Tantalus Rare Earths AG Reports Significant Increase in Resources

Grünwald (ots) -

- Crossreference: The press release including tables are
available at: http://www.presseportal.de/dokumente -

Tantalus Rare Earths AG Reports Significant Increase in Resources

Highlights

- SRK has determined an Inferred Mineral Resource of 435 million
tonnes containing 0.08% TREO containing (in situ) some 348,000 tons
of Total Rare Earth Oxide (TREO)
- Triple the maiden Resource from
December 2011
- In situ heavy rare earth ratio (H/TREO) remains at an
average of 19% based upon the ALS sample test results
- HREO ratio
will increase to approximately 31% assuming exclusion of cerium in
production

Tantalus Rare Earths AG (TAEN) ("TRE") is pleased to announce an
updated JORC compliant Resource estimate at its exploration project
on the Ampasindava Peninsula in north-western Madagascar (the "TRE
project). The Resource estimate was completed by SRK Consulting (UK)
Limited.

SRK used a total of 289 drill holes and 968 pits, together with
over 20,000 samples in order to develop the updated Mineral Resource
estimate. SRK has completed the analysis as at 15 March 2013. The
updated Resource estimate represents an increase of some 300 million
tonnes more than the maiden JORC Resource estimate announced on 20
December 2011.

The tables below summarise the SRK Mineral Resource Statement:

Table 1.1 see webpage or attachment

Table 1.2 see webpage or attachment

Table 1.3 see webpage or attachment

A complete listing of mineral resources along with oxide values
will be posted separately on TRE's website. Analysis of the TRE
material has shown that approximately 19% of the REO's are in the
"heavy" category, and there is also a high percentage of neodymium.

As announced on 18 February 2013 TRE has continued to work with
the University of Toronto which has led it to believe that the
mineralised material has similarities with the ion absorption clays
found in China. Such ionic clay deposits benefit from simple and
inexpensive processing techniques. Research conducted by Asian Metal
indicates domestic Chinese ionic clay projects face production costs
averaging around US$3.00-4.00/t of clay ore processed.

The university of Toronto has confirmed that a very basic and
environmentally friendly leaching method can be used to separate the
ionic clay into rare earth concentrate. Further samples have been
sent by TRE to the University of Toronto to confirm the ready
"leachability" of the rare earth bearing lateritic clays located on
the Tantalus project.

Existing tests by the University of Toronto have highlighted the
excellent recovery and extraction rates capable of being achieved. In
addition that study also yielded results indicating insignificant
weight percentage and zero leaching extraction of uranium and thorium
from the sample tested.

Tests have revealed difficulties with the recovery of cerium
through the ionic leaching process. Therefore, pending further
confirmation from on-going industrial field analysis, TRE does not
plan to pursue the extraction of cerium or the production of cerium
products. The exclusion of cerium increases the ratio of HREOs in the
TRE REO basket, which in turn uplifts basket value. As the deposit's
cerium content will not be exploited, the adjusted REO grade is
revised down to 0.05%, which based on the Inferred Mineral Resource
estimate of 435Mt, provides for an in situ REO equivalent estimate of
nearly 215kt, 31% of which is comprised of HREO.

Asian Metal has calculated an in situ REO basket price of
USD71.26/kg. The basket price was calculated using the Asian Metal
FOB China REO prices from 05/04/2013. As individual REOs are
typically offered in a range of purities, individual REO prices were
based on the most widely traded and consumed respective REO purity.
Given the TRE decision to not pursue the production of cerium, cerium
was not taken into consideration within the basket calculation.

TRE envisions the production of an ionic rare earth concentrate, a
product currently produced and traded within the Chinese domestic
market. The application of a 35% discount, the price differential
common to the Chinese domestic market, yields an estimated rare earth
concentrate price of USD46.32/kg. Based on 215,000 tons of REO
concentrate this gives an in ground concentrate value of
US$9,958,800,000.

The area and depth extent of the updated Inferred Mineral Resource
represent some 60 km2 of the Tantalus project. With additional and
deeper pitting in this area the Resource can be increased. In
addition there is considerable potential to the northwest area, which
is some 90km2 in size.

Within the licence, the Ambohimirahavavy Tertiary complex
comprises a 7km diameter, roughly circular caldera (Target 4),
comprising a rare earth-bearing peralkaline intrusive stocks and
breccias. This target area has produced a Mineral Resource Statement
of 250MT of REO bearing lateritic clays, making it a single mining
target in its own right.

CEO Jurgen Schillinger: "Our optimistic view of the value of the
Tantalus project continues to be supported by the results of the
exploration programme. The issue of this updated JORC compliant
Inferred Mineral Resource represents a further milestone for the TRE
project. It confirms the massive scale and grade of the project. It
justifies proceeding with the proposed technical evaluation and
preparation of a Preliminary Economic Assessment."

Melvin Hill of Asian Metal notes, "The suggested presence of a
relatively large ion adsorption type clay deposit at the TRE
concession renders it of particular importance to global efforts
towards the expansion of HREO supply. The ion adsorption clay
deposits of Southern China are currently the primary source for the
vast majority of global heavy rare earth production, and have endowed
China with a distinct economic advantage, as they are generally
comparatively simpler and less expensive to exploit than their
bedrock counterparts. Assuming additional studies reinforce test
work indicating the presence of ion adsorption type clays, the
development of the TRE Project will constitute an important step
towards the establishment of an ex-China HREO supply chain that is
directly comparable, and potentially competitive on a price basis,
with that of China."

For a copy of the full SRK report please visit our website:
www.tre-ag.com

About Tantalus Rare Earth AG ("TRE")

TRE is a German incorporated holding company whose subsidiaries
are engaged in the exploration and development of rare earths. TRE's
shares are quoted on the "Primarmarkt" of the Dusseldorf Stock
Exchange.

TRE's principal asset is an exploration project in north-western
Madagascar and comprises rare
earth-tantalum-niobium-zirconium-hafnium enriched dykes and sills and
rare earth element ("REE") bearing lateritic clays derived from the
weathering of underlying alkaline intrusives.

There are numerous indications that most of the alkaline intrusive
bodies within the concession are overlain by REE bearing lateritic
clays. TRE is therefore considering the whole area underlain by
alkaline intrusives (150 to 170 sq km) as prospective for secondary
REE mineralisation in the regolith.

The exploration programme aims to define the mineralisation
present on the concession towards a JORC compliant measured Resource
and support initiation of the staged technical and economic studies
which could lead to mine development and production.

Forward-Looking Statements

All statements other than statements of historical fact may be
forward-looking statements. Such statements are generally
identifiable by the terminology used, such as "seek", "anticipate'',
"believe'', "intend", "expect", "plan", "estimate", "continue",
"project", "predict", "budget'', "outlook'', "may", "will", "should",
"could", "would" or other similar wording. Forward-looking statements
include, but are not limited to, statements and information with
respect to estimates of reserves and/or resources, future production
levels, targets, goals, objectives and plans together with the
respective timing associated therewith. Forward-looking statements
require the use of assumptions that may not materialize or that may
not be accurate and are subject to known and unknown risks and
uncertainties and other factors, which may cause actual results or
events to differ materially from those expressed or implied by such
information. Such factors and assumptions include, among other
things, the results of exploration and development activities, prices
of raw materials, regulatory changes, the timing of regulatory
approvals, the ability to obtain sufficient financing on reasonable
terms, the effects of weather and climate conditions, fluctuation in
interest rates and foreign currency exchange rates, the availability
of suppliers and their ability to meet commitments, risks inherent
with exploration operations, both domestic and international.

These factors are discussed in greater detail under Risk Factors -
Risks Relating to the Company in TRE AG´s Annual Information Form for
the year-ended December 31, 2011. The Company believes that the
expectations reflected in these forward-looking statements are
reasonable, but no assurance can be given that these expectations
will prove to be correct and such forward looking statements should
not be unduly relied upon. The Company does not undertake any
obligation to update or to revise any of the forward-looking
information, except as required by applicable law.

Further inquiry note:

Juergen Schillinger, Chief executive Officer
Tantalus Rare Earths AG
Tel: +49 (0)89 693 960 66
Mobile: +49 (0) 151 115 489 06
Email: schillinger@tre-ag.com
www.tre-ag.com

David Rigoll, Director
Tel: +44 7500 068555
Email: rigoll@tre-ag.com