Operations

GWMG focuses on three core components within its integrated supply chain strategy:

1. Alloy Processing:

GWMG’s alloy processing plan includes:

• GWMG’s two wholly owned subsidiaries Great Western Technologies Inc. and Less Common Metals Limited.
• The development of metal making capacity and facilities.
• The continued expansion of LCM’s alloy production capacity by 100% by 2012 and then, based on industry demand, continued expansion of current capacity.

2. Mining:

GWMG’s mining plan at Steenkampskraal revolves around the following:

• Refurbishment of the mine shaft and related facilities by the end of 2011.
• Readying the mine for extraction activity in the 2nd half of 2012.
• Putting the formerly producing Steenkampskraal mine into full production by Q1 2013.
• Beneficiation at the Steenkampskraal site to produce a mineral concentrate.
• Removal of thorium in the processing stage.
• Leaching to produce a liquid chloride.
• Working with a joint venture partner that will provide technology and expertise to the design, construction and operation of separation facilities.
• The separation of the 15 rare earth elements present into oxides.
• The shipment of selected oxides to GWMG’s processing plants LCM and GWTI, to potential joint venture purchase(s) and the remainder sold on the open market

3. Exploration:

GWMG has adopted the following priorities for its exploration activities:

• Heavy rare earth projects,
• Politically stable environments,
• Potential off-take agreements wherein GWMG may or may not undertake the exploration activities itself,
• Increasing the supply of feedstock for the planned Steenkampskraal processing and separation operation. 

Note: In above chart, following the Leaching stage, either a carbonate or chloride can
typically be produced. In this case the product will be a chloride.