Texas Rare Earth Resources Announces Results of the Preliminary Economic Assessment Study on Its Round Top Project and Management Conference Call

Texas Rare Earth Resources Corp. (the Company) (OTCQX: TRER), a mineral
exploration and development company, is pleased to announce the results
of a Preliminary Economic Assessment study (PEA) prepared in accordance
with Canadian National Instrument 43-101 (NI 43-101) on the Round Top
critical rare earth element (CREE) project. The PEA, prepared by
independent consultant Gustavson Associates, LLC, of Denver, Colorado,
indicates a potentially economically viable project based on the
assumptions and parameters described herein and recommends that TRER
continue the development necessary to prepare a Pre-Feasibility Study
(PFS) on the Round Top project.

Marc LeVier, CEO and President of TRER, commented, 'We are extremely
pleased with the results of the PEA, which obviously represents an
important milestone for the Company. The Round Top project is
strategically located in a resource-friendly and stable jurisdiction in
close proximity to established infrastructure, and we believe we have
the support of the local community and state officials to develop this
project.? LeVier continued, 'Importantly, the Round Top project is
estimated to be one of the largest rare earth deposits in the U.S., and
the PEA indicates robust economics for the project due to the occurrence
throughout the deposit of all the rare earth elements to include
Dysprosium, Europium, Neodymium, Terbium and Yttrium, identified as
critical by the U.S. Department of Energy in its Critical
Materials Strategy 2011 report. Lastly, the Round Top project has
simple mineralogy, and we anticipate that the minerals will be
concentrated utilizing low-cost conventional processing methods. In
total, we view these results of the PEA very positively and look forward
to progressing toward the pre-feasibility stage. As previously
indicated, we expect to release the PEA by end of June, 2012.?

PEA Highlights

• 
  Annual after-tax cash flow of $482 million at full production, LOM
  cash flow of $10.3 billion
  
• 
  After-tax net present value (NPV) of $1.2 billion at a 10% discount
  rate
  
• 
  After-tax internal rate-of-return (IRR) of 19% with an after-tax
  payback of capital of 4.3 years
  
• 
  80,000 tpd processed, open-pit operation
  
• 
  Annual total REO (TREO) sales of 10,800 tonnes
  
• 
  26-year mine life
  
• 
  Project capital costs of $2.0 billion, including a 25% contingency
  
• 
  97% of revenues forecasted from the sale of critical rare earth oxides
  (CREOs)
  
• 
  Metallurgical recovery of 72% (base case)
  
• 
  Low acid consumption
  
• 
  Rare earth oxide basket price of $110.31/kg
  
• 
  Estimated average operating costs of $48/kg of TREOs sold
  

Project Overview

The Round Top project is located approximately 10 miles northwest of
Sierra Blanca in Hudspeth County, Texas, and approximately 85 miles
southeast of El Paso, Texas. The Round Top project consists of two
19-year Mining Lease Agreements with the General Land Office of the
State of Texas (GLO).

Geology and Mineralization

The Round Top project consists of a Tertiary rhyolite intrusion that is
enriched in both heavy and light rare earth elements (REEs). The
stratigraphy is relatively simple, with Tertiary rhyolite laccoliths
cutting Tertiary diorite dikes and intruding Cretaceous marine
sedimentary rocks. The Round Top project is located in the Trans-Pecos
region and has been structurally affected by Laramide thrusting and
folding, subduction magmatism, and Basin and Range crustal extension.
The main structures on the property are landslide and slump faulting,
and NNW-trending normal faults.

The rhyolite at the Round Top project is enriched in heavy rare earth
elements (HREEs) with up to 70% of the total REEs grade being HREE. REE
mineralization occurs primarily as disseminated microcrystals of
varieties of fluorite (such as yttrium-rich yttrofluorite) where HREEs
have substituted for calcium and as other REE-bearing accessory
minerals. REE minerals occur mainly in vugs and as crystal coatings,
suggesting late-stage crystallization from an incompatible element-rich
fluid.

The Round Top project rhyolite was divided into five different
alteration phases based on the intensity of hematitic and hydrothermal
alteration. Hematitic alteration is a replacement of the magnetite by
hematite and gives the rhyolite a red to pink color. Hydrothermal
alteration was late and gives the rhyolite a tan to brown color.

Mineral Resource Estimate

Table 1 below shows the measured, indicated, and inferred mineral
resources* estimated within the Round Top project, with an effective
date of May 15, 2012. Mineral resources* are reported using a 428 ppm
Yttrium equivalent cutoff. Mineral Resources are not Mineral Reserves
and do not have demonstrated economic viability.

Mining and Operations

The Round Top project′s mine plan within the PEA includes inferred
mineral resources*. Inferred mineral resources* are considered too
speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves, and
there is no certainty that the results of the PEA will be realized.
Mineral resources that are not mineral reserves have no demonstrated
economic viability.

In connection with the PEA, a conceptual design of the mine operations
has been completed. The Round Top project is expected to be a pit-mine
operation with 45 ? inter-ramp wall angles. Daily production rates are
estimated to be 80,000 tonnes. Ore will be crushed and ground, then
undergo separation consisting of flotation, leaching, solvent
extraction, and precipitation. The separator capacity is estimated to be
10,000 tonnes per year.

For purposes of the PEA, it was assumed that mining and processing
operations are expected to operate 24 hours per day, seven days per week.

The Round Top project′s mine plan is based on common truck-and-loader
production methods. The rhyolite will be mined in two 25-foot lifts on
50-foot benches. This gives a good match of medium-sized equipment (150
ton trucks and wheel loaders with 22-yard buckets). The truck-and-loader
method was chosen at this stage for low estimated costs and wide
understanding of the base case. TRER currently plans to own, operate,
and maintain all equipment.

Pit slopes have been designed at 45 ? inter-ramp wall angles. In most of
the pit, the contact between the rhyolite and limestone is shallower
than this. Fracturing within the rhyolite is not yet completely
understood and this may affect pit slopes, at least locally. Haul roads
are designed at a width of 100 feet, which provides a safe truck width
(23 feet) to running surface width ratio of approximately 4:1. Maximum
grade of the haul roads is 10%.

Due to the consistent REE grades within the rhyolite, it is the
applicable qualified person′s opinion that traditional economic analyses
of the pit limit are not meaningful. The overburden removal required for
rhyolite production is minimal. The mine plan was developed to address a
significant constraint on the ability to mine, being the presence of
limestone enriched in radioactive elements below the rhyolite. There is
a potential risk associated with the disposal of waste.

The LOM mine plan assumes 732 million tonnes will be shipped to the
processing facility. The average REO grade of the assumed material
shipped is 0.06% and the CREO grade shown is 0.04%. The PEA, including
the mine plan, is preliminary in nature and includes inferred mineral
resources* that are considered too speculative geologically to have the
economic considerations applied to them that would enable them to be
categorized as mineral reserves and there is no certainty that the
results of the PEA, including the mine plan, will be realized. Mineral
resources that are not mineral reserves have no demonstrated economic
viability.

Waste products from mine activities include a stream that is expected to
show hazardous waste characteristics and a stream that is not expected
to show hazardous waste characteristics. As such, two on-site
impoundments are expected to manage the two waste streams.

Infrastructure to support mining and processing activities (i.e.,
buildings, roads, water/wastewater systems, power, communication, and
fuel) currently do not exist on site; however, construction of this
infrastructure is expected to be reasonable.

Capital Cost Estimate

Initial Estimated Capital

The PEA, including the mine plan, is preliminary in nature and includes
inferred mineral resources* that are considered too speculative
geologically to have the economic considerations applied to them that
would enable them to be categorized as mineral reserves and there is no
certainty that the results of the PEA, including the mine plan, will be
realized. Mineral resources that are not mineral reserves have no
demonstrated economic viability.

The capital cost estimate for the Round Top project was developed using
factored and built-up estimating techniques. A breakdown of the total
initial estimated capital costs for an 80,000 tpd throughput mine with a
hydromet/separation facility with a capacity up to 10,800 tonnes per
year of REOs is set out below in Table 2.

Sustaining Capital

The sustaining capital cost estimate for the Round Top project was
developed using factored estimates. Approximately $32 million of
sustaining capital will be required annually with an additional $65.1
million in years 8/9, 17/18, and, potentially, year 27, depending on LOM
tonnage for a total LOM estimated sustaining capital of $859 million, of
which $120 million is the estimated fleet replacement for mining. Total
LOM capital is estimated to be $3.0 billion.

The estimated unit operating costs for the operation are shown in Table
3 below. LOM capital costs totaling $3.0 billion include
pre-construction costs of $91.9 million, project construction costs of
$2.1 billion and sustaining capital of $859.2 million. Also, included in
the capital costs is a 25% contingency.

Mineral Processing and Metallurgical Testing

TRER initiated the scoping level metallurgical testwork for the Round
Top project in late 2011. The primary objective of the scoping level
study was to determine the potential recovery of REO values contained in
the resource. The metallurgical testwork was performed by Mountain
States R&D International, Inc. (MSRDI).

The primary bulk mineralogy of the five rhyolite samples was essentially
the same with potassium feldspar as the predominant mineral. The
minerals identified included bastnaesite, yttrofluorite, yttrocerite,
columbite, changbaiite, and kasolite.

Composites were prepared for a subsequent metallurgical scope level
study. Attrition scrubbing studies based on sizing and assaying sized
fractions indicated no preferential upgrading in any size fraction. A
series of tests were conducted to evaluate other pre-concentration
methods. Assay by size fraction data indicated that finer grinding may
be required to liberate some of the values due to the high percentage
metal distribution in the -400 mesh fraction. Tests conducted for
magnetic separation and gravity concentration tests demonstrated that
the REOs did not preferentially upgrade in any of the test products.
These methods of processing were eliminated. The finely disseminated
nature of the minerals carrying the REO values, as seen in the
mineralogy reports, lead investigators to conclude that further testing
of pre-concentration methods would be futile.

Froth flotation became the focus of the mineral beneficiation
development. Flotation tests were designed and conducted to evaluate and
provide a screen of a number of collectors known to be effective
reagents for nonmetallic ores. These tests indicated that the best
collector was a sulfonate collector. Fatty acids and amines were also
evaluated but were found not to be as effective. Recoveries ranging from
80% to 83% were obtained at higher weight recoveries of 60% to 62%.
However, the samples were believed to have been over ground and an
excessive amount of collector was consumed, accounting for the higher
weight recovery. With further optimization of collector dosage and
grind, the applicable qualified person determined that it was reasonable
to assume that the overall rougher stage REO recovery will be
approximately 80%. The best recoveries were obtained at a natural pH of
6.

Based on the results obtained to date, the applicable qualified person
determined that it was reasonable to conclude that the flotation
process, using sulfonate as a collector, will effectively separate the
REE minerals into a flotation concentrate with a TREO recovery ranging
from 77% to 83%. The flotation concentrate will be further processed by
acid leaching in a hydrometallurgical process. The REE will be
selectively leached into solution, upgraded, and recovered by
conventional solvent extraction and precipitation.

Diagnostic Leach Tests

Scoping level diagnostic leach tests were conducted by MSRDI with
samples of the metallurgical test composite comprised of reverse
circulation cuttings. The objective of the diagnostic tests was to
determine the amenability of the whole ore to leaching, characterization
of the kinetics of the leach, and estimate the level of lixiviant
consumption that could be expected. The results indicated that:

• 
  Acid leaching is better than alkaline leaching
  
• 
  Nitric acid and hydrochloric acid (HCl) gave higher REO extraction
  than sulfuric acid
  
• 
  Increased temperature enhances the REO extraction for the hydrochloric
  system
  
• 
  Results indicate that the kinetics is fast, and based on mineralogy
  the results confirm the lack of acid consumers in the ore
  

Additional diagnostic leach tests were designed and conducted at the
MSRDI lab in March 2012. The objective of the diagnostic leach tests
were to re-confirm previous results, better estimate the acid
consumption, and gain insight into the low extractions for sulfuric
acid. In general the results showed the following:

• 
  Best extractions were obtained with a hot hydrochloric acid (HCl)
  leach with extractions >90% for CREEs
  
• 
  Sulfuric acid results were significantly improved and there needs to
  be further investigation and refinement in the hydrometallurgical
  testing of the flotation concentrate
  
• 
  Acid consumptions were confirmed as very low for an REO ore,
  re-confirming the low concentration/presence of acid consuming minerals
  
• 
  Extractions of REEs for the leaching of flotation concentrate can
  reasonably be expected to be 90% or better, confirming the favorable
  mineralogy of the Round Top ores
  

Economic Analysis

The economic evaluation for the Round Top project looked at a range of
REE prices and a range of recoveries. The three recovery cases included
in the financial analysis were 64% recovery, 72% recovery and 79%
recovery, with 72% being used as the base case. The base case was
evaluated assuming the mid-point prices as shown in the 'Roskill - Rare
Earths & Yttrium: Market Outlook to 2015.? Table 4 below summarizes the
three cases.

The PEA, including the mine plan, is preliminary in nature and includes
inferred mineral resources* that are considered too speculative
geologically to have the economic considerations applied to them that
would enable them to be categorized as mineral reserves and there is no
certainty that the results of the PEA, including this mine plan, will be
realized. Mineral resources that are not mineral reserves have no
demonstrated economic viability.

Below, Table 5 shows a projected after-tax 10% NPV of $1.2 billion for
the base case which increases to approximately $4.8 billion in the high
case. The low case shows an estimated NPV of $293 million. The estimated
IRRs for the three cases are 36% for the high case, 19% for the base
case, and 12% for the low case. Estimated annual after-tax cash flows at
full production range from $1.2 billion in the high case to $304 million
in the low case, and $482 million in the base case.

Conclusions

Round Top is an Eocene-aged peralkaline rhyolite-hosted REE deposit with
a high ratio of HREEs to LREEs. The rhyolite body is a mushroom-shaped
laccolith, slightly elongated northwest-southeast and dipping gently to
the southwest.

The REEs are primarily contained in the minerals yttrofluorite,
cerofluorite, and bastnaesite, which are very fine-grained and
disseminated throughout the rhyolite mainly in microfractures, voids,
and coatings on predominantly alkali feldspar phenocrysts.

The REEs are hosted within a rhyolite laccolith. Five different colors
of rhyolite are common and indicate varying degrees and types of
alteration, although this seems to have minimal influence on the REE
grades. A preliminary resource model suggests that the deposit has
indicated and measured resources* of 359 million tonnes at an REO grade
of 639 ppm and estimated inferred resources* of 675 million tonnes at an
REO grade of 638 ppm.

Side hill open-pit mining methods are proposed with on-site processing
facilities employing multiple solvent extraction and precipitation
methods. The PEA indicates that process recovery in excess of 70% REE is
anticipated. The preliminary flotation and leaching testwork suggests
uranium can be separated and leached from the rhyolite host rock. The
resource, reserve, and project economics should be further investigated
with consideration to uranium as a resource.

Potential risks to the viability of the Round Top project include our
ability to obtain all necessary surface rights and matters relating to
the disposal of potentially radioactive waste, if any. Both of these
classes of risks are currently considered minimal by the applicable
qualified person.

The PEA assumes a processing rate of 80,000 tonnes of rhyolite per day,
or 29 million tonnes per year, which yields an estimated 26-year mine
life. The likely NPV is considered to be $1.2 billion at a discount rate
of 10%. LOM capital costs are projected to be $3.0 billion. LOM total
cash flow is projected at $10.3 billion.

It is the opinion of the applicable qualified person that the resource
model described in the PEA is suitable for preliminary economic
evaluation and assessment of potential project viability for
determination of advancement of the Round Top project. The PEA results
justify advancing the Round Top project to a PFS.

Recommendations

Based on the potential economic viability of the Round Top project, the
applicable qualified person recommends the following:

• 
  Conduct a drilling exploration program to further delineate the REE
  resource
  
• 
  Conduct an environmental baseline study and begin conceptual design of
  tailings disposal
  
• 
  Conduct continued metallurgical process development testing to include
  a flotation pilot plant to produce a bulk concentrate for detailed
  metallurgical studies
  
• 
  Continue mineralogical characterization of products produced (i.e.
  concentrate, flotation tails, and leach residues)
  
• 
  Prepare a PFS
  

A budget of $20 million for exploration and development drilling,
assaying, metallurgical testwork, environmental baseline studies, and
mine and facilities planning is recommended to move the project through
the PFS stage.

The applicable qualified person made a number visit to the Round Top
project and provided recommendations on quality assurance and quality
control sampling procedures and observed and supervised reverse
circulation and drill core sampling from drill to courier. Certified
laboratory reports were matched with entries in the Company′s database.
Blanks and duplicates were taken periodically and inserted at random
into the sample stream. It is the applicable qualified person′s opinion
that the sampling, sample preparation and quality control/quality
assurance procedures followed by the Company are consistent with
best-practice industry standards. Gustavson Associates, LLC, was
commissioned by the Company to prepare the PEA for the Round Top
project. The PEA report presents the results of the PEA in accordance
with Canadian National Instrument 43-101 (NI 43-101) Standards of
Disclosure for Mineral Projects and Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) 'Best Practices and Reporting
Guidelines.? The effective date of the PEA is May 15, 2012.

The scientific and technical information contained in this press release
is based upon information contained in the PEA, which information was
prepared by or under the supervision of the qualified persons
responsible for the PEA. The following persons are responsible for one
or more sections of the PEA and each person is independent of TRER and
is a qualified person as defined in NI 43-101.

Mr. Donald Hulse, P.E., V.P. and Principal Mining Engineer for Gustavson
Associates, LLC.

Mr. M. Claiborne Newton, III, Ph.D., C.P.G., Vice President and Director
of Geological Services for ECSI, LLC.

Mr. Zachary J. Black, EIT, SME-RM, Geological Engineer for Gustavson
Associates, LLC.

Mr. Deepak Malhotra of Resource Development Inc. (RDi).

Mr. Black is the qualified person responsible for the mineral resource*
estimates in the PEA.

Mr. Anthony Garcia, the Company′s Senior Vice President of Project
Development and Engineering and a qualified person (as defined in NI
43-101), approved the scientific and technical disclosure contained in
this press release.

Conference Call

TRER will host a conference call on Friday, June 15, 2012, at 11:00 a.m.
EDT to discuss the results of the Preliminary Economic Assessment (PEA)
study on its Round Top project. This press release with the PEA results
will be available on our website prior to the call.

The TRER conference call will be accessible by dialing toll-free
1.877.407.0789, or toll/international 1.201.689.8562. The live webcast
will be available at trer.com,
where it will be archived afterward. The press release and presentation
of the PEA results will also be available on TRER′s website at trer.com.

To listen to the conference replay, dial toll-free 1.877.870.5176,
toll/international 1.858.384.5517, and enter replay pin number 396288.
The replay will be available from 2:00 p.m. EDT the day of the
conference call until 11:59 p.m. EDT, June 22, 2012. A transcript will
be posted 48 hours after the call ends.

All '$? and dollar amounts in this press release refer to currency of
the United States of America.

About Texas Rare Earth Resources

Texas Rare Earth Resources Corp.'s primary focus is exploring and
developing its Round Top rare earth minerals project. The Round Top
project is located in Hudspeth County, Texas, 85 miles east of El Paso,
Texas. The Company′s common stock trades on the OTCQX U.S. Premier tier
under the symbol 'TRER.?

For more information on Texas Rare Earth Resources Corp., visit
its website at trer.com.

*Cautionary Note to Investors

The United States Securities and Exchange Commission ('SEC?) limits
disclosure for U.S. reporting purposes to mineral deposits that a
company can economically and legally extract or produce. This press
release uses the terms 'mineral resource,? 'indicated mineral resource,?
and 'inferred mineral resource.? We advise U.S. investors that while
these terms are defined in accordance with Canadian National Instrument
NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum
('CIM?) - CIM Definition Standards on Mineral Resources and Mineral
Reserves, adopted by the CIM Council, as amended (the 'CIM
Standards?), such terms are not recognized by the SEC and are normally
not permitted to be used in reports and registration statements filed
with the SEC. The SEC normally only permits issuers to report
mineralization that does not constitute SEC Industry Guide 7 compliant
'reserves? as in-place tonnage and grade without reference to unit
measures. 'Inferred resources? have a great amount of uncertainty as to
their existence and great uncertainty as to their economic and legal
feasibility. Our Round Top project currently does not contain any known
proven or probable ore reserves under SEC Guide 7 reporting standards.
The results of the PEA disclosed in this press release are preliminary
in nature and include inferred mineral resources that are considered
speculative geologically to have the economic considerations applied to
them that would enable them to be categorized as mineral reserves and
there is no certainty that the results of the PEA will be realized.
Mineral resources that are not mineral reserves have no demonstrated
economic viability. U.S. investors are urged to consider closely the
disclosure in our latest reports and registration statements filed with
the SEC. You can review and obtain copies of these filings at http://www.sec.gov/edgar.shtml.
U.S. Investors are cautioned not to assume that any defined resource
would ever be converted into SEC compliant reserves.

Forward-Looking Statements

This press release contains forward-looking statements within the
meaning of the U.S. Securities Act of 1933, as amended, and U.S.
Securities Exchange Act of 1934, as amended, and forward-looking
information under Canadian securities laws. Mineral resource estimates,
mineralogy, results of PEA (including LOM, cash flows, NPV, IRR, process
facility capacity, total sales, capital costs, percentage of revenues
from CREOs, recovery rates, metallurgical recovery rates, low-acid
consumption, REOs prices, and operating and other costs), timing and
completion of the PEA, support of local community and state officials
for development of project, size of the deposit, economics of the Round
Top project, occurrence of CREOs, mineralogy, use of low-cost
conventional processing methods, ratio of HREEs, consistency of REE
grades within the rhyolite, infrastructure assumptions, conclusions from
leach testing and related recovery and extraction rates, and ability to
separate uranium from host rock are forward-looking statements. The
material factors and assumptions used to develop forward-looking
statements contained in this press release include the following:
exploration and assay results, results of the PEA; mineral resource
estimates; terms and conditions of agreements with contractors
(including Gustavson); assumptions concerning REEs prices; cut-off
grade; power costs, processing recovery rates; mine plans and production
scheduling; process and infrastructure design and implementation;
accuracy of the estimation of operating and capital costs; applicable
tax rates; open-pit design, accuracy of mineral resource estimates and
resource modeling; reliability of sampling and assay data;
representativeness of mineralization; accuracy of metallurgical
testwork; and, board approved plans. When used in this press release,
the words 'potential,? 'indicate,? 'expect,? 'intend,? 'hopes,?
'believe,? 'may,? 'will,? 'if,? 'anticipate,? and similar expressions
are intended to identify forward-looking statements. These statements
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or
achievements expressed or implied by such statements. Such factors
include, among others, uncertainty of mineralized material and mineral
resource estimates, risks relating to completing metallurgical testing
at the Round Top project, risks related to project development
determinations, risks related to fluctuations in the price of rare earth
minerals, the inherently hazardous nature of mining-related activities,
potential effects on the Company′s operations of environmental
regulations, risks due to legal proceedings, risks related to
uncertainty of being able to raise capital on favorable terms or at all,
as well as those factors discussed under the heading 'Risk Factors? in
the Company′s quarterly report on Form 10-Q as filed on April 16, 2012,
and the Company′s latest annual report on Form 10-K as filed on November
22, 2011 and other documents filed with the U.S. Securities and Exchange
Commission. Although the Company has attempted to identify important
factors that could cause actual results to differ materially from those
described in forward-looking statements, there may be other factors that
cause results not to be as anticipated, estimated or intended. Except as
required by law, the Company assumes no obligation to publicly update
any forward-looking statements, whether as a result of new information,
future events, or otherwise.

Texas Rare Earth Resources Corp.

Nadine Wakely, Director

Investor
Relations

303-597-8737

nwakely@trer.com