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Namibia Rare Earths Inc.

The Rare Earth Playing FieldWhy the Lofdal Discovery in Namibia Can Compete

Technology Metals Summit - TorontoApril 21-22, 2013

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Forward Looking StatementsThis presentation contains forward-looking statements that relate to the Company's current expectations and views of future events.

In some cases, these forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "anticipate", "aim", "estimate", "intend", "plan", "seek", "believe", "potential", "continue", "is/are likely to" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The Company has based these forward-looking statements on its current expectations and projections about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. These forward-looking statements include, among other things, statements relating to (i) the Company's strategy, growth, development and acquisition opportunities, return on existing assets, operational excellence and financial management; (ii) the Company's expectations regarding its revenue, expenses and operations; (iii) the Company's anticipated cash needs and its estimates regarding its capital and operating expenditures; (iv) capital requirements, needs for additional financing and the Company's ability to raise additional capital; (v) the Company's estimates of future cash flows, financial condition and operating performances of the Company and its subsidiaries; (vi) the estimation of any mineral resources and the realization of mineral reserves based on mineral resource, estimates and estimated future development, if any, and possible variations of ore grade or recovery rates; (vii) estimated results of planned exploration and development activities; (viii) the Company's competitive position and its expectations regarding competition from other companies globally; (ix) the Company's ability to maintain customer and supplier relationships; (x) anticipated trends and challenges in the Company's business and the markets in which it operates, including with respect to potential new rare earths projects, supply outlook and growth opportunities; (xi) limitations of insurance coverage; (xii) the future price of and future demand for rare earths elements and their derivative products; (xiii) economic and financial conditions; (xiv) interest rates and foreign exchange rates; (xv) performance of counterparties in fulfilling their obligations; (xvi) government regulation of mining operations, accidents, environmental risks, exploration risks, reclamation and rehabilitation expenses; (xvii) title disputes or claims; and (xviii) the timing and possible outcome of pending regulatory and permitting matters.

Forward-looking statements are based on certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. These assumptions include continued political stability in Namibia, that permits required for the Company's operations will be obtained in a timely basis in order to permit the Company to proceed on schedule with its planned drilling programs, that skilled personnel and contractors will be available as the Company's operations continue to grow, that the price of rare earths will remain at levels that will render the Company's projects economic and that the Company will be able to continue raising the necessary capital to finance its operations. Forward-looking statements involve a variety of known and unknown risks, uncertainties and other factors, including those listed under the heading "Risk Factors" in the prospectus of the Company dated April 7, 2011 (filed on SEDAR www.sedar.com), which may cause the Company's actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements.

The forward-looking statements made in this presentation relate only to events or information as of the date on which the statements are made in the presentation. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, a future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

There can be no assurance that such forward looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, potential investors should not place undue reliance on forward-looking information.

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Corporate Summary – April 15, 2013

Listings Toronto Stock Exchange (“NRE”)OTCQX in the United States (“NMREF”)

Head Office Halifax, Nova ScotiaIssued 77,828,500 sharesOptions 5,200,000 (priced at $0.41 - $0.80)Fully Diluted 83,028,500 shares52 Week High/Low $0.50/$0.17Current Price Range $0.18 - 0.20 Market Capitalization $15 millionCash Balance $15 millionDebt Nil

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Management and Directors

GERALD J. MCCONNELL, QC – DIRECTOR AND CEOLawyer. Founded NovaGold Resources in 1984 (currently Director). Former President and Chief Executive Officer of Etruscan Resources to 2010. Partner with the law firm Patterson Palmer from 1971 to 1987.

DONALD M. BURTON, MSc, PGeo - PRESIDENTProfessional Geologist with over 30 years’ international experience in exploration for gold, uranium, base metals and rare earths. Former VP Exploration of Etruscan Resources oversaw all acquisitions and developments in West Africa (1994-2010) and Namibia (2005-2010). Former VP Exploration NovaGold Resources Inc. from 1987 to 1998.

FRANCK BIZOUERNE – EXPLORATION MANAGERGraduate geologist with over 15 years’ experience in Africa specializing in gold and uranium exploration. Project Geologist with BRGM and AREVA (1997-2006) in Madagascar, Côte d'Ivoire, Mali, and Niger. Country Manager for Etruscan Resources (2006-2011) in Burkina Faso.

JANICE A. STAIRS, LLB, MBA - GENERAL COUNSEL AND CORPORATE SECRETARYLawyer with over 25 years’ experience in the resource sector. General Counsel to Endeavour Mining 2010-2011 following Endeavour’s acquisition of Etruscan Resources. Former Vice President and General Counsel with Etruscan 2004-2010). Partner with the law firm of McInnes Cooper (formerly Patterson Palmer)

TERI ANDERSON, BSc, CA, MBA – CHIEF FINANCIAL OFFICERChartered Accountant providing contract services to both public and private companies since 1999. Also CFO for Mountain Lake Resources Inc. and Buchans Minerals Corp. Management positions in the corporate finance group of Nova Scotia Power (1994-1999). Accountant with Ernst & Young LLP (1989-1994).

KALIDAS V. MADHAVPEDDI – CHAIRMANEngineer. President of Azteca Consulting LLC, Aurizon Resources Ltd and Forex Investment Group Limited. 30 years in the mining industry, former Senior VP for Phelps Dodge Corporation and President of Phelps Dodge Wire and Cable

ADRIAN T. HICKEY - DIRECTORPrivate developer and financier, focusing on early stage mining prospects throughout Sub Saharan Africa. Former Chairman and CEO of Minas de Revuboe Limitada (coal in Mozambique), MD of NAB Mining Group Africa (coal in South Africa) and founder and MD of Swiss Chrome International AG, (developed the fourth-largest ferrochrome producer in the world).

DOUGLAS J. JACKSON - DIRECTOREngineer. Executive Vice President of Chemical and Oxides with Molycorp. Former President and CEO with Dyno Nobel the largest operating subsidiary of Dyno Nobel ASA, and Engineer with Union Oil Company of California.

GREGORY S. JOHNSON - DIRECTORExploration geologist with more than 20 years' experience. President and CEO of Prophecy Platinum, former President and CEO of South American Silver; VP, Strategic Development of NovaGold Resources.

BILL KOUTSOURAS - DIRECTORChartered Accountant. President of Kouts Capital, a consulting company providing strategic advice, introduction to capital providers and transaction structuring and implementation. Former Executive VP and CFO of Endeavour Mining.

GLENN R. WILLIAMS - DIRECTORChartered Accountant. Former managing partner for Grant Thornton LLP, director in the Canadian Institute of Chartered Accountants. Fellow of the Institute of Chartered Accountants of Nova Scotia.

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The Rare Earths – Heavies and Lights

15 elements with atomic numbers from 57-71 (lanthanides) + scandium and yttrium which frequently occur with the lanthanides and have similar properties

Important to define where you put the split between LREE and HREECommon convention is to split between samarium and europiumNOTE: Yttrium is considered a HREE

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Why Does Everyone Want Heavies? Part I – Supply Concerns

• Rare earth elements are essential for high-tech applications (computers, cell phones, hybrid cars, wind turbines and defence industry applications)

• The US Department of Energy has identified 5 critical elements that are at a serious supply risk over the next 15 years – dysprosium (Dy), terbium (Tb), neodymium (Nd), europium (Eu) and yttrium (Y)

• >90% of the value in Lofdal lies in dysprosium, yttrium, terbium and europium

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Oxide January 2010 January 2011 July 2011 Feb 2013 % Change 20 mo % Change 3 yr(US$/kg) (US$/kg) (US$/kg) (US$/kg) (July '11-Feb '13) (Jan '10 - Feb '13)

Lanthanum 6 61 154 10 -94% 67%Cerium 4 64 157 11 -93% 175%

Praseodimium 23 92 247 83 -66% 261%Neodymium 24 93 328 78 -76% 225%

Samarium 5 49 127 23 -82% 360%Europium 480 630 5560 1550 -72% 223%Terbium 350 618 4260 1250 -71% 257%

Dysprosium 121 325 2591 615 -76% 408%Yttrium 10 75 180 36 -80% 260%

Why Does Everyone Want Heavies? Part II - Pricing

• Decision to IPO Lofdal was made in early 2010 after which rare earth oxide prices rose dramatically to a peak in July 2011. Prices have fallen back dramatically in the past 18 months but still remain robust.

• Prices have dropped 70-95% from 2011 peaks but prices are still up over 248% from 2010 prices, and heavies have maintained their value relative to lights.

Price sources: Technology Metals Research derived from metal-pages.com for 99% REO FOB China

LREE

HRE

E

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Heavy Rare Earth Enrichment - Material Grades1

Most rare earth deposits have a preponderance of light rare earths. The relative proportion of heavies to the total grade expressed as a percentage defines the degree of heavy rare earth enrichment. Deposits with >10% enrichment (far right column indicated with below) are considered to be “enriched” in heavies. No consideration to tonnage or economics.

TREO grades range from 0.24% to 11.65% and H:T range from 0.6% to 52.7%

Rare Element

Navigator

Alkane

GWG

Lynas

Stans

Greenland

Lynas

Molycorp

Avalon

Arafura

Tasman

Hudson

GWG

Quest

Frontier

Matamec

1 Source: Technology Metals Research Company Report February 2011

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Heavy Rare Earth Enrichment - REO Distribution1

1 Source: Technology Metals Research Company Report February 2011

< 5%

HRE

E5

- 20%

HRE

E20

– 5

3% H

REE

0.6%Molycorp

3.3%Rare Element

5.4%Lynas

7.7%Great Western

7.8%Frontier

15.5%Avalon

23.3%Alkane

43.2%Quest

52.7%Tasman

2.2%Hudson

3.7%Great Western

36.9%Matamec

REE deposit grades are expressed as %TREO but the relative proportions of the 15 individual rare earth oxides (REO) within each deposit is referred to as REO distribution. Knowing the distribution allows you to calculate tonnages of individual REOs. For example, a 10,000 t REO/year operation with a Dy distribution of 2% could produce 200 tonnes of dysprosium oxide a year.

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Why is Lofdal Unique? Extraordinary HREE Enrichment

EXPLORATION REPORTED FROM AREA 4 IN 2011

Hole NLOFDH015 intersected 16 m of 1.28% TREO with 94.5% HREE enrichment (including 2 m of 6.18% TREO with 98.4% HREE enrichment)

It is this exceptional HREE enrichment which makes Lofdal so unique. The discovery of a viable REE deposit with such a distribution would be very significant.

La2O3 Ce2O3 Pr2O3 Nd2O3 Sm2O3 LREO Eu2O3 Gd2O3 Tb2O3 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3 Y2O3 HREO TREO HREO:TREOppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm % % Ratio as %151 282 32 131 110 0.07 93 510 157 1,248 281 833 121 721 108 8,070 1.21 1.28 94.5

NLOFDH4015 from 27- 43 m = 16 m with 94.5% HREE enrichment

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Namibia Overview

• Mining friendly operating jurisdiction (4th largest uranium producer in the world)

• Excellent infrastructure

• Major mine operators and developers include:– Rio Tinto (Rossing)– Paladin Energy (Langer Heinrich)– Areva (Trekkopje)– Forsys Metals (Valencia)– Bannerman Mining (Etango)– Extract (now Swakop Uranium)– AngloGold Ashanti (Navachab)– De Beers (Namdeb)

• A dedicated and highly organized approach to support the exploration community from the Ministry of Mines and Energy, and from the Geological Survey of Namibia

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Lofdal Rare Earth Project

Source Geological Survey of Namibia (2006b)

EPL 3400 –Lofdal (573 km2)

Carbonatite Complex(200 km2)

The Lofdal carbonatite complex covers 200 km2 within Exclusive Prospecting Licence 3400

450 km northwest of Windhoek

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Rare Earth Deposit Exploration Model (Carbonatites) • Carbonatites and related rocks typically are anomalous in rare earths, Ba, Nb, Sr, Ta, Th and U

- Important deposits of this type are Mountain Pass, Mt. Weld, Bear Lodge, Palabora and Bayan Obo• Level of erosion at Lofdal has exposed the top of the Main Intrusion, a carbonatite pipe at Emanya

Intrusion and hundreds of dykes• We are walking across the top of the magma chamber and everything we are looking for should be

preserved underneath

Level of Erosion

Emanya Intrusion

Carbonatite Dykes

Main Intrusion

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District Scale Potential Demonstrated by Rock Sampling

Main Intrusion

Emanya Intrusion

Regional rock sampling has confirmed the district scale potential of Lofdal. Approximately 4,000 outcrop samples covering 80 km2 analyzed for REEs between 2008-2010. Carbonatite dykes display both LREE and HREE enrichment. Main Intrusion weakly anomalous in REE and Emanya Intrusion shows moderate LREE enrichment. Where would you start drilling?

15 km

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Clear Structural Controls on HREE Mineralization

Main Intrusion

Emanya Intrusion

Classification of same 4,000 rock samples by level of heavy rare earth enrichment shows 4 major structures where HREE fluids have migrated. Area 4 was discovered in late 2010 by mapping during the pre-IPO work program and was selected for the initial 43-101 resource target

15 km

Main Intrusion

Emanya Intrusion

15 km% HREE

Enrichment

>50>75>90AREA 4

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• IPO April 20119,500 m exploration drill program tested 16 of 18 targets

• HREEs targets confirmed by drilling in Areas 2, 4 and 5

• LREE targets confirmed in Areas 6 and 8

• Area 4 selected as first resource target in December 2011

• 43-101 HREE resource completed in September 2012

• 200 km2 to explore

Summary of Exploration Drilling from 2011

Lofdal Carbonatite Complex from Airborne Geophysics

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Area 4 Initial 43-101 Resource – High Quality Database

Sxn 550E

Sxn 550E

Trenches (green) = 870 mDiamond drill holes 2011(black) = 3,100 mDiamond drill holes 2012 (blue) = 6,000 mMetallurgical holes (pink) = 310 m

10,280 m

650 meters

DH4092

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Summary Resource Statement Area 4

Source: NI 43-101 Technical Report and Mineral Resource Estimate for Area 4 of the Lofdal Rare Earth Element (REE) Project, Khorixas District, Republic of Namibia, July 31, 2012

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TMR Advanced Rare Earth Projects – Now on Radar Screen

Lofdal is now one of the 49 REE projects being tracked by TMR Research.

The high HREE makes Lofdal the most valuable REE deposit in terms of basket price

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Where Does the Lofdal Resource Fit in the Playing Field?

• Exceptional HREE enrichment at Lofdal (85%) is very competitive in value position with well known deposits in the 1-2% TREO grade range

• In situ values (US$/tonne) reflect grade and distribution of REOs in terms of resource in the ground

• No consideration given to tonnage, recoveries or economics – it is just a yardstick

(1) Calculated as the sum of the oxide grades of Lanthanum, Cerium, Praseodymium, Neodymium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, Lutetium, and Yttrium

SOURCE: REO value per unit mass of mineral resource (US$/tonne) and TREO grades from Technology Metals Research using February 2013 average REO FOB China prices

TREO Grade:(1)

Steenkampskraal

Mount Weld

Mountain Pass

Bear Lodge

Zandkopsdrift

Nechalacho

Strange Lake

Bokan Mountain

KipawaNorra Karr

HastingsKutessay II

Lofdal @ 85% HREE

Pricing and grades as of February 2013

16.5 7.9 6.6 3.0 2.2 1.4 0.6 0.9 0.7 0.6 0.4 0.3 0.2

$6,295

$3,254

$1,614

$1,223

$945$715 $621 $518 $515 $485 $264 $227 $203

93% of the Value is in the 4 Most Critical Heavy Rare Earths

Distribution1 Value1

1 Source: Technology Metals Research using REO FOB China prices December 2012

DOE Criticality Index

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Lofdal resource at 0.3% TREO cut-off

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Resource Only Drilled to 100-150 Vertical Meters - Potential to Double Area 4 Resource

November 13, 2012 -Announced intersection of Area 4 deposit at 350 vertical meters

Simple and predictable = low cost open pit mining

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Every REE Deposit Must Demonstrate Amenability to Extraction

Next project milestones will come from the metallurgical test program on representative samples of HQ core being carried out by Mintek laboratories of South Africa.

Mineralogy has confirmed xenotime as the major HREE mineral. Xenotime has been successfully “cracked”. Focus of the Mintek program is on fine grain size and removal of thorium. Preliminary, un-optimized results released April 3 produced 8-10% TREO concentrates with 94-96% heavy rare earth enrichment from -38 µm grind. Potential for >50% Th removal by magnetic separation and further >90% from concentrate by leaching.

Fine grained xenotime in crystal aggregates and disseminations. showing individual crystals to >50µ and xenotime aggregates can

exceed 100 microns (Clarke, 2011)Coarse grained xenotime (green) in calcite matrix with iron oxides.

Cathodoluminescence image by Mariano, 2012.

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Sorting Tests Completed in Germany

Commercial scale sorting machine used for Lofdal test work at Tomra Sorting Solutions in Germany

Initial scan showing variations in density

Sorting can eliminate waste in the 10-50 mm size range BEFORE they enter the mill for costly grinding and separation processes. By reducing the volume of the run-of-mine after crushing, and eliminating waste you will also increase the grade of ore that would be delivered to the mill.

Tomra testwork concludes potential for 50% mass reduction recovering >90% REE at Lofdal

Near perfect sort from XRT scanner tests. Computer enhanced images of mineralized pieces in lower right.

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Significance of Lower Cut-Off Grade at Lofdal

Source: NI 43-101 Technical Report and Mineral Resource Estimate for Area 4 of the Lofdal Rare Earth Element (REE) Project, Khorixas District, Republic of Namibia, July 31, 2012

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Conceptual Development of the Area 4 Resource “As Is”

Assumptions:Positive outcomes of metallurgical studies provide a 0.1% TREO cut-off Establish a reserve of 6.5 MT @ 0.3% TREO with 75% HREE (20,000 t REO) Target production of 2,500 tonnes REO per annum

Scale of Mining Operation:850,000 tpa mining (2,500 tpd) Mine life of 7.5-8 years

Annual Outputs of Critical HREO1 World Supply 2011 % of World Supply175 tonnes dysprosium oxide 1,167 tonnes2 15%1250 tonnes yttrium oxide 8,900 tonnes3 14%25 tonnes terbium oxide 209 tonnes2 12%20 tonnes europium oxide 203 tonnes2 10%

Note 1: assumes 100% recovery Sources: 2 = Byron Capital and 3 = USGS

All these metals are projected to be in supply deficit to 2020

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Significance of Conceptual Production from Lofdalwith respect to Global Production (China)

• Chinese supply of HREE is averaging about 18,000 tpa • 2,500 tpa REO from Lofdal @ 75% heavy enrichment = 1,875 tpa of HREE• Lofdal would represent about 10% of global production of HREE* but the

Chinese limit supply outside of China through export quotas

* Assumes 100% HREE supply from China.Source: Chinese Ministry of Land and Resources from ProEdge Wire website January 8, 2013

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Significance of Conceptual Production from Lofdalwith respect to ROW Supply (Chinese Export Quotas)

Chinese Production and Export Quotas for Rare Earths 2012 and H1 2013*

LREE M/HREE TotalTotal Production from China 2012 75,900 17,350 93,250 tonnesChinese Export Quotas 2012 27,122 3,874 30,996 tonnes

Production from China H1 2013 37,950 8,950 46,900 tonnesChinese Export Quotas H1 2013 13,561 1,938 15,499 tonnes

China produces 18,000 t of M/HRE but only allows 3,800 t out

* Source: Chinese Ministry of Commerce from TMR website December 28, 2012

2,500 tpa REO @ 75% heavy enrichment = 1,875 tpa of HREE

Lofdal would represent about 50% of ROW supply of HREE

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Exploration Continues over 200 km2 Carbonatite Complex

10 kilometers

Area 4 Resource

REE Occurrence

NEW DISCOVERY

November 13, 2012 -Announced discovery of new zone 1.5 km northeast of Area 4 resource

Exploration drill results from Area 2, Area 6 and Area 8 are pendingArea 6

Nb-U Occurrence

Area 8

Area 2

Area 4

Namibia Rare Earths - Key Drivers for Success

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New District – 100% control of 200 km2 Lofdal carbonatite complex (identified in 2001 by Mariano and Siegfried; first regional prospecting by NRE from 2008-2010) New Discovery – Initial 43-101 compliant resource announced September 2012, open at depth

Heavy Rare Earth Deposit – Over 90% of the value of the initial resource lies in Dy, Y, Tb and Eu

Metallurgical Studies On-going – First xenotime concentrates grade 8-10% TREO with 94-96% heavies; current focus is on optimizing concentrates (not a PEA or FS)

Modest Scale Mining Operation – Not a “megaproject” but at 2,500 tpa REO could provide 10-15% of global supply of the 4 most critical heavies. 50% of Chinese export quotas for heavies.

Corporate Strategy – Not looking to build or finance a separation plant; we are explorers and will seek a qualified industry partner for separation and end users

Well Financed – $15M in cash and no debt

Upside – Could be the first sustainable supply of heavy rare earths outside of China, and the district scale opportunity can deliver more discoveries (HREE, LREE, NB, U and Ta)