Posted this morning, TheInvestar Revisited Stans Energy:

http://theinvestar.com/articles/2011_02_07.htm

In a move to assert more control over its Rare Earth (RE) resources, China is limiting Rare Earth (RE) exports. Now, major RE end users like Japan are increasingly looking beyond China – to places like India and Vietnam – to ensure an adequate supply.

Rare Earths companies are rushing to fill this potential gap. But because of the treacherous regulatory landscape around RE mining and the tremendous challenges associated with processing rare earths, most of these companies are a long way off from getting their first Rare Earths out of the ground, let alone ready for the assembly line.

One of the biggest RE companies, Australian based Lynas Corporation, has said worldwide demand will outstrip supply by as soon 2014. And it’s pegged the amount at 20,000 tons per year.

Big difference between Lights and Heavies

This potential shortfall has prompted a major RE player in the U.S. to announce that they are boosting their Rare Earth output. Molycorp Inc. plans to double the production capacity at its Mountain Pass processing facility to 40,000 tons of Rare Earth Elements (REEs) per year. As it happens, that 20,000 tons per annum increase is the same number that Lynas is predicting as a shortfall.

This news could impact prices, as well as the potential profitability of some companies scrambling to get into the RE race. But to find out which companies might be affected, Rare Earth investors need to consider the critical difference between companies producing Light Rare Earth Elements (LREEs) and Heavy Rare Earth Elements (HREEs).

Molycorp “Lightening” up Rare Earth Supply

99.44 % of Molycorp’s Rare Earth reserves are Light Rare Earth Oxides. That leaves less than 1% of the Heavy Rare Earth Oxide (HREO) variety.

Molycorp’s Mountain Pass mine and the Lynas mine at Mount Weld in Western Australia are the only two outside of China scheduled to go into production in the next two years. And almost all of Lynas’s Rare Earth Oxides – like Molycorp’s – will be of the light variety. Only 3.46 % are HREOs.

It is the LREE market, therefore, where Molycorp’s move to double production capacity will be mostly felt. Some analysts have pointed out that the looming 2014 shortage won’t be in LREE’s – but in the more valuable Heavy Rare Earths like Europium, Dysprosium, Terbium and Yttrium. As Jon Christian Evensen of The Strategist Newsletter says, “With so many junior miners targeting a 2015 or 2016 start date, it does not suggest a very promising economic picture if heavy rare earths are not the primary component of the deposit.”

HREE producers will have an edge

It is clear then, that companies specializing in the mining and processing of HREEs should have a leg up in the race to get their Rare Earths to market. RE players – like Quest Uranium Corp., Alkane Resources Ltd. and Avalon Rare Metals Inc. — have mines with relatively high HREO potential. However, with its recently announced purchase of an REE processing facility in the former Soviet Union and its 100% ownership of an open pit mine that historically produced 50% HREEs and 50% LREEs, another strong consideration is Stans Energy Corp. Stans Energy is currently the only company outside of China focusing primarily on HREEs and it is well positioned to take advantage of the supply and demand equation in coming years.

One old investor trying to make sense of the difference between Light and Heavy Rare Earths came to the conclusion that Light Rare Earths are like Silver and the Heavy Rare Earths are like Gold. There is a big difference between the two in terms of value and demand.

With synthetic fertilizers often considered the other “F-word”, the plant nutrient industry could use some good environmental news. Well, folks, give it up for . . . sulfate of potash (SOP)! SOP fertilizers are considered so safe and natural that they are often endorsed by the National Organic Program (NOP) and the Organic Materials Review Institute (OMRI) for use in approved organic systems. NOP develops and implements national production, handling and labeling standards while OMRI provides independent reviews of products.

Some people, affectionately referred to as the crunchy-granola types, say they won’t use anything but animal manure and household compost to fertilize their gardens. Yes, manure and compost do have a place, but these natural products also have their downsides. In addition to being bulky and messy, they are labor-intensive to handle and can potentially be pathogenic and a danger to human health if decay is incomplete. They can be limited in their efficiency to severely deprived soils since their nutrient release is slow. They may include weed seeds, which can easily sprout among the desired crops and they may contain high nitrogen, sodium or zinc levels which can cause imbalanced nutrients in soil and inhibit plant growth. Animal poop often emits offensive odors (aka ‘it stinks’) and can pollute surface and underground water bodies.

In addition to being environmentally friendly, SOP is a superior form of potash for many other reasons. Since it contains very little chloride, it is gentle on sensitive crops such as fruit and vegetables; and it doesn’t leave a saline reside in the soils that is particularly toxic to these plants. It also contains potassium and sulfur, which are nutrients that are beneficial to both human and plant health. It increases yields and decreases the amount of necessary water and farmland. It even improves the taste, nutrition and shelf life of food crops. It is soluble in water and can easily be used in irrigation systems.

Worldwide certified organic SOP producers include Diamond K Gypsum Agriculture, North Country Organics, Great Salt Lake Minerals, SQM Allganics and AgriEnergy Resources. Another new soon-to-be producer is IC Potash Corp. (ICP) from New Mexico. ICP intends to make a significant impact on the worldwide potash market. Due to its many advantages, SOP sells for a substantial 50% premium over regular potash. Its annual growth rate is expected to rise 3% to 4% per year since the demand for high-value, unprocessed food is also on the rise.

In summary, not only is it good for the earth, but SOP might just good for investors too. Oh, and it doesn’t smell like poop.

Global food shortages; increased world population and urbanization; destructive natural disasters like unprecedented floods that wipe away hundreds of thousands of acres of farmland—all headlines on the six o’clock news. The mounting pressure on farmers to grow more food on less land is starting to become unmanageable in selected parts of the world. Food producers are desperate to find new fertilizers and methods that will boost their crop yields. This global need shows no sign of easing off. A failure to meet this growing demand is virtually unimaginable.

The ‘Father of Fertilizer’ German chemist Justus von Leibig was right on the mark in the 19th century when he stated that inorganic materials were the vital forces behind healthy crops. Today, his comments can be rephrased as “feed the crops so the crops can feed the world.” The spotlight is starting to get quite a bit brighter on companies that will be able to provide effective fertilizers and their practical importance is growing as is their market value. One just has to look at how the world media has focused their energies on exploring the multi-billion dollar mergers and attempted takeovers in the potash industry. Australia’s BHP Billiton’s failed pursuit of Canada`s Potash Corp. made investors sit up and begin to take notice. And the recent union of Russian potash giant Uralkali with Silvinit effectively created the second largest potash corporation in the world.

Yes, there definitely is a buzz in the market, and given the macro-dynamics at play, the demand for fertilizer – and the companies who produce it – isn’t likely to end anytime soon. Rather, we may now be witnessing just the start of the ride. With this as a backdrop, we would like to introduce you to our newest client, IC Potash Corp.

A premium product

IC Potash plans to be a leading producer of sulfate of potash (SOP) fertilizer. This premium potash contains lower amounts of chloride than regular potash, giving it a distinct market advantage. SOP is gentler on leaf-bearing crops, such as fruit and vegetables, and is particularly effective in dry or saline soils, such as those in China and India. For these and several other reasons, this specialty fertilizer is in high demand and it sells for a 50% premium over regular potash.

The future is very bright for SOP even though regular potash currently accounts for 89% of world potash fertilizer consumption and SOP only accounts for 10%. The long-term growth rate of SOP sales is expected to rise by 3% to 4% which represents 200,000 to 250,000 tons per year. SOP is even predicted to experience the strongest growth of all fertilizer products. Plus, as it is sheltered from volatile production costs it has a more stable pricing outlook than regular potash.

IC Potash is building its infrastructure and processing models to be the lowest-cost producer of SOP fertilizer. To accomplish this, the company will be utilizing the most inexpensive method of manufacturing in the industry. Their mining site in New Mexico – which is the birthplace of the US potash industry – turns polyhalite ore into three different forms of SOP that can be customized to soil and crop conditions.

IC Potash holds 21 federal sub-surface polyhalite prospecting permits in southeast New Mexico. This site, named The Ochoa Project, covers over 113,000 acres and is 100% owned by the company. ICP’s neighbours, The Mosaic Company and Intrepid Potash, are dominant players in this industry as well. The company released good news on January 17, 2011 relating to a NI 43-101-compliant preliminary economic assessment. ICP’s base production level is expected to be 660,000 tons per year, with their operating costs projected to be $164 per ton. The company’s capital costs to bring the project fully into production are planned to be $662 million.

Good for everyone

IC Potash doesn’t just mine a first-rate product; it employs first-rate people. CEO Sidney Himmel is a former investment banker, specializing in mining companies. CFO Kevin Strong was previously a regional manager of the TSX Venture Exchange. COO Randy Foote has 27 years of experience in the U.S. potash industry, and their chief exploration and development officer, Patrick Okita, holds a PhD in geology. Dr. Okita has previously worked with BHP Billiton and the U.S. Geological Survey while Mr. Foote has held positions with Intrepid Potash.

Not only is SOP good for farmers but investors seem to be benefiting as well. Aside from these two benefactors, SOP can lay claim to also being good for the average person. Yes, this is a bold claim, but true; regular potash only contains potassium while SOP contains both potassium and sulfur. Food fertilized with SOP contains high levels of these two important nutrients which are beneficial to human health. Fruits, vegetables, grains and nuts are all good sources of these elements. And they also happen to be good for a healthy heart and body.

Now more than ever before, finding the right fertilizer to help farmers is essential to our world’s population state of health. IC Potash is poised to be a major player in the potassium fertilizer industry. And when that happens, it will mean more nutritious and delicious food on kitchen tables around the world.

Stans Energy Corp. Acquires Past-Producing Heavy Rare Earth
Processing Facility and Rail Terminal

Symbol - TSX-V: RUU
January 13, 2011

Stans Energy Corp. (TSX-V: RUU) (‘Stans’ or the ‘Company’) has reached an exclusive agreement with the majority owners of the Kyrgyz Chemical Metallurgical Plant (KCMP) (See Feb. 8, 2010 press release for option agreement details), to purchase 100% of KCMP’s Rare Earth (RE) processing complex, including a private rail terminal, for a total of $5,500,000 USD. The exclusive agreement is subject to a legal due diligence period and TSX Venture Exchange approval.

For almost three decades this facility produced 80% of the former Soviet Union’s RE products. The RE processing complex and the rail terminal were used to produce and transport materials, equipment, chemicals and final product to and from markets when the Kutessay II RE mine was last in production. The Kutessay II mine is now 100% owned by Stans Energy. At that time the processing facilities comprised of four individual plants that were part of a much larger industrial complex.

Historical Production Flow Sheet

Plant 1

Much of the past technology used in Plant 1 would not be used today, as newer Sorption technology has proved to be more efficient and less damaging to the environment when removing radioactive materials. Plant 1 has been decommissioned and will not be used in Stans’ new design.

Historically, RE feed from the Kutessay II mine was brought to Plant 1 to be refined into a new, higher grade concentrate. At this stage, the radioactivity was removed through roasting. Modern technologies have made this step redundant.

Plant 2

Plant 2 separated the mixed rare earth solution from Plant 1 and produced light rare earth (LRE) concentrate (La, Ce, Pr, Nd), middle rare earth (MRE) concentrate (Sm, Eu, Gd), heavy rare earth (HRE) concentrate (Tb, Dy, Ho, Er, Tm, Yb, Lu) and Yttrium Oxide. The equipment in Plant 2 is intact, but has been removed from the building and stored at a location 4 km away for security purposes. Stans intends to refurbish and reassemble Plant 2.

Plant 3

Plant 3 separated the MRE and HRE concentrates into final oxides, metals and alloys. This Plant was where the various complexing, elutriation, and regeneration solutions were prepared. The process was carried out on a batch system where the conditions in the ion exchange columns (linear flow, solution, complexing, elutriating solution concentration solution, etc.) were specific for each REE. The Rare Earths were then precipitated as the oxalate (carbonate), filtered and washed and then dried and calcined to rare earth oxide (REO). The RE metal section involved the production of metals from the REOs through various electrical, induction and arc furnaces.

The Soviets never used Plant 3 to its full capacity as uses for HREEs were limited between 1965 and 1990. In the late 80s, the Soviets initiated plans for the Plant’s expansion to process 3-4 times the amount at which it was operating. The industrial building expansion was completed when the Plant stopped operating in 1991, and some new equipment is on site but not installed.

The Plant continued to process remaining small amounts of HRE concentrate into final metals up until 2009. The last of its HREE concentrate and final products were sold in 2010. Plant 3 is in good working condition.

Plant 4

Plant 4 separated light rare earth concentrate from Plant 2 into individual rare earth oxides. Like Plant 2, much of the equipment from Plant 4 was removed and stored at a secure location. A feasibility study will determine whether Stans Energy sells light rare earth concentrate derived from Plant 2, or reassembles Plant 4 to produce final oxides.

Rail Terminal

The newly purchased rail terminal connects to the Central Asian Rail Network, which connects to Russia and all countries in Asia including China, Korea, and by ferry to Japan. The purchase of the Rail Terminal includes a gantry crane, two warehouses, two offices, and a weigh station. The land purchased with the rail terminal amounts to 143,500 m2. The rail terminal is roughly 15 km from the KMCP Processing Plants by paved road, and is roughly 35 km away from the Kutessay II mine by paved road.

Equipment Inventory and Industrial Space

In an independent assessment of the equipment, it was determined that 97% of the equipment purchased that was previously used for processing rare earths were in either good, or satisfactory operating condition, and only 3% required repair. Stans is currently compiling and translating a full list of the inventory included in the purchase to be posted to its website at a later date. The total industrial space in Plants 2 and 3 is 21,812 m2.


Capacity Old & New

Previously, the entire plant operated at approximately 500 mt/annum of final rare earth product. During its time in operation, its capacity varied depending on which products were needed and at what purities. 120 different final rare earth products were produced, including oxides, metals and alloys of all lanthanides with purities up to 99.99%. In the late 80s, the Soviets initiated plans to expand the operating capacity to 1500 mt, but never finished the expansion. Stans Energy will provide its estimates to expand the capacity of the processing complex at a later date. A feasibility study will commence shortly to determine the optimal scale at which to bring Kutessay II back into production.

Upon the completion of the transaction, Stans Energy will engage the Russian Institutes that designed and built KCMP to help redesign and refurbish the Facilities to create a new, efficient rare earth supply source. New technologies and solvents that were unavailable during the Soviet era will be tested in an effort to improve the Plant’s efficiency.

Stans Energy is currently in discussions with interested parties related to financing the purchase of the RE processing complex and other business initiatives.

Robert Mackay, President and CEO, stated, “The acquisition of the KCMP RE Processing Plants and Rail Terminal is the culmination of many months of hard work and due diligence by Stans Energy and a variety of consulting parties. Owning a processing facility is the next significant step in the implementation of our business plan to become a major developer and producer of HREEs. It is my hope that restarting this facility will help to reestablish the once vibrant community in the town of Orlovka, where KCMP is located.”

For additional information, please contact:

Robert Mackay
President and CEO, Stans Energy Corp.
Ph. 647 426 1865
Email: robert@stansenergy.com

Jonathan Buick
Investor Relations, The Buick Group
Ph. 416 915 0915
Email: jbuick@buickgroup.com

This release may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document. The Company disclaims any intention or obligation to update or revise any oral or written forward-looking information and statements whether as a result of new information, future events or otherwise, except as required by applicable law. Accordingly, readers should not place undue reliance on forward looking statements.

The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

In November, 2010, Stans Energy Corp (TSX-V: RUU) (‘Stans’ or the ‘Company’), in cooperation with the Canadian Embassy in Russia, organized a round table discussion to start a trilateral business initiative between Russia, Kyrgyzstan, and Canada to create a new rare earth products supply chain. There were 19 individual invitees representing the Russian Subsoil Agency, its Licensing Department, The Russian Academy of Sciences, Ministry of Natural Resources of the Russian Federation, The All-Russian Research Institute of Chemical Technology (VNIIHT), Macleod Dixon law firm, The Embassy of the Kyrgyz Republic, Stifel Nicolaus Weisel, Cisco Systems, International Trade Canada and Stans Energy Corp.

The meeting outlined the tasks that need to be accomplished to achieve the goal of securing a rare earth supply to the participating countries and to the world experiencing a supply shortage. We would like to acknowledge constructive input provide by Vice-President of Russian Academy of Science, Academician Nikolai Laverov, who was in charge of the Soviet Union Rare-Earth production program.

Pursuant to Stans’ press release on September 13, 2010, Stans and its Russian partners are completing their survey of the Rare Earth potential of Russia, and will continue further due diligence on selected heavy rare earth properties for joint acquisition.

For additional information, please contact:

Robert Mackay
President and CEO, Stans Energy Corp.
Ph. 647 426 1865
Email: robert@stansenergy.com

Jonathan Buick
Investor Relations, The Buick Group
Ph. 416 915 0915
Email: jbuick@buickgroup.com