Presentation: Rara Terra Minerals (August 2011)

Rare Earth Element Exploration TSX-V: RTX

© 2011 Rara Terra Minerals Corp.


Forward Looking Statements This presentation contains “forward-looking information”, within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, information with respect to Rara Terra’s exploration expenditures and activities and the possible success of such exploration activities, the estimation of mineral reserves and resources, the realization of mineral estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits and the ability to recommence suspended operations, mineral pricing, reclamation costs, the economic outlook, currency fluctuations, government regulation of mining operations, environmental risks, mine life projections, business and acquisition strategies, and the ability to meet safety and environmental targets. Often, but not always, forward-looking information can be identified by the use of forward-looking words like “plans”, “expects”, or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “understands”, “anticipates”, or “does not anticipate”, or “believes” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward-looking information is based on the opinions and estimates of management as of the date such information is provided and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Rara Terra to be materially different from those expressed or implied by such forward-looking information, including risks associated with the mining industry such as economic factors (including future commodity prices, currency fluctuations and energy prices), failure of plant, equipment, processes and transportation services to operate as anticipated, dependence on key personnel and employee relations, environmental risks, government regulation, actual results of current exploration activities, possible variations in ore grade or recovery rates, permitting timelines, capital expenditures, reclamation activities, land titles, and social and political developments and other risks of the mining industry. Although Rara Terra has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. Rara Terra does not undertake to update any forward-looking information, except as required by applicable securities laws, or to comment on analyses, expectations or statements made by third parties in respect of Rara Terra, its financial or operating results or its securities. CAUTIONARY NOTE TO US INVESTORS CONCERNING ESTIMATES OF MEASURED, INDICATED AND INFERRED RESOURCES This presentation may use the terms “Measured”, “Indicated” and “Inferred” resources. United States investors are advised that while such terms are recognized and required by Canadian regulations, the United States Securities and Exchange Commission does not recognize them. “Inferred Mineral Resources” have a great amount of uncertainty as to their existence, and as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or other economic studies. United States investors are cautioned not to assume that all or any part of Measured or Indicated Mineral resources will ever be converted into Mineral Reserves. United States investors are also cautioned not to assume that all or any part of an Inferred Mineral Resource exists, or is economically or legally mineable.


The 17 Rare Earth Elements •  The 15 Lanthanide elements (Atomic Numbers 57 - 71)

§  + Yttrium (Atomic Number 39) §  + Scandium (Atomic Number 21)

•  Generally found grouped together in varying percentages


REEs - Critical Facts

The Current Situation: •  REEs have unique chemical properties making them critical to virtually

all modern technologies •  China controls 97% of world production and supply

§  North America and Europe are completely dependent on China •  China has restricted exports to ensure supply for their own manufacturing •  Domestic supply is 2 years away for Light REEs •  Domestic supply is 4+ years away for Heavy REEs •  Domestic supply chain is seriously broken


Evolution of Rare Earth Mining

Since 2006, China has controlled everything …


Dramatic Price Increases

5-fold price increases because: •  End user demand exceeds

GDP growth •  Limited replacement

technology alternatives •  Lower Chinese export quotas •  US and European realization

that they need to securitize their respective REE supplies

•  Speculation


Miners – Critical Facts

New Mine Development •  2 mines are scheduled to come on stream in 2012 / 2013

(mostly Light REE) •  9 public companies are realistically competing to have operating

mines in production by 2015 – 2017 (mixed Light and Heavy REEs) •  150 junior mining companies intend to explore and/or develop rare

earth deposits or refer to rare earths in their literature or websites

Supply Issues •  Prices moving much higher in period prior to Molycorp and Lynas

coming on stream •  Beyond 2013 Light REE prices are likely to drop (esp. Ce and La)

•  Demand for Heavy REEs will not be met until at least 2017 and prices will likely continue to increase


Most Critical REEs

Source: US Department of Energy – Critical Materials Strategy, December 2010

DOE foresees Dy, Tb, Nd, Eu and Y being in shortfall supply for at least 15 years.


Specific REEs of Interest

Rara Terra has identified a number of heavy rare earths that are forecast to be in an almost permanent supply deficit:

Strategic REE Price* Key Uses

Dysprosium $2850 high temperature neodymium-iron-boron magnets

Yttrium $210 red phosphors/ceramics/white and grey LEDs

Terbium $4520 TVs (yellow/green)/CFLs/super magnets

Europium $5880 TVs (blue/red)/CFLs/nuclear reactor control rods

*Per Kg of oxide – July 14, 2011 (Source: Metal Pages)


Our Strategy

Forecasted deficits of some REEs creates a differentiation opportunity: •  REEs most susceptible to price decreases: La, Ce •  REEs most likely to continue higher: Dy, Nd, Tb, Gd, Sm, Y, Eu Rara Terra’s Key Strategies:

•  Explore for specific REEs based on forecasted deficits •  Seek uncommon mineralization that may lead to elemental

distribution with more favorable economics •  Think smaller scale, higher per-pound value deposits that might be

mined with smaller capex and development time requirements •  Expand advisory board of industry experts


Uncommon Mineralization Example

Less common minerals like Xenotime [Y(REE)PO4] meet our strategic requirement:

•  Low in Light REEs (Ce/La normally <5% combined) •  High in Yttrium (up to 48% by weight) •  High in other strategic Heavy REEs


Lonnie Property •  Option to earn a 60% interest in the Lonnie

property over 3 years from American Manganese (TSX-V: AMY)

•  43-101 filed •  Rocky Mountain REE belt •  1604 ha expanded to 2479 ha in May •  Updated magnetic survey completed in March •  Modest REE showing •  Good Nb/Zr showings •  Previous work likely not done in areas of best

mineralization •  2011 field campaign to expand geochemistry that

when combined with geophysics will determine priority drill targets


Xeno Property •  Northern extension of Rocky Mountain REE belt •  7966 hectares •  Updated aerial magnetic/radiometric survey to be

completed in August •  Interesting Xenotime showings •  Excellent Heavy REE prospect •  Previous work done in very small region of the

overall property area (outlined in red) •  2011 field campaign to expand geochemistry to

be combined with geophysics leading to determination of priority drill targets


Las Chacras Property

•  Rara Terra has a pending acquisition of a 100% interest in the Las Chacras property in San Luis province, Argentina

•  10,000 hectares •  Proximal to Rodeo de Los Molles Rare Earth

deposit •  Several unique mineralization environments •  Still requires disinterested shareholder

approval and completion of due diligence satisfactory to the TSX-Venture Exchange


Directors & Management

Strong track record of public company management and REE expertise:

•  Fraser Atkinson, CA – Chairman •  Alex Helmel – CEO, President & Director •  Roger Flowerdew, CA – CFO & Director •  John Veltheer, PhD – Director •  Lee Groat, PhD – Lead Scientific Advisor


Capital Structure

•  Cash on hand: $2.0M •  Warrants: 4,846,361 •  Options: 1,524,100 •  Escrowed shares: 2,025,000

Security Descrip-on Shares

Pre-‐IPO 3,600,000

CPC IPO 3,300,000

QT Financing (Brokered) 3,752,000

QT Financing (Non-‐Brokered) 4,539,000

QT Financing (Non-‐Brokered FT) 801,401

Property AcquisiJons 232,500

Total 16,224,901

www.raraterra.com Suite 830 - 1100 Melville Street Vancouver, BC, V6E 4A6


Investor Relations

Presentation: Rara Terra Minerals (August 2011)