Namibia Rare Earths Inc.

Transcription

1 Namibia Rare Earths Inc Exploration in a New Mineral District Targeting Exceptional Heavy Rare Earth Enrichment Moving to Initial Resource in Q April 23, 2012 TSX:NRE

2 Forward Looking Statements This presentation contains forward-looking statements that relate to the Company's current expectations and views of future events In some cases, these forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "seek", "believe", "potential", "continue", "is/are likely to" or the negative of these terms, or other similar expressions intended to identify forward-looking statements The Company has based these forward-looking statements on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs These forward-looking statements include, among other things, statements relating to (i) the Company's strategy, growth, development and acquisition opportunities, return on existing assets, operational excellence and financial management; (ii) the Company's expectations regarding its revenue, expenses and operations; (iii) the Company's anticipated cash needs and its estimates regarding its capital and operating expenditures; (iv) capital requirements, needs for additional financing and the Company's ability to raise additional capital; (v) the Company's estimates of future cash flows, financial condition and operating performances of the Company and its subsidiaries; (vi) the estimation of any mineral resources and the realization of mineral reserves based on mineral resource, estimates and estimated future development, if any, and possible variations of ore grade or recovery rates; (vii) estimated results of planned exploration and development activities; (viii) the Company's competitive position and its expectations regarding competition from other companies globally; (ix) the Company's ability to maintain customer and supplier relationships; (x) anticipated trends and challenges in the Company's business and the markets in which it operates, including with respect to potential new rare earths projects, supply outlook and growth opportunities; (xi) limitations of insurance coverage; (xii) the future price of and future demand for rare earths elements and their derivative products; (xiii) economic and financial conditions; (xiv) interest rates and foreign exchange rates; (xv) performance of counterparties in fulfilling their obligations; (xvi) government regulation of mining operations, accidents, environmental risks, exploration risks, reclamation and rehabilitation expenses; (xvii) title disputes or claims; and (xviii) the timing and possible outcome of pending regulatory and permitting matters Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate These assumptions include continued political stability in Namibia, that permits required for the Company's operations will be obtained in a timely basis in order to permit the Company to proceed on schedule with its planned drilling programs, that skilled personnel and contractors will be available as the Company's operations continue to grow, that the price of rare earths will remain at levels that will render the Company's projects economic and that the Company will be able to continue raising the necessary capital to finance its operations Forward-looking statements involve a variety of known and unknown risks, uncertainties and other factors, including those listed under the heading "Risk Factors" in the prospectus of the Company dated April 7, 2011 (filed on SEDAR wwwsedarcom), which may cause the Company's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in the presentation Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, a future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events There can be no assurance that such forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information Accordingly, potential investors should not place undue reliance on forward-looking information

3 Corporate Summary April 15, 2012 Listing Toronto Stock Exchange ( NRE ) Head Office Halifax, Nova Scotia Issued 77,828,500 shares Warrants 7,561,250 (priced at $075 - $080) Options 5,200,000 (priced at $041 - $080) Fully Diluted 90,589,750 shares 52 Week High/Low $087/$037 Share Price Range $ Market Capitalization $311 million Cash Balance $213 million Debt Nil

4 Namibia Rare Earths - IPO April 2011 on TSX ($2875M) 100% owner of the Lofdal Rare Earth Project ( Lofdal ) located in north-western Namibia District scale potential for new rare earth deposit discoveries (Lofdal covers 740 km 2 ) Drill targets with exceptional heavy rare earth enrichment when compared to its rare earth developer peers Aggressive exploration program post-ipo has already identified first resource target area with open pit potential (currently drilling) Namibia is a stable jurisdiction, pro-mining country, with excellent infrastructure Experienced management and board with significant African and rare earth experience, including an officer of Molycorp on board

5 Why Does Everyone Emphasize Heavies? Part I Supply Concerns Rare earth elements are essential for high-tech applications (computers, cell phones, hybrid cars, wind turbines and defence industry applications) The US Department of Energy has identified 5 critical elements that are at a serious supply risk over the next 15 years dysprosium (Dy), terbium (Tb), neodymium (Nd), europium (Eu) and yttrium (Y) Principal target elements at Lofdal are dysprosium, terbium and yttrium

6 Why Does Everyone Emphasize Heavies? Part II - Pricing Decision to IPO Lofdal was made in early 2010 after which rare earth oxide prices rose dramatically to a peak in July 2011 Prices have fallen back in the past 6 months but still remain robust In spite of recent drop of 45% in prices, current levels are up over 850% from 2010 prices and heavies have maintained their value relative to lights Do your homework to understand what a company reports as HREE or HREO Norm is to include yttrium which may be >50% of the heavies Some companies will break out light REE, mid REE and heavy REE Look for complete disclosure of material grades (next slide) Oxide January 2010 January 2011 July 2011 Jan 2012 % Change 6 mo % Change 24 mo Recent (US$/kg) (US$/kg) (US$/kg) (US$/kg) (July '11 Jan '12) (Jan '10 Jan '12) (US$/kg) Lanthanum % 750% 28 Cerium % 975% 27 Praseodimium % 617% 135 Neodymium % 713% 135 Samarium % 1480% 88 Europium % 690% 3020 Terbium % 703% 2100 Dysprosium % 1065% 1170 Yttrium % 810% 133 LREE HREE In January 2010 Eu, Tb and Dy were worth approximately 26X more than La, Ce, Pr, Nd and Sm In January 2012 Eu, Tb and Dy were worth approximately 25X more than La, Ce, Pr, Nd and Sm Price sources: Technology Metals Research derived from metal-pagescom for 99% REO FOB China

7 What is Heavy Rare Earth Enrichment? Material Grades Most rare earth deposits have a preponderance of light rare earths The relative proportion of heavies to the total grade expressed as a percentage defines the degree of heavy rare earth enrichment Deposits with >10% enrichment (far right column indicated with below) are considered to be enriched in heavies Rare Element Navigator GWG Lynas Lynas Molycorp Arafura Hudson GWG Frontier (February 2011) Alkane Stans Greenland Avalon Tasman Quest Matamac TREO grades from 024% to 1165% and H:T range from 06% to 527%

8 REO Distribution 1 Shows Level of Heavy Rare Earth Enrichment 06% Molycorp 22% Hudson 33% Rare Element 37% Great Western 23 53% HREE 5-15% HREE < 5% HREE 54% Lynas 77% Great Western 78% Frontier 155% Avalon 233% Alkane 369% Matamec 432% Quest 527% Tasman 1 From Technology Metals Research Company Report February 2011

9 Targeted HREE Enrichment at Lofdal is 80-90% HREO NLOFDH4015 from m = 16 m with 945% HREE enrichment Hole NLOFDH015 intersected 16 m of 128% TREO with 945% HREE enrichment (including 2 m of 618% TREO with 984% HREE enrichment) It is this exceptional HREE enrichment which makes Lofdal so unique The discovery of a viable REE deposit with such a distribution would be very significant La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO HREO:TREO ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm % % Ratio as % , ,

10 REE Deposits Have a Wide Range of Grades and In Situ Values In situ values (US$/tonne) reflect grade and distribution of REOs in terms of resource in the ground No consideration given to tonnage, recoveries or economics it is just a yardstick $9,767 $7,972 $4,240 $2,913 $2,321 $1,738 $1,408 $1,267 $1,213 $1,154 $930 $751 $472 TREO Grade: (1) Great Western Lynas Molycorp Rare Element Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings 117% 79% 66% 30% 22% 14% 26% 09% 08% 10% 05% 05% 02% (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using February 2012 average REO FOB China prices

11 TREO Grade Generally will Rank Deposits in Value $9,767 Based on grade alone, that drill intercept of 13% TREO from Lofdal might be expected to fall in the middle of the pack $7, meter drill 13% TREO (2) $4,240 $2,913 $2,321 $1,738 $1,408 $1,267 $1,213 $1,154 $930 $751 $472 $3,333 TREO Grade: (1) Great Western Lynas Molycorp Rare Element Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Namibia REE 117% 79% 66% 30% 22% 14% 26% 09% 08% 10% 05% 05% 02% 13% (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium (2) Calculated based on the average grade from single 160 meter length drill hole intercept as reported in Company press release dated September 15, 2011 SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using February 2012 average REO FOB China prices

12 TREO Grade Generally will Rank Deposits in Value $9,767 $7,972 Because of the exceptional heavy rare earth enrichment at Lofdal that 13% TREO grade has a higher in situ value than the 30% TREO grade at Bear Lodge Bear Lodge 30% TREO 16 meter drill 128% TREO (2) $4,240 $2,913 $2,321 $1,738 $1,408 $1,267 $1,213 $1,154 $930 $751 $472 $3,333 TREO Grade: (1) Great Western Lynas Molycorp Rare Element Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Namibia REE 117% 79% 66% 30% 22% 14% 26% 09% 08% 10% 05% 05% 02% 13% (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium (2) Calculated based on the average grade from single 160 meter length drill hole intercept as reported in Company press release dated September 15, 2011 SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using February 2012 average REO FOB China prices

13 Importance of High Grade Intercepts at Lofdal 2 meter drill 618% TREO (2) Continuity and frequency of high grade intercepts will be important in delineating resources at Lofdal $16,966 $9,767 $7,972 $4,240 $2,913 $2,321 $1,738 $1,408 $1,267 $1,213 $1,154 $930 $751 $472 TREO Grade: (1) Great Western Lynas Molycorp Rare Element Frontier Avalon Montero Quest U Core Search Tasman Matamec Hastings Namibia REE 117% 79% 66% 30% 22% 14% 26% 09% 08% 10% 05% 05% 02% 62% (1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium (2) Calculated based on the average grade from single 20 meter length drill hole intercept as reported in Company press release dated September 15, 2011 SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using February 2012 average REO FOB China prices

14 Namibia Overview Mining friendly operating jurisdiction Excellent infrastructure Current major mine operators and developers include: Rio Tinto Paladin Energy Areva Forsys Metals Bannerman Mining Extract AngloGold Ashanti De Beers A dedicated and highly organized approach to support the exploration community through the Ministry of Mines and Energy and the Geological Survey of Namibia with focused studies at Lofdal

15 Namibia Overview Political Risk Assessment Survey from the Fraser Institute in 2010 ranked Namibia on par with the United States 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Increasing Political Risk Venezuela Greenland Spain Sweden Finland Chile Canada Botswana New Zealand Australia Norway NAMIBIA USA Brazil Ireland Turkey Colombia Mali Ghana China Burkina Vietnam Peru Mexico Tanzania Zambia Panama Bulgaria India Indonesia Argentina South Africa Romania Mongolia Philippines PNG Kazakhstan Russia Guinea Kyrgystan Honduras Guatemala Niger Bolivia Ecuador DRC Madagascar Zimbabwe Source: Fraser Institute Annual Survey of Mining Companies 2010/2011 (Canada, USA and Australia provincial and state jurisdictions averaged)

16 Lofdal Rare Earth Project History ( ) Brand new, district scale rare earth project recognized in 2008 Multiple high quality rare earth targets within 200 km 2 carbonatite complex Delineation of a 7 km long corridor with particular potential for the discovery of HREE enriched deposits First diamond drilling in October 2010 confirmed REE mineralization in carbonatite dykes and alteration haloes with high HREE ratios (>50%) Detailed mapping in Area 4 with exceptional HREE ratios (>90%) in dykes over 800 m strike Technical basis for IPO and TSX listing Source Geological Survey of Namibia (2006b)

17 Rare Earth Deposit Exploration Model (Carbonatites) Carbonatites and related rocks typically are anomalous in rare earths, Ba, Nb, Sr, Ta, Th and U Important deposits of this type are Mountain Pass, Mt Weld (weathered), Palabora and Bayan Obo Comparable deposits dominated by carbonatite dykes are Bear Lodge and Bokan Mountain Level of erosion at Lofdal has exposed the top of the Main Intrusion, a carbonatite pipe at Emanya Intrusion and hundreds of dykes Carbonatite Dykes Level of Erosion Emanya Intrusion Main Intrusion

18 Lofdal Carbonatite Complex Covers 200 km 2 Lofdal mapped in detail with airborne radiometrics and magnetics 40% of the complex has been systematically prospected; 20% of it mapped Detailed ground surveys map out individual dykes which can extend for several kilometers Main Intrusion Emanya Intrusion Rock sample site Background is Th radiometric counts from 2010 airborne survey, with red and purple colours defining the extent of the Th anomaly

19 District Scale Potential Demonstrated by Rock Sampling Regional rock sampling has confirmed the district scale potential of Lofdal Over 3,700 outcrop samples covering 80 km 2 analyzed for REEs between Carbonatite dykes display both LREE and HREE enrichment Main Intrusion weakly anomalous in REE and Emanya Intrusion shows moderate LREE enrichment Main Intrusion Emanya Intrusion

20 Potential for HREE Discoveries in Focused Areas Using the same data the rock samples can be plotted wrt HREE enrichment Specific structures are characterized by >75% HREE and can be traced for several kilometers Geologists believe this is related to a distinct, late phase of HREE enriched fluids and hydrothermal activity % HREE Enrichment >50 >75 >90 Main Intrusion Main Intrusion Emanya Intrusion Emanya Intrusion

21 Summary of Exploration Drilling Completed in ,500 m exploration drill program tested 16 of 18 targets HREEs targets confirmed in Areas 2, 4 and 5 LREE targets confirmed in Areas 6 and 8 Area 4 identified as first resource target 6,000 m drill program started January 2012 Exploration will continue over entire carbonatite complex

22 Area 4 - Potential for Development of an HREE Resource Area 4 was discovered in late 2010 by mapping during the pre-ipo work program and provided some of the most exceptional evidence for HREE enrichment % HREE Enrichment AREA 4 >50 >75 >90 Main Intrusion Main Intrusion Emanya Intrusion Emanya Intrusion

23 Area 4 Drilling has Confirmed Exceptional HREE Enrichment La (ppm) Ce (ppm) Dy (ppm) Y (ppm) HREE + Y (%) TREE + Y (%) % of Total as HREE + Y Avg 14 HREE rich ,758 11, Best HREE Sample ,400 29, Summary analyses of best HREE surface samples from Area 4 at IPO HREE-rich Drilling in Area 4 targeted exceptional HREE-enrichment over an 800 m strike length Current drilling program has intersected up to 714% TREE+Y with 8,220 ppm Dy, 44,100 ppm Y and 984% HREE enrichment

24 Area 4 Selected for Development of First Resource at Lofdal Consistent and Exceptional Heavy Rare Earth Enrichment for 650 m 128% TREO over 1600 meters with 945% HREE enrichment (including 618% TREO over 200 meters with 984% HREE enrichment) 092% TREO over 1900 meters with 915% HREE enrichment (including 243% TREO over 600 meters with 963% HREE enrichment) 066% TREO over 1100 meters with 854% HREE enrichment (including 169% TREO over 200 meters with 903% HREE enrichment) 062% TREO over 1000 meters with 810% HREE enrichment (including 104% TREO over 400 meters with 942% HREE enrichment) 057% TREO over 1252 meters with 858% HREE enrichment (including 166% TREO over 214 meters with 972% HREE enrichment) 056% TREO over 900 meters with 734% HREE enrichment (including 114% TREO over 300 meters with 878% HREE enrichment) 044% TREO over 2800 meters with 742% HREE enrichment (including 114% TREO over 700 meters with 906% HREE enrichment) 040% TREO over 428 meters with 862% HREE enrichment (including 098% TREO over 049 meters with 978% HREE enrichment) 034% TREO over 1100 meters with 883% HREE enrichment (including 138% TREO over 100 meters with 970% HREE enrichment)

25 Area 4 Drilling and Trenching Plan Initial Resource Database Trenches (green) Diamond drill holes 2011(black) Diamond drill holes 2012 (blue) Metallurgical holes (pink) = 870 m = 3,100 m = 6,000 m = 310 m 10,280 m

26 Area 4 Section 550E - %TREO and HREE Enrichment % TREO with 945% HREE (incl 2 618%TREO with 984% HREE) % TREO with 939% HREE % TREO with 810% HREE (incl 2 104% TREO with 942% HREE) % TREO with 696% HREE (incl 1 189% TREO with 9709% HREE) % TREO with 949% HREE % TREO with 738% HREE

27 Area 4 Section 550E Last 10 Holes of Program Targeting to Hit Main Zone to 150 Vertical Meters - 60 m m m

28 Structural Control and Exploration Potential in Area 4 Gradient IP coverage (right) has delineated favourable structure over strike length of 45 km Main Shear Corridor 45 kilometers Airborne radiometrics (left) show strong correlation with IP and mineralized zone in resource drilling area Main Shear Corridor 45 kilometers

29 Potential for Other Commodities Niobium/Uranium Discovery RC hole in 2008 returned anomalous Nb- U over 105 meters from Main Intrusion Surface samples from center of anomaly in 2011 returned average of 4,748 ppm Nb and 500 ppm U never drilled

30 Experienced Exploration Team in the Field Dedicated to Discovery

31 Key Drivers for Success and Next Steps at Lofdal New project with district scale potential (<3 year history) Unique nature of the HREE enrichment (up to 98% HREE) Quality of the database and exploration results to date Potential for multiple discoveries, especially for HREEs Proactive and positive mining jurisdiction in Namibia Well financed company with capacity to take project to resource and PEA over next 24 months Management experienced and successful in Africa (>15 years) Resource drilling program on schedule to complete 6,000 meters by end of April 2012 Delivery of first compliant resource in Q Mineralogical and metallurgical studies underway Concurrent with resource development, exploration will continue Targeting US OTC listing in Q3 2012