Canada Rare Earth Corporation

Thunder Bay, ON – Rare Earth Metals Inc (“Rare Earth Metals” or the “Company”) (TSX VENTURE:RA) is pleased to announce that it has entered into two binding option agreements in the Red Wine/Letitia Lake area of Central Labrador. The Company is also pleased to report that it has acquired, through staking, two additional rare metal prospects in the same area. The additional staking and the two optioned claim groups, consolidates the Letitia Lake property into a coherent package totaling 584 claim units (146 sq. km.).

The first option agreement is with Cornerstone Capital Resources Inc. (TSXV-CGP) (F-GWN) (B-GWN) (OTC-CTNXF) respecting its 155 claim unit property. Rare Earth Metals will make an initial payment of $10,000 and 20,000 shares and guarantees minimum first year expenditures of $50,000, sufficient to maintain the property in good standing. Thereafter, Rare Earth Metals will make further payments of cash and shares totaling $30,000 and 60,000, respectively over the first two years of the option and incur additional exploration expenditures totaling $300,000 over three years in order to earn a 51% interest in the claims. The parties will then form a joint venture to further explore and develop mineral resources on the property. Rare Earth Metals will operate the exploration programs during the option period in consultation with Cornerstone.

The second option agreement is with Playfair Mining Ltd. (TSX-PLY). Rare Earth Metals can earn a 51% interest in Playfair’s 313 claim unit property by making an initial payment of $15,000 and 20,000 shares and guaranteeing a minimum first year expenditures of $100,000. Thereafter, Rare Earth Metals will make further payments of cash and shares totaling $55,000 and 130,000 respectively and incur additional exploration expenditures totaling $400,000 over three years in order to earn a 51% interest in the claims. The parties will then form a joint venture to further explore and develop mineral resources on the property. Rare Earth Metals will operate the exploration programs during the option period in consultation with Playfair.

Both agreements are subject to approval by Rare Earth’s board of directors and receipt of regulatory approval.

Rare Earth Metals has two claim groups in the Red Wine District with the Letitia Lake property located on the east end of the belt. The other claim group is the Red Wine 2 or Eudyolite property, which is located on the west end of the belt. The Letitia Lake claims now host four rare metals showings, the Mann # 1, Two Tom, Michelin #1 and Mann #2. The latter two were recently staked by Rare Earth Metals. The Mann #1 is the most advanced of the known mineralization and is described as a 50 to 100 meter wide zone of Be/REE/Nb mineralization which was partially defined through work by Rio Tinto Canada in 1961. Trenching and drilling, at that time, defined a zone of mineralization containing 0.35% to 0.40% BeO down to 200 ft. There was no analysis done for REEs. Recent Rare Earth Metals’ sampling on the Mann # 1 deposit had best values of 4.99% TREO, 0.97% BeO and 2.35% Nb2O5. (See East Energy press release dated November 6, 2009 for a more complete breakdown of these results). The Red Wine District is located 120 km northeast of Churchill Falls, Labrador and within 40 to 60 km of an existing resource road originating at Churchill Falls. Airborne geophysics, follow-up sampling and diamond drilling is scheduled for this property during the summer/fall, 2010. This will be the first time since the 1960’s that any detailed field work has been done on these showings.

Wayne Reid, 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 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