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The Safe Drinking Water Act (“SDWA”) and the Underground Injection Control (“UIC”) program
promulgated thereunder, regulate the drilling and operation of subsurface injection wells. EPA directly
administers the UIC program in some states and in others the responsibility for the program has been
delegated to the state. Violation of these regulations and/or contamination of groundwater by mining
related activities may result in fines, penalties, and/or remediation costs, among other sanctions and
liabilities under the SDWA and state laws.
The Endangered Species Act (“ESA”) regulates activities that could have an adverse effect on threatened
and endangered species, including the habitat and ecosystems upon which they depend. The ESA protects
threatened and endangered species primarily by prohibiting the unauthorized “taking” of listed species. The
ESA also requires consultation with other agencies in certain circumstances. Compliance with ESA
requirements can significantly delay, limit, or even prevent the development of projects, including the
development of mining claims, and can also result in increased development costs. In addition, civil and
criminal penalties for violations of the ESA are provided, and citizen suits against any person alleged to be
in violation of the ESA are authorized.
Regulations and pending legislation governing issues involving climate change could result in increased
operating costs that could have a material adverse effect on our business.
A number of governments or governmental bodies have introduced or are contemplating regulatory changes in
response to the potential impact of climate change and various climate change interest groups. Legislation and
increased regulation regarding climate change could impose significant costs on us and/or our suppliers, including
costs related to increased energy requirements, capital equipment, environmental monitoring and reporting and/or
other costs to comply with such regulations. Any adopted future climate change regulations could also negatively
impact our ability to compete with companies situated in areas not subject to such regulations. Given the political
significance and uncertainty around the impact of climate change and how it should be dealt with, we cannot predict
how legislation and regulation will affect our financial condition, operating performance or ability to compete.
Even without such regulation, increased awareness or any adverse publicity in the global marketplace about the
mining or rare earth industries’ potential impacts on climate change could harm our reputation. The potential
physical impacts of climate change on our operations are highly uncertain and would be particular to the geographic
circumstances in areas in which we operate. These may include changes in precipitation, storm patterns and
intensities, water shortages and changing temperatures. These factors may have an adverse impact on the cost,
production or financial performance of our operations.
We depend on key personnel, and the absence of any of these individuals could adversely affect our business.
Our success is currently largely dependent on the performance, retention and abilities of our directors, officers and
employees. The loss of the services of these persons could have a material adverse effect on our business and
prospects. There is no assurance that we can maintain the services of our directors, officers, employees or other
qualified personnel required to operate our business. Failure to do so could have a material adverse effect on us and
our prospects. We do not maintain “key man” life insurance policies on any of our officers or employees.
We may experience difficulty attracting and retaining qualified management to meet the needs of our anticipated
growth, and the failure to manage our growth effectively could have an adverse effect on our business and
financial condition.
Competition for additional qualified management is intense, and we may be unable to attract and retain additional
key personnel, or to attract and retain personnel on acceptable terms. Management personnel are currently limited,
and they may be unable to manage our expansion successfully. Failure to do so could have a material adverse effect
on our business, results of operations and financial condition. Under such circumstances, such persons may provide
confidential information and key contacts to competitors, and we may have difficulties in preventing the disclosure
of such information. Such disclosure may have a material adverse effect on our business or operations.
