Canada Rare Earth Corporation

August 20, 2020

Canada Rare Earth to Issue Shares for Debt

Canada Rare Earth Corp. (“Canada Rare Earth” or the “Company”) (TSX.V: LL) announces that, subject to approval from the TSX Venture Exchange (the “Exchange”), it will be settling debts owed to two insiders: $161,546 of debt by issuing 3,167,565 shares at a deemed price of $.051 per share and $5,000 of debt by issuing 83,333 shares at a deemed price of $0.06 per share.

All securities issued pursuant to the debt settlement will be subject to a four-month hold period.

The Company also announces that an officer of the Company has exercised 300,000 stock options at $0.05 per share.

On behalf of the Board

Tracy A. Moore, CEO and Peter Shearing, COO

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. Forward-looking statements in this release are made pursuant to the ‘safe harbour’ provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.

For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.