Canada Rare Earth Corp. (RAREF)

[AISI304]

CRE MOU for Financing&Strategic Arrangement with Talaxis Ltd

http://www.canadarareearth.com/crec-enters-into-memorandum-of-understanding-for-financing--strategic-arrangement-with-talaxis

Key Aspects of the Business and Financing Relationship

Canada Rare Earth and Talaxis have signed a Memorandum of Understanding (MOU) that sets out the proposed principles of a working relationship leading to cooperation in the development of supply chains in the rare earth industry. The terms and conditions are to be negotiated and included in subsequent definitive agreements which will detail arrangements regarding sourcing, processing and delivering rare earths, refinery facilities, financing capital expenditures and trade finance support. The MOU also includes provisions for the parties to negotiate terms upon which Talaxis may participate in the capital structure of CREC using hybrid capital solutions that include debt, equity stake and warrants.

The MOU also contains provisions for the parties to negotiate arrangements with respect to mid-stream processing, sourcing of rare earth concentrates, trading, logistics, representation and participation in respective technical and advisory boards.

Canada Rare Earth will be Talaxis’s preferred strategic partner with respect to midstream rare earth processing capabilities including but not limited to developing, acquiring, designing, building, managing and operating rare earth enhancement, separation and metal making facilities.