Rare Earth Metals Completes the Acquisition of Four Rare Earth Properties

Rare Earth Metals Inc. ("Rare Earth Metals", "RA" or the "Company") (TSX
VENTURE:RA)(PINKSHEETS:RAREF)(OTCQX:RAREF) is pleased to announce the closing of
the acquisition of four key rare earth properties known as Mann One and Two Tom
within the Red Wine district in Labrador, adjacent mineral claims to the Mann
One and Two Tom properties known as the Red Wine Claims plus surface rights and
mineral claims adjacent to the Lavergne-Springer Property in Ontario known as
the "Lavergne-Springer Extension" (collectively referred to as the "Acquired
Properties"). 


The Acquired Properties together with the previously acquired Lavergne-Springer
Property and the Dory Pond Property in the Red Wine complex (collectively
referred to as the "Properties") have been acquired based on the success of
exploration to date and represent the Company's initial rare earth property
inventory. The Properties will be the basis of a platform from which the
recently announced rare earth vertical integration strategy will be launched.
Going forward, in addition to continuing to assess the Properties, the Company
will be assessing other property opportunities developed by third parties if
they have the mineralogical characteristics that are required in order to have
the potential to produce rare earth end products that meet customer
specifications. 


In order to complete the acquisition of the Acquired Properties the Company: (i)
paid and issued to the vendors of the Mann One and Two Tom properties the
aggregate of $86,800 and 100,000 common shares pursuant to an amended option
agreement; (ii) paid $100,000 to the vendor of the Red Wine Claims pursuant to
an amended option agreement; and (iii) issued 800,000 common shares in June 2012
to the owners of the Lavergne-Springer Extension pursuant to an amended option
agreement. The Company previously acquired 100% of the Lavergne-Springer
patented surface rights for $150,000 and has the right to acquire 100% of the
patented mineral rights for $241,111 of which it has paid $80,000. The Acquired
Properties are each subject to a 2% NSR royalty, 50% of each may be purchased by
the Company for $1 million. 


The results of exploration on the Properties include: (i) a NI 43-101 compliant
inferred resource estimate at the Two Tom property consisting of 40 million
tonnes grading 1.18% total rare earth oxide (see press release dated December
13, 2011); (ii) at the Dory Pond Property a 42.9 meter intercept of 1.11% total
rare earth oxide of which 41% was heavy rare earth oxide situated in a large
soil anomaly measuring 3 kilometers by 2 kilometers (see press release dated
Sept 6, 2011); and (iii) a NI 43-101 compliant indicated resource estimate at
the Lavergne-Springer Property consisting of 4.2 million tons averaging 1.14%
total rare earth oxides with an inferred resources of 12.7 million tons
averaging 1.17% total rare earth oxides consisting of 17% neodymium oxide
content in the indicated category and 15.6% neodymium oxide content in the
inferred category (see press release dated May 11, 2012).


Reg Felix, P Geo., is a qualified person as defined in National Instrument
43-101, and has reviewed and approved the technical information forming the
basis for release.


Rare Earth Metals has recently entered into a strategic advisory agreement with
CEC Rare Earth Corp. ("REC") to assist the Company in developing a vertically
integrated business within the global rare earth industry. The relationship with
REC provides the Company with access to REC's experienced personnel as well as
its business model which includes the 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 to REC the Company
presently has several rare earth properties including 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. 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.: 

Tracy A. Moore, CEO & President

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


Certain information set out in this News Release constitutes forward-looking
information. Forward-looking statements (often, but not always, identified by
the use of words such as "expect", "may", "could", "anticipate" or "will" and
similar expressions) may describe expectations, opinions or guidance that are
not statements of fact and which may be based upon information provided by third
parties. Forward-looking statements are based upon the opinions, expectations
and estimates of management of Rare Earth Metals Inc. ("REM") as at the date the
statements are made and are subject to a variety of known and unknown risks and
uncertainties and other factors that could cause actual events or outcomes to
differ materially from those anticipated or implied by such forward-looking
statements. Those factors include, but are not limited to, the successful and
timely completion of its vertical integration strategy including identifying and
negotiating with viable, long term sources of rare earths, transitioning rare
earth exploration properties into mines, assisting with fund raising to support
mining operations, identifying and negotiating with rare earth refineries
situated outside of China either to acquire partly or entirely, or commissioning
the design, build and operation of a rare earth separation refinery to be
situated outside of China, raising sufficient funds to support the construction
and operation of the refinery, reliance on third parties to meet projected
timelines, entering into long term contracts with international manufacturers on
terms acceptable to REM, risks related to the receipt of all required approvals
including those relating to the commencement of production at selected mines and
a refinery yet to be identified, delays in obtaining permits, licenses and
operating authorities, environmental matters, water and land use risks, risks
associated with the industry in general, commodity prices and exchange rate
changes,


operational risks associated with exploration, development and production
operations, delays or changes in plans, risks associated with the uncertainty of
reserve or resource estimates, health and safety risks, uncertainty of estimates
and projections of production, costs and expenses, the adequacy of the Company's
financial resources and the availability of additional cash from operations or
from financing on reasonable terms or at all, political risks wherever REM may
conduct business, risks associated with the relationship between REM and/or its
business partners and local governments wherever REM conducts business,
radioactivity and related issues, dependence on one or a few mineral projects,
loss of key personnel, factors discussed in the Company's public disclosure
record, and other factors that could cause actions, events or results not to be
as anticipated. In light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place undue reliance
upon forward-looking information. Although REM believes that the expectations
reflected in the forward-looking statements set out in this press release or
incorporated herein by reference are reasonable, it can give no assurance that
such expectations will prove to have been correct. Except as required by law,
REM does not assume any obligation to update forward looking statements as set
out in this news release. The forward-looking statements of REM contained in
this News Release, or incorporated herein by reference, are expressly qualified,
in their entirety, by this cautionary statement and the risk factors contained
in REM's regulatory filings available at www.sedar.com.