China Begins to Regulate Overproduction of Rare Earths

NEW YORK, NY -- (Marketwire) -- 06/01/12 -- Rare Earth stocks after a respectable start to the year have begun to falter. The Market Vectors Rare Earth/Strategic Metals ETF (REMX) is down over 16 percent in the last month. Prices for rare earth in May have fallen roughly 30 percent from the 2011 average according to data from Lynas Corp. The Paragon Report examines investing opportunities in the Rare Earth Industry and provides equity research on Quest Rare Minerals Ltd. (NYSE: QRM) (TSX: QRM) and Rare Element Resources Ltd. (NYSE: REE) (TSX: RES).

Access to the full company reports can be found at:

www.ParagonReport.com/QRM
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Platts has previously reported that on May 1 China began issuing value-added tax permits to rare earth companies in Sichaun and Inner Mongolia in an attempt to regulate overproduction. Market observers see the permits as a first step to control overcapacity, illegal mining, and resource draining in the rare-earth industry.

"The new rule will help regulate the market supply to some extent, as rare earth producers will need to sell their finished products according to their output and export quotas in accordance with the new special invoice," a Shanghai trader told Platts. "We believe it is a start that China will undertake to regulate the country's rare earth production, however there is a long way to go," the source added.

Paragon Report releases regular market updates on the Rare Earth Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.

Quest Rare Minerals is a Canadian-based, exploration company focused on the identification and discovery of new world-class Rare Earth deposit opportunities. Quest is currently advancing several high-potential rare earth projects in Canada's premier rare earth exploration areas: the Strange Lake and Misery Lake areas of northeastern Québec. Quest continues to pursue high-value project rare earth opportunities throughout North America.

Rare Element Resources has 100% interest in the Bear Lodge Property in Wyoming, USA, which contains one of the largest disseminated rare-earth element (REE) deposits in North America as well as extensive gold occurrences. The Bear Lodge Project has high-grade light REE (LREE) and significant quantities of heavy REEs (HREEs), favorable metallurgy, outstanding infrastructure, and it is located in one of the world's best mining jurisdictions, recently globally ranked fourth by the Fraser Institute.

Paragon Report provides Market Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Paragon Report has not been compensated by any of the above-mentioned companies. We act as independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: www.ParagonReport.com/disclaimer

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