EANS-News: Tantalus Rare Earths AG / New high grade REE mineralisation found - First results received from pitting programme on Target 5 (with document)

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Company Information/Drilling results from programme on Target 5

Düsseldorf (euro adhoc) - New high grade REE mineralisation found -
First results received from pitting programme on Target 5

(Tantalus-AG, Düsseldorf, 24 August 2011) The Directors of Tantalus
Rare Earths AG ("TRE"), a German company exploring an extensive area
of secondary rare earth mineralisation at surface and primary,
near-surface bedrock rare earth mineralisation in north-western
Madagascar (the "TRE Project"), are pleased to announce the first
assay results from their pitting programme on Target 5, the
Ampasibitika South Target.

Target 5 is the southern extension of the Ampasibitika prospect where
diamond drilling has been taking place since July 2010. This prospect
has a total surface area of 4.5 km². Outcrops are scarce due to the
presence of thick argillaceous laterites ("clays"). The target area
is suspected to be underlain by dykes of REE-bearing alkaline igneous
rocks which intruded into sediments. In June 2011, TRE commenced an
extensive pitting programme on this target. To date, 69 pits have
been excavated with another 5 pits currently in progress. The company
initially plans to excavate a total of 140 pits on this target.

The first assay results received from ALS Chemex, Canada for 15 of
the pits confirm that the argillaceous laterites are indeed rare
earth bearing. The pits reached maximum depths of 10m or were stopped
when groundwater or bedrock was encountered. Eight out of the 15 pits
appear to have ended in mineralisation. Additionally, the TREO grades
increase with depth.

The highest TREO grade encountered in the channelled pit samples is
0.37% over 0.50m. The percentage of the more valuable heavy rare
earth oxides averaged per pit between 11 and 27% of TREO, with a
maximum ratio of 32%. Niobium, tantalum, tin, gallium and zirconium
are partly enriched and potentially constitute economic by-products.
Significantly, uranium and thorium levels are very low, reducing
future mining and environmental risks.

Most importantly, pit TPIT026 revealed bedrock REE mineralisation at
a depth of -5.60 m with a TREO grade of 1.68%. This rare earth
mineralisation appears to have different characteristics from the
other primary REE mineralisation identified so far. It is
particularly poor in cerium but very rich in neodymium, praseodymium,
samarium, europium, gadolinium, terbium, dysprosium and yttrium. It
is also associated with less Zr, Ta, Nb, Ga and Sn. Uranium oxide and
thorium oxide attain only very low levels of 2 and 9 ppm
respectively. This exciting primary REE mineralisation will be
subject to diamond drilling later this year.

Elsewhere on the property, exploration activities are advancing
rapidly. On the Ampasibitika Prospect (Target 1), a total 15,580m of
diamond drilling has been completed to date. An update on the
drilling progress and the results will follow and be presented before
the end of this month. On the Befitina Prospect (Target 3), 180 pits
have been excavated so far, with another 12 currently in progress. At
the Caldera prospect (Target 4), after completing a total of 186
pits, pitting was interrupted in order to excavate two deep trenches
on a new high-grade bedrock REE mineralisation which will be subject
of a forthcoming press release later this month.

Commenting on these results, Wolfgang Hampel, Chief Geologist and COO
of Tantalus Rare Earths AG said:

"The newest results are very exciting. Not only that we now can
confirm the presence of REE bearing argillaceous laterites on a new
zone, but also that we have identified an additional type of primary
rare earth mineralisation. It is high grade and the partition of the
REE is highly advantageous with very low cerium contents and high
grades of dysprosium, praseodymium, europium, neodymium and others.
This target certainly justifies diamond drilling in addition to the
ongoing sampling of the overlying REE bearing argillaceous
laterites."

The summary table showing the TREO, % of HREO, niobium oxide,
tantalum oxide, tin, gallium, zirconium oxide, uranium oxide and
thorium oxide from four pits on Target 5 is attached to this release
as a PDF.

Notes to Editors

About Tantalus Rare Earths ("TRE")

TRE is a German incorporated holding company whose subsidiaries are
engaged in the exploration and development of rare earths. TRE's
shares are quoted on the Open Market of the Frankfurt Stock Exchange.
TRE's principal asset is an exploration project located in
north-western Madagascar and comprises rare
earth-tantalum-niobium-zirconium-hafnium enriched dykes and sills and
Rare Earth Element ("REE") bearing argillaceous laterites derived
from the weathering of underlying alkaline intrusives.

There are numerous indications that most of the alkaline intrusive
bodies within the concession are overlain by REE bearing argillaceous
laterites. TRE is therefore considering the whole area underlain by
alkaline intrusives (150 to 170 sq km) as prospective for secondary
REE mineralisation in the weathering crust. The exploration programme
aims to define the primary (vein/skarn hosted) and secondary
(argillaceous laterites) mineralisation present on the concession
towards a NI 43-101 compliant mineral resource estimate and support a
detailed feasibility study towards mine development and production.

Tantalus Rare Earths AG
Berliner Allee 12
40212 Düsseldorf
Deutschland
Telefon: +49 (0)211 52391 430
Telefax: +49 (0)211 52391 200
e-Mail: contact [at] tre-ag.com
Internet: http://www.tre-ag.com

Attachments with Announcement:
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http://resources.euroadhoc.com/us/d7gwWoM0
http://resources.euroadhoc.com/us/wwLLzgzo

Further inquiry note:
For further information contact:
Ivan Murphy, executive director TRE Tel: +44 (0) 20 3214 9930
Ana Ribeiro Blythe Weigh Communications Tel: +44 (0) 207 138 3206
or +44 (0) 7980 321 505

end of announcement euro adhoc
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/d7gwWoM0
http://resources.euroadhoc.com/us/wwLLzgzo

company: Tantalus Rare Earths AG
Berliner Allee 12
D-40212 Düsseldorf
phone: +49 (0)211 52391 430
FAX: +49 (0)211 52391 200
mail: contact [at] tre-ag.com
WWW: http://www.tre-ag.com
sector: Holding companies
ISIN: DE000A0SMSL4, DE000A1KRQE7
indexes:
stockmarkets: free trade/entry standard: Frankfurt
language: English