GTSO Aggressively Positioned to Capitalize on the End of Cheap Rare Earths

The Era of Cheap Rare Earths may be drawing to a close, and Green Technology Solutions, Inc. (OTCQB:GTSO) is working to capitalize on shifting market dynamics for the critical elements.

Rare earths are a collection of 17 elements that are among the most sought-after materials for modern manufacturing. The heavy elements are crucial to the production of green technologies such as wind turbine generators, thin-film solar panels and electric car batteries as well as flat-screen televisions, iPads and more. For decades, China has supplied more than 95 percent of the world's rare earth demand, even though the country’s reserves total only one-third of worldwide deposits. Export prices for Chinese rare earths stayed comparatively low due to the emerging superpower’s cheap labor and lack of environmental protection costs.

Recent rare earth policy decisions by the Chinese government indicate that the days of cheap rare earth exports may be at an end. In recent months, China announced stricter emission limits on miners, crackdowns on illegal mining, cuts in export quota and a new resources tax. Just last week, China’s Ministry of Land and Resources announced that the Communist nation will cap the total output of rare earth oxide at 93,800 tons this year, a meager five-percent increase over 2010’s cap despite soaring prices and demand for rare elements across the globe. The ministry also announced that it will not grant any new licenses for rare earths prospecting and mining before June 30, 2012.

Many analysts believe these new policy shifts indicate that China is no longer willing to supply most of the world's rare earth demand. The country’s new caps, tax and regulations have helped cause the average price of rare earth elements in China to double since the end of 2010. Green Technology Solutions is working on both sides of the globe to capitalize on rising prices and demand for the critical materials.

In the U.S., GTSO signed a letter of intent last month to acquire the Rio Del Monte Mining properties near Salome, Ariz., in hopes of developing the site into a domestic source of rare earth elements. GTSO President and CEO John Shearer personally inspected Rio Del Monte last week; the company is now preparing to send mineral samples from the mining properties to Actlabs in Ontario, Canada, to be analyzed for their rare earth content.

On the other side of the world in Mongolia, GTSO is working with Rare Earth Exporters of Mongolia (REE) to develop new sources of rare earths inside the former Soviet state. The two companies formed a joint venture in March that is currently analyzing the mineral contents of several mining properties in Mongolia to determine where best to begin production. The joint venture plans to utilize the developing nation’s road and rail infrastructure to convey Mongolian rare earth mining products to the international seaport of Vladivostok, Russia, to be shipped to the U.S., Japan and South Korea.

For more information on the joint venture’s transportation strategy, please visit http://www.rareearthexporters.com.

Green Technology Solutions commercializes clean and renewable mining technology and products in a sector that includes MV Rare Earth/Strategic Metals (NYSEArca: REMX), Hitachi Ltd. (NYSE: HIT), EI DuPont de Nemours & Co. (NYSE: DD) and Sony Corp. (NYSE: SNE).

About Green Technology Solutions, Inc.

Green Technology Solutions, Inc. (GTSO) is an OTCQB publicly traded company. OTCQB is the middle tier of the OTC market. OTCQB companies report to the SEC or a U.S. banking regulator, making it easy for investors to identify companies that are current in their reporting obligations. GTSO acquires, develops and implements the newest clean mining technology to enable our partner clients to expand operations throughout the world. Environmental restrictions represent the largest restriction to mining industry growth and operations. GTSO focuses on overcoming these environmental restrictions with brilliant cutting-edge clean mining technology.

For more information, please visit http://www.GreenTech-Solutions.com.

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