Tasman's PEA Study of Norra Karr Heavy Rare Earth and Zirconium Project Demonstrates Robust Economics and Long Mine Life

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TSXV : TSM NYSE AMEX : TAS

Tasman Metals Ltd. ("Tasman" or the "Company") ; . Mr Mark Saxon,
President & CEO, is pleased to announce the positive technical and
financial results achieved from the NI 43-101 Compliant Preliminary
Economic Assessment (PEA) of the Norra Karr heavy rare earth element
(REE) and zirconium (Zr) project in southern Sweden.

"The PEA clearly demonstrates the strong economics of this highly
strategic project, with the majority of the projected cash flow
sourced from the production of the critical heavy rare earth
elements, dysprosium, terbium and yttrium" said Mark Saxon, Tasman's
President and CEO. "Norra Karr is one of the largest and most
economically robust projects amongst its peers, due to the high
contribution of the high value critical rare earth elements, the
substantial capital and operating cost benefits provided by existing
infrastructure, and the simple mineralogy that allows ambient
temperature and pressure processing."

PEA Financial Highlights Include:

- $1,464 million before-tax value (NPV at 10% discount rate);
- 49.6% before-tax Internal Rate of Return (IRR);
- Before-tax payback period of 2.6 years;
- $5.3 Billion in revenue over the first 20 years and $10.9 billion over the 40
year life of mine;
- Initial capital expenditures of $290 million (including contingency of $66.82
million or 30%);
- Average annual operating expenses of $74.3 million or $10.93 per kg of mixed
TREO concentrate;
- Conservative basket price of US$51 per kg versus current China FOB basket
price of US$184.85;

Key Project Attributes:

- REE recoveries of 80% and byproduct zirconium recoveries of 60%;
- Average annual mixed TREO concentrate production of 6,800 tonnes including 290
tonnes of dysprosium oxide (Dy2O3), 43 tonnes of terbium oxide (Tb2O3), 773 tonnes of
neodymium oxide (Nd2O3) and 2,360 tonnes of yttrium oxide (Y2O3), in mixed concentrate
form;
- Average annual production of 15,000 tonnes of zirconium carbonate concentrate
(on a 100% ZrO2 basis);
- 70% of the projected economic value of the project (86% of TREO revenue) is
expected to be derived from the production of Norra Karr's four critical rare earth
elements (CREE), dysprosium, terbium, neodymium and yttrium;
- New "In Pit" mineral resource estimate of 41.6 Mt at 0.57% TREO with 51%
HREO/TREO% and 1.70% Zr2O(Indicated), and 16.5 Mt at 0.64 % TREO with 49% HREO/TREO%
and 1.70% Zr2O (Inferred);
- 40 year mine life;
- Low start-up capital costs due to the excellent existing infrastructure at
Norra Karr;
- Proximal to operating ports with rapid access to the European market;
- Simple process flow sheet and high recoveries due to success in bench scale
metallurgical testing.

Preliminary Economic Assessment

Tasman's 100% owned Norra Karr project is the only NI 43-101
compliant REE resource in mainland Europe, located in mining-friendly
Sweden. Norra Karr lies 15km NNE of the township of Granna and 300km
SW of the capital Stockholm in mixed forestry and farming land.

The PEA for Norra Karr was completed by leading independent
mining consultants "Pincock, Allen & Holt" (PAH) of Denver, Colorado.
Metallurgical process design was completed by Mr John Litz of JE Litz
and Associates, Colorado, on the basis of data provided from process
testing of Norra Karr mineralization completed by SGS Canada Inc.
(SGS) in Lakefield, Canada, and the Geological Survey of Finland
(GTK) in Outokumpu, Finland.

The project is proximal to road, rail, power and operating ports,
plus skilled personnel, minimizing the need for offsite
infrastructure to be built by the Company. Development of the project
will occur as an open pit mine, with crushing, grinding,
beneficiation and mineral dissolution occurring in the immediate
vicinity of the pit. High purity precipitates of a mixed rare earth
carbonate concentrate and a zirconium carbonate concentrate will be
produced.

A summary of the operating assumptions and financial model for
Norra Karr can be found in Tables 1 - 2 below:

Table 1: Norra Karr Project, Annual Operating Summary
Year
Production Units 1 Year 2 Year 3-20 (avg) Year 21-40 (avg)
Total
Tonnes
mined
(ore+waste) Mt 2.91 2.54 2.82 2.58
Waste
Strip Ratio : Ore 2.86 1.24 0.87 0.75
Tonnes
processed Mt 752 1,133 1,504 1,458
Grade TREO % 0.53 0.56 0.58 0.60
Grade ZrO2 % 1.61 1.60 1.64 1.77
Recovery
TREO % 80% 80% 80% 80%
Recovery
ZrO2 % 60% 60% 60% 60%
Mixed TREO
concentrate Tonnes 3,165 5,067 6,946 7,004
Zirconium
Carbonate
concentrate Tonnes 7,260 10,893 14,831 15,492

"When in production, the project will make a very significant
contribution to the availability of heavy rare earth elements outside
of China, and provide long term security of these metals for Europe"
said Mark Saxon. "With this encouraging independent assessment in
hand, Tasman shall accelerate progress during 2012, with additional
drilling, further refinement of our metallurgical process, extensive
work on permitting and initiation of a full Pre-Feasibility Study
(PFS)".

Geology and Mineralization

Norra Karr is a zirconium and rare earth element enriched
peralkaline (agpaitic) nepheline syenite intrusion which covers 350m
x 1200m in area. The deepest extents of the mineralized intrusion
have not been delineated, but exceed 320m. The rock units comprising
the Norra Karr intrusion are uncommon on a global scale, and include
mineral phases that are comprised of or associated with REE's, Zr,
Nb, Y and Hf. The most abundant intrusion present is grannaite, a
medium grained syenite consisting of alkali feldspar, nepheline,
aegirine, natrolite, eudialyte and catapleite. Lesser units include
lakarpite (arfvedsonite-albite nepheline syenite), pulaskite
(microcline-arfvedsonite-albite nepheline syenite) and kaxtorpite
(eckermannite-microcline-aegirine-pectolite-nepheline syenite).
Intervals of irregular coarse grained pegmatite schlieren with
equivalent mineralogy to the grannaite are also commonly developed.
The Norra Karr intrusion is hosted by granitoide rocks which close to
the contacts (0-25m) exhibit signs of fenitization (metasomatic
alteration).

The rare earth and zirconium bearing minerals at Norra Karr
comprise almost exclusively the zirconosilicates: eudialyte and
catapleiite. Rare mosandrite, rosenbushite and cerite have been
described locally. Eudialyte and catapleiite are both soluble in
moderate strength sulphuric acid at room temperature and pressure,
which has allowed for development of a simple flow sheet with low
consumption of both reagents and energy. The bulk sample used in
concentrate preparation showed eudialyte comprised approximately 6%
of the rock, and typically contained between 5 and 10 weight % TREO.

Spatial distribution of rare earth minerals at Norra Karr is very
consistent. TREO grade, mineral grain size and HREO/TREO% varies only
slightly across the deposit in a concentric manner. REE bearing
minerals have not been noted to vary with either strike or depth to
any significant degree.

Uranium (U) and thorium (Th) levels at Norra Karr are considered
low for an REE-enriched intrusion and do not significantly exceed
background. The thorium (average value 7 ppm) and uranium (average
value 14 ppm) present in the Norra Karr deposit are believed
disseminated within the REE minerals.

Updated Mineral Inventory and "In-Pit" Mineral Resource Estimate

In 2011, Tasman completed two extensive drill programs with the
goal of increasing the overall size of the resource as well as
increasing the confidence level in the existing NI 43-101 compliant
estimate. In conjunction with the release of this PEA, Tasman is
pleased to announce a revised NI 43-101 compliant estimate for Norra
Karr. The resource estimate was prepared by Pincock Allen & Holt
("PAH") / Minarco-Mineconsult (both subsidiaries of Runge Ltd)

A block model mineral inventory showing grade and tonnage
relationships at five geological cutoff grades for percent total rare
earth oxides (%TREO) is presented in Table 3. At a geological cutoff
grade of 0.4 %TREO, the Norra Karr deposit contains a mineral
inventory of 69.1 million tonnes at 0.60% TREO and 1.82% ZrO2. The
ratio of HREO/TREO for this tonnage is 52%. Both grade and total
tonnage have increased over the NI43-101 compliant estimate of
November 2010.

Table 3: Norra Karr Project - March 2012 Block Model
Mineral Inventory and

REO Distribution

Cutoff
TREO
% LREO
Tonnes TREO HREO LREO HREO/ La203 Ce203 Pr203 Nd203 Sm203
MT % % % TREO % % % % % %
0.20 148.8 0.42 0.24 0.19 56 % 0.037 0.083 0.011 0.044 0.012
0.30 85.0 0.55 0.29 0.26 53 % 0.052 0.116 0.015 0.060 0.016
0.40 69.1 0.60 0.31 0.29 52 % 0.058 0.131 0.017 0.067 0.018
0.50 58.8 0.63 0.33 0.30 52 % 0.059 0.136 0.018 0.070 0.019
0.60 38.8 0.67 0.35 0.32 52 % 0.062 0.144 0.019 0.076 0.021

Notes:

1) Total Rare Earth Oxides (TREO) includes: La2O3, Ce2O3, Pr2O3, Nd2O3,
Sm2O3, Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
2) Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3,
Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3
3) The block model mineral inventory was completed by Mr Geoffrey Reed, Senior
Consulting Geologist of Minarco-Mineconsult (Australia), and is based on geological
and geochemical data supplied by Tasman, audited by Mr Reed. Mr Reed is an independent
qualified person for the purposes of NI 43-101 standards of disclosure for mineral
projects of the Canadian Securities Administrators and has verified the data disclosed
in this release. A Technical Report with the estimate will be filed on SEDAR within 45
days.
4) Cut-off grades are geological cut-offs and not based on economics.
5) Block model mineral inventories are not mineral resources because the
reasonable prospects of economic extraction standard has not been satisfied.
6) The resource estimate is based on:
- A database of 49 diamond drill holes completed by the Company since
December 2009 where samples were composited on 2m lengths. Assays were completed
at ALS Chemex, with check sampling completed by ACME Laboratories Ltd.
- Specific gravity (SG) used the overall mean of 2.70 g/cc from 179 SG
readings.
- Block model was estimated by inverse distance squared interpolation method
on blocks 100m x 20m x 20m.

For the purposes of the PEA and following a supply and demand
study of the heavy REE market, PAH was requested to optimize the
resource and pit that would allow for the production 6,000 - 7,000
tonnes of separated rare earth oxides per annum over an initial mine
life of 20 years. This production rate was chosen due the globally
significant output of the heavy REE's dysprosium, yttrium and terbium
that will be produced from Norra Karr under this scenario.

Using this production rate and duration guidance provided by
Tasman, PAH produced a Whittle pit model to estimate the in-pit
Mineral Resource as provided in Table 4. Expansion of the annual
production rate or extending the mine life beyond 20 years will be
reviewed in the upcoming PFS.

Table 4: Norra Karr Project, NI43-101 Compliant
March 2012 "In-Pit" Mineral Resource[1] Estimate
Tonnes of
Tonnes TREO LREO HREO HREO/TREO ZrO2 Contained
Classification Mt % % % % % TREO
Indicated 41.6 0.57 0.28 0.29 50.8 1.70 237,120
Inferred 16.5 0.64 0.33 0.31 48.4 1.70 94,050

Notes:

1) Mineral resources that are not mineral reserves do not have demonstrated
economic viability. Mineral Resource estimates do not account for mineability,
selectivity, mining loss and dilution. The Preliminary Economic Assessment includes
inferred mineral resources which are considered too speculative geologically to have
the economic considerations applied to them that would enable them to be categorized
as Mineral Reserves. There is no certainty that the results projected in the
Preliminary Economic Assessment will be realized and actual results may vary
substantially.
2) Total Rare Earth Oxides (TREO) includes: La2O3, Ce2O3, Pr2O3, Nd2O3, Sm2O3,
Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3.
3) Heavy Rare Earth Oxides (HREO) includes: Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3,
Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3.
4) "In-pit" Mineral Resources were estimated by PAH using the Whittle pit
optimization software and scoping level economic parameters for commodity prices,
metal recoveries and current operating expenses as presented in the PEA and summarized
in this press release.
5) Mineral Resources are reported at a marginal cutoff grade of 0.285% TREO.

Mine Design Considerations

Mine design consists of a single open pit with single entry ramp.
As the Norra Karr deposit is covered by only a thin (typically less
than 1 metre) layer of soil, no significant pre-strip is required.
Below this soil layer the rock is unweathered, therefore no
consideration need be given to variation in mineralogy or grade
relating to weathering. A two year ramp up period is anticipated to
full production, with a total modeled mine life of twenty years.

Mining will be carried out using dump trucks and excavators as
mining equipment with haulage via the access ramp to the nearby
processing facility. The life of mine open pit strip ratio is
estimated to be 0.85:1 (waste:ore) with a mine life of 40 years. The
mill feed at full operation is 1.5 million tonnes per year, or
approximately 4,100 tonnes per day.

Beneficiation and Processing Considerations

Flow sheet design within this PEA incorporates the results from
ambient temperature/pressure leach testing and roast/leach testing of
whole ore completed at SGS during late 2010 and 2011 under the
guidance of Mr Les Heymann; and beneficiation and ambient
temperature/pressure leach testing of mineral concentrate completed
at GTK during 2011 under the guidance of Mr John Litz. Metallurgical
test work was undertaken on two approximately 100 kg samples. These
samples were comprised of drill core intervals selected from across
the Norra Karr deposit to represent both the resource grade at a 0.4%
TREO cut-off (grade of 0.54% TREO) and the range of ore types
encountered. The samples can be considered representative based on
the current understanding of the project.

The rare earth and zirconium bearing minerals at Norra Karr
comprise almost exclusively the zirconosilicates: eudialyte and
catapleiite. Both minerals are soluble in moderate strength sulphuric
acid at room temperature and pressure, which has allowed for
development of a simple flow sheet with low consumption of both
reagents and energy.

The simplified ore processing modeled under the PEA at Norra Karr
consists of:

Crush & Grind

- Crushing and grinding to approximately 90 microm in sequential
semi-autogenous and ball/rod mills;

Beneficiation

- Magnetic separation to exclude a non-magnetic feldspar/nepheline fraction;
- Flotation to exclude aegirine (clinopyroxene);
- Excluded fractions (25-35% of original volume) will be diverted to tailing
storage, and considered for other commercial options;

Hydrometallurgy

- Sulphuric acid digestion of the REE mineral concentrate;
- Thickening and solid/liquid separation to divert REE-bearing pregnant
solution;
- Stepwise precipitation of REE and Zr carbonate through addition of sodium
carbonate;
- Calcination to yield final >90% pure mixed REE carbonate and Zr carbonate
products for bagging and sale;
- Contaminants and undissolved solid phase will be neutralized with limestone
slurry and diverted to a tailings storage;
- Acid in the liquid phase shall be recycled where possible, the balance
neutralized with limestone;
- Process water will be purified with a reverse osmosis plant to ensure suitable
for discharge and efficient reuse;

Transport of Final REE and Zr Products

- Saleable products (mixed REE carbonate and Zr carbonate) shall be
transported off site by existing road and rail networks;

Under the planned PFS, process optimization shall include testing
of individual ore types, review of nepheline/feldspar co-product
value and saleabilty, testing of additional digestion and
precipitation mechanisms to reduce reagent and effluent streams.

Capital Cost Estimate

The capital cost estimate for the start up of the Norra Karr
project is CA$290 million, which includes a 30% cost contingency as
outlined in Table 5. Costs considered include all equipment needed
for mining and processing, including a tailings facility, warehouses,
offices and upgrades to existing power and road infrastructure, plus
any additional infrastructure required for the Norra Karr project
based on achieving a PEA Study with an accuracy of +/-35%. Indirect
costs such as engineering, procurement, construction management and
owner's costs are incorporated in the costing of the consolidated
capital items.

Access to water and power are considered to be available on or
very close to site respectively. A major highway lies 0.5km from the
project, and rail within 25km which are considered suitable for
transport in and out of all required materials and products. Villages
and towns in the immediate region provide sources of skilled and
semi-skilled labor including those with mining industry experience,
and construction of accommodation is not considered necessary.

Table 5: Norra Karr Project, Initial Capital Cost Items
($
million
CAD)
Mining 18.2
Processing 120.0
Tailings and
Management
Facilities 75.0
Other Infrastructure 10.0
Total 223.2
Contingency (30%) 66.8
Total Initial
Capital Cost 290.0

Operating Cost Estimate

The Operating Cost estimates for the mining operation were
developed by PAH with contribution from Golder Associates, Sweden.
The operating costs for the metallurgical process operations were
developed by consulting metallurgist, Mr. John Litz of JE Litz and
Associates, Colorado. The Operating Cost for the mining and
metallurgical operations cover all stages up to the shipment of REE
and Zr concentrates, as well as water management, tailings disposal,
transport of material to and from site, general and administration
fees along with associated infrastructure and services.

The project operating estimate is based on the following
assumptions:

- Average of 1.5 million tonnes of ore mined per year following ramp up;
- Average of 1.2 million tonnes of waste rock mined per year following
production ramp up;
- Approximately 6,950 tonnes of mixed REO concentrate produced per year
following production ramp up;
- A total of 250 employees required for all operations.

Overall Operating Costs at Norra Karr are estimated to be $74.4
million per year or $10.93/kg of mixed TREO concentrate output. A
summary of the costs is shown in Table 6.

Table 6: Norra Karr Project, Operating Cost Items
Average Cost Per Average Cost
Average Annual kg Per
Cost of Mixed TREO Tonne of Ore
(Thousands $/y) concentrate ($/kg) Milled ($/T)
Mining 10,224 1.52 3.80[1]
Processing 60,256 8.84 41.48
Closure Cost Accrual 272 0.04 0.19
General and
Administrative 3,632 0.53 2.50
Total 74,383 10.93
1. Mining costs based on per tonne of ore and waste

Output of the various REE's based on the operating scenario above
is provided in Table 7. Note that output quantity is given in oxide
equivalent form. Mine-gate output is as a mixed rare earth carbonate.
The financial model for Norra Karr under this PEA assumes no revenue
from Ho, Er, Tm, Yb and Lu due to the small market size and lack of
robust historical pricing.

Table 7: Norra Karr Project, Annual REE Production Output (Mixed Concentrate, Tonnes)
Year
% of Ore Year 1 Year 2 Year 3-20 21-40
REO Name (Average) (Tonnes) (Tonnes) (Average) (Average)
Lanthanum La2O3 10.01 317 507 695 701
Cerium Ce2O3 22.52 713 1,141 1,564 1577
Praseodymium Pr2O3 2.86 91 145 199 200
Neodymium Nd2O3 11.31 358 573 786 792
Samarium Sm2O3 2.98 94 151 207 209
Europium Eu2O3 0.37 12 19 26 26
Gadolinium Gd2O3 3.16 100 160 219 221
Terbium Tb2O3 0.63 20 32 44 44
Dysprosium Dy2O3 4.25 135 215 295 298
Holmium Ho2O3 0.93 29 47 65 65
Erbium Er2O3 2.87 91 145 199 201
Thulium Tm2O3 0.45 14 23 31 32
Ytterbium Yb2O3 2.73 86 138 190 191
Lutetium Lu2O3 0.37 12 19 26 26
Yttrium Y2O3 34.55 1094 1,751 2,400 2420
Total 100.00 3,165 T 5,066 T 6,945 T 7,003 T

REE and Zr Pricing and Market Considerations

In the development of the price deck for this PEA, much effort
was expended by Tasman and PAH to ensure the price forecast was
realistic and conservative. Price forecasts were compiled and studied
from industry groups including Roskill and IMCOA, as well as
financial analysts including Dundee Securities, Cormark Securities,
Euro Pacific Canada, CIBC World Markets, and Global Hunter
Securities. Also taken into consideration were previously published
PEA and PFS studies from competing REE projects including, Avalon
Rare Metals, Quest Rare Mineral, Hudson Resources, Matamec and
Frontier Rare Earths. The three year trailing price average for China
FOB pricing from Asian Metals was also reviewed.

Price forecasts between the various analysts and competing REE
projects differ substantially, with particular divergence in the
forecast for cerium and lanthanum. The Norra Karr deposit provides
little exposure to cerium and lanthanum (approximately 3% of annual
revenue), and this divergence plays only a minor role in the
financial modeling within. The majority of industry analysts expect
an increase in consumption of rare earth elements, particularly those
considered to be in the critical rare earth oxide (CREO) category as
defined in the August 2011 report issued by Technology Metals
Research. These CREO elements include Tasman's major revenue drivers
of dysprosium, yttrium, terbium, neodymium, and europium.

This PEA is based upon the production of a mixed REE concentrate,
as modeling of separation of this concentrate into individual rare
earth oxides was considered beyond the scope of the study. For
separation, Tasman is exploring multiple options, which include
outsourcing, partnerships, and new technologies. For the scope of
this report, modeled pricing is at a discount of 38% to the final
separated oxide sellingprice given in Table 8 to account for the cost
of separation by a third party. The undiscounted REE basket price
used in the PEA analysis was US$51.00 and therefore the corresponding
long term discounted basket price was US$31.60.

Zirconium carbonate shall be produced with the rare earth
products based on the current metallurgical process design. Zirconium
carbonate is an important input into the rapidly growing zirconium
chemicals industry, with zirconium carbonate being the pre-cursor
material from which other zirconium chemicals are manufactured. The
end products from zirconium carbonate include: antiperspirant
actives, paint driers, leather tanning products, paper coatings and
automotive catalysts. Currently, the majority of zirconium carbonate
is sourced from zircon, which requires extensive processes and
chemical cracking operations to separate zirconium. According to data
published by independent consulting firm TZ Minerals International,
the zirconium chemicals market is the fastest growing segment of the
zirconium market and is estimated to account for 18% of the zirconium
market in 2012 or approximately 250,000 tonnes. Price forecasts and
current spot pricing for zirconium carbonate was not available and as
such, the price of zirconia or zirconium oxide has been used as a
proxy. As a result, a conservative price forecast of $3.77 per kg was
used in the model, in line with competitor PEA pricing.

The price deck used in the PEA is illustrated in Table 8.

Table 8: Rare Earth Oxide and Zirconia Equivalent "Price Deck" Assumed for Norra
Karr PEA
Tasman Norra Karr - %
Estimated of TREO
Long-term Feb 2012 China Revenue
Market Price FOB Price[1] (Based on Avg.
(US$/kg) (US$/kg) Production)
Lanthanum La2O3 10.00 35.00 1.9%
Cerium Ce2O3 5.00 31.00 2.2%
Neodymium Nd2O3 75.00 165.00 16.6%
Praseodymium Pr2O3 75.00 160.00 4.2%
Samarium Sm2O3 10.00 71.00 0.5%
Europium Eu2O3 500.00 3,375.00 3.6%
Gadolinium Gd2O3 40.00 100.00 1.9%
Terbium Tb2O3 975.00 2,550.00 12.1%
Dysprosium Dy2O3 520.00 1,500.00 43.4%
Yttrium Y2O3 20.00 155.00 13.6%
Norra Karr REE "Basket Price" 51.00 184.85
Basket Price
with 38%
Discount 31.60
Zirconia
Equivalent ZrO2 3.77 7.15[2]
Note: no value applied to Ho, Er, Tm, Yb, or Lu due to lack of available
historical prices
1. Feb 2012 China FOB price quoted as average prices from Asian Metals.
2. Zirconia prices quoted as average prices from Industrial Minerals

Economic Analysis and Technical Assumptions

For the analysis, the Norra Karr deposit was analyzed based on an
open pittable recoverable resource of 58.1Mt million tonnes grading
0.59% TREO (50.0% HREO/TREO) and 1.70% ZrO2, in the inferred and
indicated categories. This resource provides for a greater than 20
year mine life, however if the entire deposit were to be included at
the current estimated processing rate, the project would have a mine
life of approximately 100 years.

The current mining and processing assumptions are for a mining
rate of 1.5 million tonnes per year with average TREO recoveries of
80% and average ZrO2 recoveries of 60%. The project's mining and
process assumptions are listed in Table 9. No provision is made for
inflation, and the capital invested is assumed to be sourced as
equity.

Based upon the total capital cost estimate of $290 million over a
1.5 year construction period, the before tax NPV at 10% discount rate
as determined by PAH is $1,464 million as detailed in Table 2 above.
Payback on the project is within 3 years from the start of
production, and generates a pre-tax IRR of 49.6%.

Table 9: Norra Karr, Mining and Processing Assumptions
Item Unit Base Case Value
Total Ore Mined (40 year mine life estimate) M tonnes 58.1
Processing Rate Tonnes / year 1,500,000
Life of Mine years 40.0
Average Process Recovery for REOs % 80
Average Process Recovery for Zr % 60
Average Mining Cost ($ / tonne mined) 3.80
Average Processing Cost ($ / tonne milled) 41.48
Average General & Administration Costs ($ / tonne milled) 2.50
Average Closure Cost Accrual ($ / tonne milled) 0.19

In addition to the direct capital expenditures, it is estimated
that the working capital requirement at time of mine start-up is to
be $9.0 million and reclamation costs at the end of the 40 year
project life is expected to be $10.9 million.

Sensitivity Analysis

Beyond the base case analysis, a sensitivity analysis was
performed on the economic model to assess the impact for changes in
the REE price deck as well as changes to the operational costs. The
results of the sensitivity analysis are provided in Table 10, 11 and
12, which demonstrate that the economic model is most sensitive to
changes in the REO basket prices followed by initial capital
expenditures and finally increases or decreases in operational costs.

Table 10: Norra Karr, Sensitivity Analysis of Cost Assumptions under PEA -
Change in REO Basket Price
Selling Price of REO
Basket NPV @ 8% NPV @ 10% NPV @ 12% IRR
US$ 66.30/kg Increase 30% $2,619,276 $2,062,558 $1,665,924 63.4%
US$ 61.20/kg Increase 20% $2,372,801 $1,863,059 $1,499,932 58.9%
US$ 56.10/kg Increase 10% $2,126,327 $1,663,560 $1,333,939 54.3%
US$ 51.00/kg Base Case $1,879,852 $1,464,060 $1,167,947 49.6%
US$ 45.90/kg Decrease 10% $1,633,378 $1,264,561 $1,001,955 44.8%
US$ 40.80/kg Decrease 20% $1,386,903 $1,065,062 $835,962 39.9%
US$ 35.70/kg Decrease 30% $1,140,429 $865,563 $669,970 34.8%

Table 11: Norra Karr, Sensitivity Analysis of Cost Assumptions under PEA -
Change in Initial Capital Expenditure
Initial Capital Expenditure NPV @ 8% NPV @ 10% NPV @ 12% IRR
$348,024 Increase 20% $1,821,848 $1,406,056 $1,109,943 42.7%
$319,022 Increase 10% $1,850,850 $1,435,058 $1,138,945 45.9%
$290,020 Base Case $1,879,852 $1,464,060 $1,167,947 49.6%
$261,018 Decrease 10% $1,908,854 $1,493,062 $1,196,949 54.1%
$232,016 Decrease 20% $1,937,856 $1,522,064 $1,225,951 59.6%

Table 12: Norra Karr, Sensitivity Analysis of Cost Assumptions under PEA - Change
in Operational Costs
Operating Costs/kg TREO Output NPV @ 8% NPV @ 10% NPV @ 12% IRR
$13.12 Increase 20% $1,705,676 $1,322,431 $1,049,619 46.0%
$12.03 Increase 10% $1,792,764 $1,393,246 $1,108,783 47.8%
$10.93 Base Case $1,879,852 $1,464,060 $1,167,947 49.6%
$9.84 Decrease 10% $1,966,941 $1,534,875 $1,227,111 51.4%
$8.75 Decrease 20% $2,054,029 $1,605,690 $1,286,275 53.2%

Environmental Assessment

The Swedish Mining Act provides a clear pathway to resource
development, and Tasman has hired a skilled team of staff and
consultants to move the project forwards through appropriate
legislation as quickly as possible.

Environmental and archeological baseline studies were conducted
during 2011 by consulting group Mirab AB which provides adequate
information for the submission of a Mine Lease application during Q2
2012. Golder Associates Sweden are currently preparing the
application document. Tasman is completing a program of thorough
community, government agency and other stakeholder engagement in line
with this process.

NI 43-101 Compliance

The technical information in this news release has been prepared
in accordance with Canadian regulatory requirements by, or under the
supervision of, Mr Craig Horlacher and Mr Paul Gates of Pincock Allen
& Holt, Mr Geoff Reed of Runge Ltd and Mr John Litz of JE Litz and
Associates all of whom are independent Qualified Persons as defined
under National Instrument 43-101 Standards of Disclosure for Mineral
Projects.

Samples submitted by Tasman Metals Ltd used with the resource
calculation quoted above were analyzed by the ME-MS81 technique by
ALS Chemex Ltd's laboratories in Pitea, Sweden and Vancouver, Canada,
where duplicates, repeats, blanks and known standards were inserted
according to standard industry practice. Where over-range for
ME-MS81, Zr was determined using the ME-XRF10 technique. The
qualified person for the Company's exploration projects, Mark Saxon,
President and Chief Executive Officer of Tasman and a member of the
Australasian Institute of Mining and Metallurgy and Australian
Institute of Geoscientists oversaw this data collection.
Metallurgical products produced during research by the Geological
Survey of Finland (GTK) were analyzed by the XRF technique in the
laboratories of Labtium Oy in Finland. Labtium Oy is an independent
consulting laboratory, fully accredited to industry standards.

The qualified person for the Company's exploration projects, Mark
Saxon, President and Chief Executive Officer of Tasman and a Member
of the Australasian Institute of Mining and Metallurgy and Australian
Institute of Geoscientists, has reviewed and verified the contents of
this release.

About Tasman Metals Ltd.

Tasman Metals Ltd is a Canadian mineral exploration and
development company focused on Rare Earth Elements (REE's) in the
European region and is listed on the TSX Venture Exchange under the
symbol "TSM" and the NYSE-AMEX under the symbol "TAS". REE demand is
increasing, due to the metals unique properties that make them
essential for high technology and environmentally-beneficial
applications. Since over 95% of REE supply is sourced from China, the
European Union is actively supporting policy to promote domestic
supply of REE's, to ensure the security of high-tech industry.
Tasman's exploration portfolio is uniquely placed, with the capacity
to deliver "high-tech" metals from politically stable, mining
friendly jurisdictions with developed infrastructure.

The Company's Norra Karr project in Sweden is one of the most
significant heavy REE resources in the world, and the only NI43-101
compliant REE resource in mainland Europe. The resource is unusually
low in radioactive metals relative to peer projects, with less than
15 ppm each of uranium and thorium.

For more information regarding rare earth elements, see the Rare
Metal Blog at http://www.raremetalblog.com or Resource Stock Digest
at http://strategicmetalstocks.resourcestockdigest.com

On behalf of the Board,

"Mark Saxon"

Mark Saxon, President & CEO

The TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange),
the American Stock Exchange or the Frankfurt Stock Exchange accepts
responsibility for the adequacy or accuracy of this news release.

Cautionary Note to U.S. Investors Concerning Estimates of
Inferred Resources. This news release uses the term "inferred mineral
resource." We advise U.S. investors that this term is not recognized
by the U.S. Securities and Exchange Commission. The estimation of
inferrred resources involves far greater uncertainty as to their
existence and economic viability than the estimation of other
categories of resources. U.S. investors are cautioned not to assume
that estimates of inferred mineral resources exist, are economically
minable, or will be upgraded into measured or indicated mineral
resources.

Cautionary Statements. Certain statements found in this release
may constitute forward-looking statements as defined in the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements reflect the speaker's current views with respect to future
events and financial performance and include any statement that does
not directly relate to a current or historical fact. Such statements
reflect the current risks, uncertainties and assumptions related to
certain factors including, without limitations, competitive factors,
general economic conditions, customer relations, relationships with
vendors and strategic partners, the interest rate environment,
governmental regulation and supervision, seasonality, technological
change, changes in industry practices, and one-time events. Should
any one or more of these risks or uncertainties materialize, or
should any underlying assumptions prove incorrect, actual results may
vary materially from those described herein. Forward-looking
statements cannot be guaranteed and actual results may vary
materially due to the uncertainties and risks, known and unknown,
associated with such statements. Shareholders and other readers
should not place undue reliance on "forward-looking statements," as
such statements speak only as of the date of this release.

For further information:
Investor Information
http://www.tasmanmetals.com
1305 - 1090 West Georgia St., Vancouver, BC, V6E 3V7
Company Contact: Jim Powell, V.P. - Corporate Development
+1-(647)-478 8952 or Mariana Bermudez +1-(604)-685-9316
Investor Relation Consultants - Mining Interactive
Nick Nicolaas +1(604)657-4058
Email: info@tasmanmetals.com

ots Originaltext: Tasman Metals Ltd.
Im Internet recherchierbar: http://www.presseportal.de