Canada Rare Earth Corporation

Thunder Bay, ON – Rare Earth Metals Inc. (“Rare Earth Metals”, “RA” or the “Company”) (TSX-V: RA; OTCQX: RAREF, PINK SHEETS: RAREF) is pleased to report geochemical results from the first round of sampling on its Coldwell Property located north of Lake Superior in north-western Ontario. A total of 66 prospect samples were taken on the property returning analytical values ranging from 0.03% up to 3.97% TREO with HREO/TREO ratios ranging from 9% to 54%. A breakdown of the individual Rare Earth Oxides include Ce2O5 from 0.01% to 1.63%, La2O5 from 0.006% to 0.97%, Nd2O3 from 0.003% to 0.45%, Y2O5 from 0.003 to 0.43% and Dy2O5 from 0.001% to 0.066%. Niobium values were also very prospective with values ranging from 0.02% Nb2O5 to 1.29% Nb2O5. The sampling program was focused on airborne radiometric anomalies outlined from a recently completed 1522 line kilometer airborne magnetic and radiometric survey (see previous press release dated June 7, 2011). These new discoveries can be grouped into two main clusters associated with radiometric highs. The southeast anomalous cluster is defined by four separate samples assaying between 0.84% and 3.97% TREO with HREO/TREO ratios between 17.4% and 32.8%. The second cluster, located 6 kilometers to the northwest, is Niobium rich with a total of 18 separate samples taken over a 1 kilometer length assaying between 0.2% and 0.8% Nb2O3.

This first pass prospecting program confirms that the Coldwell Property hosts Niobium and rare earth element (REE) mineralization with a significant Heavy REE component and the zones tend to be associated with radiometric anomalies which in some cases are several kilometers in size. Follow up prospecting, trenching and sampling to further evaluate these occurrences is scheduled for after break-up. A map of the sample locations and results can be found on the Company’s website at www.RareEarthMetals.ca.

The Coldwell Property consists of 707 unpatented claim units encompassing 128 square kilometers. The property was staked in 2010 -2011 and is 100% owned by Rare Earth Metals Inc. It is located 275 kilometers east of Thunder Bay and is accessible by road and railway. The Coldwell Property is underlain by the Coldwell Alkaline Complex which is the largest alkaline intrusion in North America encompassing 580 square kilometers. Previous exploration in the Coldwell was focused on the PGM-Copper-Nickel potential and includes Stillwater’s Marathon PGM project located on the eastern rim of the Complex. The RA property mainly covers the central and western sections of the Complex.

Commented Michael Stares, President and CEO of Rare Earth Metals, “We are very pleased with these initial results which suggest that the central Coldwell Complex has potential for significant Rare Earth Element and Niobium mineralization. We will be seeking a partner to help finance follow-up exploration work which will concentrate on the Heavy REE and Niobium components of the new occurrences.”

The surface grab samples described in this news release are selective by nature and are unlikely to represent average grades on the property. The samples were delivered by Company personnel to Activation Laboratories Ltd.’s sample preparation facility in Thunder Bay, Ontario. Once processed, representative pulps were 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 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.

Reg Felix, PGeo., is a qualified 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 web site 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

Corporate Communications:
Matt Witiluk, C.A.
Phone: (807) 623-6840
Fax: (807) 623-9526
Email: matt@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