Canada Rare Earth Corporation

TSX-V symbol: RA

Thunder Bay, ON – Rare Earth Metals Inc (“Rare Earth Metals” or the “Company”) (TSX VENTURE:RA) is pleased to announce exploration plans for 2011. The Company will focus on further testing areas of significant rare earth element mineralization on its Red Wine and Clay-Howells properties for near surface resources.

A 2000 meter drill program is scheduled to commence this week on its Clay-Howells property in Northern Ontario. Field crews have prepared thirteen sites and the drilling will test a number of high priority magnetic targets and ring structures within the 10 kilometer diameter Carbonatite Complex. Rare Earth Metals’ 2011 drill program is focused entirely on testing new areas of the 110 square kilometer property known to contain rare earth element, niobium and iron ore mineralization. A map of the 2011 drill hole locations can be found on the Company’s website at www.RareEarthMetals.ca.

Drilling is also planned on the Red Wine project in Labrador and should commence in June, once break-up is over. Drilling at the Two Tom and Mann #1 sites will be carried out with the intention of compiling a 43-101 compliant indicated resource. A summary of the Red Wine targets follows:

• The Two Tom prospect was drill tested and trenched over a strike length of 1100 meters. A total of 11 holes were completed and the main section of the Two Tom mineralization has been defined as a lens averaging 75 – 80 meters in thickness and completely open in all directions. The best result assayed 1.45% TREO, 0.14% Nb2O5 and 0.14% BeO over 83.25 meters within a larger zone of mineralization which assayed 1.03% TREO, 0.10% Nb2O5 and 0.11% BeO over 168.5 meters. A 3000 meter fill-in and expansion drilling program is planned to develop a resource.
• At the Mann #1 prospect, six holes were completed in 2010 and all intersected the REE/Niobium/Beryllium Zone over a 600 meter strike length with a best result of 1.71% TREO, 0.24% Nb2O5, and 0.20% BeO over 27 meters within a wider zone of 1.04% TREO over 70.5 meters. The zone is also open in all directions where trenching and prospecting have expanded the strike extent of the zone to over 1000 meters. The Mann #1 mineralization is very similar to the mineralization encountered at the Two Tom Zone. A 2000 meter drill program is planned to fill in and further expand the mineralized zone.
• A number of new discoveries of Heavy REE prospects at Dory Pond, Playfair South, and Mann #2 will also be drill tested in 2011. These new discoveries were found late in the 2010 exploration season and previously reported in press releases dated Sept. 22, 2010, Oct. 19, 2010, and Jan. 7, 2011.

“As a result of the wide intercepts of rare earth element mineralization intersected at Two Tom and Mann#2 in 2010, Rare Earth Metals has an excellent opportunity to develop a significant resource at both the Two Tom and Mann #1 prospects,” said Michael Stares, President and CEO of Rare Earth Metals. “To date we have only tested these prospects with widely spaced holes and to shallow depths.” A map of the 2010 drill holes location can be found on the Company’s website at www.RareEarthMetals.ca.

Wayne Reid, P.Geo, is aqualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information forming the basis for release.

About Rare Earth Metals Inc.

Rare Earth Metals is a well-funded company with a focus on exploring for Rare Earth Element deposits. The Company’s shares are listed on the TSX-V exchange under the symbol RA and the OTCQX exchange under the symbol RAREF. The Company presently has two advanced projects in Ontario and Newfoundland and Labrador, both exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. Its flagship properties are the Clay-Howells Prospect and the Red Wine Project. The Company has recently acquired additional properties in the Coldwell Complex near Marathon, Ontario and the Lavergne-Springer REE Prospect near Sturgeon Falls, Ontario. 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 Rare Earth Metals website at www.rareearthmetals.ca.

ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:

“Michael Stares”
President and CEO

“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.”

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. 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:

Rare Earth Metals Inc.

Michael Stares
President and CEO
Phone: (807) 623-6840
Fax: (807) 623-9526
www.RareEarthMetals.ca

Consultant:
Nick Vermeulen
Phone: (807) 623-6840
Cell: (604) 741-4150
Fax: (807) 623-9526
Email: nick@rareearthmetals.ca

Standard and Poor’s Customer Contact:
Richard Albanese
(212) 438-3647
Email: richard_albanese@standardandpoors.com

Standard and Poor’s Media Relations Contact:
Michael Privitera
(212) 438-6679
Email: michael_privitera@standardandpoors.com

Company information distributed through the Market Access Program is based upon information that Standard & Poor’s considers to be reliable, but neither Standard & Poor’s nor its affiliates warrant its completeness or accuracy, and it should not be relied upon as such. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument.