ACQUISITION OF RARE EARTH EXPORTERS OF MONGOLIA PTE. LTD

9 Months Ended

Sep. 30, 2011

ACQUISITION OF RARE EARTH EXPORTERS OF MONGOLIA PTE. LTD

6.  ACQUISITION OF RARE EARTH EXPORTERS OF MONGOLIA PTE. LTD

On April 12, 2011, we entered into a letter of intent to acquire Rare Earth Exporters of Mongolia Pte. Ltd, a Mongolian company (“REEM”).  According to the letter of intent, the final purchase price for REEM will be agreed upon pending independent evaluations of the sites’ mineral deposits currently underway.  The evaluation of the mineral deposits has not been completed.  Therefore, the final purchase price has not been determined and the acquisition has not closed.

In October 2011, the Company determined that it would discontinue its efforts to finalize this acquisition.