The Lofdal Rare Earths Project comprises EPL 3400, located approximately 450 kilometers northwest of the capital city of Windhoek, approximately 25 kilometers northwest of the town of Khorixas in the Kunene Region of north-western Namibia. The Lofdal Rare Earths Project property covers a total of 420 square kilometers centered on the Lofdal carbonatite complex. EPL 3400 is held 100% in the name of the Namibian registered company, Namibia Rare Earths (Pty) Ltd., which in turn is 100% owned by Namibia Rare Earths Inc. EPL 3400 was originally granted in 2005. It was renewed by the Government of Namibia in November, 2014 and is in good standing until November, 2016. The property is subject to a 2% net smelter revenue royalty to Alberto Lobo-Guerrero Sanz, who brought the project to the Company.
The town of Khorixas is a regional administrative centre of approximately 1000 inhabitants connected to the capital city of Windhoek by approximately 450 kilometers of paved road via Otjiwarongo and Outjo. Driving time from Windhoek to Khorixas is about 4.5 hours. From Khorixas, the Lofdal Rare Earths Project area can be reached via 25 kilometers of secondary all weather gravel road. Bush tracks negotiable by 4WD vehicles provide good access to most parts of the project area. Khorixas is connected to Namibia's land telecommunications grid and there is a Namtelecom office in the town. Khorixas is connected to the national power grid via a 132 kV transmission line that runs east of town and north to Kamenjab. Khorixas and the surrounding area provide a stable pool of workers to assist with exploration.
North-western Namibia is an arid to semi-arid region. Rainfall is largely confined to the summer and averages 350 to 700 mm per year. Average daytime high temperatures range from less than 25°C in June/July to more than 35°C from November to January. Night time lows reach 5°C in winter rising to about 20°C in summer. The hydrological map of Namibia indicates that the project area is an area of moderate to low water availability in bedrock. Information from water boreholes in the area suggests the water table is about 60 meters below surface. Experience to date indicates that wells can supply sufficient water for the needs of exploration without compromising the requirements of local communities.
The project area is characterized by low, gently rolling, and sparsely vegetated hills with peaks ranging up to an altitude of approximately 1030 meters. There is an overall relief throughout the project area of slightly more than 100 meters. There is little soil and outcrop is widespread throughout the area. Vegetative cover includes a ubiquitous cover of native grass, and sparsely spaced coverage by a variety of low shrubs and small trees. Wildlife is relatively sparse but includes springbok, kudu, oryx and gemsbok as well as baboons, elephants and zebras and various small mammals and snakes.