EANS-News: Tantalus Rare Earths AG AND RHODIA SIGN LOI FOR TECHNICAL CO-OPERATION AND OFFTAKE FROM MADAGASCAR RARE EARTHS PROJECT

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Contracts/LOI between Tantalus and Rhodia

Düsseldorf (euro adhoc) - RHODIA AND TANTALUS SIGN LOI FOR TECHNICAL
CO-OPERATION AND OFFTAKE FROM MADAGASCAR RARE EARTHS PROJECT

(Lyon, FRANCE, Düsseldorf, GERMANY, April 23rd 2012); Rhodia, a
member of the Solvay Group, and Tantalus Rare Earths AG are pleased
to announce the signing of a Letter of Intent ("LOI") relating to
technical cooperation for the development of an optimal process for
generating rare earth concentrates from the large near surface
Tantalus rare earth project in Madagascar and the exclusive supply of
these rare earth products to Rhodia.

The Tantalus project is emerging as one of the largest clay hosted
rare earth resources outside of China, with 130Mt of rare earth
bearing clays already identified from a small portion of the project
area on the Ampasindava Peninsula in north-western Madagascar.
Analysis of the Tantalus material has shown that approximately 20% of
the rare earths are in the valuable "heavy" category. A definitive
Technical Cooperation Agreement and Offtake Agreement for up to
15,000 tonnes per annum of rare earth products from Tantalus will
follow the LOI.

Tantalus CEO Mr David Rigoll said: "After discussions with all of the
major participants in the rare earths processing and supply sector,
we are pleased to have agreed terms with the world's number one
producer of rare earth products Rhodia as our exclusive technical and
marketing partner to assist in fast-tracking our Tantalus project to
commercial production.

Fréderic Carencotte, Industrial Director for Rhodia Rare Earth
Systems, added: "This agreement represents a further step in our
sourcing diversification strategy. The composition and nature of this
deposit, i.e. ionic clays, seems very promising for reliable and
competitive access to heavy rare earths."

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 Lateritic Clays 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 Lateritic
Clays. 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 JORC compliant mineral resource estimate
and support a initiation of the staged technical and economic studies
which could lead to mine development and production.

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

Further inquiry note:
For further information contact:
Wolfgang Hampel, Chief Operating Officer

Tel: +41 (0) 79 270 2095
Email: hampel@tre-ag.com

David Rigoll, CEO
Tel: +44 7500 068555
Email: rigoll@tre-ag.com

Paul Weigh
Blythe Weigh Communications
Tel: +44 (0) 20 71383204
or +44 (0) 7989 129658

end of announcement euro adhoc
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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