 Figure 14-1 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Çanakli 1 Location and Drill Holes

140 4,161,500m N ,000m E 288,500m E 289,000m E 289,500m E 290,000m E 290,500m E 291,000m E 4,160,500m N 4,161,000m N 4,161,500m N 4,162,000m N 4,162,000m N 4,161,000m N 4,160,500m N Legend: 288,000m E 288,500m E 289,000m E 289,500m E 290,000m E Inferred Mineral Resource CN2DC02-8 Drill Hole Location with Number May 2013 Figure 14-2 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Çanakli 2 Location and Drill Holes

141 STATISTICS OF ASSAYS AND COMPOSITES Table 14-2 presents summary statistics for selected chemical assays in the Çanakli 1 drill hole database for 426 samples from 22 drill holes, with an average length of 2.54 m. The data indicate that the deslime size fraction has lower chemical assay values than the fines fraction and that the deslime grade in the HMC was upgraded by a factor of approximately six. TABLE 14-2 ÇANAKLI 1 DRILL HOLE DATABASE SELECTED ASSAY STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Sc (ppm) HRE10 (ppm) LRE10 (ppm) TRE15 (ppm) Deslimes (+45 µm -2 mm) Count Minimum Maximum , ,000 1,072 Average Slimes (-45 µm) Count Minimum Maximum ,189 1,336 Average HMC( +45 µm -2 mm) Count Minimum Maximum Average Deslime to HMC Upgrade Factor The Çanakli 1 drill hole sample assays were composited into ten metre intervals and resulted in 117 composites greater than 4 m in length. Capping was not utilized, as grade capping analysis of sample assay data indicated that extreme assay values did not influence grade estimation at Çanakli 1. The statistics of selected chemical assays of the Çanakli 1 composites are summarized in Table Technical Report NI May 16, 2013 Page 14-6

142 TABLE 14-3 ÇANAKLI 1 TEN METRE COMPOSITE SELECTED ASSAY STATISTICS (COMPS >4 M) AMR Mineral Metal Inc. Aksu Diamas Project Statistic TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Sc (ppm) HRE5 (ppm) LRE10 (ppm) TRE15 (ppm) Deslime (+45 µm -2 mm) Count Minimum Maximum Average Slimes (-45 µm) Count Minimum Maximum Average The composites comprise 36% deslimed material, 58% fines (slimes <45 µm) and 2% oversize (>2 mm), as summarized in Table TABLE 14-4 ÇANAKLI 1 TEN METRE COMPOSITE PHYSICAL STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project Deslime Size Fraction (-2 mm +45 µm ) Fines Size Fraction (-45 µm ) Oversize Fraction (+2 mm) Minimum 13% 11% 0% Maximum 58% 81% 7% Mean 36% 58% 2% Median 35% 58% 1% Mode 33% 66% 1% Table 14-5 presents summary statistics for selected chemical assays in the Çanakli 2 drill hole database for 306 samples from 11 drill holes, with an average length of 2.58 m. The data indicate that the deslime size fraction has lower chemical assay values than the slimes fraction and that the deslime grade in the HMC was upgraded by a factor of approximately seven (compared to six for Çanakli 1). Technical Report NI May 16, 2013 Page 14-7

143 TABLE 14-5 ÇANAKLI 2 SELECTED ASSAY STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project Statistic TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Sc (ppm) HRE5 (ppm) LRE10 (ppm) TRE15 (ppm) Deslime (+25 µm -2 mm) Count Minimum Maximum Average Slimes (-25 µm ) Count Minimum Maximum , ,251 Average HMC (+25 µm -2 mm) Count Minimum Maximum Average Deslime to HMC Upgrade Factor The Çanakli 2 drill hole sample assays were composited into ten metre intervals which resulted in 82 composites greater than 4 m in length. Capping was not utilized, as grade capping analysis of sample assay data indicated that extreme assay values did not influence grade estimation at Çanakli 2. The statistics of selected chemical assays of the composites are summarized in Table When compared to the sample assay statistics, the average deslime and slimes composite grades at Çanakli 2 are, in general, slightly lower. Technical Report NI May 16, 2013 Page 14-8

144 TABLE 14-6 ÇANAKLI 2 TEN METRE COMPOSITE SELECTED ASSAY STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Deslime (+25 µm -2 mm) Sc (ppm) HRE5 (ppm) LRE10 (ppm) Count TRE15 (ppm) Minimum Maximum Average Slime (-25 µm) Count Minimum Maximum Average The ten metre composite samples at Çanakli 2 comprise 34% deslimed material, 62% fines (slimes <25 µm) and 2% oversize (>2 mm), as summarized in Table Interestingly, Çanakli 2 has a smaller proportion of deslime fraction than Çanakli 1, even though the bottom screen size has been reduced from 45 µm to 25 µm, i.e., Çanakli 2 is finer grained than Çanakli 1. TABLE 14-7 ÇANAKLI 2 TEN METRE COMPOSITE PHYSICAL STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project Deslime Size Fraction (-2 mm +25 µm ) Fines Size Fraction (-25 µm ) Oversize Fraction (+2 mm) Minimum 15% 32% 0% Maximum 59% 83% 10% Mean 34% 62% 2% Median 34% 63% 2% Mode 31% 67% 1% VARIOGRAPHY AND INTERPOLATION PARAMETERS RPA has undertaken a variography analysis for the Çanakli 1 deposit, which has drill hole spacing of 100 m to 250 m. The analysis used 10 m composites of LRE5, HRE10, and Technical Report NI May 16, 2013 Page 14-9

145 TRE15 in the slime fraction Horizontal variograms suggest ranges of influence in the order of 250 m in a northeast direction, 100 m in a southeast direction and 30 m in the vertical direction, with very low nugget effect. These orientations and ratios of ranges were used by RPA to develop interpolation parameters At the present time, there are insufficient data at Çanakli 2 to develop meaningful variograms. It is RPA s opinion that because Çanakli 1 and 2 are contiguous and similar geologically, it is reasonable to assume that approximately the same ranges of influence can be expected at Çanakli 2. Due consideration must be given to the assumptions derived from variography at Çanakli 1 and extrapolated to Çanakli 2 (in particular drill hole spacing). RPA suggests updating the Çanakli variography and revisiting the drill hole spacing recommendations as more data become available with additional drilling. Block grades were interpolated at Çanakli 1 and 2 using the inverse distance squared (ID 2 ) algorithm in one pass. Search ellipse dimensions are 500 m northeast, 300 m southeast and 60 m vertically. A minimum of two and a maximum of 15 composites were used. RPA used search ranges that are longer than the variogram ranges to ensure that most of the blocks in the model are filled with grades, which is appropriate for an Inferred Mineral Resource estimate. CUT-OFF GRADE The mineralization at Çanakli 1 and 2 consists of unconsolidated weathered tuff that is amenable to low cost surface mining methods such as open pit or dredging. The lower boundary of the mineralization is defined geologically as the contact between the tuff material and the top of the transition zone (regolith) of the underlying bedrock surface. The upper limit is the topographic surface. Due to the nature of the mineralization and the potential mining methods, limited mining selectivity is expected to be achievable. A specific cut-off grade therefore cannot be applied to the delineated mineralization, and all of the material within the mineralized 3D wireframes is reported as Mineral Resource. Technical Report NI May 16, 2013 Page 14-10

146 BULK DENSITY There is uncertainty about the bulk density of the Çanakli deposits. Bulk density measurements were taken on drill hole samples and average 1.57 g/cm 3. The drill hole density measurements may be biased low due to the introduction of water and additional unconsolidated material into the samples during drilling. For example, many sample intervals have recoveries reported at greater than 100%. Bulk density measurements taken from surface pits at Çanakli 1 and 2 are in the order of 2.0 g/cm 3. RPA has used a bulk density of 2.0 g/cm 3 (equivalent to 2.0 t/m 3 ) to convert volume to tonnes, assuming that the surface pit bulk density measurements are more reliable than the drill hole sample measurements. RPA has not, however, been able to quantify the moisture content of the surface density samples, and it is likely that the bulk density value of 2.0 g/cm 3 is overestimating the density of the mineral resource. More data on bulk density are required at surface and at deeper levels. RPA recommends a program of trenching with a backhoe or small excavator to collect samples with measured volumes, such as 0.5 m by 0.5 m by 0.5 m, that can be weighed wet, dried, and weighed dry to calculate bulk density and moisture content. Samples can be taken at two depths in each trench. BLOCK MODEL A block model for Çanakli 1 and 2 has been constructed with 50 m by 50 m by 10 m blocks (X, Y, Z). The origin and dimensions of the model are shown in Table Direction TABLE 14-8 ÇANAKLI BLOCK MODEL AMR Mineral Metals Inc. Aksu Diamas Origin Extent (m) Block Size (m) X 287,500 3, Y 4,159,450 2, Z 1, Technical Report NI May 16, 2013 Page 14-11

147 GRADE ESTIMATION Grades and physical characteristics have been estimated by ID 2. A horizontal search radius of 500 m by 300 m and a vertical search radius of 60 m have been applied utilizing a minimum of two and a maximum of fifteen informing samples. Fifteen REE grades have been estimated in the block model in the deslime, slime and HMC fractions, and for the light REE (LRE5), heavy REE (HRE10) and total REE (TRE15) as listed below: Cerium - Ce Holmium - Ho Samarium - Sm Dysprosium - Dy Lanthanum - La Terbium - Tb Erbium - Er Lutetium - Lu Thulium - Tm Europium - Eu Neodymium - Nd Ytterbium - Yb Gadolinium - Gd Praseodymium - Pr Yttrium - Y LRE5 (La, Ce, Nd, Pr and Sm) HRE10 (Dy, Er, Eu, Gd, Ho, Lu, Tb, Tm, Yb and Y) TRE15 (Ce, Dy, Er, Eu, Gd, Ho, La, Lu, Nd, Pr, Sm, Tb, Tm, Yb and Y) Grades for an additional nine elements and oxides have been estimated in deslime, slime and HMC fractions: Iron oxide - Fe 2 O 3 Thorium - Th Titanium oxide - TiO 2 Scandium - Sc Uranium - U Gallium Ga Niobium - Nb Zircon Zr Several physical parameters have been included in the interpolation into each block in the model, as follows: Deslime Size Fraction (+45 µm -2 mm), percent of dry weight Slime Size Fraction (-45 µm), percent of dry weight Oversize Fraction Percent of HMC in the Deslime Size Fraction, dry weight Percent of magnetite concentrate in the Deslime Size Fraction, dry weight Percent of magnetite concentrate in the HMC, dry weight The estimated grades in deslime, slime and oversize fractions were used to calculate the estimated grades in situ. The oversize fraction was assigned a grade of zero. The HMC Technical Report NI May 16, 2013 Page 14-12

148 grade was calculated, but is not reported as part of the mineral resource. REE and other grades were converted to oxide grades for reporting purposes. MODEL VALIDATION The block model was validated by visually inspecting the ID 2 block grade distribution, visually comparing the drill holes assay grades to the block grades on a number of cross-sections, and by comparing the average block model grade to the average assay and composite grades. Visual inspection indicates a reasonable correlation between block grades and drill hole assays on cross sections. Table 14-9 presents a comparison of slime, deslime and in situ grade of selected grade elements in the Çanakli 1 block model and Table shows the physical statistics of the various grain size fractions used to calculate the in situ block grade. Only blocks that are within the search neighbourhood are included. Block grades are slightly lower than composite grades for both deslime and slime fractions. The mean percentage of deslime material is slightly higher and the slimes slightly lower for the Çanakli 1 block model when compared to composites. The percentage of oversize material remained the same. TABLE 14-9 ÇANAKLI 1 BLOCK MODEL GRADE STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Sc (ppm) HRE5 (ppm) LRE10 (ppm) TRE15 (ppm) Deslime (+45 µm -2 mm) Count Minimum Maximum Average Slime (-45 µm) Count Minimum Maximum Average Technical Report NI May 16, 2013 Page 14-13

149 In Situ Count Minimum Maximum Average TABLE ÇANAKLI 1 BLOCK MODEL PHYSICAL STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project Deslime Size Fraction (-2 mm +45 µm ) Fines Size Fraction (-45 µm ) Oversize Fraction (+2 mm) Minimum 19% 28% 0% Maximum 52% 80% 6% Mean 33% 60% 2% Median 34% 60% 2% Mode 34% 60% 2% Table presents a comparison of slime, deslime and in situ grade of selected grade elements in the Çanakli 2 block model and Table shows the physical statistics of the various grain size fractions used to calculate the in situ block grade. Only blocks that are within the search neighbourhood are included. Most block grades are slightly lower than composite grades for both deslime and slime fractions, although there are a few exceptions where grades are very slightly higher. The mean percentage of deslime, slime and oversize material is essentially identical for the Çanakli 2 block model when compared to composites. TABLE ÇANAKLI 2 BLOCK MODEL GRADE STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Sc (ppm) HRE5 (ppm) LRE10 (ppm) TRE15 (ppm) Deslime (+25 µm -2 mm) Count 9,574 9,574 9,574 9,574 9,574 9,574 9,574 9,574 9,574 Minimum Maximum Average Technical Report NI May 16, 2013 Page 14-14

150 TiO 2 (%) Th (ppm) U (ppm) Zr (ppm) Nb (ppm) Slime (-25 µm) Sc (ppm) HRE5 (ppm) LRE10 (ppm) TRE15 (ppm) Count 11,426 11,426 11,426 11,426 11,426 11,426 11,426 11,426 11,426 Minimum Maximum Average In Situ Count 11,426 11,426 11,426 11,426 11,426 11,426 11,426 11,426 11,426 Minimum Maximum Average TABLE ÇANAKLI 2 BLOCK MODEL PHYSICAL STATISTICS AMR Mineral Metal Inc. Aksu Diamas Project Deslime Size Fraction (-2 mm +25 µm ) Fines Size Fraction (-25 µm ) Oversize Fraction (+2 mm) Minimum 16% 43% 0% Maximum 55% 81% 9% Mean 34% 63% 2% Median 34% 63% 2% Mode 35% 62% 2% In RPA s view, the block model is a reasonable representation of tonnages and grades for Çanakli 1 and 2 at the Inferred Mineral Resource level. MINERAL RESOURCE ESTIMATE AND CLASSIFICATION The Mineral Resource Estimate for Çanakli 1 and 2 is presented in Table It represents the mineral resource estimated from the grades in the various size fractions and HMC. There is no specific cut-off grade applied to the blocks, since all blocks are within the mineralization wireframes defined for the Çanakli 1 and 2 deposits. The effective date of the resource estimate is April 2, All of the mineral resources are classified as Inferred Mineral Resources because of the relatively wide drill hole spacing, because analyses of samples need to be carried out prior to desliming and preparation of HMC, and because there is uncertainty about the bulk density used. Technical Report NI May 16, 2013 Page 14-15

151 TABLE INFERRED MINERAL RESOURCE ESTIMATE FOR ÇANAKLI 1 AND 2 APRIL 2, 2013 AMR Mineral Metals Inc. Aksu Diamas Unit Çanakli 1 Çanakli 2 Total Volume 1,000 x m Tonnage Mt Density Tonnes/m Oxides La 2 O 3 ppm CeO 2 ppm Pr 6 O 11 ppm Nd 2 O 3 ppm Sm 2 O 3 ppm Eu 2 O 3 ppm Gd 2 O 3 ppm Tb 4 O 7 ppm Dy 2 O 3 ppm Ho 2 O 3 ppm Er 2 O 3 ppm Tm 2 O 3 ppm Yb 2 O 3 ppm Lu 2 O 3 ppm Y 2 O 3 ppm LREO ppm HREO ppm TREO ppm ZrO 2 ppm TiO 2 % Fe 2 O 3 % Sc 2 O 3 ppm U 3 O 8 ppm ThO 2 ppm Nb 2 O 5 ppm Ga 2 O 3 ppm Size Fractions Slime fraction Wt.% 62.8% 63.7% - Deslime fraction Wt.% 35.6% 34.2% - Oversize fraction Wt.% 1.6% 2.1% 2.0% HMC fraction Wt.% 3.8% 2.7% - Magnetite Concentrate Wt.% 0.6% 0.3% - Notes: 1. CIM Definition Standards were followed for Mineral Resources. 2. All material within the delineated tuff unit is included in the mineral resource 3. Numbers may not add due to rounding. 4. HREO and, LREO are total oxides of heavy and light rare earth elements respectively, and TREO is the sum of HREO and LREO. 5. Slime fraction is reported at -45 µm for Çanakli 1 and -25 µm for Çanakli 2. Technical Report NI May 16, 2013 Page 14-16

152 6. Deslime fraction is reported at -2000/+45 µm for Çanakli 1 and -2000/+25 µm for Çanakli Oversize fraction is reported at µm. 8. HMC fraction is reported for the deslime fraction only. 9. Magnetite concentrate is recovered from the HMC fraction only. 10. Percentage of deslime, slime and oversize fraction have been normalized to 100%. Technical Report NI May 16, 2013 Page 14-17

153 15 MINERAL RESERVE ESTIMATE Mineral Reserves have not been estimated for the Property. Technical Report NI May 16, 2013 Page 15-1

154 16 MINING METHODS INTRODUCTION Çanakli is an eluvial airfall pyroclastic tuff. It is an in situ weathered deposit consisting of primary heavy mineral concentrations in unconsolidated volcanic rocks that have accumulated in topographic depressions. There are local variations in fines and heavy mineral content related to weathering, soil development and reworking by alluvial processes. Pebble horizons are also encountered in drill holes within the deposit, but the location, vertical and lateral continuity has not been investigated. These tuffs are similar to alluvial and terraces of placers with depths limited to the depth of the tuff. The depth and width vary, but typically the tuffaceous material ranges from less than 15 m (in drill holes near the margins of the basin) to over 80 m in thickness (near the centre) and is marked by a transition zone of weathered bedrock that is several metres in thickness, at its base. There is limited or no overburden material overlying the deposit. Most of the Aksu Diamas mineralized material is relatively low grade and will generally be mined using high-tonnage truck and loader open pit methods. The physical aspects that establish the footprint generated by this material are determined by on-site engineering and environmental criteria that includes climate, hydrology, geology, seismicity, topography, regional, provincial, and local regulations, and social acceptance. The Aksu Diamas Project will generally consist of the open pits, access roads, a gravity/flotation plant, and metal recovery plant. The preliminary locations of these facilities are identified in the conceptual site layout map provided as Figure RPA notes that these locations are preliminary in nature and are not based on engineering studies. The shallow depth of the deposit allows mining to be organized into individual cells or pits that will allow for mining in one cell, reclamation in another cell, and replacement of the material into a third cell as identified in Figure Technical Report NI May 16, 2013 Page 16-1

155 N Çanakli 2 Future Plant Site Çanakli 1 Current Plant Site Figure 16-1 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Current Site Layout Map May

156 Tailings Disposal Access Ramps Overflow Water Pit Bottom Pit Filled With Tailings Figure 16-2 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Mining Cells May

157 The mine sequence is designed to minimize the haulage distance to the plant facility. Note that the current sequence envisioned may change upon completion of detailed engineering and other requirements. The process plant is envisioned to be moved between the two deposits to minimize haulage requirements of the ore. The haulage distance will be less than 1,500 m from the pit to the processing facility which will help to minimize equipment requirements in addition to haulage distances. Operations will mine the in situ material using a dozer trapping system loading into either a track-hoe or loader. When mined, in situ material is estimated to swell approximately 25% based on material type and the small size fraction of the material. This equates to a swell factor of 0.8. The following equation, in cubic meters, shows the method for calculating swell factor: Swell factor = Volume (original) / [Volume (original) + Volume (increase)] Swell factor = 1.0 m 3 / (1.0 m m 3 ) = 0.8 Blasting will not be required as the material is mostly unconsolidated and can be readily track-hoed or dozer trapped to a loading point. The lack of blasting requirements is based on the current test pit that was dug to a depth of approximately 25 m to supply the demonstration plant. The material was unconsolidated and readily moved by a track-hoe or high pressure water jets with minimal effort. The stripping ratio is a measure of the quantity of waste that must be removed during the mining operation to recover one tonne of ore. The stripping ratio at Aksu Diamas will be extremely low as the deposit is located in the surface layers of the pyroclastic tuffs. The only expected waste will occur when stripping and storing the top soil to start mining. Top soil for each individual cell will be stripped and saved. The material will be replaced upon final reclamation of the cell. Technical Report NI May 16, 2013 Page 16-4

158 Çanakli Çanakli Çanakli 1 N Pilot Plant Site Figure 16-3 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Typical Mining Sequence May

159 OPEN PIT MINING PLAN The open pit mine plan assumes a nominal 800 tph mining operation. Due to the large size of the mine when the Çanakli deposits are combined, a 3,800 tph operation is considered as an alternate scenario which would benefit from reduced cost opportunities due to the increased size. OPEN PIT MINE PLAN PARAMETERS The information used in this open pit mine plan was primarily compiled from AMR data and information available on the Aksu Diamas area, and general mining engineering concepts. The preliminary pit was designed with five metre working benches with an overall pit slope of 45. Additional work will be required to determine the final overall pit slope design. This work will include geotechnical evaluation of the pyroclastic tuffs, pit optimization, pit design, production schedule, and pit productivity. Mining activities will take place year round. Seasonal conditions are generally moderate, although inclement weather conditions can occur for brief isolated periods. Stockpiles will be required and would be located near the processing facility. The preliminary open pit mining plan developed for the Çanakli deposits use the input parameters provided in Table The nominal haul distance from the pits to the processing facility has not been determined. The numbers cited in Table 16-1 for haul distances are for estimation purposes only and are not actual distances. The distance between the deposits is approximately three kilometres to five kilometres. For this mine plan, haul road widths will average ten metres. Haul road gradients will not exceed +10% coming out of the pit and 0% at the waste dump sites. Rolling resistance is assumed to be +3% as recommended by SHERPA Mine Cost Estimating Software, published by Aventurine Engineering, Inc., Spokane, Washington. Assumed development and production material tonnages are shown below: DEVELOPMENT Pre-production Stripping (Çanakli 1 Pit) Pre-production Stripping (Çanakli 2 Pit) Haul Road Construction 75,000 t No-prestrip required 500 m Technical Report NI May 16, 2013 Page 16-6

160 PRODUCTION Production Annual Production Mineralized Material Annual Production - Waste Life of Mine Production 800 tph (17,200 tpd) 6.05 million tonnes All material is assumed to be mineralized. 79 million tonnes over 13 years Annual production is based on mining activities operating at an assumed 90% efficiency. The pre-production stripping numbers are also assumed and will be defined when a final geologic and potential mineral reserve models have been completed in subsequent studies. Haul road distances are also assumed and will be determined once a location for the processing plant has been finalized. The production forecast will be adjusted as the pits are being mined, starting with the pit that maximizes the project net present value (NPV). Additional analysis is required to substantiate the final pit design for both mineralized bodies. This work includes pit optimization, pit design, production schedule, and pit productivity, and will also identify the corresponding haul road construction requirements, which in turn will influence construction costs. TABLE 16-1 OPEN PIT MINE PLAN PARAMETERS AMR Mineral Metal Inc. Aksu Diamas Parameter Value Source Tonnage factor 2.0 tonnes per cubic meter RPA Dilution 0%, no selectivity applied to RPA resources Overall pit slope angle 45 Industry Practice Haul road width 10 m Industry Practice Ramp gradient Not to exceed 10% Industry Practice Bench height 5 m Projected Hours per shift 12 hours Industry Practice Shifts per day 2 shifts Industry Practice Days per year 350 days Industry Practice Powder factor Ore No blasting required Unconsolidated Tuffs Haul Distance Ore 1,200 m one way Projected Technical Report NI May 16, 2013 Page 16-7

161 MINING EQUIPMENT The mine equipment fleet for the open pit operation, listed in Table 16-2, was selected based on comparison to operations of similar size and by estimation of cycle times and productivities for the required base case production rate. TABLE 16-2 OPEN PIT MINING FLEET AMR Mineral Metal Inc. Aksu Diamas Type Quantity Front End Loader 6 m³ 2 Haul Trucks 50 t 7 Dozer 310 HP 2 Grader 1 Water Truck 1 Service Truck (for maintenance) 1 Crane Truck 60 t 1 Lube/Fuel Truck 1 Loader (Yard Handling) 1 Light Vehicles 2 Forklift 1 Light Plants 8 kw 6 CONCLUSIONS AND INTERPRETATION The following are conclusions and interpretations of the mining plan: Detailed mine planning needs to be completed to optimize cell design, maximize ore removal, and minimize material remaining between cells. Detailed mine planning needs to focus on pit planning with emphasis on haul roads and tailings line location. Mine cell size needs to be determined in order to optimize mining costs with reclamation and water needs. Water requirements and tailings storage requirements need to be determined in order to maximize the use of pits as storage. Grade distribution should be determined in order to optimize pit location and layout. Grade isopachs need to be developed to optimize cell location. Technical Report NI May 16, 2013 Page 16-8

162 RECOMMENDATIONS On the basis of the information available to date, RPA makes the following recommendations: Detailed geotechnical interpretation needs to be completed to ensure highwall and pit floor stability. This should include the review of highwall stability and mine-ability using truck and loader in the tuffs below the water table. Further in-fill drilling needs to be completed to optimize mine planning and cell location. Reclamation planning and proper fill of the pits needs to be reviewed to maximize mining cell size and requirements. Based on the actual mine plans, further detailed equipment evaluation and costing needs to be completed. A personnel wage survey needs to be completed to optimize cost estimating. Technical Report NI May 16, 2013 Page 16-9

163 17 RECOVERY METHODS PROCESSING PLAN Documents relating to the AMR rare earth and minor metals projects were reviewed for both relevance and completeness. CMS relied on the technical data from these reports in preparing portions of Section 17 of this report. Capital and operating costs are estimated for the process plan assuming a nominal 800 tph mining rate and for a 3,800 tph mining rate. Costs are further discussed in Section 21 of this report. The processing plan includes mill equipment and facilities for: Delumping and pulping Gravity recovery to include magnetic separation Flotation Caustic cracking Water leaching Hydrochloric acid leaching REE and other valuable product recovery Tailings facility Basic access roads, power lines, and pipelines Construction, installation and operation of facilities and equipment necessary for equipment maintenance and repair, electrical system, fuel distribution, water storage and drainage, sanitation facilities, offices, labs, powder storage, and equipment parts and supply storage PROCESS SITE INFORMATION The elevations on the Çanakli properties range from 300 m to 800 m with most of the Çanakli area at approximately 800 m in elevation. The topographic relief is mostly low hilly and valley areas of agricultural land use. Small topographic ridges are immediately underlain by pyroclastic tuff. The climate is characteristic of the continental environments and precipitation is about 70 cm annually. The seasonal climate conditions are generally moderate, although severe weather conditions can occur for isolated periods in winter. Summer temperatures are warm and mean temperatures are 12 C. Mining activities can be carried out year round. Technical Report NI May 16, 2013 Page 17-1

164 METALLURGICAL FLOWSHEET DEVELOPMENT A review of the testwork is presented in Section 13 of this report. The flowsheets and process information have been used to develop an initial processing scheme using recoveries and information from the initial testwork and pilot plant studies. RPA notes that significantly more detailed process development will be required before a Feasibility Study or construction work can be undertaken. OVERVIEW AMR has completed a significant amount of metallurgical and process work on the Çanakli deposits. The mineralization consists of oxide mineralization containing elevated levels of REEs, titanium, zirconium, and other valuable minerals that are readily concentrated by gravity, magnetic separation, and flotation into a relatively high grade concentrate (3% to 4% REOs). Based on information gained in part from the AMR testing and past experience, the following parameters were used to develop a realistic flowsheet. The in situ head grade for the REEs, titanium, zirconium, and other valuable minerals for an 800 tph facility is summarized in Table TiO 2 % Nb ppm TABLE 17-1 ÇANAKLI IN SITU GRADES AMR Mineral Metal Inc. Aksu Diamas Project Th ppm U ppm Zr ppm Çanakli Çanakli Nd ppm Sm ppm Eu ppm Gd ppm Tb ppm Çanakli Çanakli Fe 2O 3 % Dy ppm Sc ppm Ho ppm Y ppm Er ppm La ppm Tm ppm Ce ppm Yb ppm Pr ppm Lu ppm GRAVITY/FLOTATION PLANT OVERVIEW Based on initial testwork completed by AMR, gravity and flotation recovery work have identified that a significant number of the heavy minerals could be effectively concentrated to Technical Report NI May 16, 2013 Page 17-2

165 a grade that allows for effective recovery of the REEs, titanium, zirconium, and other valuable minerals. The gravity circuit would consist of the following: Delumping and screening Gravity recovery Flotation Figure 17-1 is the expected flowsheet for the gravity flotation circuit. DELUMPING/SCREENING AND PULPING No crushing or comminution is expected to be required for the Project. Run of mine material will be end dumped into a chute or bin and conveyed at a specific rate to a wet screen or rotary trammel. The material being washed will pass over or through a vibrating or rotary screen with the oversize being discharged and removed from the facility and replaced in a reclamation cell. The undersize material (minus 750 microns) will be collected in a sump and pumped to an agitated tank. The slurry will then be pumped to the gravity plant cyclones for further processing. Approximately 5% of the material is expected to discharge as oversize. GRAVITY PLANT The slurry from delumping and pulping is pumped to an agitated tank. The slurry is then pumped from the agitated tank at 25% solids to a bank of coarse cyclones. The coarse cyclone overflow will be pumped to a bank of fine cyclones, with the overflow from the fine cyclones pumped to tails. The coarse cyclone split is estimated at 710 micron. The fine cyclone split is expected at 24 microns. The underflow from the coarse cyclones will be feed into a coarse recovery circuit consisting of the following: Rougher Scavenger Spirals Low Intensity Magnetic Separator and Magnetite Recovery Unit and Dewatering Device Cleaner Spirals Shaking Tables REE and Valuable Product Tank Various pumps and sump boxes Technical Report NI May 16, 2013 Page 17-3

166 RUN OF MINE COARSE µm SIZE SEPARATION (SCREENS AND HYDROCYCLONES) -710 µm +25µM TAILINGS FINES -25 µm GRAVITY CIRCUIT GRAVITY SEPARATION (SPIRALS) HEAVY MINERALS 8.99% TAILINGS LIGHT MINERALS WET LOW INTENSITY MAGNETIC SEPARATION LOW IRON HEAVY MINERALS CONCENTRATE PRODUCT MAGNETITE 78% Recovery of Iron as Magnetite GRAVITY SEPARATION (SHAKING TABLES) GRAVITY CONCENTRATE MIDDLINGS RETURN TO SPIRALS FLOTATION TAILINGS LOW REE AND VALUBLE MINERALS FLOTATION PRODUCT REE S AND VALUABLE MINERALS 3.5% TREO Figure 17-1 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Gravity/Flotation Flowsheet May

167 The underflow from the fine cyclones will be fed into a fines recovery circuit consisting of the following: Rougher Spirals Scavenger Spirals Low Intensity Magnetic Separator and Magnetite Recovery Unit and Dewatering Device Cleaner Spirals Finisher Spirals Shaking Tables REE and Valuable Product Tank Various pumps and sump boxes The overflow from the fines cyclone, coarse and fines spiral tailings, and coarse and fines final table tails will be combined and pumped back to the mine as tailings to an empty mine cell for water recovery and reclamation. The gravity concentrate from the rougher and scavenger spirals is processed through a low intensity magnetic separator. The low iron tails from the magnetic separator is further processed through cleaner spirals and a shaking table to produce a non-magnetic gravity concentrate that contains most of the REEs and other valuable minerals. The low intensity magnetic separation product is expected to contain at least 94% magnetite and will contain approximately 65% iron and will be dewatered dried and bagged for sale. The recovery of iron as magnetite is expected to be approximately 78%. The size of the magnetite material is expected to have a P 90 of 100 microns. Table 17-2 identifies the magnetite product specifications. TABLE 17-2 MAGNETITE PRODUCT (800 TPH) AMR Mineral Metal Inc. Aksu Diamas Project Fe 3O 4 SiO 2 AL 2O 3 MgO CaO Na 2O 3 K 2O TiO 2 P 2O 5 MnO Cr 2O 3 Grade, % LOI TOT/ C TOT/ S SUM Ni, PPM Sc, PPM Grade, % < The final non-magnetic concentrate produced after magnetic separation is expected to contain approximately 2% to 3% of the total mass will be pumped to a tank for final flotation upgrading. Technical Report NI May 16, 2013 Page 17-5

168 FLOTATION The flotation circuit was developed using non-magnetic gravity concentrate from the gravity circuit produced from the demonstration plant at Çanakli 1. The flotation circuit was added as an attempt to increase the grades of the REEs and other valuable minerals in the final concentrate grade and further reduce the mass of the final concentrate prior to the final metals recovery process. The following are the parameters used in the flotation process: Grinding 90% Passing 160 microns Approximately two minute grind time Desliming at 10 microns removes approximately 7% of the material Dispersant Conditioning ten minutes Depressant Conditioning three minutes Collector Conditioning three minutes Frother Conditioning one minute Flotation Time three minutes Rougher Scavenger Float After neutralization, tails combined with final gravity tails The flotation concentrate was optimized at 40% recovery of the material mass which allowed for an increase in grade of approximately 2.1 to 1. The recovery of the REEs, titanium, zirconium, and other valuable minerals was approximately 90% of that identified in the low iron gravity product. This recovery from flotation allows for a further reduction in feed quantity to the metals recovery plants. Both deposits are expected to provide similar flotation results as the elemental disposition is very similar. The final flotation product will be dewatered and bagged for shipment to the metals recovery plant. EXPECTED RECOVERY OF REES AND VALUABLE MINERALS THROUGH FLOTATION The expected recovery through flotation for the REEs, titanium, zirconium, and other valuable minerals for an 800 tph facility is estimated in Table 17-3: Technical Report NI May 16, 2013 Page 17-6

169 Overall Recovery TABLE 17-3 AVERAGE ÇANAKLI 1 FLOTATION RECOVERY AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 Nb Th U Zr Fe 2O 3* Sc Y La Ce Pr 14.8% 21.6% 26.4% 41.3% 37%** 1.6% 2.0% 19.5% 36.1% 34.3% 37.2% *Note: Iron recovery estimated through back calculation. After magnetite recovery. Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Overall Recovery 34.7% 30.9% 23.6% 31.1% 25.8% 23.3% 25.4% 23.8% 25.3% 26.1% 29.4% **The recovery of Zr in testwork was greater than 100% due to the potential of contamination during assaying. Estimated recovery based on recovery of other elements is 37%. METALS RECOVERY OVERVIEW Based on initial testwork completed by AMR, metal recovery work by SE Minerals identified and tested a process that recovered and produced metal or saleable concentrate of the heavy minerals and metals from the final flotation concentrate. The metals recovery circuit consists of the following: Size Reduction to 90 microns Caustic Cracking Water Leaching Hydrochloric Acid Leaching Iron Solvent Extraction Zirconium, Titanium and Uranium Precipitation TREE and Thorium Precipitation Neutralization Figures 17-2 through 17-7 are the flowsheets (developed by SE Minerals) for the metals recovery circuit. Technical Report NI May 16, 2013 Page 17-7

170 CONCENTRATE GRINDING 90 MICRONS NaOH CRACKING FRIT WATER WATER LEACHING SILICA & SODIUM COMPOUNDS FRIT CAKE HCl DISSOLUTION FILTRATION WASHING CHLORIDE SOLUTION REE,U,Th,Zr,Ti,Fe Etc. RESIDUE Figure 17-2 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Caustic Cracking/Water Leaching/ Hydrochloric Acid Leaching May

171 CRUDE CHLORIDE SOLUTION HCI H SO 2 4 TBP Fe EXTRACTION EXTRACT (Fe) SCRUBBING SCRUB EXTRACT STRIPPING SCRUB RAFFINATE Fe SOLUTION Fe FREE CHLORIDE SOLUTION REE, Th, Zr, Ti, U NaOH PRECIPITATION FILTRATION WASHING Fe-HYDROXIDE DRYING CALCINATION MICRONIZATION Fe- OXIDE POWDER PACKING Figure 17-3 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Iron Recovery May

172 PURE CHLORIDE SOLUTION REE,U,Th,Zr,Ti, Etc. CHEMICAL PRECIPITANTS PRECIPITATION FILTRATION CHEMICAL CAKE Zr, Ti & U. FILTRATE REE & Th NaOH METATHESIS FILTRATION FILTRATE HYDROXIDE CAKE OF U, Zr, & Ti. HCl CHEMICAL RECLAMATION FILTRATION RECYCLE FILTER CAKE NaCl FILTRATE FOR DISPOSAL Figure 17-4 AMR Mineral Metal Inc. May 2013 Aksu Diamas Project Southwest Turkey Separation of Titanium, Zirconium, & Uranium 17-10

173 HYDROXIDE CAKE U+Zr+Ti HNO3 DISSOLUTION NITRATE FEED ACID TBP RECYCLE TBP EXTRACTION EXTRACT U+Zr Zr STRIPPING EXTRACT U U.STRIPPING Ti SOLUTION Zr SOLUTION U SOLUTION PRECIPITATION NH 4OH PRECIPITATION NH 4OH PRECIPITATION FILTRATION FILTRATION FILTRATION Ti(OH) 4 Zr(OH) 4 ADU CALCINATION CALCINATION CALCINATION TiO2 ZrO2 U 3O8 Figure 17-5 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Recovery of Zirconium, Titanium and Uranium May

174 RE HYDROXIDE [Ce, La, Nd+Pr, HREE] HNO3 DISSOLUTION NITRATE FEED SCRUBBING SOLUTION STRIPPING SOLUTION TBP EXTRACTION SCRUBBING STRIPPING TBP- RECYCLE RAFFINATE La, Nd+Pr, HREE SCRUB RAFFINATE Ce-PURE SOLUTION ABC PRECIPITATION CERIUM CARBONATE Figure 17-6 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Cerium Recovery May

175 RAFFINATE OF Ce-EXTRACTION CIRCUIT NH OH 4 PRECIPITATION FILTRATION WASHING CAKE HCl DISSOLUTION HCI HCI SOLVENT EXTRACTION CHEMICAL EXTRACTION OF Nd + Pr SCRUBBING STRIPPING PURE La SOLUTION SCRUB RAFFINATE Nd+Pr, HREE SOLUTION NH OH 4 PRECIPITATION PRECIPITATION WITH Na2CO3 FILTRATION DRYING CALCINATION PURE La OXIDE FILTRATION (Nd+Pr) SEPARATION BY SX & SUBSEQUENT PRODUCTION OF CONCENTRATE FILTRATE HREE CARBONATE FROM THE Nd+Pr &HREE NaCl RAFFINATE Figure 17-7 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Preparation of Pure La-Oxide May

176 CAUSTIC CRACKING/WATER LEACHING/HYDROCHLORIC ACID LEACHING BALL MILLING The gravity/flotation concentrate as received is ground to 90% passing 200 mesh (74 microns). Screen analysis before and after milling is given in Table TABLE 17-4 GRAVITY/FLOTATION CONCENTRATE GRIND SIZE AMR Mineral Metal Inc. Aksu Diamas Project Screen size Before milling After milling + 85 mesh 22.52% 1.75% mesh 10.95% 1.32% mesh 7.33% 2.67% mesh 18.92% 3.24% mesh 39.51% 90.62% Total CRACKING OF CONCENTRATE A solution of sodium hydroxide is used for cracking in the ratio of 1.25:1.0 sodium hydroxide to concentrate in a stainless steel pot. The pot is loaded into an electrically heated pot furnace and reacted at 600 C by mixing the reactants at regular intervals of 15 minutes to form a frit. The frit is soaked at reaction temperature for four hours and removed from the furnace and cooled to room temperature. The frit is loaded leaching vessel and leached with water. The main cracking reaction is represented as follows (SE Minerals): M 2 (SiO 3 ) 3 + 6NaOH => 2M(OH) Na 2 SiO 3 (Where M = REE, Fe, Al etc.) and M (SiO 3 ) 2 + 4NaOH => M (OH) 4 + 2Na 2 SiO 3 (Where M = Ti, Zr, Th etc.) WATER LEACHING OF FRIT The frit slurry from cracking is loaded into leaching vessel of additional to a water to frit ratio of five. The slurry is leached at room temperature for one hour and allowed to settle. After settling, the clear leachate is decanted from leaching vessel. This leachate contains sodium gallianate, sodium aluminate, sodium silicate, and unreacted sodium hydroxide. Further, value addition by-products such as gallium, sodium nitrate, Technical Report NI May 16, 2013 Page 17-14

177 recovered sodium hydroxide, and precipitated silica will be reviewed for economic recovery during feasibility level work. The slurry obtained after decantation is diluted with water and filtered. The cake is washed to further remove residual alkali. Filtrate and wash is preserved for recycle. Washed frit cake is air dried and then further dried thermally in an electrical oven at 110 C to improve the filterability in the next steps. ACID LEACHING OF WASHED AND DRIED FRIT The washed and dried frit is dissolved in hydrochloric acid at a rate of three liters of HCl to dried frit at room temperature for one hour. Then the hot chloride slurry is filtered and the washed with water to extract residual chloride solution from the cake. The REEs and valuable elements are found in the crude chloride solution (RECL 3 ). During hydrochloric acid dissolution, the following chemical reactions are identified (SE Minerals): M(OH) 3 + 3HCl => MCl 3 + 3H 2 O (M: trivalent metals) M'(OH) 4 + 4HCl => M'Cl 4 + 4H 2 O (M': quadrivalent metals) Table 17-5 identifies the expected recoveries to the crude RECL 3. TABLE 17-5 ELEMENTAL RECOVERY TO RECL 3 SOLUTION (800 TPH) AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 Nb Th U Zr Fe 2 O 3 Sc Y La Ce Pr Recovery, % kg/day recovered 18, , , , , Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Recovery, % kg/day recovered IRON RECOVERY Iron is the main constituent in the crude RECl 3 solution. Iron interferes in all down-stream operations causing more consumption of chemicals and also contaminates the final products thus requiring iron to be removed from the crude RECl 3 solution. To remove iron, solvent extraction of iron using tri-n-butyl phosphate (TBP) as solvent is used. TBP extracts iron preferentially leaving all valuables and REEs in the aqueous raffinate. The raffinate (pure Technical Report NI May 16, 2013 Page 17-15

178 RECl 3 ) is taken for recovery of REEs and the other valuable elements of Zr, U, Ti, and Th. The organic extract is further scrubbed with dilute hydrochloric acid solution to recover residual REE and other valuable elements with the iron values stripped from organic solvent by contacting with dilute sulphuric acid solution. Iron bearing strip solution is precipitated with sodium hydroxide to obtain an iron hydroxide slurry. The slurry is filtered and the cake is washed and air dried in filter. The iron cake is further dried thermally and calcined at 800 C to obtain iron oxide. Finally, iron oxide is milled to obtain pigment grade iron oxide. The sodium sulphate is also precipitated and recovered. Table 17-6 identifies the expected final metal grade of the iron oxide material. TABLE 17-6 FINAL IRON PIGMENT PRODUCT (800 TPH) AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 Nb Th U Zr Fe 2O 3 Sc Y La Ce Pr Grade, % kg/day recovered , Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Recovery, % kg/day recovered The grade of iron pigment product will improve as further testing identifies and refines the iron removal and ultimate recovery. RECOVERY OF ZIRCONIUM, TITANIUM, AND URANIUM The iron free RECl 3 solution contains zirconium, titanium, uranium, thorium, and REEs. The zirconium, titanium, and uranium are separated from iron free RECl 3 and thorium solution prior to oxalic acid precipitation. Zirconium, titanium, and uranium are precipitated from RECl 3 solution using excess precipitant. These precipitated elements are converted into their hydroxides by digesting with 10% sodium hydroxide solution and resultant zirconium, titanium and uranium cake is separated by solvent extraction. The precipitant is recovered from the filtrate solution. Technical Report NI May 16, 2013 Page 17-16

179 The hydroxide cake contains high concentrations of zirconium and titanium, and moderate concentrations of niobium and tantalum. The hydroxide cake is dissolved in nitric acid with an acidity of three molar HNO 3. TBP solvent extraction extracts zirconium and uranium leaving titanium in the aqueous raffinate. The raffinate is then precipitated with ammonium hydroxide solution to obtain titanium hydroxide. The slurry is filtered, washed, dried and calcined to obtain titanium oxide. This oxide is further milled to obtain a marketable product. The TBP-extract containing zirconium and uranium is selectively stripped of zirconium by using acidified water. Zirconium nitrate solution is precipitated with ammonium hydroxide to obtain zirconium hydroxide. The resultant slurry filtered and zirconium hydroxide cake is washed, dried, calcined, and pulverized to obtain a marketable product. The TBP-extract containing uranium is stripped by dilute sulphuric acid to obtain a uranyl sulphate solution. This solution is precipitated with ammonium hydroxide solution to obtain a yellow cake of ammonium di-uranate (ADU). The solvent TBP is recycled. The niobium and tantalum will be recovered using solvent extraction if feasible. Further testing work will be required during feasibility level review to optimize the titanium oxide grades and maximize recovery of the niobium and tantalum. RECOVERY OF REES AND THORIUM The filtrate obtained after filtering a cake of titanium, zirconium, and uranium contains REEs and thorium along with minor quantities of zirconium, titanium, and uranium. This solution is again purified of REEs and thorium by precipitating them with oxalic acid. The filtrate is recycled for total recovery of titanium, zirconium, and uranium. The oxalate precipitate of REEs and thorium is converted into hydroxides for easy dissolution in acid for further separation of thorium from REEs by digesting the oxalates in strong sodium hydroxide solution at 100 C. During the process, sodium oxalate is generated which is reclaimed and recycled. The hydroxide cake of REEs and thorium is dissolved in hydrochloric acid and thorium hydroxide is precipitated by a dilute sodium hydroxide solution at ph 4 to 4.5. The resultant slurry is filtered to separate thorium hydroxide cake from the filtrate containing REEs. Technical Report NI May 16, 2013 Page 17-17

180 The thorium hydroxide cake typically contains appreciable amounts of REEs and undergoes a second purification step. Thorium hydroxide is dissolved in nitric acid and then complexed with hydrogen peroxide. Thorium peroxide is formed and precipitated at 60 C by adjusting the ph to 0.9 to 1.2 with the addition of ammonium hydroxide. The thorium hydroxide slurry is filtered and the cake is converted to oxide by drying and calcination. Both filtrates are mixed and taken for REEs recovery. CERIUM RECOVERY The REE filtrate after thorium recovery are mixed and precipitated with sodium hydroxide to get REE-Hydroxide. The slurry is filtered and the precipitate is washed thoroughly to remove chloride traces from the cake. The cake is dissolved in nitric acid to get a REE-Nitrate solution to selectively extract cerium. The free acidity of the solution is adjusted by HNO 3. Cerium is preferentially extracted from this solution by TBP in kerosene. The raffinate contains REEs such as La, Nd, Pr, Sm, Gd, etc. The TBP extract containing cerium is further washed (scrubbed) by HNO 3 and scrub raffinate is recycled. The scrubbed TBP- Extract is stripped of cerium by a nitrate hydrogen peroxide solution. Pure cerium is obtained and precipitated with ammonium bi-carbonate to obtain marketable cerium carbonate. PREPARATION OF PURE LA-OXIDE Raffinate coming from the cerium extraction circuit contains lanthanum, neodymium, praseodymium, samarium, and other rare earths. The raffinate is precipitated with sodium hydroxide, filtered and the hydroxide cake is thoroughly washed to remove nitrate ions. The washed cake is re-dissolved in hydrochloric acid all the REEs except lanthanum are recovered by solvent extraction. The lanthanum in pure form (99.9%) is left in the raffinate phase. Lanthanum hydroxide is precipitated from the raffinate by ammonium hydroxide. The slurry is filtered and the cake dried and calcined at 800 C to obtain lanthanum oxide. The extract containing the other rare earths is scrubbed and stripped with HCl and either sold as a concentrate for further processing or further processed in-house to ensure optimal products being sold to obtain optimal product pricing. Extra costs have been identified and added to the cash flow for further removal of scandium using ion exchange and for separation of HREEs. Technical Report NI May 16, 2013 Page 17-18

181 EXPECTED FINAL METAL RECOVERY FROM THE METAL RECOVERY CIRCUIT Table 17-7 identifies the expected final metal recovery from the gravity/flotation concentrate. TABLE 17-7 FINAL ELEMENTAL METAL RECOVERY FROM GRAVITY/FLOTATION CONCENTRATE (800 TPH) AMR Mineral Metal Inc. Aksu Diamas Project TiO 2 Nb Th U Zr Fe 2O 3 Sc Y La Ce Pr Recovery, % kg/day recovered 13, ,731 19, ,008 1, Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu Recovery, % kg/day recovered The elemental recovery is based on the various processes as developed by SE Minerals of the REEs, titanium, zirconium, and other valuable mineral products. The recoveries are developed based on individual recoveries through each process. PROCESS PLANT DESIGN THROUGHPUT AND PRODUCTION A processing facility for both the gravity/flotation and metal recovery will be developed to process all ore from the Aksu Diamas mineralized bodies. The facility will be designed to operate 24 hours per day, 350 days per year. The Çanakli process plant is based on an 800 tph facility, although costs for a 3,800 tph facility have also been estimated as a sensitivity case. Because of the presence of barium within the process solutions, significant interferences during ICP-MS analysis can cause misleading assay results of the Tb, Ho, and Eu. The recovery of these elements will be reviewed and optimized using different assaying methods in future testing. Total metal production will be developed and reviewed in further feasibility testing. Technical Report NI May 16, 2013 Page 17-19

182 POWER Power consumption used in a given area has been estimated based upon installed power factored for operating schedule, availability, operating utilization, and load factor. Total average power consumption for the 800 tph gravity/flotation plant was estimated to be approximately 0.15 kwh/tonne. Total attached power was estimated to be about 1.92 MW. WATER All water is assumed to be from local sources and wells and readily available at site. Process wells will be developed for the plant facility to ensure a clean source of uncontaminated water for metals extraction facility. Water for the process plant will be recovered from the mine and settling ponds and recycled as necessary. Make-up water will be added as needed due to evaporation or infiltration. Water will also be used from the mine area as necessary when mining is below the water table. Mine water will be pumped to settling ponds. PROCESS DESIGN CRITERIA The following design criteria establish the design parameters that are to be followed in project design and execution. The criteria have been compiled from various sources listed below. The source for a particular criterion is identified per code in the following list of sources: IND Industrial Practice LP Local Practice TL Testing Laboratory VEN Vendor Information DER Derived or calculated result AMR AMR Mineral Metal Inc. RPA - RPA ORE CHARACTERISTICS Ore Characteristics Units Value Source Comments Mine Operations tonnes/hr 800 AMR Operating Days per Year days 350 AMR Mine Life years 15 IND Schedule: Shifts/day 2 IND Hours/shift 12 IND Plant Performance Availability % 90 IND Daily tonnes 17,280 Technical Report NI May 16, 2013 Page 17-20

183 Ore Characteristics Units Value Source Comments Throughput (design) Specific Gravity Average, design 2.00 TL RPA, in-situ 2.00 Bulk Density tonnes/m ROM: ore size mm 25 Moisture content % w/w 10 nom, 20 max RPA Angle of Repose degrees 45 TBD Draw down angle degrees 50 TBD Crusher Work Index kwh/tonne 0 AMR/RPA No crushing required Bond Work Index (Ball Mill) kwh/tonne TBD AMR Ball Mill testing will be required for flotation and metal processing. Abrasion Index g/tonne TBD LP testing will be required for flotation and metal processing Average Feed Assay - TiO 2 % 0.57 AMR/TL - Uranium ppm 6.5 AMR/TL - Zirconium ppm AMR/TL - Thorium ppm 26 AMR/TL - Nb ppm 34.1 AMR/TL - Sc ppm 6.2 AMR/TL - Y ppm 25.0 AMR/TL - La ppm AMR/TL - Ce ppm AMR/TL - Pr ppm 25.3 AMR/TL - Nd ppm 92.3 AMR/TL - Sm ppm 12.9 AMR/TL - Eu ppm 3.5 AMR/TL - Gd ppm 8.4 AMR/TL - Tb ppm 1.0 AMR/TL - Dy ppm 4.6 AMR/TL - Ho ppm 0.8 AMR/TL - Er ppm 2.1 AMR/TL - Tm ppm 0.3 AMR/TL - Yb ppm 2.0 AMR/TL - Lu ppm 0.3 AMR/TL COARSE ORE STOCKPILE Characteristics Units Value Source Comments Live Capacity h 24 IP tonnes 17,280 IP Total Capacity tonnes TBD Angle of Repose, Outside degrees 37 TBD Drawdown Angle degrees 55 TBD Reclaim No of Conveyors 1 IND Reclaim Feeder Type Belt IND No of Feeders 4 IND Wash Plant tonnes/hr 800 VEN Technical Report NI May 16, 2013 Page 17-21

184 Characteristics Units Value Source Comments GRAVITY PLANT Characteristics Units Value Source Comments Plant Feed % solids 27.5 VEN Coarse Cyclone Feed % solids 27.5 VEN Fine Cyclone Feed % solids 21.4 VEN Coarse Feed Size (k80) mesh 25 AMR Fine Feed Size (k80) microns 150 IND Tails Discharge % of 40 IND Solids Fine Feed Discharge (k80) microns 25 IND Spiral Feed, All % solids 30-35% IND LIMS Feed, All % solids 25-35% IND Table Feed, ALL % solids 35 IND FLOTATION GRINDING CIRCUIT Characteristics Units Value Source Comments Operating Schedule d/y 365 AMR h/d 24 AMR Plant Availability % 92 IND Processing Rate Design t/h 3.5 DER Mill Size m x m 2 x 2 TBD Number of Mills 1 TBD Design Operating Power kwh/t 15.0 TBD Estimated New Feed Size (K80) microns 120 IND Product Size (K90) microns 90 IND New Feed Rate t/h 5-10 IND Selected Power kw 75 TBD Estimated Nominal Steel Charge % 35 IND Design Steel Charge % 45 IND Regrind Mill Charge Mill Slurry Density % solids 75 IND FLOTATION CIRCUIT Characteristics Units Value Source Comments Type TBD IND Specific Gravity (ore) % solids 3.5 IND Desliming microns 10 IND Desliming Material % 7 IND Removed Conditioning minutes 17 IND Rougher Float Time minutes 3 TL Specific Gravity (ore) % solids 3.5 IND Rougher Flotation Feed % solids 35 IND Density Rougher Flotation Feed ph 4 TL Scavenger Float Time minutes 3 DER Scavenger Feed Density % solids 30 IND Concentrate Thickener Specific Area m 3 /hr/m TBD Estimated Technical Report NI May 16, 2013 Page 17-22

185 Characteristics Units Value Source Comments Concentrate Thickener UF Air Diaphragm IND Pump Concentrate Filtration Rate t/m 2 /h TBD Estimated Tails Thickener Specific Area m 3 /hr/m TBD If required, pump straight to open mine cell Tails Underflow Density % Solids 25 IND Pump Type Centrifugal IND All but Concentrate Thickener METAL RECOVERY CRACKING SYSTEM Characteristics Units Value Source Comments Feed Rate tph 5-10 IND Mill Size m x m 1 x 1 TBD Number of Mills 1 TBD Design Operating Power kwh/t 15.0 TBD Estimated New Feed Size (K80) microns 90 IND Product Size (K90) microns 74 IND Selected Power kw 75 TBD Estimated Nominal Steel Charge % 35 IND Design Steel Charge % 45 IND Regrind Mill Charge Mill Slurry Density % solids 75 IND Cracking Solution Sodium IND Hydroxide Ratio of Caustic to Ore 1.25:1.0 IND Reaction Time hr 4 IND Temperature C 600⁰ IND Vessel Type 310 Stainless Reaction Batch IND Create usable FRIT WATER LEACHING OF FRIT Characteristics Units Value Source Comments Water to Frit Ratio 5:1 IND Leaching Time hr 1 IND Agitated Vessel Leachate decanted IND Leachate processing TBD Slurry filtered IND Filter Type plate and frame IND Filter Size TBD IND Filtrate Pump Centrifugal IND Filtrate recycled Filtrate Dryer Temp C 110⁰ IND Filter Type Thermal Drier IND Improve Filterability HYDROCHLORIC ACID LEACHING Characteristics Units Value Source Comments Feed rate tph 1-2 IND Acid to frit ratio 3 liters:1 kg IND Acid Solution % acid 35 IND Mixed w/ water Container Type poly propylene IND With agitator Leaching time hr 1 IND Technical Report NI May 16, 2013 Page 17-23

186 Leaching Temperature C 60 Filter Type plate and frame IND Filter Size TBD IND Filtrate Pump Centrifugal IND Filtrate stored, residue disposed. IRON REMOVAL CIRCUIT Characteristics Units Value Source Comments Feed Solution RECL3 Flowrate m 3 /hr TBD IND Total Iron g/l 2 Estimated Iron Recovery % 98.2 IND Temperature C 20 to 30 IND Reagent Type TBP Concentration % TBD Diluent Type Highflashpoint Kerosene Shellsol 2046 IND TBD Flashpoint C 80 Aromatic, Max % 20 IND No. of Stages Extraction 6 IND No. of Stages Scrub 4 IND No. of Stages Strip 6 IND Mixer Retention Time min TBD IND Extraction O/A Ratio 2:1 IND Scrubbing O/A Ratio 5:1 Stripping O/A Ratio 2:1 Settler Specific Area m 3 /hr/m 2 TBD IND Organic Flowrate m 3 /hr TBD IND Stage Efficiency % 95 Estimated Strip Solution Precip Filter plate and frame Filter Size TBD IND Filtrate Pump Centrifugal IND Filter product thermally dried and calcined Calcination Temperature C 800 IND ZIRCONIUM, URANIUM AND TITANIUM REMOVAL Characteristics Units Value Source Comments Feed Solution RECL3 Precipitant temp C IND Filter Size TBD IND Filtrate Pump Centrifugal IND Filter product to SX Nitric Acid Dissolution Ratio 3 molar IND Reagent Type TBP Concentration % TBD Diluent Type Highflashpoint IND TBD Kerosene Shellsol 2046 Flashpoint C 80 Aromatic, Max % 20 IND Total Zirconium g/l 1.04 IND Total Uranium g/l IND Technical Report NI May 16, 2013 Page 17-24

187 Characteristics Units Value Source Comments Total Titanium g/l IND Acidity of Feed % 3 molar IND Nitrate Temperature C 20 to 30 IND No. of Stages Extraction 6 IND For all extractions Mixer Retention Time min TBD IND Acidity of Zirconium Strip M 1 IND HNO3 Solution Acidity of Uranium Strip M 0.5 IND H2SO4 Solution Stripping O/A Ratio 2:1 Estimated Settler Specific Area m 3 /hr/m 2 TBD IND Organic Flowrate m 3 /hr TBD IND Stage Efficiency % 95 Estimated Strip Solution Prec Filter plate and frame Filter Size TBD IND Filtrate Pump Centrifugal IND Filter product thermally dried and calcined REE RECOVERY CERIUM Characteristics Units Value Source Comments Oxalate Precipitation Reagent Type Oxalic Acid Temperature C 80 Filter Size TBD IND Filtrate Pump Centrifugal IND Filter product recycled Reagent Type TBP IND TBD Concentration % TBD IND Highflashpoint Diluent Type Kerosene Shellsol 2046 IND TBD Flashpoint C 80 Aromatic, Max % 20 IND Free Acidity M 2.5 HNO3 No. of Stages Extraction 3 IND No. of Stages Scrub 3 IND No. of Stages Strip 3 IND Mixer Retention Time min TBD IND Extraction O/A Ratio 4:1 IND Scrubbing O/A Ratio 10:1 Stripping O/A Ratio 10:1 Settler Specific Area m 3 /hr/m 2 TBD IND Organic Flowrate m 3 /hr TBD IND Stage Efficiency % 95 Estimated Strip Solution Precip Filter plate and frame Filtrate Pump Centrifugal IND Filter product thermally dried and calcined Technical Report NI May 16, 2013 Page 17-25

188 REE RECOVERY LANTHANUM OXIDE Characteristics Units Value Source Comments Free Acidy Adjusted from Cerium Extraction M 0.1 Reagent Type Solvent Extraction Chemical IND Concentration M 1 IND TBD Estimated To Be Determined No. of Stages Extraction 10 IND Counter Current No. of Stages Scrub 12 IND Counter Current No. of Stages Strip 6 IND Counter Current Mixer Retention Time min TBD IND Extraction O/A Ratio 0.5:1 IND Scrubbing O/A Ratio 12.5:1 IND Stripping O/A Ratio 5:1 IND Settler Specific Area m 3 /hr/m 2 TBD IND Organic Flowrate m 3 /hr TBD IND Stage Efficiency % 95 Estimated Strip Solution Precip Filter plate and frame Filtrate Pump Centrifugal IND SCRUB SOLUTION ND+PR RECOVERY Filter product thermally dried and calcined Characteristics Units Value Source Comments Strip Solution Precip Filter plate and frame Filtrate Pump Centrifugal IND Filter product thermally dried and calcined, Filtrate NaCl recovery PROCESS DESIGN REVIEW GRAVITY/FLOTATION PLANT Initial feed to the plant is expected to be relatively easy to treat. Approximately 50% of the mined material will not be processed through the gravity and ultimately the flotation circuit as it is too big or small. The small portion, less than 25 microns, accounts for approximately 95% of the material not processed. Ultimate recovery of the REEs, titanium, zirconium, and other valuable minerals will be approximately 40% to 45% in the gravity flotation circuit. At 800 tph, approximately 5 tph to 10 tph of flotation product will be produced averaging 2.8% REEs and a significant recovery of valuable mineral components of titanium, zirconium, and uranium. Initial recovery in the gravity plant will be through a series of spirals based on Technical Report NI May 16, 2013 Page 17-26

189 a conventional rougher, scavenger, and cleaner circuit. The initial spiral cleaner circuit will feed a low intensity magnetic separator (LIMS) for iron removal and the low iron concentrate will be recleaned in a spiral circuit and with the second spiral concentrate ultimately being final cleaned on a shacking table. Flotation is based on a conventional rougher/scavenger with no cleaning circuit. The plant has been designed to maximize recovery of oxide mineralization. General reagent consumption and residence times have been based largely on recent testwork performed with flotation prior to leaching. METAL RECOVERY Standard metal recovery using caustic cracking, precipitation, and solvent extraction in various stages is contemplated for the REEs, titanium, zirconium, and other valuable minerals recovery. The flowsheets proposed are not significantly different from current standard practice. Significant work has been completed by SE Minerals on the recovery circuit with work on the following still required: Rheology requirements for pumping, settling, and filtering. Solvent extraction mechanism requirements, residence times and flow rates. Batching requirements. Equipment sizing and material types. Optimal temperature requirements. Pilot testing to included lock cycle testing. Recycle potential and methods for recycle. Calcine handling and bagging systems. Detailed work on Scandium ion exchange recovery. Detailed separation work on HREEs to maximize product salability and value. RECOMMENDATIONS In the opinion of CMS, the Project warrants further investigation and should proceed to feasibility level work thereby increasing confidence levels in the Project. The following recommendations concerning a next phase of metallurgy work are given below. Detailed comminution testing is required to identify and ultimately design the milling facilities. Lock cycle tails leach testing is required to identify and finalize the necessary operating, flotation, leaching kinetics, chemical usage, and neutralization requirements. Specific issues include the chemical requirements which may significantly affect the operating cost and the leaching kinetics which may significantly affect the amount of capital. Technical Report NI May 16, 2013 Page 17-27

190 Caustic cracking testing needs to be completed on the expected concentrate to ensure that all of the leaching kinetics are identified, finalize leaching and process parameters, and to identify any issues associated with recovery. Significant in the concentrate leach tests is the development and recycling of caustic. Based on the solution chemistry identified in leach and acid purification, testing will need to be completed to maximize recycle of acid and caustic. A complete review and design will be required by Cytec or equivalent firm to ensure the solvent extraction/electrowinning design is properly set up and all appropriate bleeds, flows, and recycled flows are developed and designed. Recovery testing for niobium and gallium should be undertaken as these are high dollar products that have a relatively high concentration. Detailed scandium recovery methods need to be outlined, finalized, and tested in conjunction with lock cycle tests. HREE separation development should be completed using Intellimet, ion exchange or by solvent extraction techniques developed by the Chinese and others. Tailings dam requirements and engineering will be required based on the final location or cell design. Dry stacked tails conveyed to a tailing storage facility may create options for water reuse. Additional work on the metals recoveries bleeds will be required to ensure proper disposal of all final products. Technical Report NI May 16, 2013 Page 17-28

191 18 PROJECT INFRASTRUCTURE The surface infrastructure area will be concentrated near the process plant, proposed for a central location between Çanakli 1 and Çanakli 2. In addition to the plant, surface infrastructure will consist of a site office and administration building, warehouse, maintenance shops, diesel storage facility, electrical transformer and site distribution, secure storage for uranium and thorium, water supply, and a lined residue facility, with road access connecting all facilities to the active mining cells. BUILDINGS Apart from the process plant, all buildings will be of relatively simple construction, either trailers or steel-clad structures. It is assumed that the foundations will be poured concrete slabs where necessary. Administration and Services Office Mechanical and Electrical Shop Warehouse Main security gate house An existing corporate office will remain in service. The administration and services office building will accommodate mine management, administration, engineering/geology department, first aid room, training and meeting rooms, and changing facilities. The maintenance facilities will include a wash bay, mechanical bays, and a welding shop. Other shops adjacent to the main garage will be added for welders, carpenters, pump and accessories maintenance, and for electrical and instrumentation workers. An office will be provided for maintenance foremen and planners. Warehouse facilities for equipment parts will be established adjacent to the maintenance area. A surface laydown area will be designated for larger items. Technical Report NI May 16, 2013 Page 18-1

192 FUEL STORAGE A central fuel storage system comprising two 200 m 3 diesel storage tanks contained within a bunded area will be installed adjacent to the process plant and close to the mine services area. This fuel storage will supply refuelling requirements for the mine fleet and light vehicles. POWER SUPPLY Grid power is available at the Project site, currently supplying the demonstration plant. The main transmission line will be extended to the proposed plant site, and distributed around site to supply the process plant, pumping stations, mechanical shop, warehouse, service buildings, and site lighting. WATER All water is assumed to be from local sources and wells and readily available at site. Process wells will be developed for the plant facility to ensure a clean source of uncontaminated water for metals extraction facility. Water for the process plant will be recovered from the mine and settling ponds and recycled as necessary. Make-up water will be added as needed due to evaporation or infiltration. Water will also be used from the mine area as necessary when mining is below the water table. Mine water will be pumped to settling ponds. WASTE STORAGE FACILITIES A secured area will be established for storage of thorium and uranium oxides, prior to shipment off-site to a controlled government facility, or to a customer. Turkish Atomic Energy Authority (TAEA) guidelines and regulations will be followed. A lined storage pond will be constructed close to the hydrometallurgical plant, for management and storage of process residues and filtrate that cannot be recycled. Technical Report NI May 16, 2013 Page 18-2

193 19 MARKET STUDIES AND CONTRACTS MARKET STUDIES RARE EARTHS RPA collected historical price information, supply/demand analysis, and long term forecasts for REO. RARE EARTH SUPPLY Rare earths are found in more than 200 minerals, of which about a third contain significant concentrations. Only a handful, however, have potential commercial interest. The most important source minerals are carbonates (bastnaesite) and phosphates (monazite and xenotime). Apatite is also an important source of rare earths, while heavy rare earths are more commonly found in minerals in granitic and alkaline rocks and in ionic clays. The main geological environments for rare earths are: Carbonatites bastnaesite (Mountain Pass, California; Kola Peninsula; Russia, Sichuan, China) Monazite and xenotime-bearing placers (west coast of Australia; east coast of India) Iron-bastnaesite rare earth element deposits (Bayan Obo, Inner Mongolia; Olympic Dam, Australia) Ion absorption clays (Longnan, Jiangxi, China) loparite and eudialyte in alkaline intrusives (Kola Peninsula, Russia; Dubbo, Australia) Pegmatites, hydrothermal quartz and fluorite veins (Northern Territories, Australia; Karonge, Burundi; Naboomspruit, South Africa) Other generic types which may contain rare earths are: Phosphates (Phosphoria Formation, western USA), Uranium deposits in sandstone and black shales (Wheeler River, Alberta; Williston Basin, Saskatchewan), Mylonites in limestones (Nam-Nam-Xe, Vietnam), Technical Report NI May 16, 2013 Page 19-1

194 Scheelite skarns (Ingichke, Uzbekistan), Nickel deposits (Sudbury Basin, Ontario). By far the most important current sources of rare earths are the Bayan Obo iron rare earth deposits near Baotou, Inner Mongolia, the bastnaesite deposits in Sichuan, China and the ionic clay deposits in southern China. China is the dominant source of all rare earth oxides. Light rare earths are primarily produced in northern China (Inner Mongolia) and southwestern China (Sichuan). The heavy rare earths are primarily produced in southern China (Guangdong), from ionic clays. There are distinct differences in the elemental composition of various rare earth sources, as illustrated in Table Source TABLE 19-1 DISTRIBUTION OF RARE EARTHS BY SOURCE CHINA AMR Mineral Metal Inc. Aksu Diamas Project Baotou, Inner Mongolia Bastnaesite Concentrate Sichuan Guangdong Longnan, Jiangxi Mountain Pass, Ca Mt. Weld, W. Australia 1 Ore Type Bastnaesite Concentrate High-Eu clay High-Y clay Bastnaesite Monazite TREO in 2 Concentrate 50% 50% 92% 95% Element La Ce Pr Nd Sm Eu Gd Tb Dy Er Y trace Ho-Tm-Yb-Lu trace Total TREO Source: Neo-Materials International, Harben, Lynas Corp. 1 Central Zone pit assays for La, Ce, Pr, Nd, Sm, Dy, Eu, and Tb 2 TREO contents of China clays represent the relative amounts in concentrate produced from the clay deposits Technical Report NI May 16, 2013 Page 19-2

195 As a consequence of the mix of the individual elements within a raw material source, the distribution of supply of the individual elements does not match the distribution of demand for the elements. The mixed composition of rare earth minerals necessitates the production of all of the elements within a given ore source. Such production does not necessarily equal the demand for the individual oxides, leaving some in excess supply and others in deficit. Overall production of rare earths on an oxide basis is therefore typically greater than the sum of demand for the individual elements in any given year. The international rare earths market has grown at an unprecedented rate since China cut export quotas by approximately 40% in China s overwhelming control (Figure 19-1) on the rare earth supply chain, from upstream mining to downstream processing and end-user products, is likely to remain intact on all but a few materials through Further price increases are expected with continued decreases in export availability from major Chinese suppliers and a surge in domestic China demand. FIGURE 19-1 RARE EARTH RESERVES AND PRODUCTION BY COUNTRY Technical Report NI May 16, 2013 Page 19-3

196 A crackdown on illegal mining operations, which accounted for an estimated 20% to 25% of production over the past five years, has substantially cut down on the availability of material on the spot market. A major consolidation of the market, which began in 2009, has also limited the number of active rare earth miners, separation plants, and exporters in China. New production from US-based Molycorp and Australia-based Lynas was initiated in 2012 and should add between 30,000 tons (27,000 tonnes) and 40,000 tons (36,000 tonnes) of high purity material to the market by the end of 2013, which is widely expected to saturate the light rare earths market when it becomes available. The ore bodies from Molycorp s Mountain Pass and Lynas Mount Weld mine sites are predominantly composed of light rare earths - lanthanum, cerium, praseodymium, and neodymium. The heavy rare earths and yttrium are found at the mines only in trace amounts and will be neither recovered nor produced in quantities that would have a material impact on global supply. It should be noted that the heavy rare earths Dy, Er, Eu, Gd, Ho, Lu, Sc, Sm, Tb, Tm, Y, Yb are not only much more rare than the light rare earths, but the separation and processing of heavy rare earth-rich concentrate into high purity oxides and metals outside of China will require substantial new capital investment. At present, substantially all heavy rare earth processing facilities are in China, and previous scoping studies done by prospective rare earth mining ventures indicate that a new separation plant would cost roughly US$250 million to US$350 million and take three to four years to complete. As a result, availability of heavy Technical Report NI May 16, 2013 Page 19-4

197 rare earths will be contingent on Chinese production levels until 2015 at the earliest - the soonest a non-chinese processing facility could be completed. On a macro level, over the next five years, the Chinese government is expected to further regulate the rare earth mining industry. China has already begun enacting a series of new policies designed to improve environmental guidelines, limit illegal production, establish provincial and national stockpile reserves, and continue a consolidation of the overall industry. RARE EARTH PRICING The market for rare earth products is relatively small, and information on pricing and sales terms is difficult to obtain. Sustained growth in demand and price is expected for nearly all rare earths through 2016 with the exception of lanthanum, cerium, and praseodymium. REO price forecasts for the LOM plan were obtained from a number of sources, which covered a wide range of values. The prices used in the Project cash flow are described in Table The prices were applied as a constant throughout the LOM schedule. TABLE 19-2 REO FORECAST PRICES VS. CURRENT SPOT PRICES AMR Mineral Metal Inc. Aksu Diamas Project Rare Earth Oxide Base Case (US$/kg) Q Spot* (US$/kg) Ce 2 O La 2 O Nd 2 O Pr 2 O Sm 2 O Eu 2 O 3 1,500 1,500 Gd 2 O Sc 2 O 3 2,000 - Y 2 O Yb 2 O Dy 2 O Er 2 O Ho 2 O 3-77 Lu 2 O 3-1,316 Tb 4 O 7 1,200 1,230 Tm 2 O * Source: Metal-Pages.com Technical Report NI May 16, 2013 Page 19-5

198 Markets for holmium, lutetium, and thulium are limited, and there is no assurance that the Project will realize revenue from those oxides, so none has been included in the cash flow. The average rare earth oxide price used in the LOM cash flow analysis is $35/kg, which matches the recent average spot price. NIOBIUM NIOBIUM MARKET Niobium is a refractory metal closely associated with tantalum. Niobium is produced as a primary concentrate from pyrochlore ore, and as a co-product in the production of tantalum concentrates. Niobium finds its primary uses as an alloying agent in the production of high strength low alloy steels (HSLA), in selected aerospace alloys and in stainless steels. In these applications, the primary product form is as FeNb, TiNb and ZrNb. FeNb has a typical analysis of 66% Nb. FeNb and related alloy products account for over 90% of total niobium consumption. Niobium is also used in electronic and optical applications, in superconducting magnets, fine ceramics, and as a corrosion resistant metal for chemical process equipment. Niobium for these applications is consumed in the form of niobium powder as Nb 2 O 5, as pure niobium metal and as niobium salts, primarily as the potassium salt K 2 NbF 7 or its derivatives. Increases in niobium production (and consumption) are attributed to very significant increases in world steel production and a change in the mix of steel production to higher performance grades requiring niobium addition. NIOBIUM SUPPLY The niobium production industry is closely controlled with three producers essentially holding a monopoly position. All three companies are primary producers of niobium concentrates for internal consumption. The dominant producer is Comphania Brasileira de Metalurgia e Mineração (CBMM) in Brazil. CBBM is a fully integrated producer and the only company producing all forms of niobium. CBBM holds an approximate 70% share of the world market for FeNb products and a significant share of the world market for pure niobium, NiNb and TiNb and other specialty alloys, niobium chemicals and niobium powder. The other major primary producers of niobium are Mineração Catalão de Goias S.A. (Catalão) in Brazil and Niobec in Canada. These latter two companies control about 20% of Technical Report NI May 16, 2013 Page 19-6

199 the total niobium market and share the FeNb market approximately equally with about 15% market share each. Together with CBBM, they control essentially 100% of the FeNb market. CBBM, Catalão and Niobec are fully integrated producers sourcing their niobium feedstock from pyrochlore ore. Mineração Taboca, also in Brazil, produces a mixed FeNbTa alloy which is subsequently processed by others to produce separate niobium and tantalum products. The balance of niobium supply is comprised of producers primarily focused on specialty niobium products such as NiNb, TiNb, and ZrNb alloys and pure niobium. The three largest of these are Cabot Corporation in the United States, H.C. Starck in Germany, and Wah Chang in the United States. These companies are not backward integrated to production of niobium concentrate and rely on Ta-Nb concentrates and Nb k-salt as their sources of niobium. As demand for niobium grows steadily, the major producers will tend to increase production to follow suit. The major producers have sufficient capacity to meet increased demand and no shortage of niobium is anticipated. NIOBIUM PRICING The primary sources of information for niobium pricing are a Roskill report on niobium, Asian Metals historical prices for Nb 2 O 5 (niobium pentoxide), and NI reports by niobium exploration and mining companies. Prices for FeNb have been historically stable. CBBM has historically been the price setter and has set prices sufficient to provide the smaller producers a reasonable operating margin and thus ensure a competitive supply base to the steel industry. From 1990 until 2006 the average export price of Brazilian ferro-niobium remained within the range of US$12,500/t to US$13,500/t contained Nb. There was an adjustment in and prices increased and in some markets doubled. The increase in price for FeNb reflected the very strong price increases for other steel raw materials and for steel in the same period. Prices declined in 2009 along with the decline in the world steel industry. The forecast price for niobium pentoxide used in the cash flow analysis is US$55.00/kg. Technical Report NI May 16, 2013 Page 19-7

200 ZIRCONIUM ZIRCONIUM MARKET AMR will produce a hydrated zirconium dioxide (ZrO 2 ) product which has a wide variety of end use applications, detailed in Figure While the primary uses for zircon (zirconium silicate) are as an opacifying agent in ceramics and as a refractory material in metal casting, zircon is also converted into a wide variety of chemicals and to zirconium metal. Demand for zircon in chemicals manufacture and zirconium metal production is projected to increase to approximately 250,000 tonnes out of a total zircon demand of approximately 1.4 million tonnes by End use demand is illustrated in Figure Technical Report NI May 16, 2013 Page 19-8

201 ZIRCON / BADDELEYITE ELECTRIC ARC FURNANCE CHEMICAL PROCESSING INTERMEDIATES ZBS ZOC FUSED ZIRCONIA UPGRADING/CONVERSION UPGRADING/CONVERSION END USE Upgrading ZBS ZOH ZBS ZOC ZBC Zr Acetate Doped Zirconia End Uses Catalysts Mixed zirconias Pigment coating Pigment coating Leather tanning Pigment coatings Drilling muds Fireproofing textiles Rubber Catalysts Structural ceramics Bioceramics Electronics Catalysts Paint driers Antiperspirants Printing Inks (as AZC) Ceramics Electronics Zirconium soaps Catalysts Fireproofing textiles Catalysts Paint driers Antiperspirants Printing Inks (as AZC) Ceramics Electronics Figure 19-2 AMR Mineral Metal Inc. Aksu Diamas Project Southwest Turkey Zircon Applications May 2013 Source: TZMI. 19-9

202 FIGURE 19-3 CURRENT ZIRCON CONSUMPTION BY END MARKET Source: Industry growth is estimated at approximately 4.5% per annum. By 2015, demand for zirconium chemicals is projected to be approximately 150,000 tonnes, distributed as detailed in Figure FIGURE 19-4 FORECAST ZIRCONIUM CHEMICAL DEMAND 2015 Source: TZMI Technical Report NI May 16, 2013 Page 19-10

203 Particularly fast growing applications are anticipated to be advanced ceramics and catalysts at 13% per annum and ceramic pigments at 8% per annum. It is important to note that the production process has a very significant impact on the properties of the resultant ZrO 2. Because of this, no two sources of raw material are the same and no two zirconia products are the same. ZrO 2 products are therefore process dependent and application specific. ZIRCONIUM PRICING China is the dominant world supplier of zirconium chemicals and as a result sets world prices for the various zirconium chemical products. A range of recent prices for some zirconium products is noted in Table 19-3: TABLE 19-3 RECENT PRICES FOR ZIRCONIUM PRODUCTS AMR Mineral Metal Inc. Aksu Diamas Project Product ZrO 2 (%) Q (US$/tonne) Q (US$/tonne) Q (US$/tonne) Zircon (producer/trader) 65% 900 1,150 1,500 2,100 1,700 2,750 (100% ZrO 2 basis) 100% 1,440 1,840 2,400 3,360 2,720 4,400 ZOC (zirconium oxychloride) 36% 1,350 1,450 2,300 2,600 3,600 4,000 (100% ZrO 2 basis) 100% 3,750 4,025 6,400 7,200 10,000 11,111 ZBS (zirconium basic sulphate) 33% 1,770 3,000 6,000 (100% ZrO 2 basis) 100% 5,360 9,100 18,200 ZBC (zirconium basic carbonate) 40% 2,100 3,400 5,400 (100% ZrO 2 basis) 100% 5,250 8,500 13,500 Fused Zirconia 98.5% 2,900 3,100 4,100 4,400 6,000 7,000 Chemical Zirconia 99.5% 4,200 4,400 7,200 7,500 10,000 12,000 Chemical Zirconia 99.5% 5,300 5,500 8,500 10,500 12,000 15,000 Source: Alkane Resources Ltd. A price of US$7.50/kg, representing chemical zirconia of high purity, was selected for use in the cash flow analysis. Technical Report NI May 16, 2013 Page 19-11

204 TITANIUM TITANIUM MARKET Titanium dioxide is a white pigment that is a key ingredient of paint, coatings, paper, and plastics. Titanium is typically sourced from ilmenite, rutile, and to lesser degree, leucoxene. Titanium dioxide consumption by end market use is shown in Figure FIGURE 19-5 TIO2 CONSUMPTION BY END MARKET Source: The majority of titanium dioxide producing plants are located in North America and Europe, and new plants are currently under construction in China. Australia and South Africa are leading producers of feedstock. Ilmenite is the most common source, and has approximately 52% to 54% TiO 2 content. It is mainly purchased by sulphate TiO 2 manufacturers. Rutile is less abundant than ilmenite, and has almost double the TiO 2 content at 92% to 95% TiO 2. TITANIUM PRICING Titanium dioxide pricing is widely available. Figure 19-6 shows the titanium dioxide price trend since August Technical Report NI May 16, 2013 Page 19-12