Mr. Mark Saxon reports

TASMAN PROVIDES CORPORATE UPDATE AND 2016 OUTLOOK

Tasman Metals Ltd. has provided a corporate update and outlook for the company for 2016.

Last year was a challenging year for the mining and exploration industry in general and the rare earth element sector was not spared from the downturn. Although REE prices declined, traded volumes of the metals showed relative strength, with greater than 90 per cent of supply still coming from Chinese sources. In response to the difficult conditions and lack of financing opportunities, many junior exploration companies that previously focussed on REE projects have now moved on to seek other corporate opportunities. Tasman remains a leader in a much reduced field of competitors.

One notable outcome of the past year was the bankruptcy filings of Molycorp Inc. which entered Chapter 11 bankruptcy protection in June, 2015. The Mountain Pass mine, a significant resource of the lowest-value REEs lanthanum and cerium, has been placed on "care and maintenance" and it is not known if or when the operation will be restarted.

The Tasman board remains optimistic for improved market conditions for REEs in 2016. Metal prices have stabilized, and the only significant Western REE producer, Australia's Lynas Corp., is now cash flow positive. In China, the industry continues to be aggregated which over time may allow for tighter control over illegal Chinese mining and support higher REE prices.

Tasman is acting to increase the opportunities for revenue from its flagship Norra Karr heavy REE project in Sweden, in addition to those outlined in the 2015 prefeasibility study. As previously reported, Norra Karr presents a unique opportunity not only for REEs but also for the supply of the industrial minerals nepheline and feldspar, which together comprise about 65 per cent of the rock. Nepheline and feldspar have large European markets in ceramics, glass, plastics, cement, building material and metallurgical industries. Nepheline and feldspar are for example widely consumed in the manufacture of bathroom ceramics, roof and floor tiles, crockery, building fillers, paints, cement and even cosmetics. Tasman's test work on the nepheline/feldspar byproduct from Norra Karr has shown it to be low in iron, and with key characteristics similar to material being used industrially across Europe today.

During 2016, Tasman's focus shall remain on the Norra Karr project, seeking to further optimize the current processing flowsheet for REEs, and develop markets for the industrial minerals. The company starts the year with a sufficient cash balance, as it moved quickly to reduce overheads on the conclusion of the 2015 PFS. With the continuing support of the European Commission-financed Eurare project, the Tasman board is confident significant progress can be achieved during 2016.

In light of the decision to reduce costs during challenging times, Tasman's board has chosen to withdraw from the Finnish portfolio of chromite projects due to the relatively high permit holding costs in Finland.

The company thanks shareholders for their continued support, and looks forward to working to advance its project portfolio during 2016.

We seek Safe Harbor.