RARE EARTH METALS CORP.
TSX VENTURE : REM

RARE EARTH METALS CORP.

September 13, 2005 15:55 ET

Rare Earth Metals Corp.: Harvest Gold to Raise $600,000 with Bolder Investment Partners

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Sept. 13, 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 $0.10 per unit for gross proceeds of $600,000 to fund its newly formed subsidiary, Harvest Gold Corporation ("Harvest Gold"). 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 Harvest Gold 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.

Harvest Gold is currently a wholly owned subsidiary of Rare Earth Metals formed to hold its gold and gold-silver properties. As detailed in the Company's news release of June 2, 2005, it is proposed that Harvest Gold will be spun off as a new public company by way of a plan of arrangement (the "Arrangement"). A Shareholders' meeting to approve the Arrangement has been set for October 7, 2005. This private placement is being undertaken to enable Harvest Gold to meet the minimum listing requirements for a Tier 2 issuer on the TSX Venture Exchange. Closing of the private placement is anticipated to occur immediately prior to the completion of the Arrangement. All monies raised will be held in trust until all necessary approvals are given and Harvest Gold completes its listing on the TSX Venture Exchange.

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.

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 Longstreet Mine property located in Nye County, Nevada, USA, 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.

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