Rare Earth Metals Inc.’s Second Update on Manitouwadge Graphite Property

From Rare Earth Metals Inc.


THUNDER BAY, ON – Rare Earth Metals Inc. (“Rare Earth Metals“, “RA” or the “Company“) (TSX VENTURE:RA)(PINK SHEETS:RAREF)(OTCQX:RAREF) is pleased to announce it has established several high priority targets to further explore the flake graphite potential on its Manitouwadge Graphite Property. The Company has recently completed a 22 kilometer cut grid as well as completed 18.5 kilometers of ground horizontal loop electromagnetic (HLEM) survey on the property. The property consists of 128 staked claim units totaling 2072 hectares and is located approximately 30 kilometers north of Manitouwadge in northwestern Ontario.

The purpose of the ground geophysical survey was to determine the overall strike length and continuity of the graphite zones outlined previously by an airborne electromagnetic (AEM) survey flown by Dighem Surveys for Noranda Exploration Services in 1989. The (AEM) anomalies associated with the graphite horizons are coincident with an intense magnetic low and have a strike length exceeding 4 kilometers.

The HLEM survey delineated 6 conductors that range in strike length from 150 meters to greater than 1.6 kilometers. Three of the conductors are coincident with the three graphitic horizons where results from trench chip samples range from 4 to 12 meters thick with grades ranging from 2.04% to 4.18% carbon. Screen tests completed on the higher grade composite sample confirmed the presence of flake graphite, recognized in both the plus 65 mesh (0.212 mm) and plus 35 mesh (0.425 mm) fractions (see previous press release dated May 30, 2012). The other three HLEM conductors have yet to be tested and explained. In addition, a number of unexplained AEM anomalies to the northwest and southeast of the recent surveying have yet to be investigated. Geologic mapping of the property is scheduled to be done by mid-July to complete the prioritization for drill testing.

Metallurgical test work involving gravity separation and froth flotation tests to get an early understanding of how well the flake graphite can be concentrated is ongoing; results of this test will be released once it is completed.

Graphite, a highly conductive mineral which can withstand intense heat, is now used primarily in refractories for steel making and in crucibles to hold molten metals. Flake graphite, a specific type of natural graphite, is expected to become the material of choice to make advanced lithium ion batteries that power smartphones and tablet computers, as well as hybrid and electric vehicles, among other products. Flake graphite prices have nearly tripled in the last two years.

In summary, the Manitouwadge Graphite Property hosts a number of graphite horizons associated with highly favourable geophysical anomalies that are ready-made targeting features for a drilling program, one of which is being tested for flake size distribution and purity. The property location offers admirable infrastructure being accessible by road from the town of Manitouwadge which is located at the end of Highway 614, and 50 kilometers north of its junction with the Trans-Canada Highway. Manitouwadge was founded by Noranda (now part of Xstrata) in the early 1950s to support the company’s Geco copper mine, and mining historically has been at the forefront of Manitouwadge’s economic activity. Rare Earth Metals Inc. is currently seeking business opportunities for this property. Any interested parties should contact admin@rareearthmetals.ca.

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.

Rare Earth Metals Inc. 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

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