Investor Presentaiton

Canada Rare Earth Corporation Future growth of RE market Future demand for rare earths in China and ROW¹ . . RE market could grow by 6%py between 2014 and 2020, driven by China Global demand could reach 168,250t REO by 2020, 120,750t REO of which could be in China World: Demand for rare earths in China and ROW, 2000 to 2020 (t) • Demand growth for rare earths is strong and increasing Applications will continue to be developed rapidly especially if a dependable, cost effective, high quality supply is established outside of China 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 Source: Roskill 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 China ROW 1 2010 2011 2012 2013 2014f 2015f 2016f 2017f 2018f 2019f 2020f 1 Rest of World Rosk Apox on Canada United States Mine Production (mt) Reserves (mmt) Reserve Base (mmt) none 1% from Russia 3% from France 13.0 14.0 91% from China 3% from Japan -2% from Other Brazil Mine Production (mt) Reserves (mmt) Reserve Base (mmt) 250 small Russia and other former Soviet Union countries Mine Production (mt) Reserves (mmt) 19.0 Reserve Base (mmt) 21.0 China Mine Production (mt) 105,000 Reserves (mmt) 55 Reserve Base (mmt) 89 India Mine Production (mt) 2,800 Reserves (mmt) Reserve Base (mmt) 2.7 1.3 Malaysia Mine Production (mt) 280 Reserves (mmt) small Reserve Base (mmt) Australia Africa Mine Production (2011): 108,330 mt Reserves (2010): 110 mmt Reserve Base (2008): 154 mmt China (105,000) 96.9% India (2,800) 2.6% Russia (19) 17% China (55) Malaysia (280) .26% -U.S. (13) 12% 50% China (89) 59.3% -Russia (21) 14% -U.S. (14) 9.3% Australia (5.8) 3.9% Other Australia India (1.3) 1% Brazil (250) .23% (18.7) (1.6) 1.5% 17% -India (2.7) 2.5% Other (23) 12.5% Other: Brazil, Malaysia, Canada, S. Africa, etc. Source: U.S. Geological Survey, Mineral Commodity Summaries, 2008-2013. (Figure created by CRS.) canadarareearth.com Mine Production (mt) Reserves (mmt) 1.6 5.8 Reserve Base (mmt) U.S.Imports Countries with significant REE production, reserves, or reserve base mt: metric tons mmt: million metric tons 7 TSX.V: LL

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