Cost Advantaged Rare EarthsDamien Krebs

10 Nov 2015

www.ggg.gl | 11th International Rare Earths Conference, Singapore - 2015

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Developing Kvanefjeld – Greenland’s World ProjectSet To Deliver the Right Rare Earths at Low Cost

The world’s largest undeveloped resource of rare earth elements and uranium (JORC-code, 2012, compliant), with huge upside (>1 Billion tonnes defined, <20% of project area evaluated)

A primary product stream of high-purity critical rare earth concentrates (Nd, Pr, Eu, Dy, Tb, Lu)

By-production of U3O8, lanthanum and cerium, zinc and fluorspar

By-product revenue streams will see Kvanefjeld become the lowest-cost producer of critical rare earth’s globally

Positioned for permitting and development as uranium and RE prices rise

View over the Narsaq Valley that will host much of the project infrastructure, toward the North Atlantic Ocean

Mine, Concentrator, and Refinery in Greenland

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Pilot plant – SGS Perth, 2012• Uranium produced in

Greenland

• Refinery located in Greenland

• La & Ce Separated in Greenland

• Mixed Critical Rare Earths Produced

• Zinc Concentrate

• Fluorspar Product

Project Configuration

MainProduct

Main Product is a mixture of high value rare earths (La and Ce reduced)

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Main CMREO Product

• Kvanefjeld Project will Produce > 7,700 tpa of Critical Mixed Rare Earth Oxide

• Significant Tb, Eu & Dy

• ~50% PrNd

La2O3, 59

CeO4, 1,025

Pr6O11, 913

Nd2O3, 2,930

Sm2O3, 309

Eu3O3, 28

Gd2O3, 234

Tb4O7, 38

Dy2O3, 231 Ho2O3, 37

Er2O3, 105

Tm2O3, 9

Yb2O3, 82

Lu2O3, 7

Y2O3, 1,699

Tonnes per year REO production shown

Not too heavy, not too light, almost just right

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Market Compatible Products%

of

Mar

ket

valu

e

More Valuable than Chinese Sourced Mine Feedstocks

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High Value Separation Plant Feed

Used China Southern Rare Precious Metals Exchange (CSRPME) 5th November 2015 prices

$24.00

$4.90

$0.96

$0.52

$0.64

$1.98$1.28

中钇富铕矿-精矿原料中每千克磁性物质价

值

Magnetic Materials La Ce Eu Gd Ho Er Tm Yb Lu Y

$27.34

$1.28$3.85

中国龙南 -精矿原料中每千克磁性物质价值

Magnetic Materials La Ce Eu Gd Ho Er Tm Yb Lu Y

$33.90

$0.98

$0.48

$1.01 $1.17

科瓦内湾 -精矿原料中每千克磁性物质价值

Magnetic Materials La Ce Eu Gd Ho Er Tm Yb Lu Y

Magnetic Materials’ Value Per Kg in the Concentrate

$31.81

$0.92

$0.46

$0.97 $1.05

科瓦内湾 -精矿原料中每千克磁性物质价值

Magnetic Materials La Ce Eu Gd Ho Er Tm Yb Lu Y

Kvanefjeld FSBasket Price:US$ 39.27/kg

CMREO

Longnan ChinaBasket Price:US$ 32.89/kg

TREO

Xunwu ChinaBasket Price:US$ 28.17/kg

TREO

Medium-Y Rich-Eu ChinaBasket Price:US$ 36.20/kg

TREO

$24.58

$0.85

$0.64$0.15

中国寻乌 -精矿原料中每千克磁性物质价值

Magnetic Materials La Ce Eu Gd Ho Er Tm Yb Lu Y

Kvanefjeld Feedstock is a Premium Intermediate Product

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Ideal Feed for Separation Plants

• High Purity– 99% REO compared to ~92% for Chinese sourced

feedstock– Less undesirable impurities to dispose

• Consistent REE feed– Allows for smoother separation plant operation

• Secure Supply for 100+ years• Consistent cost for feedstock supply• Very low uranium and thorium

– Much lower than existing Chinese feed– Radioactive elements removed in Greenland

No Environmental Pollution Generated from Making REEs

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Sustainably Sourced from Greenland

• High Greenlandic Operating Standards

• Strong Social Benefits to the local community

• Large Greenland Tax Payer

• EIA shows no significant negative impacts

• Strong ‘Greenland’ branding for REE products

– Premium Price likely for REE Products

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Pro Mining and Stable Government

Greenland is Great

• Low Resource Nationalism Risk

• Secure Mining Licence System

• Low corruption

• Ranked #9* in the world for Mining Country Risk

• Year round shipping

• Supportive local government

*2015 Aspermont World Risk Survey

Kvanefjeld Separation Plant Feedstock is competitive with current Chinese Supply

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Comparison to Chinese Supply

• Show Comparison of Feedstock Prices

– Kvanefjeld US$14.86/kg (C1 cost before taxes and interest)

– Longnan US$30.88/kg

– Xunwu US$19.50/kg

– MYRE US$27.63/kg

Rare Earth Feedstock Supplied at Low Cost

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Low Operating Costs

• By Product Credits net cost $14.86/kg REO*

• Large Operating Scale 7,705 tpa CMREO

– Reduces management and administration

• Simple Metallurgy

– Concentrate ore 10 times

– Atmospheric Leaching of concentrate

*at current La Ce prices & Feasibility U, Zn, CaF2 and NaOCl prices. Costs include transport to separation plant.

Ura

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ost

Byproduct credits deduct US$122.5

million/year

Lant

hanu

m B

ypro

duct

Cre

dit

Ceri

um B

ypro

duct

Cre

dit

Zinc

Byp

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redi

t

Fluo

rspa

r B

ypro

duct

Cre

dit

-3

Sodi

um H

ypoc

hlor

ite

Byp

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ct C

redi

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Net

Ope

rati

ng C

ost

, US$

14.8

6/kg

REO

Kvanefjeld – Net Operating Cost (US$M/year)

Steenstrupine is a Unique and Friendly Mineral for Rare Earths

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Simple Metallurgy

Can be concentrated 10 times

Non Refractory Concentrate = Atmospheric Leaching

August 2011 SGS Australia

3 Successful Concentrator Pilot Plants Completed!

Extensively Pilot Tested

November 2012 SGS Australia

April 2015 GTK Finland

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Four Phase Refinery Pilot Plant Completed in Finland October 2015

Well Proven Metallurgy

Over 100 years of operating life likely

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Very Long Life

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Have not had to sell the farm to progress development

Unencumbered Ownership

• No Dominant Share Holders

• Developing relationships with REE Industry

• Production available

• Non Binding MOU with China Non Ferrous

• Adequately funded to complete permitting

• Support from EU via the EURARE project

• Listed on the Australian Stock Exchange

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Mining Licence Expected in early 2017

Currently being Permitted

Certificate Of Origin: Southern Greenland

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Greenland’s Contribution to the Modern World

Low Cost

Safe Investment Location

The Right Mix of Rare Earths

Easy Metallurgy

Very Long Life

No Dominant Shareholders

Permitting in 2016

Any Questions?

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Back Up Slides

2015 Mean Adams 2015 Current

Basket Price US$/kg REO 45.6 71.6 39.7

$0

$10

$20

$30

$40

$50

$60

$70

$80

Comparison of CMREO Price Scenarios

Even at bottom of the cycle rare earth prices the project is profitable

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At Current Prices = Cash Positive

Critical Mixed REO Intermediate Product Net C1 Production Cost before separation

Introduction: Greenland Minerals and EnergyKey Highlights – A unique world class mining project

Very attractive commodity portfolio

Heavy rare earths and uranium are both recognised as strategically important commodities for the future

Rare earths market characterised by limited capacity and increasing demand (particularly Dy, Nd, Tb, Eu

and Pr)

World-class, large scale development project

Economically robust, proven technology, large-scale, long life production of rare earths and uranium

Large JORC resource base to produce ~8kt CMREO, ~15kt LREO & 1Mlbs U3O8 per annum over 100 year

mine life

Ideally located near international airport, existing towns and potential hydro-electric power source

Highly advantageous ore-type, makes for simple cost-effective processing, highly scalable production

Low mass -high grade mineral concentrate produced through beneficiation

Refining of mineral concentrate can be done in Greenland or off-shore

Strong management and technical team

Experienced management team with proven track record

Well-respected and knowledgeable technical/project team in place with exceptional local expertise

Globally significant, long life, low cost, multi-commodity asset

Company to become one of the largest producers of rare earths globally and a major U3O8

Company has low cost of production due to multiple by-product opportunities

Low political risk

Stable, low-risk operating environment with government looking to develop new industries and

employment

GME fully permitted to evaluate the project, exploration licence now includes radioactive elements

Management and board have a solid working relationship with the government and are socially aware

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GREENLANDMINERALS AND ENERGY LTD