February 01, 2006 15:33 ET

Rare Earth Metals Corp. Reports Winter Exploration at the Lynn Lake Nickel-Copper Property, Manitoba has Commenced

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 1, 2006) - Rare Earth Metals Corp. (the "Company") (TSX VENTURE:REM) reports that project operator North American Palladium Ltd. (TSX:PDL)(AMEX:PAL) has commenced winter exploration at the Company's Lynn Lake Nickel-Copper property in Manitoba, Canada. This winter's program will target two of the five claim blocks held by the Company and that have been selected as priority areas by North American Palladium following the completion and interpretation of their airborne geophysical survey flown in the summer of 2005.

The winter program will include the refurbishing and cutting of 70 line kilometers of grid control lines in preparation for ground geophysical surveying. Upon completion of the grid-cutting, an Induced Polarization ground geophysical survey will commence. The ground survey will be used to define target areas potentially hosting nickel-copper mineralization for drill testing. North American Palladium has advised Rare Earth Metals that dependant of the results of the IP survey, a drill program may be implemented in the spring of 2006.

REM is pleased that NAP has decided to stake additional claims, enlarging two of the five claim blocks held by the Company. President John Roozendaal states, "We believe North American Palladium's decision to expand the prospective land package and commence a winter program is a very positive step forward for the project, which reinforces our belief in the property's potential to host nickel-copper deposits such as those produced from the nearby nickel mines."

The Lynn Lake Nickel-Copper project is being operated by North American Palladium Ltd. (TSX:NPL) under the terms of an Option/JV agreement signed between the companies announced July 12, 2005. The terms of the Option require completion of an aggregate of $1.4 Million CND in exploration activity expenditures and payments of $550,000 CND over a 4 year period to earn 50% in the 2,796 hectare Lynn Gabbros Nickel-Copper properties in Manitoba, Canada.

Historically, Lynn Lake is the third largest nickel producing region in Canada. Sherritt Gordon Mines Ltd. mined the Lynn Lake nickel-copper deposits from 1953-1976. These mined deposits were discovered in two mafic-ultramafic intrusive bodies, known as the "Main" and the "El" gabbroic plugs. The Main and El gabbroic plugs produced 20,151,146 tonnes of ore at an average grade of 1.023% Ni and 0.535% Cu from three mines over the 24 year period. The five claim blocks held by Rare Earth Metals cover the known extent of five separate mafic-ultramafic bodies which have noted similarities to the two mined intrusions.

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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