Rare Earth Elements (REE)

[Tommy]

More Indications The Graphite Market Is Booming

http://seekingalpha.com/article/520751-more-indications-the-graphite-market-is-booming?source=email_investing_ideas&ifp=0

Conclusion

I continue to believe that the graphite market is still in an early stage of adjusting to a new price equilibrium that can push prices much higher in 2012. Further evidence is mounting that China is taking decisive measures to reduce their output of graphite this year. The impact on world markets is material, and is set to reduce output by up to 10%. Assuming announced time lines for new mine production are achieved, it will take at least 2 years for new supplies to fill a portion of the deficit gap.

With the recent acquisition of European producer Graphit Kropfmuehl, there are already signs that strategic acquirers are moving to exert greater control over these scarce resources. Canadian producers are expected to play a leading role in driving incremental supply in the next few years. The companies that will benefit the most are the ones with the best source of large flake, high purity graphite that can advance their projects in the quickest fashion.

All indications continue to point to Northern Graphite being the best positioned given its advanced time table and high quality graphite.