Communicators

TASMAN ANNOUNCES RESULTS OF PRE-FEASIBILITY STUDY FOR THE NORRA KARR HEAVY RARE EARTH ELEMENT PROJECT IN SWEDEN

Vancouver, Canada - January 21, 2015 – Tasman Metals Ltd. (“Tasman” or the “Company”) (TSXV:TSM) (Frankfurt:T61) NYSE-MKT: TAS). Mr Mark Saxon, President & CEO, is pleased to provide a summary of the Pre-Feasibility Study (PFS) with an effective date of 13th January 2015 for the 100% owned Norra Karr heavy rare earth element (REE) deposit in Sweden.  The PFS confirms Norra Karr to be an economically robust project, with a long mine life, and the capacity to be a major producer of the most critical REE’s, dysprosium (Dy), yttrium (Y), neodymium (Nd) and terbium (Tb).

PFS Highlights

- After-tax Net Present Value (NPV) of US$313 million using a 10% discount rate

- Internal Rate of Return (IRR) of 24% pre tax and 20% after tax using a 10% discount rate

- Initial capital cost of US$378 million including contingency – low for long mine life heavy REE producer

- Major exposure to the most critical REE’s, with 74% of revenue from magnet metals Dy, Nd, Pr, Tb, Sm

- Norra Karr is the only REE project at PFS stage within the European Union

- Project able to produce more than 200 tonnes of dysprosium per year for at least 20 years

- Unconstrained mine life is in excess of 60 years with extensive mineralization below and along strike from 20-year pit

- No requirement in flowsheet or economic model for proprietary or commercially untested technologies

Key Project Attributes:

- 25-year mining lease is already granted

- Highest heavy rare earth oxide to total rare earth oxide ratio (HREO/TREO) of all major Western projects at 53%

- Conventional open pit mining, with a constrained 20 year life of mine stripping ratio of 0.73

- Attractive location with extensive transport/power/water infrastructure in place and close to major European REE consumers

- High quality heavy REE-rich concentrate as reported in the Company’s July 9, 2014 press release

- Simple, low cost, easy to operate acid leach extraction process (no roasting kilns, atmospheric pressure processing)

- High leverage to anticipated increase in REE prices. Most revenue from Dy, Nd, Tb – the most in demand metals.  Only 2.6% of revenue from cerium (Ce) and lanthanum (La) which are forecast to remain in long term oversupply

- High level of reliance on local equipment, reagents and labour

“The release of this PFS is a major milestone for Tasman, and I congratulate our team of staff and consultants for the achievement” said Mark Saxon, Tasman’s President and CEO. “Norra Karr now stands out as one of the major potential producers of dysprosium in the Western World.  There are very few projects known that can deliver more than 200 tonnes of dysprosium oxide per year for more than 20 years to the high strength permanent magnet market, and perhaps none other that can do so with less than US$400 million capital investment. 

The extensive existing infrastructure surrounding Norra Karr, the strong mining industry and political stability of Sweden, and presence of a highly skilled local workforce provides industrial consumers of permanent magnets with a high degree of confidence that a long lived and sustainable European REE supply alternative to China is possible. 

Our PFS engineering and design has focused on identifying the lowest risk process solutions for Norra Karr, therefore neither the economics nor the flow sheet rely on commercially untested technologies.  Through Norra Karr, the opportunity now exists for Sweden to re-take its historic lead in rare earth element production and research, and become part of the next generation of REE-inspired design and innovation.

The Tasman team is excited to take the next steps towards project development.”

PFS Key Financial and Operating Metrics

Key results and operational assumptions of the Norra Karr PFS are provided in Tables 1 - 3 below.

Table 1: PFS Financial Results, Norra Karr Project, January 2015.

Table 2: PFS Financial Results at Various Discount Rates, Norra Karr Project, January 2015. (base case highlighted in grey)

Table 3: PFS Operating Assumptions, Norra Karr Project, January 2015.

Project Overview

Norra Karr lies in south-central Sweden, 15km NNE of the township of Gränna and 300km SW of the capital Stockholm in mixed forestry and farming land.  The project is 100% owned by Tasman, with a 25-year Mining Lease in place surrounded by an extensive area of exploration licences. 

Norra Karr is a zirconium (Zr) and heavy REE enriched peralkaline nepheline syenite intrusion which covers 450m x 1,500m in area.  The deepest extents of the REE mineralized intrusion have not been delineated, but exceed 350m.  Mineralogical studies show nearly all of the REE in the deposit is found within the mineral eudialyte, with only trace britholite and mosandrite. Eudialyte at Norra Kärr is relatively rich in REE’s compared to most other similar deposits globally, and also contains a very high proportion of high value heavy REE’s.

Spatial distribution of rare earth bearing minerals at Norra Karr is very consistent.  TREO grade, mineral grain size and HREO/TREO% varies only slightly across the deposit in a concentric manner.  REE bearing minerals do not vary with either strike or depth to any significant degree. 

Uranium (U) and thorium (Th) levels at Norra Karr are considered very low for an REE-enriched intrusion and do not significantly exceed background levels in surrounding areas.  Thorium and uranium average value 6 ppm and 13 ppm respectively. 

This PFS and economic assessment is based on conventional open pit mining of a newly calculated Mineral Resource that was constrained to provide for a 20-year mine life.  An average annual rare earth oxide (REO) output of some 5,100 tonnes is envisaged, reflecting the recommendations of a market study for the most critical REE’s.  Ore is processed via a simple flowsheet, comprising crushing, grinding, magnetic separation, sulphuric acid leaching and precipitation of a purified mixed REE-oxalate which is calcined to form a mixed REO product. 

The PFS model provides for REE separation to individual saleable oxides by an external partner on a commercial basis.  Such REE separation facilities operate within Europe today.

Engineering and design work under the PFS has focussed on identifying the lowest risk process solutions.  The result is a simple operation, with consistent use of commercially available technology, and use of external partners where appropriate.  Sweden is very highly regarded for quality, efficiency and world-leading productivity, skills essential in the consistent delivery of high purity REE products. 

Conclusions within this PFS are supported by very extensive drilling, sampling, process testwork and REE consumer discussions.  The PFS is considered a complete study, addressing in addition to mining and processing, all required on site and off site infrastructure, land access, reagent and fuel transport and storage, power access, water recycling and purification, waste rock and tailings storage, and final closure. 

GBM Minerals Engineering Consultants Limited (GBM), an independent specialist metallurgy, minerals processing, infrastructure and engineering consulting group based in Twickenham, UK coordinated and authored the PFS.  Other members of the PFS team include Wardell Armstrong International Limited (WAI), Golder Associates Oy (Golder Associates) and Denco Strategic Research & Consulting Inc (Denco), all of whom are independent to Tasman.  The Company anticipates filing a technical report reflecting the results of the PFS under its profile at www.sedar.com within 45 days of the date of this news release.

To view the entire news release in English, please follow the link:

http://www.tasmanmetals.com/i/pdf/TSM150121.pdf

About Tasman Metals Ltd. 

Tasman is a Canadian mineral exploration and development company focused on critical metals including REE’s and tungsten in Scandinavia. Tasman is listed on the TSX Venture Exchange under the symbol “TSM” and the NYSE-MKT under the symbol “TAS”.  REE and tungsten demand is increasing, due to the metals’ unique properties that make them essential for high technology and industry.  Since over 80% of REE and tungsten supply is sourced from China, the European Commission promotes policy to develop domestic supply of critical metals to ensure the security of industry.  Tasman receives research funding from the European Commission.

Tasman's exploration portfolio is uniquely placed, with the capacity to deliver strategic metals from politically stable, mining friendly jurisdictions with developed infrastructure and skills.  The Company’s Norra Karr and Olserum projects in Sweden are two of the most significant known heavy REE resources in the world, enriched in dysprosium, yttrium, terbium and neodymium.  The Company is now focused on the safe, sustainable and responsible development of its Scandinavian mineral portfolio.

Investor Information

Tasman Metals Ltd. 

1305 - 1090 West Georgia St.,

Vancouver, BC, V6E 3V7

Company Contact: 

Jim Powell, V.P. - Corporate Development 

+ 1 (647) 478 8952

Email: jpowell@tasmanmetals.com

or Mariana Bermudez +1 (604) 685 9316

Email: info@tasmanmetals.com

www.tasmanmetals.com

EUROPEAN OFFICE:

Skollalen 2

BOLLNAS   821 41

SWEDEN

The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), the NYSE - MKT nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note to U.S. Investors Concerning Mineral Resources and Reserves. In this news release, the definition of “mineral resources” is that used by the Canadian securities administrators and conforms to the definition utilized by CIM in the “CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines” adopted on August 20, 2000 and amended December 11, 2005.

The standards employed in estimating the mineral resources referenced in this news release differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”) and the resource information reported may not be comparable to similar information reported by United States companies.  The term “resources” does not equate to “reserves” and normally may not be included in documents filed with the SEC.  “Resources” are sometimes referred to as “mineralization” or “mineral deposits.”  While the terms “mineral resource”, “measured mineral resource”, “indicated mineral resource” and “inferred mineral resource” are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. The terms “mineral reserve,” “proven mineral reserve” and “probable mineral reserve” are Canadian mining terms as defined in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and the CIM - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities and Exchange Commission Industry Guide 7 (“SEC Industry Guide 7”) under the Securities Act of 1933. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. Disclosure of “contained ounces” in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade without reference to unit measures.

The estimation of measured, indicated and inferred mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves.  U.S. investors are cautioned (i) not to assume that measured or indicated resources will be converted into reserves and (ii) not to assume that estimates of inferred mineral resources exist, are economically or legally minable, or will be upgraded into measured or indicated mineral resources.  It cannot be assumed that the Company will identify any viable mineral resources on its properties or that any mineral reserves, if any, can be recovered profitably, if at all. As such, information contained in this news release and the documents incorporated by reference herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies in SEC filings.

Cautionary Statements. Certain statements found in this release may constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the speaker's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, uncertainties related to the availability and costs of financing, the completion of the Norra Karr PFS, the interpretation and actual results of the Norra Karr PFS, changes in corporate goals, unexpected expenditures, unexpected geological conditions, success of future development initiatives, imprecision in resource estimates, ability to obtain necessary permits and approvals, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, changes in world metal markets, changes in equity markets, environmental and safety risks, and one-time events.  Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the uncertainties and risks, known and unknown, associated with such statements. Shareholders and other readers should not place undue reliance on "forward-looking statements," as such statements speak only as of the date of this release.