January 19, 2006 14:00 ET

Rare Earth Metals Corp. Announces Drill Program at Eden Lake, REE-U Property, Manitoba

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 19, 2006) - Rare Earth Metals Corp., (TSX VENTURE:REM), January 19, 2006 (the "Company") reports that the first drill program at the Eden Lake, Rare Earth Elements (REE) property in Manitoba is expected to begin in early February, 2006. Up to ten targets will be drill tested at locations throughout the 8 square kilometer area, where REE mineralization has been discovered. This mineralization has been interpreted by outside consultants as the carbonatite end member of an Iron Oxide Copper Gold (IOCG) deposit. This is the first discovery of its kind in the Province of Manitoba.

The Eden Lake carbonatite complex is of particular interest due to its rare earth element (REE) enrichments over an extensive area. The highest REE concentrations encountered to date are in the carbonatite dikes with up to 1.6 % total REE, and in hydrothermal REE-rich veins with grades up to 13.8 % total REE plus Uranium values of up to 3,490 grams per tonne. Exploration of the Central Zone has delineated two large and distinct zones of mineralization: 1) a zone approximately 1 x 3 kilometers of REE-enriched apatite in carbonatite pods; and 2) a zone 0.3 x 2 kilometers of REE-rich britholite-allanite veins. Although both of these zones are highly enriched in REE, the two mineralized zones have distinctly different mineralogy.

The discovery of Heavy Rare Earths (Eu-Lu) is especially encouraging as they are typically more valuable than Light Rare Earths. For example, Europium Oxide, over the past decade, sold between $250 and $1700/kg according to the USGS 2002 Report on Commodities. The USGS estimates the value of refined rare earths consumed in the United States in 2002 at more than $1 billion dollars. Approximately 80 % of North America's REEs are sourced from China.

The Eden Lake claim block covers an area of approximately 28 square kilometers and is located 35 kilometers from the mining community of Leaf Rapids, Manitoba. The Company has an option to acquire a 100 % interest in the Eden Lake Project. The technical information in this release has been reviewed by Dr. George Gale, P Eng. Qualified Person.

On behalf of the Board of Directors,

John Roozendaal B.Sc., President, Director

Rare Earth Metals Corp.

The TSX Venture exchange does not accept responsibility for the adequacy or accuracy of this release.

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