Quarter-End December 31, 2014 Unaudited Financial Results (Please note that financial results published by the Company are all stated in U.S. Dollars)The Company does not have production-related revenue at this time. The net loss for the quarter ended December 31, 2014, totaled $2.9 million, or $0.06 per share, compared to a net loss of $5.7 million, or $0.12 per share, for the same period in 2013. The $2.8 million decrease in consolidated net loss was primarily the result of:
- A $2.4 million decrease in exploration and evaluation expense, primarily due to a reduction in drilling and metallurgical test work, as the Company continues to move the Bear Lodge Project toward development;
- A $0.3 million decrease in corporate administrative costs, predominately related to stock-based compensation; and
- A $0.1 million positive variance in the loss on currency translation.
- A $5.5 million decrease in exploration and evaluation expense;
- A $1.7 million decrease in corporate administrative costs, approximately half of which was related to stock-based compensation; and
- A $1.0 million positive variance in the loss on currency translation.
Activities funded during 2014 included: engineering and trade-off studies necessary to complete a preliminary feasibility study and technical report, filed in October, on the Bear Lodge Project; test work on both the Company's proprietary recovery process and initial work on elemental separation, which included the filing of additional patents; completion of an exploration trenching program that gathered valuable structural and geologic data as well as a near-surface, high-grade 1,000-ton bulk sample; baseline environmental data collection and other efforts to support the EIS underway and advance the permit application process for the Project; and general and corporate activities. Activities to be funded in 2015 include: supporting advancement of the Project's EIS, making the appropriate federal and state license and permit applications, continuing the evaluation of elemental separation and other evaluation, development and construction efforts as deemed necessary and as supported by the Company's financial position.Updated EIS Timeline The USFS completed the alternatives selection process of the EIS in February and began the impact analysis. This process is likely to be approximately six months behind the original schedule supplied to the public by the USFS as part of scoping meetings conducted in April 2014. While the Company is awaiting an updated timeline from the USFS, it now anticipates that the draft EIS will not be available until the second half of 2015. As a result, the Company expects the final ROD to be delivered in the first half of 2016, which, pending receipt of all other permits and securing of financing, would allow the Company to begin commissioning the Bear Lodge Project as early as mid-2017. Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths. The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project continue to advance. The Company is a member of the U.S. Department of Energy's Critical Materials Institute, a combined government and private sector organization committed to eliminating supply chain issues for rare earths and other critical elements. Please see CMI's website at https://cmi.ameslab.gov/ for additional details on its mission and members. For additional information, please visit the Company's website at www.rareelementresources.com or contact Robbin Lee at 720-278-2462 or firstname.lastname@example.org. Forward-Looking Statements This news release contains forward-looking statements and forward-looking information within the respective meanings of securities legislation in the United States and Canada. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are usually identified by our use of certain terminology, including "will", "believes", "may", "expects", "should", "seeks", "anticipates", "plans", "has potential to", or "intends" (including negative or grammatical variations thereof) or by discussions of strategy or intentions. Such forward-looking statements include statements regarding the expected timing and completion of permitting, technology test work and results, ability to attract offtake partners and the ability to finance planned activities.
Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements.Factors that could cause actual results to differ materially include, but are not limited to, the progression plans for the Bear Lodge Project, the progress and results of the feasibility study, fluctuations in demand for, and price of, rare earth products; success of process technology under testing or development; results from geological evaluations and programs; timing of and unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; and our ability to raise additional financing necessary to conduct our business. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors set out in our filings made from time-to-time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including without limitation, the Company's most recent reports on Form 10-K and Form 10-Q. We do not undertake to update any statements or estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this news release represent management's estimate as of any date other than the date of this news release.