Mr. Simon Britt reports

GEOMEGA RESOURCES INC.: PHYSICAL SEPARATION OF REE-NEIGHBOUR SERIES

Geomega Resources Inc. has concluded tests confirming physical separation of neighbour rare earth elements based on free flow electrophoresis technology. Geomega's proprietary physical separation process has the potential to reduce the capital required to build separation facilities compared with conventional techniques (that is, fractional precipitation, ion exchange and solvent extraction), optimize REE recovery and mitigate environmental impacts.

"Once the boundaries between the multiple disciplines of applied science fade out, a new technology emerges, and it is where the effort of our innovation is devoted to," commented Dr. Pouya Hajiani, process engineer of Geomega.

The objective of this series is to unveil the prominent potential of the technology to separate REE in a continuous process. Five sets of tests using different separation protocols have been selected for the neighbour series. They consist of three multielement tests (A, B and C) associated with two complementary binary tests (B plus and C plus).

• Synthetic mixture A contains ytterbium (Yb), dysprosium (Dy), terbium (Tb) and europium (Eu) representing the heavy to medium REE.
• Synthetic mixture B contains europium (Eu), neodymium (Nd), praseodymium (Pr) and lanthanum (La) representing the medium to light REE.
• Synthetic mixture B plus is the corresponding binary mixture to B, containing Pr and Nd. This result demonstrates the elemental separation of neighbours (that is, Nd and Pr) when they occur together in some channels during the first separation pass.
• Synthetic mixture C contains europium (Eu), praseodymium (Pr), cerium (Ce) and lanthanum (La) representing the light REE.
• Synthetic mixture C plus is the corresponding binary mixture to C, containing Ce and Pr. This result demonstrates the elemental separation of neighbours (that is, Pr and Ce) when they occur together in some channels during the first separation pass.
• All tests have been performed in a single pass using a laboratory scale prototype equipment;
• Total REE concentration is approximately one gram per litre (65 millimolar).

The graphic results highlight the following features of the technology:

• Multicomponent separation of REE is attained in a single pass.
• A 100-per-cent purity separation of HREE is achievable in a single pass in the current process condition.
• A 100-per-cent purity separation of medium to LREE is achievable in two passes in the current process condition.
• A 100-per-cent purity separation of LREE is achievable in a continuous loop in the current process condition.

The next testing program of separation is to be performed on a commercial mixed REE concentrate. This round will aim to separate all REE and to address complexities of a real commercial mixture, including impurities. This program will also serve as a benchmark for future developments.

"Physics, when understood correctly, is predictable. The perfect binary separation of Nd and Pr with the currently limiting prototype equipment highlights a development team in control. We will ballpark a development timetable after the next testing program is completed," commented Simon Britt, president and chief executive officer of Geomega.

Added value of REE separation

The selling price of a mixed REE concentrate is evaluated according to the distribution of each REE and the impurities of the composition. As finished products require high-purity individual REE, the value of the REE in a mixed concentrate is reduced by a significant percentage -- that is, between 25 per cent and 100 per cent. The reduction is based on the criticality (importance versus supply risk) of each REE. Currently, the most critical REEs are neodymium and dysprosium due to increasing demand for powerful permanent magnets.

NRCC Boucherville research facilities

The neighbour series tests were performed by the company's development partner in Germany. The company conducted all analyses at the National Research Council Canada laboratory in Boucherville, Canada. The analyses were done on every sample using an ICP-OES spectrometer.

Dr. Hajiani, process engineer, supervised and approves the technical information of this news release.

The common shares of Geomega shall resume trading on Feb. 25, 2014.

We seek Safe Harbor.