Last night's report naturally raises a question as to how LBSR could expect to make any money from Rare Earth Elements and/or Rare Earth Metals (REEs and REMs) when Molycorps can't (in present circumstances).

Easy answer! Molycorps Mountain Pass Mine is merely a producer of REEs and REMs. Should Hay Mountain become a producer of precious and base metals, and then be proven to have these other products, these other materials would be bi-products or co-products, possilby to the extent that the cost of production would be "free". That is, the costs of producting REEs and REMs could be covered entirely by profits from producting the base and precious metals most often associated with porphyry copper mines.

Let us also not forget that a lot of recent geological studies as pointing to the American Southwest as a new, important source for potential production of rare earths in the US, especially in New Mexico (and on trend with the Hay Mountain area), AND in old mine waste at places like Bisbee. Recall here that the geology of the Hay Mountain area lies within the Bisbee formation, meaning the same general type of bedrock.

Having said this, the chances are low that Rare Earths will be found in economic quantities at Hay Mountain, but the chances are not so low that these should be excluded from an exploration drilling program, or mention in corporate communications to the public.

VP in AZ