Strategic Elements Ltd Stock Market Press Releases and Company Profile
Strategic Elements New Rare Earths Float
Strategic Elements New Rare Earths Float

Perth, May 24, 2011 AEST (ABN Newswire) - An insatiable demand for high technology goods such as mobile phones, flat screen plasma TVs and hybrid cars and an overreliance on China as a supplier has led to a new rare earths float.

Strategic Elements Limited (Proposed ASX : SOR) plans to raise up to four million dollars depending on investor demand to become Australia's only rare earths focus pooled development fund.

"We believe rare earths is a big growth story because of huge demand, and registration as a pooled development fund means that investors can get exposure to the potential upside of the sector without having to pay tax on capital gains or dividends," said Managing Director Charles Murphy.

China produces 97 per cent of the world's supply of rare earths and exports fell nearly ten per cent last year under tighter restrictions raising fears amongst Western governments of a coming global shortage.

"These market conditions of a tighter supply and growing demand create a unique investment opportunity to develop a rare earths industry outside of China and our investee company Strategic Materials Pty Ltd will be the first to seriously explore for these metals in mineral rich New Zealand where we have secured some highly prospective permits," said Mr Murphy.

The New Zealand project complements the Australian exploration program to discover large deposits of 17 non-ferrous metals such as scandium, yttrium and 15 lanthanides in Western Australia, Queensland and New South Wales.

"As well as exploration, Strategic Elements will also invest in mining, processing and materials development by providing capital, technical expertise and industry alliances to early stage small and medium sized Australian companies involved in the rare earths value chain," said Mr Murphy.

The company has a vertical integration strategy and will be investing in Australian Advanced Minerals, a 100 per cent owned Research Company that will focus on licensing of intellectual property relating to the spectral, electronic or magnetic properties of rare earth elements.

"Rare earths allow for smaller, lighter batteries and motors so we will see applications in everything from mobile phones to rechargeable batteries of hybrid cars to advanced ceramics and even fast trains that run on friction free magnets," said Mr Murphy.

About Rare Earths

At the bottom end of the periodic table, rare earths include a little known collection of 17 unusual yet highly critical and often irreplaceable elements that are mined together and developed into materials that enable high-tech products to function. The industry is experiencing a rapid transformation with demand increasing and global supply tightening as China introduces export restrictions. They include non-ferrous metals such as scandium, yttrium and 15 lanthanides. They are used in hybrid cars, low energy light bulbs, electronics, cell phones, batteries and advanced medical and defence systems. There are supply concerns from electronic manufacturers in the United States and Japan because 97 per cent of the world's supply comes from China.

About Pooled Development Funds (PDF)

The PDF program was established by the Federal Government to encourage the provision of patient equity capital to small and medium sized Australian companies. A PDF status creates a strong point of difference for Strategic Elements because most Shareholders pay no tax on capital gains or dividends and the Company only pays a corporate tax rate of 15 per cent on PDF income and 25 per cent on other income.

About The Offer

The objectives of the capital raising are to fund projects to discover economic deposits of rare earths, mine these minerals and develop them into value added materials. Up to four million dollars through the issue of up to 20 million shares can be raised under the Prospectus. Strategic Elements has signed an investment deed with New York based Bergen Global Opportunity Fund II (Bergen Global). Bergen Global is an international institutional investor, whose management has had experience in funding a number of ASX listed companies. Under the agreement, Bergen Global will be offered a right of first refusal to invest further equity in the Company to assist the Company with investment transactions into Australian rare earths and rare metals companies. The offer opened on the 19th of May and closes on the 29th of June 2011 with a planned listing on the ASX on 15th July 2011.

The closing date for the prospectus is the 29th of June with Strategic Elements expected to list on the Australian Stock Exchange on the 15th of July.

For the IPO Factsheet, please refer to the following link below:

About Strategic Elements Ltd

Strategic Elements ASX:SORStrategic Elements (ASX:SOR) shares are listed on the Australian Stock Exchange under the code “SOR”. The Company is registered under the Pooled Development Program run by the Australian Federal Government to encourage investment into SME’s. To assist Pooled Development Fund’s to invest and raise capital, the Federal Government enables most shareholders in a Pooled Development Fund to make capital gains and receive dividends tax-free.



Charles Murphy
Managing Director
Strategic Elements
Mob: +61-405-233-011

Thomas Murrell
Investor Relations
Mob: +61-417-984-996

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