Canada Rare Earth Corporation

Thunder Bay, ON – Rare Earth Metals Inc (“Rare Earth Metals”, “RA” or the “Company”) (TSX VENTURE:RA) is pleased to report that results have been received from an additional 167 prospect samples collected from various locations within the Company’s Red Wine Property in central Labrador. These new results include values up to 11.9% total rare earth oxides (TREO), 2.88%NbO5, 0.73%BeO, and 2.49% zirconium oxide (ZrO2).

Several new occurrences of rare earth mineralization were discovered on the Mann #2 Block, the B3N Block, and the Two Tom Block, further extending the previously reported mineralized zones and showings (see previous press releases dated August 31 and September 22, 2010). Significant results from these 167 prospect samples are tabulated below:

Rare Earth Metals’ property covers a portion of the highly prospective Red Wine Peralkaline Complex, located in west central Labrador, which is host to a number of rare metal showings. The Company is a major stakeholder in this new emerging rare earth element belt and holds about 70% of the 54 kilometer long Complex. This past summer, an exploration program, comprised of prospecting, geological mapping, litho-geochemical sampling and channel sampling, had followed up on 73 high priority radiometric/magnetic anomaly clusters delineated in a previously completed airborne survey. The prospect samples described above were collected as part of this field program and results from an additional 123 samples are still pending.

In addition to the summer field program, a 2900 meter diamond drilling program was completed on the two advanced REE showings, Mann #1 Deposit and the Two Tom Prospect. Results from 10 of 18 holes have been received and these results were described in previous press releases. The results from the final 8 holes along with the remainder of the prospect samples will be released as they become available.

Michael Stares, President and CEO commented, “These prospect sample results, along with the recent drill results, confirm the high potential of the Red Wine Complex to host a number of significant REE deposits. The drilling continues to define wide zones of moderate grade REE/Nb/Be mineralization however the results of the prospecting, especially in the Dory Pond/area of the B3N Block continue to show impressive REE/Zr numbers with very high Heavy REE ratios, indicating a different style of mineralization.”

To date 892 prospect samples with values up to 11.9% TREO, 8.705% Nb2O5, 2.00% BeO, and 5.82% ZrO2, 271 channel samples from 20 trenches with a best result of 1.35% TREO over 30 meters, and 860 drill core sample results from 10 holes with a best result of 1.35% TREO, 0.31% Nb2O5 and 0.32% BeO over 105.7 meters have been reported.

All prospect samples were delivered by Company personnel to Activation Laboratories Ltd.’s sample preparation facility in Happy Valley-Goose Bay. The samples were processed and representative pulps sent to Activation Laboratories Ltd.’s analytical facility in Ancaster, Ontario for analysis. The digestion technique was total digestion that employs a lithium metaborate/tetraborate fusion and the analysis is completed using ICP/MS and XRF techniques. Actlabs is an ISO 17025 (Lab 266) and NELAP (lab E87979) accredited lab for specific registered tests.

The Rare Earth Element assays are reported as Total Rare Earth Oxides (TREO), the Niobium assays are given as Niobium Oxide (Nb2O5), the Beryllium assays are given as Beryllium Oxide (BeO), and the Zirconium assays are given as Zirconium Oxide (ZrO2). The TREO includes all the Rare Earth Oxides plus Yttrium Oxide. As per industry standard the TREO are broken down into Light Rare Earth Oxides (LREO) and Heavy Rare Earth Oxides (HREO). The LREO consists of Ce2O3, La2O3, Nd2O3, Pr2O3 and Sm2O3 and the HREO consists of Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3. The %HREO is calculated by dividing the HREO by the TREO. The most abundant REEs from the sample analysis described above are in decreasing order: Cerium, Lanthanum and Neodymium.

Wayne Reid, PGeo, 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