Greenland Minerals & Energy [ASX: GGG]

Event
Dec.’11 Quarter Production & Cash Flow Report

Key Elements

• During the December quarter 2011, GGG’s mineral license EL 2010/02 was upgraded to the “right to exploit all economic components of the world‐class Kvanefjeld resource, pending outcomes of environmental and social impact assessments”. This was a major plus to the project’s future dynamics and paths the way for future development.
• Through the first half of 2011, GGG conducted extensive stakeholder engagement to establish the terms‐of‐reference for the Environmental Impact Statement [EIA] and [Social Impact Assessment [SIA]. These terms were approved by the Greenland Government in July 2011, and both the EIA and SIA are progressing on schedule. Both studies are expected to be completed by late 2012. The EIA and SIA form a critical part of an exploitation license application.
• A second zone of mineralisation, Zone 2, was subject to further drilling in the quarter with best results being 66m @ 474ppm U3O8 & 1.55% TREO, 60m @ 486ppm U3O8 & 1.15% TREO and 65m @ 417ppm U3O8 and 1.36% TREO. GGG is expecting to have its first JORC on this zone by the end of the March quarter 2012.
• Drilling at Zone 3 was also conducted during the quarter with a number of results expected in the next few weeks. Again management is expecting to release a JORC resource on this zone by the end of the March 2012 quarter.
• In June 2011, GGG announced it had established an effective means of beneficiating the Kvanefjeld ore to produce a high‐grade, low mass concentrate. This step has paved the way for a number of alternate development scenarios. Piloting of the beneficiation step was successfully conducted in September 2011, and the mineral concentrates produced provided the basis for hydro‐metallurgical leach studies. Detailed evaluation of the possible flow‐sheet scenarios is now underway taking into account project economics and sensitivities, market risk and technical risk. GGG is aiming to firm up the optimal process flow‐sheet for the project through Q1 2012.
• Agreement to buy-out the 39% equity partner [Westrip] in the project advanced with settlement by June 15th 2012. Pursuant to the buy-out agreement, GGG will pay the sum of A$39,000,000 in cash, 7,825,000 shares, and 5,000,000 options (ex $1.50) in a predetermined proportion to all shareholders of Westrip Holdings, the joint venture vehicle.
• In November 2011, GGG negotiated terms to acquire a 3% royalty on the net profits of GME A/S, the Greenlandic subsidiary company through which the Kvanefjeld project is owned. The acquisition of the 3% net profit royalty will be finalised when GGG completes the transaction with Westrip to move to 100% ownership of GME A/S, and thereby full ownership of the Kvanefjeld project. GMEL will issue 17,500,000 ordinary shares to acquire the royalty.

Project Location

Kvanefeld uranium, rare earth and speciality metals project

JORC Resources

Recommendation

Mr Michael Hutchinson, BSc.
Chairman

Mr Michael Hutchinson has had a distinguished career in resources and commodity trading, having served as Director of the London Metal Exchange, the world’s largest market in options and futures contracts on base and other metals. Michael has also served as Chairman of RBS Sempra Metals Limited, and Wogen PLC; a trader of off-exchange metals that sources metals worldwide for industrial end users. In addition, Mr Hutchinson previously served as a director of MG PLC.

Mr Hutchinson also served as Chairman of RBS Sempra Metals Limited, and Wogen PLC; a trader of off-exchange metals that sources metals worldwide for industrial end users. In addition, Mr Hutchinson previously served as a director of MG PLC.

Roderick McIllree, B.Sc. (Geology), Grad Dip. (Mineral Economics) MAusIMM
Managing Director

Mr Roderick McIllree graduated from Curtin University of Technology in 1996 with a Bachelor of Science degree (Mineral Exploration and Mining Geology) and commenced a career in the minerals industry. Working in Western Australia’s goldfields for company’s including Placer Dome and Wiluna Gold, Roderick gained experience in all facets of mineral exploration and mining.

Roderick then headed abroad, gaining international experience in the prolific mineral belts of Chile, before returning to Australia’s gold sector. After completing a graduate diploma in Mineral Economics, Roderick moved into the finance sector and worked as an analyst and advisor for broking houses active in Australian and international capital markets. This further broadened his experience, following emerging mining projects in Australia, Indonesia, Congo, and the Philippines. This led Roderick to aiding in the establishment of several successful mining ventures including Medusa Mining, Anvil Mining, and Kingsrose Mining.

Roderick was the founding Managing Director of ‘The Gold Company’ (now Greenland Minerals and Energy Ltd), and was instrumental in the company’s push into Greenland and the acquisition to Kvanefjeld project in 2007. Since then, Roderick’s drive, focus and enthusiasm has been critical to evolution of Greenland Minerals and Energy Ltd, where he has built an organisation of top level mineral’s industry professionals, and has successfully established the company’s increasing international profile.

Dr John Mair
Executive Director – Business Development

Dr John Mair completed a Bachelor of Science with Honours, majoring in geology, at the University of Western Australia, before commencing a career in the minerals sector, working in gold exploration and mining in Western Australia’s goldfields. He returned to the university system to undertake a PhD study on the gold and base metal deposits of Canada’s Yukon Territory and east-central Alaska. After completing the PhD in 2004, John returned to the minerals industry working in exploration for porphyry Cu-Au deposits in New South Wales, and gold deposits in China. In mid-2005 John took the position of Post-Doctoral Research Fellow at the University of British Columbia, with a focus on the metallogeny of southwest Alaska.

At completion of the project in 2006, John returned to the minerals industry as a project co-coordinator for Vancouver-based exploration group Geoinformatics Exploration Inc., who in alliance with Kennecott, were exploring for Cu-Mo-Au deposits in western North America from Mexico to Alaska. During this period, John planned and implemented large-scale exploration programs through remote northern British Columbia, as well as providing technical expertise to exploration programs in Alaska and Mexico. In mid-2008 John returned to Australia to join Greenland Minerals and Energy Limited as General Manager.

John has published several papers in leading international scientific journals on tectonics, structural geology, mineral deposit geology, igneous petrology and mineralogy. He has also presented at Masters short courses on ore deposit geology. Of particular relevance is his understanding of the behavior of rare earth elements, and is experienced in separating pure rare earth elements from a wide variety of rock types from start to finish. He is a member of the Society of Economic Geologists and the Australian Institute of Mining and Metallurgy.

Since 2008, John has been instrumental in the technical development of the Kvanefjeld project, and also in the corporate evolution of the company. He presents on the Company’s behalf in commercial, technical and political forums internationally.

Mr Simon Cato, B.A., MSDIA
Executive Director

Mr Simon Cato has had over 20 years capital markets experience in both broking and regulatory roles. He has been employed by the ASX in Sydney and in Perth in the company’s department which oversees the activities of listed companies.

Over the last 12 years he has been an executive director of two stockbroking firms and in those roles he has been involved in many aspects of broking including management issues such as credit control and reporting to regulatory bodies in the securities industry.

As a broker he has also been involved in the underwriting of a number of initial public offers and has been through the process of an initial public offer listing in a dual role of broker and director.

Mr Cato is also a director of Transactions Solutions International Limited, Advanced Share Registry Limited, Queste Communications Limited and Convergent Minerals Limited.

Mr Tony Ho, B. Com, CA, FAICD, FCIS
Non-Executive Director

Mr Tony Ho is an experienced company director having held executive directors and chief financial officer roles with a number of publicly listed companies.  Tony was executive director of Arthur Yates & Co Limited, retiring from that position in April 2002.  His corporate and governance experience include being chief financial officer/finance director of M.S. McLeod Holdings Limited, Galore Group Limited, the Edward H O’Brien group of companies and Volante Group Limited.

Mr Ho is currently a non-executive director of Dolomatrix International Limited where he chairs the Audit and Compliance Committee. He is also non-executive director and chairman of the Audit Committee of Apollo Minerals Limited Metal Bank  Limited, Hastings Rare Metals Limited and Mariposa Health Limited.

Mr Ho was a past non-executive director of Brazin Limited (September 1997 to January 2007) where he was also a member of the Audit and Remuneration Committees.

Prior to joining commerce, Mr Ho was a partner of Cox Johnston & Co, Chartered Accountants, which has since merged with Ernst & Young.

Mr Ho holds a Bachelor of Commerce degree from the University of New South Wales and is a member of the Institute of Chartered Accountants in Australia and a fellow of both the Chartered Institute of Company Secretaries and the Institute of Company Directors.

See More>>  Senior Management and Key Personnel

Read Full Company Announcement 23 March 2011

Greenland Minerals and Energy Limited (“GMEL” or “the Company”, ASX:GGG) is pleased to announce a new resource estimate for the Kvanefjeld multi-element project that further confirms Kvanefjeld’s status as one of the world’s most significant resources of rare earth elements and uranium.

Key Highlights of New Kvanefjeld Resource Estimate

• Total resource of 619 Mt (an increase of 162 Mt)*
• Indicated resources now 437 Mt (an increase of 72 Mt)*
• Contained metal inventory of 6.6 Mt TREO (Total Rare Earth Oxide), 350 Mlbs U3O8 and 3 Blbs Zn ( TREO includes 0.24 Mt heavy REO, 0.53 Mt Y2O3)
• Near surface, higher grade zones defined, including 122 Mt @ 1.4% TREO, 404ppm U3O8 (0.05% heavy REO, 0.12% Y2O3) Resources domained by geochemical and mineralogical characteristics, in line with metallurgical process development and mining studies

*Estimated resources at 150 ppm U3O8 cut-off, consistent with previous resource estimate

Introduction

The new resource estimate has been prepared by SRK Consulting (SRK), and is compliant with the code for reporting mineral resources set out by the Australian Joint Ore Reserve Committee (JORC). The significant improvements in the new estimate can be attributed to further drilling at Kvanefjeld undertaken during the 2009 and 2010 field seasons, the generation of a new geological model, and the development by GMEL in conjunction with SRK of a methodology to domain the unique multi-element resources. The higher grade, near surface zones that have now been defined provide the opportunity to significantly improve on mine scheduling, which will serve to strengthen the projects economics (e.g. at a 350ppm U₃O₈ cutoff – 122 Mt @ 1.4% TREO, 404 ppm U₃O₈, and at a 300ppm U₃O₈ cut-off – 200 Mt @ 1.3% TREO, 373ppm U₃O₈).

The resources of the northern Ilimaussaq complex are both extensive and unique, and offer the potential to produce both light and heavy rare earth products, uranium and zinc concentrates, fluoride compounds and a zirconium product. GMEL’s base-case mining scenario evaluates an operation to produce a rare earth concentrate and uranium oxide. Current metallurgical programs are advancing the process route to produce both a light and heavy rare earth product (including yttrium), uranium and zinc concentrates. The Company also has key mineralogical and beneficiation studies underway which aim to significantly enhance the project’s efficiency and economics.

The finalization of the new resource estimate follows the recent announcement of the discovery of substantial new multi-element (REE, U, Zn) deposits within the broader project area. These key developments serve to underline GMEL’s operations on the northern Ilimaussaq Complex as one of the world’s most strategically important emerging mineral projects.

Background

Greenland Minerals and Energy Ltd is a mineral exploration and development company operating in southern Greenland. The Company is primarily focused on advancing the Kvanefjeld multi-element project (both light and heavy rare earth elements, uranium, and zinc) through the feasibility phase and into mine development.

Kvanefjeld is located within the Company’s license over the northern Ilimaussaq Intrusive Complex; a unique geological entity that is highly prospective for specialty metals. Mineral resources at Kvanefjeld now stand at 619 Mt, and new deposits have recently been discovered in the broader project area (see dill intercepts reported in recent company announcements). Kvanefjeld is a highly-accessible resource that outcrops on a broad plateau, with the higher grade portions located close to ground surface.

An Interim Report on the Kvanefjeld pre-feasibility study was released in February 2010 that indicates the potential for the multi-element resources to sustain a large-scale mining operation for decades (for more information visit the Company’s website at http://www.ggg.gl).

Figure 1. View over GMEL’s multi-element project on the northern Ilimaussaq Complex in Greenland. Resources have been defined at Kvanefjeld, with Steenstrupfjeld, Zone 2 and Zone 3 representing new areas of significant mineralisation. See recent company announcements for drill results from these zones. The distance from Kvanefjeld to Zone 2 is 6 km. The deposits identified represent the outcropping expressions of a vast ore system that is interconnected at depth.

A New Resource Estimate for the Kvanefjeld REE-U-Zn Deposit

Since acquiring the Kvanefjeld project in 2007, GMEL has released three previous resource estimates as work programs have evolved. The most recent was released in June 2009. In 2010, GMEL set out to develop an improved resource estimate for Kvanefjeld, with a focus on converting Inferred resources into Indicated resources. The areas that were addressed included increasing the drill density in certain areas of the deposit, utilizing the increased understanding of the geological nature of the deposit to domain the resources, and to effectively break out the components of the multi-element resource in order to clearly understand the value distribution. Importantly, substantial developments in understanding the deposit have resulted in an improved geological model that is closely aligned with the Company’s metallurgical development programs, and ultimately, how the deposit will be mined.

SRK were engaged by GMEL in mid-2010 to prepare a resource update that includes data from the 2009 and 2010 drilling. The work conducted by SRK included a four-day site visit toward the end of the 2010 field season.

Apart from the additional holes, the major advancement from the previous (June 2009) estimate is the development of a technique to geologically domain the resources, resulting in division of the mineralized body into five new domains. SRK is currently compiling the full report to accompany the March 2011 resource update. The notes below summarize the key inputs, methods, and parameters used to prepare the estimation.

Lujavrite: Host-rock to REE-U-Zn Mineralisation

Multi-element REE-uranium-zinc mineralization is hosted by the black lujavrite rock type; an agpaitic nepheline syenite. The main body of lujavrite is a series of broadly sub-horizontal lenses, ranging from tens of metres to over 200 m in thickness. The lujavrite lenses are exposed at surface (outcropping). The lateral extents of the main lujavrite body are about 2200 m SW-NE, and 1000 m NW-SE.

Drilling

Table 1 summarises the metres and number of holes drilled at Kvanefjeld. All the drilling has been by diamond coring. Drill hole spacing is variable (Figure 2), but is approximately 70 m by 70 m across most of the northeast part of the deposit, and 140m by 140m in the southwest. The drill holes are generally vertical or close to vertical, and most are between 200m and 300m deep. The deepest hole (K174) is 500 m, extending down to 130 mRL.

The dominant core sizes used are BQ and NQ. Recovery is generally 100%, or close to 100%.

Table 1: Summary of Kvanefjeld drilling by purpose.
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Figure 2. Kvanefjeld drill hole layout: Green = 2010, Blue = 2009 (Geotechnical, Metallurgic, Sterilization), Orange = 2008, Red = 2007, White = 1977 and earlier.

Survey

Hole collars up until the end of 2009 were picked up by ASIAQ, a Greenland-based surveying company. The 2010 holes have not been surveyed and are stored in the drill hole database with their design coordinates. The GMEL holes, and many of the Historical holes, were downhole surveyed using an Auslog Deviation Tool. Orientation data at 0.5 m increments are stored in the drill hole database. End-of-hole Eastman camera shots are available for most of the historical holes that could not be accessed by the downhole surveying tool.

Assays

Assaying has been done selectively on half-core from the historical and GMEL drilling. In general, intervals not selected for assaying are from the non-mineralized lithologies outside the lujavrite host. Most samples are 1 m long, although minor variations from 1 m sampling were used in the historical drilling (1977 and earlier), in order to align sample boundaries to geological contacts.

The majority of the assays values from the mineralised zone were obtained by chemical analysis. Where no chemical analyses are available, spectral probe values for U₃O₈ have been included in the assay database. GMEL has previously done extensive comparison of chemical versus spectral results where both are both available for the same intervals. SRK has reviewed this work and agrees that it is reasonable to combine both data sources.

The assay table contains values for elements of economic significance at Kvanefjeld, such as the lanthanide series, Y, U, and Zn (Table 1). In addition, many other elements have been routinely included in the chemical analyses: Li, Be, F, Na, Mg, Al, P, S, K, Ca, Sc, Ti, Mn, Fe, Ga, Rb, Zr, Nb, Mo, Sn, Hf, Ta, Pb, and Th.

Table 2: Metres of assay data in the Kvanefjeld database

GMEL shipped all the half-core for assaying to Genalysis Laboratories in Perth, Western Australia. The remaining half-cores are stored at the Company’s operations base in Narsaq, Greenland. Samples were crushed to -3 mm, and then a 1 kg subsample was taken and pulverized to -75 μm. A 50 g split was taken and used for multi-element analysis. In early work done by GMEL, both four acid digest and fusion methods were used for many elements during the analytical step, but later GMEL concluded that four acid digest alone was sufficient. After digestion, the samples were tested by either Inductively Coupled Plasma (ICP) Mass Spectrometry, or Inductively Coupled Plasma Optical Emission Spectrometry, depending on the element being measured.

The key components of GMEL’s QA/QC program are:

1. Insertion of off-the-shelf REE and U Certified Reference Material from Ore Research Pty Ltd in the samples sent to Genalysis
2. Selection of 5-10% of the pulps from Genalysis to be check assayed by Ultratrace in Perth

SRK has analysed the QA/QC data, visited Genalysis’ lab, reviewed the sampling and QA/QC reports done by GMEL since 2007, and done statistical checks of different generations and methods of sampling against each other. SRK concludes that the overall quality of the data in the Kvanefjeld database is very good, and that resource estimation can confidently be based on these data.

Geological Modeling

The lujavrite contacts were modeled by SRK using Leapfrog software. All the lithological logging in the database was converted to an indicator variable, i.e. coded as 1 or 0 depending on whether lujavrite or another rock type had been logged. The indicator variable was composited to 5 m, and then a 3D contour shell was generated from the composites. The anisotropy used for contouring was set from partial wireframe surfaces built in areas where the orientation of the lujavrite contacts is obvious; these orientations were therefore used to influence in the contouring in areas where correlations are more ambiguous.

Once the lujavrite domain had been established, GMEL and SRK looked at a number of different elements and combinations of elements that could be used to identify subdomains. Inter-element relationships were identified by geostatistical modeling conducted by GMEL, as part of an ongoing geometallurgy program. One of the most useful markers was found to be the ratio of either Zr or Hf to the heaviest rare earth elements. In particular, plotting the ratios of Hf to Yb revealed five statistical groups, and these groups were found to represent broadly coherent entities in three dimensions with distinctive REE and U grade distributions. The subtle differences in the groupings identified correspond to subtle differences in the relative abundance of the key ore minerals, most notably steenstrupine, lovozerite group minerals, and eudialyte-group minerals. Domain contacts were wireframed by SRK based on the Hf:Yb geochemical marker.

Geostatistical Modeling

SRK prepared the block model of estimated grades using Isatis and Gemcom Surpac software. Estimations were performed for the following variables:

• LREO (sum of La₂O₃, CeO₂, Pr₆O₁₁, Nd₂O₃, Sm₂O₃)
• HREO (sum of Eu₂O₃, Gd₂O₃, Tb₄O₇, Dy₂O₃, Ho₂O₃, Er₂O₃, Tm₂O₃, Yb₂O₃, Lu₂O₃)
• Y₂O₃ (yttrium is not part of the lanthanide series, but is considered a REE, and behaves in a very similar manner to the heavy REEs of the lanthanide series)
• U₃O₈
• Zn

As noted above, there are more U₃O₈ assays in the database than REE and Zn assays, because spectral values are often available for U₃O₈ where no chemical assays were taken. One of the steps during data preparation was to use regression equations to infer missing LREO, HREO, Y₂O₃, and Zn values from the available U₃O₈ values. The correlations between REE, Zn, and U are sufficiently strong for this regression method to be viable.

The raw data were composited to 5 m for statistical analysis and estimation. No top-cutting or restriction on the influence of the highest grades was applied. For all domains and variables, distributions are closer to normal than lognormal, the very highest and lowest values are not far removed from the mean, and the coefficients of variation (ratio of standard deviation to mean) are typically in the range 0.3 to 0.5.

LREO, HREO, Y₂O₃, U₃O₈, and Zn were estimated by Ordinary Kriging in a single pass within each of the five lujavrite domains, and also outside the lujavrite as a sixth domain. The domain contacts were set as hard boundaries. The block model parameters are given in Table 3 below:

Table 3: Block model parameters

Bulk Density

A nominal value of 2.75 t/m³ was assigned to all blocks to convert volumes to tonnages. This value has been used for the previous Kvanefjeld resource estimations, and is supported by measurements taken on diamond drill core (at the completion of the 2008 field season 4212 density measurements had been taken).

Classification

SRK classified most of the Mineral Resource as Indicated. An Inferred component is made of up:

• Mineralisation outside the lujavrite
• Mineralisation in two isolated zones of lujavrite, intersected by only one drill hole each.
• Mineralisation at the lateral margins of the main lujavrite unit, and near the depth limit of the drilling coverage within the main lujavrite unit. Based on kriging quality and parameters generated during the Ordinary Kriging, SRK constructed a wireframe to separate the Indicated from the Inferred resources.

Table 3.1. Statement of Identified Mineral Resources, Kvanefjeld Multi-Element Project, March 2011.

Figure 3. Sections through the Kvanefjeld deposit. Drill stings are coloured red for lujavrite, and blue for non-lujavrite. Purple represents the main lujavrite body. The red line in the cross section represents the medium-coarse grained lujavrite (MC), the blue line represents the contact between domains 2 and 3 the green line represents the contact between domains 3 and 4, and orange represents the contact between domains 4 and 5.

Summary

The new resource estimate for the Kvanefjeld project prepared by SRK Consulting represents the culmination of numerous work programs conducted by GMEL over 2009 and 2010. A strong emphasis has been placed on developing a resource estimate that is in close alignment with the geological characteristics of the deposit. The new estimate confirms Kvanefjeld’s status as one of the world’s largest REE-U resources, and sees improvements in key aspects including overall resources (619 Mt), Indicated resources (437 Mt), the definition of near-surface, higher grade zones, and overall contained metal.

View over the broader geography of GMEL’s multi-element project on the northern Ilimaussaq Complex located in southern Greenland. The fjord system is open to the north Atlantic shipping lanes all year round. The distance from Narsaq to Narsarsuaq International Airport is 45km.

Rare Earth Elements (REEs) are a group of specialty metals with unique physical, chemical and light-emitting properties that are seeing dramatic increases in demand, owing to their technological applications. The unique properties of REEs make them critical materials to many emerging technologies which are becoming increasingly commonplace in today’s society. In many respects, REEs applications are strongly associated with energy; its efficient use, and its efficient generation. In a world with an ever-increasing demand for clean and efficient technologies, REEs are set to play a pivotal role.

Supply of REEs is both politically and technically complex. Global consumption of REEs has been increasing significantly while supply of REEs has tightened dramatically. For the last 15 years, China has dominated global supply, but owing to the importance of REE availability to internal industries, China is prioritizing its domestic markets through steadily increasing export taxes on REEs in tandem with reducing export quotas. As a result, REEs are in short supply, and with demand forecast to progressively increase, the world drastically needs new suppliers of REEs.

The REE group is considered to include the 15 lanthanide elements: lanthanum, cerium, praseodymium, promethium (does not occur naturally), neodymium, samarium, europium, gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, and lutetium. The elements yttrium and scandium are also included as they have similar chemical properties, making 17 REEs in total. The resource and market details refer to REEs in the oxide form and the group is collectively discussed as Rare Earth Oxides (REO).

As the future supply and demand forecasts for REEs begin to emerge, it is clear that some REEs with high industry dependence will remain under supply pressure for many years to come. These are now referred to as ‘Critical’ rare earths (CRE’s) by the US Department of Energy owing to their importance to clean energy technologies and supply risk. The CREs include neodymium, europium, terbium, dysprosium, and yttrium.

Chinese Domestic and Export Prices of Rare-Earth Oxides

Export-Quotas-of-Chinese-REE

Read Full ASX Announcement 1 February 2010

Key Points:

• Interim pre-feasibility report into Kvanefjeld Project in Greenland completed,
• Report indicates that Kvanefjeld could be developed as a world class, economically robust, large scale mining operation,
• NPV of US$2.18 billion and free cash flow of US$8.9 billion over the 23 mine life,
• Kvanefjeld resource estimate, of 4.9mt of rare earth oxides (“REO”) and 0.12mt of uranium oxide, is recognised as the world’s largest REO resource by either JORC or Canadian NI 43-101 standards, and
• 2010 work programme focused on optimising project economics and its base case scenario.

Emerging multi element exploration and development company Greenland Minerals and Energy Ltd (ASX:GGG) (“GMEL” or “the Company”) has, following the completion of an interim report from its Pre Feasibility Study, confirmed the multi-element Kvanefjeld Project (“Kvanefjeld”) in Southern Greenland has the potential to become one of the worlds largest rare earth mines
The interim report from the GMEL pre-feasibility study provided a Net Present Value (NPV) of US$2.18 billion and free cash flow of US$8.9 billion over the life of the project using the following key assumptions:

• a processing rate of 10.8mt pa,
• conventional open pit mine,
• waste to ore strip ratio of 0.8:1,
• a project life of 23 years,
• un-geared capital costs of US$2.31 billion,
• construction commencing in 2013 with production commencing in 2015,
• mean operating costs of 7.50/t of ore treated, and
• Rare Earth carbonate prices of US$13/kg uranium price of US$80/lb, growing annually at 5%

The report also gave a clear indication that the Kvanefjeld Project could be developed as a world class, economically robust, large-scale mining operation that would produce a rare earth concentrate and uranium oxide over a +20 year mine life.

Initial estimates indicate the proposed output at Kvanefjeld could rival that of Bayan Ebo in China, the world’s largest rare earth producing mine that accounts for approximately 40% of current world production.

“Should the Kvanefjeld Project be developed as outlined in the interim report it is also highly likely it will play a leading role in alleviating a worldwide shortfall of rare earths,” Said Greenland Minerals and Energy Managing Director, Mr Roderick Mcillree.

“The People’s Republic of China satisfies a total of 97 percent of global demand and in recent months indicated their desire to cease the export of certain rare earths, therefore creating a significant supply deficit in the market.”

GMEL’s independent market research indicates that by 2015, prices for mixed rare earth carbonate (similar to GMEL expected product) will fall within the range US$7.50/kg to US$18.50/kg, tending towards the upper end of this range. The company is of the view that the apparent relative equilibrium in the market over the next few years masks pressures that are likely to build in the medium to long term and the long term.

On the Uranium front independent research indicates that the price for uranium will range between US$70 to US$90/lb in the medium to long-term. The price assumption of US$80/lb by 2015 assumes an annual growth of only 5%. Over the previous five years U₃O₈ long term contract prices have escalated at over 21% pa.

“The interim report on the Kvanefjeld PFS has confirmed the company’s view that the project not only economically sound, but will provide substantial cash flow over the life of the mine”, Mr Mcillree added.

“The results confirm that Kvanefjeld can fill the looming void in global rare earth supply. This should be welcome news to rare earth consumers worldwide”.

Based on the results of its pre-feasibility study and associated interim report GMEL has now taken the decision to accelerate further studies into mining operations at Kvanefjeld to further enhance the project economics. The 2010 work programme will focus on:

• Social and environmental impact studies,
• Beneficiation studies,
• Improving rare earth recoveries,
• Investigating zinc recovery,
• Improving mine schedule,
• Converting inferred to indicated resources, and
• Defining new multi-element resources.

Kvanefjeld’s JORC compliant resource estimate, containing 4.79mt of rare earth oxides (“REO”) and 0.12mt of uranium oxide, is recognised as the world’s largest REO resource by either JORC or Canadian NI 43-101 standards.

GMEL owns the asset through its 61% holding in the joint venture vehicle. GMEL has options to move to 90% and then 100% through two payments of AU$10m and AU$50m respectively.

Read Full ASX Announcement

Read Full ASX Announcement 10 September 2010

Key points:

• Greenland Government introduce an amendment to Standard Terms for Exploration Licenses in Greenland
• Amendments allow for, upon application approval, the inclusion of radioactive elements as exploitable minerals for the purpose of thorough evaluation and reporting
• GMEL’s application under these new regulations has been approved

• Company now has a clear path for the continued development of the Kvanefjeld rare earth and uranium project through definitive feasibility study in cooperation with Greenland Government and stakeholder groups

Greenland Minerals and Energy Ltd (‘GMEL’ or ‘the Company’, code ASX:GGG) is pleased to advise that an amendment has been made by the Government of Greenland to the Standard Terms for Exploration Licenses that allows for the inclusion of radioactive elements as exploitable minerals for the purpose of thorough evaluation and reporting. The change comes after an ongoing dialogue between the Greenland government and Company representatives.

This critical development now provides a clear framework for the Company’s Kvanefjeld multi-element project (rare earth elements, uranium and zinc) to proceed to development via the completion of a definitive feasibility study (bankable) conducted in close cooperation with the Greenland government and stakeholder groups.

The definitive feasibility study, inclusive of environmental and social impact assessments, along with technical and economic studies, will generate the necessary information to determine development parameters for Kvanefjeld.

The study will assess the development of a multi-element mining operation to produce REE’s, U and Zn.

Greenland Minerals and Energy Ltd Managing Director, Mr. Roderick McIllree, said this important amendment to the regulations was made in recognition of the strategic importance that the Kvanefjeld multi-element project will play in the development of the mining industry in Greenland.

“This important development has resulted from the government’s recognition of the unique potential of the Kvanefjeld project, and the opportunity it represents to Greenland,” Mr. McIllree said.

“Significantly, what we believe to be the world’s most strategically important mineral project can now move through the next phase of development. This confirms that the government of Greenland is committed to working with companies to develop a strong and well-regulated minerals industry in Greenland,” he added.

New Amendment to the Standard Terms for Exploration Licenses for Minerals

The exploration and mining of minerals in Greenland is governed by the Mineral Resources Act that was approved by Greenland’s parliament in December 2009. Under the Act, the Greenland Government has the right to issue exploration and exploitation licenses. The exploration license conditions are dictated by the Standard Terms for Exploration Licenses for Minerals in Greenland.

The new amendment to the standard terms allows the Bureau of Minerals and Petroleum (BMP) to approve that comprehensive feasibility studies can be undertaken on mineral projects that include radioactive elements as exploitable minerals. Within this framework, projects are considered on a case-by-case basis, at the government’s discretion. GMEL has lodged an application under these new regulations that has been approved by the BMP.

Path to an Exploitation License

Currently, under the Mineral Resources Act an application for an exploitation license is lodged following the completion of a definitive feasibility study. A licensee who has discovered and delimited a commercially exploitable deposit that does not contain radioactive elements above background concentrations, and who has otherwise met the terms of the license, is automatically entitled to be granted an exploitation license.

Following the introduction of the new amendment, the issuance of an exploitation license for a project that contains radioactive elements would depend primarily on the outcomes of comprehensive feasibility studies, with an emphasis on health, safety and the environment. In the case of Kvanefjeld, if the government is satisfied that all health, safety and environmental requirements can be met, then an exploitation license can be issued to develop an operation that will produce REEs, uranium and zinc.

Significantly, in addition to the new amendments that allow for project evaluation on a case-by-case basis, a comprehensive review into the exploration and exploitation of radioactive elements was announced on June 28^th by the Minister for Industry and Raw Materials Mr Ove Karl Berthelsen. The review process involves the generation of comprehensive information by groups including the Geological Survey of Denmark and Greenland (GEUS), the National Environmental Institute of Denmark (NERI), the Risø National Laboratory, and the Ray Hygienic Institute.

This information will then to be distributed to the public through print, television and radio media in the coming months. In addition, a delegation from the Greenland government is scheduled to visit Ottawa to learn about the regulatory framework of uranium mining in Canada, as well as visiting a uranium mine in Saskatchewan, one of the world’s most sophisticated mining jurisdictions, to learn more about the exploration and mining of radioactive elements.

Read Full ASX Announcement

Greenland Minerals and Energy Limited (ASX: GGG) (“GMEL” or “the Company”) is pleased to advise that in line with its goal to develop the Kvanefjeld multi-element deposit, the Company has appointed Mr Damien Krebs to its senior management. Mr Krebs has been appointed to the position of Metallurgy Manager for the Kvanefjeld project.

Mr Krebs is an experienced metallurgist with over ten years of project and technology development experience with complex hydrometallurgical circuits. Mr Krebs was previously employed at Independent Metallurgical Operations Pty Ltd where he filled the position of Process Study Manager. During this time he worked on a number of metallurgical studies for nickel/cobalt and uranium projects for various clients. Previously he spent ten years with BHP Billiton in project and technology development roles.

Mr Krebs will be responsible for metallurgical development for the Kvanefjeld project including: metallurgical test work, process development, process engineering, metallurgical mapping and engineering studies. The Company welcomes Mr Krebs to the team, as it works toward establishing the best possible process flow sheet for the Kvanefjeld project.

Read Full ASX Announcement 14 December 2010

Greenland Minerals and Energy Ltd (“GMEL” or “the Company”) is pleased to announce that it has received approval by the government of Greenland to fully evaluate the Kvanefjeld multi-element project, inclusive of radioactive elements (uranium).

The permit has been issued in accordance with the recent amendment to the standard terms for exploration licenses in Greenland that creates a framework for the evaluation of mineral deposits that include uranium amongst other economic elements. Kvanefjeld is an unusual mineral deposit located near the southern tip of Greenland that is enriched in rare earth elements (REEs), uranium and zinc, and is widely known to contain one of the world’s largest resources of REEs (see Appendix 1).

GMEL is the first company in Greenland to receive permitting for the evaluation of a project that includes uranium. The permit has been issued following a hearing process in Greenland that involved the National Environmental Research Institute, the Ministry for Health, the Ministry of Domestic Affairs, Nature and Environment (NNPAN) as well as the South Greenland municipality. The permit is supplementary to the exploration license that covers Kvanefjeld and the broader northern Ilimaussaq complex (license 2010/02).

Critical components of a definitive, or bankable, feasibility study are the Environmental and Social Impact Assessments, which are to follow the guidelines established by Greenland’s Bureau of Minerals and Petroleum (BMP). At the completion of the definitive feasibility study, including the environmental and social impact assessments the Company will lodge an application for an exploitation license with the BMP.

Roderick McIllree, Managing Director of GMEL commented, “We are extremely pleased to receive approval under Greenland’s newly amended license terms and can now properly evaluate the Kvanefjeld project, inclusive of uranium. Kvanefjeld can now enter the next phase in the path to development and we will be working closely with Greenlandic stakeholders to determine the best possible development scenarios.”

In 2011 GMEL is planning on closing out the current pre-feasibility study with a final report before commencing a definitive feasibility study in the latter half of the year. Results from the 2010 exploration program will be finalized and announced in early 2011.

Read Full ASX Announcement 21 December 2010

Greenland Minerals and Energy Ltd (“GMEL” or “the Company”) is pleased to advise that Australian-based Shaw Stockbroking (Shaw) has initiated coverage on the Company. A report by Shaw, which provides a concise overview of GMEL and the Kvanefjeld multi-element project in Greenland, is now available on the Company website under http://www.ggg.gl/Investor/Broker-Research-Reports.htm. The report includes a financial analysis and share price valuation. The coverage by Shaw comes as GMEL’s profile continues to grow as it progressively advances the world-class Kvanefjeld rare-earth uranium and zinc project, located in southern Greenland. Other recent research reports by New York-based RB Milestone Group and Resource Capital Research (RCR) are also available on the website.

About Shaw: Shaw Stockbroking was established in 1987 and provides advice and execution services to its private and institutional clients for the purchase and sale of equities and derivatives both nationally and internationally. Shaw is Australia’s largest independently owned full service stockbroker, being unlisted with no institutional or foreign shareholders.