Rare Earth Metals Inc. is a public Canadian exploration company listed on the TSX Venture Exchange under the symbol “RA”. The company is committed to discovering economically significant Rare Earth Element deposits throughout North America and is focused on projects with superior existing infrastructure or excellent potential infrastructure for mine development. With an exceptional management team highly experienced in every aspect of mineral exploration and quality projects, Rare Earth Metals provides attractive value to its loyal shareholders.

Clay-Howells

• 18 diamond drill holes tested the carbonatite-magnetite zone for a strike length of 700 meters
• Newest drill hole assays include:
  • CH-09: 0.69% TREO /0.12% Nb203 /47.20% Fe203 /76.6 meters
  • CH-17: 0.85% TREO /0.13% Nb205 /37.76% Fe203 /35 meters
  • CH-13: 0.69% TREO / 0.14% Nb205 /57.8% Fe203 /105.3 meters
     (inc: 1.088 TREO/0.14% Nb205 and 65.95% Fe203/ 16.9 meters)
• 100% owned patented mineral and surface rights, road accessible with great infrastructure — highway, railroad and pipelines within 40 kilometers
• Very similar to the Bayan OBO mine in China
• Numerous other untested magnetic anomalies within the 110 sq km carbonatite complex
• 18 DDH completed (5432.5 meters)
• Multiple magnetite zones intersected in drilling that indicate a strike length of over 700 meters and open in all directions
• Core samples have been selected and sent to Xstrata Process Support in Sudbury for metallurgical test work; results will be available in six weeks
• Follow up drilling once all assays are compiled and mineralogical work completed; also prospect all other targets in the complex

The Clay-Howells Prospect is a massive to semi-massive magnetite deposit with appreciable Rare Earth Elements and Niobium. The deposit consists of multiple bands of mineralization with a minimum strike length of 1.0 km and hosted within a Carbonatite Complex. Previous work in 1958 had partially outlined the iron resource; however no analysis was done for REEs or Niobium. The 1958 drilling was the last fieldwork done prior to Rare Earth Metals Inc. acquiring the patented claims in 2009.

Since acquisition RA has carried out a regional airborne geophysical survey, drilled the Clay-Howells Prospect (5432 meters in 18 holes) and initiated a prospecting/sampling program on numerous other magnetic targets outside the main prospect. Results from the 2010 drilling include intersections up to 105.3 meters grading 57.83% Fe2O3, 0.694% TREO and 0.14% Nb2O5. Higher grade Rare Earth zones within the magnetite include 2.45% TREO over 4.9 meters. The drilling has tested a 700 meter section of the Deposit which remains open in all directions. The average cumulative drilled widths of the magnetite zone, which appears to be represented as two main lenses, is approximately 67 meters. The amount of Heavy Rare Earths within the Total Rare Earths varies from 5% to 20% with an average of 10%.

Composite samples of drill core from selected areas within the magnetite zones have been submitted for metallurgical/mineralogical analysis, which should give a much better idea of the the mineral separation qualities of the iron, REEs and Niobium. The preliminary data from this test work is expected to be available by mid June and, assuming positive results, additional resource drilling will be initiated.

Lackner Prospect

Description and results:

• Located 20 km east of Chapleau with road access
• Highway and railway within 10 km or property
• Lackner Lake carbonatite is a 30 sq km circular alkali complex with historic Nb and Fe resources
• New REE discovery (Pole Lake) hosted in syenite breccia, values up to 9.60% TREO min 3 meters wide
• No previous work on REE potential

Exploration plan:

• Airborne survey completed
• Cut grids over target areas
• Follow up prospecting, mapping, and trenching underway
• Evaluate targets to date and follow up with drilling at Pole Lake and other targets outlined

Red Wine

The Company’s exploration plans for the Red Wine Belt include a program of airborne geophysics, prospecting, geological mapping, geochemical sampling and channel sampling throughout the claim group and diamond drilling on the Mann #1 Deposit and the North Red Wine #2 Showing. The property is located 165 kilometers WNW from Goose Bay, Labrador, however, a hydro dam access road is located 40 kilometers from the property and this will be used as a staging point for the field work. Presently an airborne magnetic and radiometric survey is being contracted with a scheduled start of June 15, 2010.

The Red Wine Property claims are underlain by the Red Wine Alkaline Igneous Complex which is analogous with the alkaline intrusive setting which hosts the Strange Lake rare earth mineralization, 260 km to the northwest. The Red Wine Complex consists of a variety of rift-related peralkaline intrusive and volcanic units which are host to a number of rare metal showings, all of which have appreciable Rare Earth Elements. The Company has acquired in excess of 800 claim units through staking, option agreements and joint ventures, and now controls the mineral rights to most of the known showings identified in the belt. These showings were discovered over 60 years ago and were last worked in the 1960s. No systematic work has been carried out for rare metals in the belt since that time.

The 2010 exploration program will focus on both detail work on the known showings and a regional evaluation of the belt using the new airborne survey to direct the prospecting. Results from this work will be released as they become available over the summer. A brief description of the known mineralization on the Rare Earth Metal property follows:

Mann #1

Radiometric zone defined by trenching up to 1.6km long and 100m wide. Rio Tinto outlined a Beryllium resource in 1961; however the mineralization was never systematically assayed for REEs. Rare Earth Metals took 16 grab samples from a number of blast trenches and obtained Beryllium values up to 0.97% BeO, Niobium values up to 2.35% Nb2O5, and TREO values up to 4.99%.

Mann #2

A 2400 meter by 90 meter radiometric anomaly along strike with the Mann #1. No recent samples have been taken.

Two Tom Lake

Rare Earth Metals took grab sample values grading 0.93% Be0, up to 4.19% Nb2O5 and up to 3.24% TREO; this showing occurs within a highly prospective 2000 meter diameter circular peralkaline syenite pluton.

Discovered by Brinex in 1967.

Radioactive zone traced for 1500 meters.

North Red Wine #2

Mineralization consists of up to 40% Eudialyte, a Zirconium-Na-Ca-Silicate mineral with appreciable REEs and Y. The Company took seven grab samples from different parts of the zone resulting in ZrO2 up to 4.93% and Total Rare Earth Oxides (TREO) up to 1.04%. The Rare Earths were made up of 47% Light REOs and 53% Heavy REOs.

Michelin Showing

Government grab sample values grading up to 0.79% Ce, 0.096% Y, 0.24% Nb, 0.16% Zr, and 0.14 % Be within a 1000 meter by 75 meter radioactive mineralized zone.

Michael Stares, President & CEO

Michael Stares is a successful entrepreneur who, along with his brother Stephen Stares, ran Stares Contracting for over 17 years, and of which he is still 50% owner. With over 20 years' experience prospecting, including 8 years with Noranda Exploration, Michael has been instrumental in finding various new discoveries, including Linear Metals’ recently discovered moly-copper deposit on their Kilometre 61 property. Michael is also a member of the Board of Directors of Benton Resources Corp. and Metals Creek Resources Corp. In March of 2007, Michael and Stephen Stares, along with the rest of the Stares/Keats family, were the proud recipients of the Prospectors and Developers Association (“PDAC”) Bill Dennis, Prospector of the Year Award. This prestigious award recognizes the contributions of this family to the industry over the past 40 years.

Reginald A. Felix, Vice President, Exploration

Mr. Felix is a geologist with more than thirty years of exploration experience, including 20 years with Noranda Exploration. He spent most of his professional career exploring for base metals, gold, uranium, and potash deposits spanning a number of geologic terrains from New Brunswick to British Columbia. Prior to joining the Rare Earth Metals , Mr. Felix worked on Inter-Citic’s Dachang gold project in western China. Mr. Felix holds a BSc. in Geology from the University of New Brunswick.

Wayne Reid, P.Geo., Director

Mr. Reid has in excess of 30 years' experience in exploration and mining geology, spanning a variety of geological terrains, from Newfoundland to Northern B.C. and Alaska. He has held senior positions with Noranda Exploration, Hemlo Gold Mines, Echo Bay Mines and St. Andrew Goldfields. Mr. Reid holds a BSc. in Geology from Memorial University in Newfoundland and has a Professional Geologist designation from the Association of Professional Geologists of Ontario. He is currently Vice President of Corporate Development and a director with Metals Creek Resources and a technical advisor with Ucore Uranium.

Stephen Stares, Director

Mr. Stares is a successful entrepreneur with over 18 years' experience in mineral exploration. Stephen's first five years were spent prospecting for Noranda on such projects as the Hemlo and Eagle River gold deposits and the Geco and Mattabi base metal camps. The next ten years of Stephen's career were spent managing the operations of Stares Contracting Corp., along with his brother Michael. Stares Contracting is a successful mineral exploration services company in Thunder Bay, Ontario with a large client base that includes major companies such as Noranda, Falconbridge, Teck Cominco, Inco and as well as numerous junior companies. Mr. Stares has discovered several major mineral occurrences in Canada that have been the subject of extensive exploration programs. In 2004 Stephen and Michael started Benton Resources Corp., a publicly listed exploration company listed on the TSX Venture Exchange of which Stephen holds the position of President and CEO. Stephen also holds Board of Director positions with several other junior mining companies.

William S. Harper, Director

William S. Harper, M.B.A., C.A., is a professional accountant with more than 30 years' experience in corporate finance and administration, including senior management positions with public companies listed in both Canada and the United States, primarily in mining and high technology industries. Mr. Harper is currently CFO of a biotechnology company listed on the TSX. He is also a director of several other public companies in the mining industry that are listed on the TSX Venture Exchange.

Corporate Information on Stockhouse

Michael R. Stares President & CEO

Michael Stares is a successful entrepreneur who, along with his brother Stephen Stares, ran Stares Contracting for over 17 years, and of which he is still 50% owner. With over 20 years' experience prospecting, including 8 years with Noranda Exploration, Michael has been instrumental in finding various new discoveries, including Linear Metals’ recently discovered moly-copper deposit on their Kilometre 61 property. Michael is also a member of the Board of Directors of Benton Resources Corp. and Metals Creek Resources Corp. In March of 2007, Michael and Stephen Stares, along with the rest of the Stares/Keats family, were the proud recipients of the Prospectors and Developers Association (“PDAC”) Bill Dennis, Prospector of the Year Award. This prestigious award recognizes the contributions of this family to the industry over the past 40 years.

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