Rare Earths penny mining stocks; 3 speculative rare earth explorers

For our purposes, we will define a "penny stock" as one with a price below $2 per share, AND a market cap below $100 million. The three companies profiled below are not being presented as "buy" opportunities, but rather possibilities for investigation and accumulation. Do your own research, follow your nose!

Critical Elements - CRE

Price: 0.30 Market cap: $31 million

The former First Gold Exploration Company has two projects in development (one gold, one rare earth) plus a range of rare earth minerals properties in Quebec. With shares around thirty cents and market cap being about 30 mil, there are scenarios where a three to ten bagger could arise.

On 22feb11, CRE announced it had signed an agreement to acquire a 100% interest in eight rare earth element (REE), niobium and tantalum properties in Quebec.

Medallion Resources Ltd - MDL

Price: 0.37 Market cap: $16 million

Medallion is engaged in the acquisition, exploration and evaluation of mineral resource properties located in North America. The Company’s properties include Rare-earth-element and Lithium Properties, which focuses on the exploration for lithium, rare-earth elements (REE’s) and related energy-technology metals.

Eden Lake Property, and Red Wine Property

The Eden REE Project is located on the east shore of Eden Lake in the Leaf Rapids district of Manitoba. It is approximately 20 kilometers northwest of Leaf Rapids, Manitoba, and 170 kilometers northwest of Thompson, Manitoba.

Medallion's Red Wine HREE Project consists of four mineral licenses, which cover a total of 33.75 square kilometers in southern Labrador. The main license (2225 hectares) is in the southern portion of the Red Wine intrusions, located about 90 kilometers northeast of Churchill Falls, Labrador and 16 kilometers east of provincial route 389.

Commerce Resources - CCE

Price: 0.82 Market cap: $107 million

Commerce Resources Corp. (Commerce) is a Canada-based mineral exploration and development company. The Company’s focuses on tantalum, niobium and rare earth elements (REEs). The Company is in the process of exploring three mineral projects located in Canada: Blue River Tantalum-Niobium Project, and the Eldor and Carbo Rare Earth Projects. The Blue River Project is at an advanced stage of exploration. The Blue River Project, located approximately 30 kilometers north of Blue River, British Columbia. The Eldor Property is located in the Labrador Trough area of northern Quebec



CAUTION to new investors: Investing in common stocks of publicly-listed companies is a high risk (and high potential reward) activity, and choosing speculative mining stocks compounds the risk significantly. Each company profiled on this page, and indeed all junior mining exploration companies, have the risk of going to zero.

Owning investments in individual rare earth elements mining companies is for high risk investors only, and medium risk investors should consider rare earths elements ETFs, precious and rare metals funds, green mutual funds, closed-end clean energy funds, alternative energy index funds and other clean energy sector investments. Even then, these funds should be owned as part of a widely diversified portfolio, and always be considered as longer term investments.