GTSO Enters JV Agreement with Rare Earth Exporters of Mongolia

Green Technology Solutions, Inc. (OTC BB: GTSO.OB) announced today that it has entered into a joint venture agreement with Rare Earth Exporters of Mongolia (REE) in order to procure rare-earth mining claims and operations in the developing Asian nation.

Rare earths are critical to the construction of a wide range of electronic products from iPads to electric car motors and are a crucial component in the weapons manufacturing industry. Currently, China controls nearly 95 percent of rare-earth minerals production globally, giving the communist nation a near monopoly over the precious elements’ distribution. The vast majority of China’s rare earths are mined in the country’s Inner Mongolia region, which lies along the southern border of the nation of Mongolia. Many experts believe that Mongolia, a former Soviet state, contains rare earth deposits that rival those of China.

Rare Earths are essential to the production of clean energy technologies such as permanent magnets, hybrid and electric car batteries, solar panels, wind turbines and energy-efficient lighting. Domestic usage and environmental concerns in China are leading to fewer mining permits, fewer exports and rising prices. GTSO President and CEO John Shearer said Friday that the company formed the joint venture with REE in order to capitalize on these market dynamics.

“Stable supplies of rare earths are vital to the security and economy of the U.S., Japan and South Korea,” Shearer said. “By acquiring mining claims and operations in Mongolia, we believe we can help solve the global supply crisis while instituting cleaner mining technology to minimize environmental contamination.”

According to the joint venture agreement, GTSO will contribute the operating capital for the endeavor with REE contributing its knowledge and product development skills as consideration. The joint venture plans to convey Mongolian mining products overland to railway for transport to the seaport of Vladivostok, Russia, in order to avoid shipping through China. Destination ports for these mining products are set to include the U.S., Japan and South Korea.

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