August 16, 2005 10:46 ET

Rare Earth Metals Reports Airborne Survey Completed at Lynn Gabbros Nickel Property

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 16, 2005) - Rare Earth Metals Corp. (the "Company") (TSX VENTURE:REM) reports that an airborne geophysical survey has now been completed over the Company's Lynn Gabbros Nickel Properties. The project is being operated by North American Palladium Ltd. (NPL.TSX) under the terms of an Option/JV agreement signed between the companies July 12, 2005.

As reported by North American Palladium in a press release August 9, 2005 (North American Palladium Announces 2nd Quarter 2005 Financial Results) "... the Company recently completed a detailed airborne survey over their Lynn Lake Properties, located within the historic Lynn Lake Mining camp in northern Manitoba. A field crew will be mobilized to start ground truthing selected targets once the results from the airborne survey have been analyzed."

The terms of the Option/JV agreement require completion of an aggregate of $1.4 Million CND in exploration activity and payments of $550,000 CND over a 4 year period for North American Palladium to earn 50%. A further 15% may be earned following completion of an industry standard feasibility study.

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 optioned claim blocks 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, CEO & Director

Rare Earth Metals Corp.

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

Contact Information