Rare Earth Metals Inc. Outlines Rare Earth Vertical Integration Corporate Strategy

Rare Earth Metals Inc. ("Rare Earth Metals", "REM" or the "Company") (TSX
VENTURE:RA)(OTCQX:RAREF)(PINKSHEETS:RAREF). Management of the Company is pleased
to report an outline of its plans to develop a vertically integrated supply
chain in the near future, in the context of the issues facing the rare earth
industry. The solution has the potential to position the Company as an industry
leader in the rare earth sector by bridging the lack of prospective customer
problem facing exploration companies with the lack of diversified supply facing
major manufacturing companies.


The Refining Problem

The global rare earth industry currently has certain complex issues facing it
and needs solutions involving much more than simply having some 200 companies
exploring for rare earth deposits. Rare Earth Metals Inc. is shifting its
business focus from exploring for rare earths to developing a vertically
integrated supply chain connecting exploration to mining/concentration to
separation/refining to major international customers of the individual rare
earths. Currently the components of the supply chain are disjointed because the
vast majority of the critical separation/refining capability is found primarily
in China. As a consequence of the domination by China of the refining stage,
manufacturing companies whose products depend on rare earth supply have four
choices when sourcing these critical elements:




1.  Continue to obtain refined rare earths from China; 
2.  Manufacture products in China; 
3.  Design products without or with minimal use of rare earths (impossible
    in some cases and reduces product performance characteristics in many
    others); or 
4.  Attempt to source rare earth materials from one of the very few
    refineries situated outside of China.  



The volatile and restrictive challenges inherent in the supply chain often
result in companies making sub-optimal strategic and product decisions. 


The Solution

As a first step, the Company has retained CEC Rare Earth Corporation ("REC") to
assist with developing a vertical integration strategy and plan alternatives.
Details of the strategy, business plan and implementation program will be
developed over the coming months as REC completes its initial consulting
assignment and the Company and REC collaborate on a specific path forward. The
Company intends to implement a vertically integrated strategy with the following
aspects in order to deliver optimal rare earth product mixes within a short time
frame to market:




1.  Identify potential rare earths sources: 
    
    a.  Mines (in addition to assessing mines owned by others, the existing
        Company properties will be assessed as a part of the strategy and
        could provide lucrative long term supply in the vertically
        integrated model); 
    b.  Recycled materials, and 
    c.  Mixed rare earth concentrates from other processing facilities. 
        
2.  Full capability rare earth refining/separation facilities in stable and
    suitable geographic locations; and 
    
3.  Enhance relationships with a number of top tier major international
    companies which depend on rare earths for their market leading products.



As part of the engagement, REC will assist Rare Earth Metals in determining the
best sectors and relationships to pursue within the rare earth industry and will
conduct prioritization studies to determine prospective supply chain partners
with compatible timing, volumes and elements which are looking for longer term
solutions.


About REC

REC's business involves designing, building and operating rare earth refineries
with the capability of separating the full spectrum of light and heavy rare
earths. Having built multiple separating rare earth refineries, REC's
subcontractors have demonstrated the technical expertise required for the
refinery stage of the integrated solution. Recently REC's subcontractors
substantially completed, outside of China, a "full spectrum" rare earth refinery
having a 3,000 MT per year capacity. 


REC has compiled two databases: (i) exploration companies and (ii) international
purchasers of separated rare earths. The Company will have full access to these
databases as part of its relationship with REC. 


REM is an important client and strategic partner for REC in the implementation
of its business plan and deployment of REC's expertise in the rare earth sector.
REC's commitment to its relationship with the Company is reflected in the recent
appointment of REC's former CEO as the CEO of the Company and two of REC's
senior personnel having joined the Company's board of directors.


About Rare Earth Metals Inc.

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.