Rare Earth Metals Inc.

Rare Earth Metals Inc.

June 10, 2010 09:00 ET

Rare Earth Metals Inc Announces the Optioning of Its Hinton Coal Project, Alberta

THUNDER BAY, ONTARIO--(Marketwire - June 10, 2010) - Rare Earth Metals Inc ("Rare Earth Metals" or the "Company") (TSX VENTURE:RA) is pleased to announce it has signed a binding Letter Agreement with Mid Atlantic Capital Associates SL (Mid Atlantic) for the optioning of the Company's Hinton Coal Project, located in western Alberta.

Terms of the Letter Agreement allow for Mid Atlantic or its assigns to purchase a 100% interest in the Project from Rare Earth Metals for payments totaling $3,000,000 over two years, including $1,000,000 on the Closing Date and two additional payments of $1,000,000 on the first and second anniversary. Rare Earth Metals will retain a 3% Net Profits Interest Royalty on any future production from the coal resource. The Option will terminate in the event the Closing Date and initial payment is not completed by July 30, 2010.

Wayne Reid, PGeo, is a qualified person as defined in National Instrument 43-101, and has reviewed and approved the technical information forming the basis for release.

About Rare Earth Metals Inc.

Rare Earth Metals is a well funded company with a focus on exploring for Rare Earth Element deposits. The company presently has three advanced projects in Ontario and Newfoundland and Labrador, all exhibiting multi-element potential (REEs, Niobium, Beryllium and Iron Ore) and proximity to available infrastructure. Its flagship property is the Clay-Howells Prospect. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company's profile at www.sedar.com. Investors are invited to visit the Rare Earth Metals web site at www.rareearthmetals.ca.


Michael Stares, President and CEO

This release includes certain statements that may be deemed forward-looking statements. All statements in this release, other than statements of historical facts, that address future production, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and those actual results or developments may differ materially from those projected in the forward-looking statements. For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com.

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

Contact Information

  • Rare Earth Metals Inc
    Michael Stares
    President and CEO
    (807) 623-6840
    (807) 623-9526 (FAX)