Canada Rare Earth Corporation

CANADA RARE EARTH UPDATES METALLURGICAL RESULTS FOR LAVERGNE-SPRINGER REE ZONE

November 19, 2013

VANCOUVER, BRITISH COLUMBIA - Canada Rare Earth Corp. ("CREC" or the "Company") (TSX.V:LL) is pleased to report on mineral separation tests carried out by XPS Consulting and Testwork Services (XPS) of Falconbridge, Ontario on the Lavergne-Springer REE deposit. XPS carried out a series of flotation tests using drill core from the Springer mineralized zone which indicated that the rare earth minerals can be concentrated by flotation methods.

The Lavergne-Springer REE deposit is located in northwestern Ontario, immediately north of the Town of Sturgeon Falls and 80 km east of Sudbury, Ontario. The mineralization is located on a 128 hectare parcel of patented mineral claims (the “Patent”). 

A resource estimate was prepared by Tetra Tech Wardrop in 2012, who calculated a near surface resource including an Indicated Mineral Resource of 4.2 million tonnes grading 1.14% TREO and an Inferred Mineral Resource of 12.7 million tonnes grading 1.17% TREO. (see press release dated May 10, 2012). Preliminary mineralogy indicates the REEs are hosted in one predominate REE carbonate mineral – Synchysite, which is a REE carbonate. Previous testwork undertaken by Tony Mariano to concentrate the synchysite mineralization on a bench scale were successful through the use of magnetic and gravity techniques (press release dated Jan. 12, 2012). 

The latest metallurgical work carried out by XPS and reported here, was commissioned to investigate the amenability of the ore to REE concentration by froth flotation. Although more work is required to establish an optimum process, work to date has been very promising. A summary of the XPS report follows: 

“Bench scale flotation tests were conducted on an ore sample from the Springer-Lavergne deposit in Ontario to examine the feasibility of concentrating the ore by flotation. The scope of the project did not allow the development of a flowsheet all the way to a saleable concentrate; rather, the project is a preliminary assessment of whether flotation would be a likely avenue for further development of flotation as a commercial process for the ore. Starting with a composite containing ~1.2% LREO, grades of 3.4% LREO were obtained in rougher flotation at 82% recovery, and grades as high as 12% LREO were produced in rougher flotation at 25% recovery. Thus there are substantial indications that the rare earth elements are both recoverable and upgradeable.” 

Work over the past five years on the Lavergne-Springer deposit has continued to produce positive results regarding all aspects of its potential to become a medium sized producer of REEs. These positives can be highlighted as follows:

-       Location on patented mining and surface rights with easy access to infrastructure

-       Proximity to an existing mining/metallurgical complex at Sudbury

-       Near surface resource amenable to open pit mining

-       Simple mineralogy - 95% of the REEs are within one mineral - synchysite

-       Positive metallurgical test work indicating a path forward for production of a REE concentrate

CREC is encouraged by the metallurgical results which confirm that the property continues to have significant potential.  Going forward management will, in the context of the Company’s vertical integration strategy, develop a plan for the further development of the property which will involve an assessment of whether the Company should itself continue exploration of the property or whether the Company would be best served by bringing in a joint venture partner to assist with the financial requirements for further development. 

Wayne Reid, P.Geo., is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the background information described in this release.

ABOUT CANADA RARE EARTH CORPORATION

Canada Rare Earth Corporation is developing a vertically integrated business within the global rare earth industry in conjunction with CEC Rare Earth Corporation (“REC”).  The relationship with REC provides the Company with access to REC’s experienced personnel as well as its business model which includes a full spectrum of the rare earth industry including the designing, building and establishment of operations for rare earth refineries outside of China as well as the ongoing sales and marketing of refined rare earths.  In addition to its relationship with REC, the Company presently has several rare earth properties exhibiting multi element potential (rare earths, niobium, beryllium, zirconium and iron ore).  Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under the Company’s profile at www.sedar.com. For more information, please visit the Canada Rare Earth Corporation web site at www.canadarareearth.com.

ON BEHALF OF THE BOARD OF DIRECTORS OF CANADA RARE EARTH CORP:

Tracy A. Moore, CEO & President

"Neither the 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."

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

FOR FURTHER INFORMATION PLEASE CONTACT:

Tracy A. Moore

CEO and Director

(604) 638-8886

or

Michael Stares

Director

(807) 623-6840