1. Corporate Overview
December 2013

2. CEC Rare Earth Corp. Confidential
Contents Overview
Overview of Rare Earths and the market
Introduction to CEC Rare Earth Corp
The building of Rare Earth Refineries
Supply of Rare Earth Products
CEC Rare Earth Corp. Confidential

3. CEC Rare Earth Corp. Confidential
Key Messages
A significant gap exists for supply of Critical Rare Earth products and there is a race to fill it – CEC Rare Earth has proven capabilities to build refineries for these products
The supply of these critical resources within the Western hemisphere will be highly valued for re-establishing supply chains and industrial bases outside of China
A secure source of these strategic resources enables regional investment in related industries and businesses
Rare earths contribute more to global climate change than any other factor – by enabling clean technologies such as hybrid cars, alternative energies and cleaner gasoline and diesel.
Contrary to typical commodities and metals (Gold, Silver, Copper) the largest value add activities in Rare Earth products is the refinery:
Ore – $1
Concentrate - $5
Refined Rare Earth Products - $20 -$100
A major Rare Earth facility for Critical Rare Earth products established within 3 years can be competitive with the largest RE companies globally in revenues & profits.
CEC Rare Earth Corp. Confidential

4. Rare Earths and the Market
Sources, applications, uses, demand and supply
Rare Earths and the Market
CEC Rare Earth Corp. Confidential

5. What are Rare Earth Elements?
Light Rare Earth Elements (LREE)
Heavy Rare Earth Elements (HREE)
17 elements used for improved performance and quality
Found combined together in mineral deposits
Rare Earths are of little industrial value unless separated
CEC Rare Earth Corp. Confidential

6. Rare Earths Background
Rare Earth mineral deposits are not rare
Commercially viable Rare Earth mineral deposits are rare
Rare Earths separation capability is extremely rare outside of China
CEC Rare Earth delivers proven Critical Rare Earth separation capability outside China
CEC Rare Earth Corp. Confidential

7. Green Tech Applications
Neodymium Praseodymium Dysprosium Terbium
Yttrium Europium Terbium
CEC Rare Earth Corp. Confidential

8. Focus on the Critical REEs
Heavies (HREEs)
Dysprosium (Dy)
Terbium (Tb)
Europium (Eu)
Yttrium (Y)
Lutetium (Lu)
Gadolinium (Gd)
Holmium (Ho)
Erbium (Er)
Thulium (Tm)
Ytterbium (Yb)
Lights (LREEs)
Neodymium (Nd)
Praseodymium (Pr)
Cerium (Ce)
Lanthanum (La)
Samarium (Sm)
CEC Rare Earth plants and our partners will produce all of the Critical Rare Earth products.
CEC Rare Earth Corp. Confidential

9. Global Supply Situation
Surplus or Deficit of major Rare Earths
2010
2015
Source: IMCOA
CEC Rare Earth Corp. Confidential

10. CEC Rare Earth Corp. Confidential
An introduction and overview
CEC Rare Earth Corp
CEC Rare Earth Corp. Confidential

11. Who is CEC Rare Earth Corporation?
CEC Rare Earth Corporation is based in Vancouver, Canada with a strong management team and key advisors from China’s Rare Earth industry
CEC Rare Earth team has significant experience in processing and supplying Rare Earths
Team members has many years of collective experience and have design and built over 10 refineries inside and outside China
CEC Rare Earth has two complementary business areas:
Designing, Building and operating of Rare Earth Refineries outside of China
Supply of Rare Earth Products to top level industries outside of China
CEC Rare Earth Corp. Confidential

12. CEC Rare Earth’s Key People
Rojer Li (Managing Director)
10 years experience in RE industry, extensive contacts in refining and international trading.
Li family business owns and operates the premier rare earth engineering and design company in China as well they own, in whole or in part, four rare earth refineries inside and outside of China.
Bill Purcell (President & COO)
Extensive experience in the downstream oil industry.
Strong background in environmental management
Peter Shearing (SR VP – Sales & Business Development)
Broad international experience in the electronics and high-tech manufacturing industries.
25+ years of materials, electrical, and process engineering background
Apolo Ohno (Director)
Wide ranging international business experience with Fortune 500 companies; the most decorated US Winter Olympian
Rod Jao (Director)
Global venture capital experience with a variety of industries including technology, manufacturing and telecommunications.
Tracy A Moore (Advisor)
Extensive corporate finance experience in 20 countries, and CEO of REC’s strategic partner, Canada Rare Earth, a public Canadian rare earth exploration company.
REC Confidential
Feb 2013

13. Challenges & Opportunity
Global Rare Earth Supply and Demand Situation
Global industry depends on China’s refineries (>90%) for Rare Earth products
Demand for Rare Earth materials in new clean technologies and advanced applications is growing and exceeding global output
Prices reflect this supply gap and the lack of Western rare earth refining capability
Non-China based companies demand new sources of Rare Earth supply outside of China to support their business and products
Establishment of Rare Earth refineries requires very specialized and hard to obtain expertise and experience
The CEC Rare Earth Opportunity
Unique team with technical expertise in the design, build and operation of Rare Earth separation plants
experience not available from other engineering companies
CEC Rare Earth’s advantage provides supply for its customers through highly valued off take agreements to deliver significant revenues and profits
CEC Rare Earth Corp. Confidential

14. Building Rare Earth Refineries
CEC Rare Earth Corp unique capabilities and the advantages
Building Rare Earth Refineries
CEC Rare Earth Corp. Confidential

15. CEC Rare Earth Advantage
Turn Key Refinery Projects
Proven expertise, experience and IP in design, construction and operations
Lower project risks of design flaws, construction cost overruns, operating problems and delays getting to market.
“Finding rare earths are only a small part of the process of turning the ore into usable materials”
Dr. Steven Leeb
“Mining is the easy bit: Separating rare earth elements is where the complexity comes in”
Kidela Capital presentation
“Mining is — believe it or not — the absolute easiest thing we do. Once we pull it out of the ground, that’s when things get complicated,”
Mark Smith, MolyCorp past CEO
CEC Rare Earth Corp. Confidential

16. CEC Rare Earth Corp. Confidential
Vertical integration
Buyers’ Rare Earth needs are matched to mine deposit
Ingredients for a Joint Venture – mine, refiner, buyer
Attractive to investors: pre-sold high value output, efficient refinery
Specific element and quality specs
Need secure, reliable supply
Want reasonable, predictable prices
Buyers
Separated oxides & metals
Efficient design:
Reliable supply of consistent raw materials
Known and pre-sold end product specs
Refinery
Concentrate
Mine
Extends the value chain beyond concentrate
CEC Rare Earth Corp. Confidential

17. Turn-key Separation Plant
Value Comparison
CEC Rare Earth
Turn-key Separation Plant
Typical
Engineering Project
Fixed Price contract delivers a complete and operating separation plant
Guaranteed startup success based on numerous refinery startups
Proven ability to separate all Critical Rare Earth Elements, production of specialty products,
Integrated process design and build team of Rare Earth refinery experts
Operations training and support
Advantages with Turn-key
Fixed Cost
Proven ability to deliver quality Rare Earth products
On time completion
Estimated costs only for individual elements (design, build, operate etc.), based on little to no experience in REO separation
Little if any experience in the startup and optimization of a REO separation plant
Individual process design, build, startup, and operation teams with varying levels of RE knowledge and experience
Engineering Project Risks
Late startup
Quality issues
Budget overruns
Confidential:

18. Supply of Rare Earth Products
CEC Rare Earth Corp Supply Chain
Supply of Rare Earth Products
CEC Rare Earth Corp. Confidential

19. CEC Rare Earth’s China Export Sources
CEC Rare Earth has 4 primary sources within China all who have been inspected and approved for the environmental requirements
Access to all RE oxides, metals, and specialty compounds for domestic China requirements or exportation
More than 2000 MT committed to CEC Rare Earth for export to its customers
CEC Rare Earth Corp. Confidential

20. CEC Rare Earth Corp. Confidential
Partner Refinery
Mechanically complete & in final
permit approval process
2015 production start
SE Asia: outside of China
3,000 MT Critical Rare Earth Products
CEC Rare Earth Corp. Confidential

21. CEC Rare Earth Corp. Confidential
Longer Term Supply
CEC Rare Earth is securing future supply from new projects;
Currently in planning, design and permit stage for a full spectrum Rare Earth plant in SE Asia
Additional projects agreement for a 2nd SE Asia refinery; combined output exceeds MT
Strategic alliance with Canada Rare Earth for two more major proposed refineries.
Expect to build a total of 5 refineries with total capacity exceeding 15,000 MT
CEC Rare Earth Corp. Confidential

22. CEC Rare Earth Corp. Confidential
Executive Summary
CEC Rare Earth Corporation’s business:
Building Turn-key Rare Earth refineries
Supply of all Rare Earth products
Over 5000 MT of Rare Earth supply available for top tier customers including supply from non-China based refineries
CEC Rare Earth has the proven capability for processing Critical Rare Earth products outside of China
CEC Rare Earth is building a full spectrum Rare Earth refinery outside China and an opportunity to participate currently exists
CEC Rare Earth Corp. Confidential

23. CEC Rare Earth Corp. Confidential
THANK YOU
CEC Rare Earth Corp. Confidential