RARE EARTH METALS CORP.
TSX VENTURE : REM

RARE EARTH METALS CORP.

August 22, 2005 14:26 ET

Rare Earth Metals Corp.: $720,000 Placement with Bolder Investment Partners Announced

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 22, 2005) - Rare Earth Metals Corp., (TSX VENTURE:REM) (the "Company") announces that it has engaged Bolder Investment Partners as agent to carry out a brokered private placement of 6,000,000 units at $0.12 per unit for gross proceeds of $720,000. The units will be comprised of one common share and one share purchase warrant with each such warrant entitling the holder to acquire a further common share of Rare Earth Metals Corp at a price of $0.20 for a term of two years. The two year term is subject to a written expiry notice provision triggered by the stock trading at or above a weighted average trading price of $0.35 for 20 consecutive days. Upon such written notice from the company, the warrant will expire 30 days from the date of that notice.

As agent, Bolder Investment Partners will receive a cash commission equal to 8% of the gross proceeds of the private placement and brokers warrants equal to 10% of the total number of units sold, each such warrant entitling the holder to acquire one common share of the Company at a price of $0.20 for a term of 2 years.

The offering is being done in conjunction with the Company's proposed reorganization, as detailed in its news release of June 2, 2005, and is anticipated to close prior to the record date for such reorganization. Closing of the private placement remains subject to regulatory acceptance.

The placement will be made pursuant to prospectus exemptions, including the Offering Memorandum exemption.

Proceeds of the placement will be applied to fund exploration on the Company's Eden Lake property, to the costs of the proposed reorganization and for general working capital.

On behalf of the Board of Directors,

John Roozendaal B.Sc, President, CEO & Director

Rare Earth Metals Corp.


The TSX Venture Exchange has not reviewed this press release and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information