Cadence Mineral Regulatory News (KDNC)

08 July 2015

Rare Earth Minerals Plc.

("Rare Earth Minerals", "REM" or "the Company")

Sonora Lithium Project Update

Rare Earth Minerals Plc (LSE AIM: REM)) is pleased to provide an update on lithium processing optimisation test work, the current drilling programme and progress of the pre-feasibility study ("PFS") at its Sonora Lithium Project in Mexico (which is a JV between REM and Bacanora Minerals (TSX:BCN) - details below). This ongoing development work is expected to be used to design a plant capable of potentially delivering up to 50,000 tonnes per year of lithium carbonate.

David Lenigas, The Company's Chairman, commented;

"We are now approaching one of the more exciting phases of the project as we compile the necessary technical information and lithium product specifications required for potential debt providers and potential off-take partners and end users."

The PFS program will initially be comprised of infill drilling, detailed metallurgical design work, process engineering and mine design, with a planned timetable of completing a PFS in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") by the end of Q1 2016. The project is currently on target to achieve this timeline with the following works already started or planned within the next six months:

· A 4,000 metre drilling programme has begun on the Fleur and El Sauz concessions with the primary objective of significantly increasing the Indicated Mineral Resources within the whole of the Sonora Lithium Project (RNS dated 29/06/2015). The current resource was recently updated by SRK Consulting (UK) Limited ("SRK") to:

o Indicated resources of 1.14 million tonnes ("Mt") lithium carbonate equivalent ("LCE")1 contained in 95Mt of clay, at lithium ("Li") grade of 2,200 ppm

o Inferred resources of 6.3Mt LCE contained in 500 Mt of clay at a Li grade of 2,300 ppm

· The drill program will also test the continuity of higher grade, near surface mineralisation in the northern area of the Fleur concession that immediately adjoins the southern end of the La Ventana concession with the objective of further expanding the current resource base;

· Upon completion of the drilling programme, an updated resource model will be developed for mine design purposes with an initial focus on the higher grade, open pit resources on the La Ventana and Fleur concessions;

· SGS Canada Inc. ("SGS") has been appointed to carry out lithium carbonate metallurgical testwork at their Lakefield site on a number of ore samples from the Sonora Lithium Project concessions. SGS is one of the world's leading inspection, verification, testing and certification companies, with proven expertise in lithium metallurgy. The data from this testwork will be used to produce a detailed lithium carbonate flowsheet;

· In addition, the Company will carry out work on the development of a lithium hydroxide, (LiOH) flowsheet at its Hermosillo pilot plant and will also commence preliminary testwork with a number of international specialist groups with LiOH extraction expertise;

· Ausenco Engineering Canada Inc, ("Ausenco") has been appointed to carry out the flow sheet review, process engineering design, infrastructure optimization and PFS documentation for a two-stage lithium carbonate processing plant, for the production of battery grade lithium carbonate. Ausenco is internationally recognised as a specialist in the study, engineering, procurement, construction management, programme management, commissioning and operation of minerals processing projects. They recently completed an updated Feasibility Study for Talison Lithium's lithium carbonate plant in Australia and will manage Bacanora's PFS out of their office in Hermosillo, Mexico with support from Vancouver, Canada and Perth, Australia; and

· Mr. Eric Carter has been appointed as Project Manager to manage the PFS, based in Hermosillo. Eric has over 30 years' project management expertise, including 22 years of lithium operations experience in North America, mainly with FMC Lithium at their North Carolina operations with a focus on lithium carbonate and lithium hydroxide.

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1 LCE = lithium carbonate (Li2CO3) equivalent; determined by multiplying Li value in percent by 5.324 to get an equivalent Li2CO3 value in percent. Use of LCE is to provide data comparable with industry reports and assumes complete conversion of lithium in clays with no recovery or process losses. 

Details of REM's ownership of the Sonora Lithium Project:

REM owns a direct interest of 16.4% in Bacanora (AIM:BCN), and through that holds an indirect interest in the La Ventana asset of 16.4%. In addition to the 16.4% in Bacanora, when aggregated with REM's 30% direct interest in Megalit S.A de CV (the company holding the Buenavista, Megalit and San Gabriel concessions) and the 30% direct interest in Mexalit S.A de CV (the company holding El Sauz, El Sauz 1, El Sauz 2, Fleur and Fleur 1 concessions), results in a total economic interest in each of these companies of Megalit S.A. de CV and Mexalit S.A. de CV of 41.49%.

Qualified Person:

Kiran Morzaria B.Eng. (ACSM), MBA, has reviewed and approved the information contained in this announcement. Kiran holds a Bachelor of Engineering (Industrial Geology) from the Camborne School of Mines and an MBA (Finance) from CASS Business School.

Ends

For further information please contact: 

Rare Earth Minerals plc +44 (0) 207 440 0647

David Lenigas

Kiran Morzaria

WH Ireland Limited (NOMAD & Broker) +44 (0) 207 220 1666

James Joyce

Mark Leonard

Square1 Consulting

David Bick +44 (0) 207 929 5599

Mark Longson