Rare Earth Metals Reports Update from Drilling on Its Two Tom Deposit in Labrador

THUNDER BAY, ONTARIO--(Marketwire - Sept. 8, 2011) - Rare Earth Metals Inc. ("Rare Earth Metals", "RA" or the "Company") (TSX VENTURE:RA)(PINK SHEETS:RAREF)(OTCQX:RAREF) is pleased to report preliminary Rare Earth Element results from three additional holes on the Two Tom Mineralized Zone at the Red Wine Property, located approximately 110 kilometers northeast of Churchill Falls in west central Labrador. The results include best intersections of 1.86% TREO over 121.5 meters within a larger zone of mineralization which assayed 1.46% TREO over 195.15 meters in drill hole DDH-TT-13, 1.82% TREO over 89 meters in drill hole DDH-TT-14, and 2.15% TREO over 120 meters within a larger zone of mineralization which assayed 1.68% TREO over 176.5 meters in drill hole DDH-TT-15b. The HREO/TREO ratios from these intersections range from 5.2% to 6.0%. Beryllium and Niobium results are pending. These drill holes are part of the delineation drilling being carried out on the Two Tom deposit and are located on the west half of the deposit, on Zimtu Capital Corp. optioned ground. Rare Earth Metals has an option to earn a 100% interest in the property, subject to a retained royalty. (See press release dated Sept 2, 2010.)

The northwest striking Two Tom Zone has been traced by prospecting, trenching, and drilling for a minimum of 1.3 kilometers and is located at the eastern end of the Red Wine Peralkaline Complex. A total of seven holes, totalling 2263 meters of the planned twelve infill drill holes, have been completed, and all holes intersected the REE/Nb/Be zone over substantial widths. The 2011 drilling is planned to test the Two Tom mineralized zone on 100 meter sections as a prerequisite to the calculation of a resource. Wardrop, a TetraTech Company, has been retained by Rare Earth Metals to complete an independent resource report for the Two Tom Deposit, expected to be completed by the first quarter of 2012. Additional results from the drill program will be released as they are received. A map of the Two Tom drill-hole locations can be found on the Company's website at www.RareEarthMetals.ca. True widths are generally 70 to 90% of the drill widths. Significant results from the latest drill hole are tabulated below:

The Company has been carrying out field work on the Red Wine Belt since June, 2010, and the 2011 drilling is being targeted on two mineralized zones – the Two Tom and the Dory Pond. A total of six holes were recently completed on the Dory Pond Zone, and initial results indicate this area has a substantial Heavy Rare Earth component. Results from the first reported drill hole in this area returned an intersection of 1.55% TREO (HREO/TREO of 42.1%) over 21.0 meters within a wider intersection of 1.11% TREO (HREO/TREO of 41%) over 42.9 meters. (See previous press release dated Sept 6, 2011.) Additional results on the remaining five holes will be released as they are received.

Core from the drill program was transported by helicopter from the drill site, logged at Rare Earth Metals' camp and split in half using a diamond table saw or a manual core splitter. One half of the core was sent to Activation Laboratories Ltd. ("Actlabs") for analysis and the other half was kept in core boxes at the camp for reference. All samples were delivered by Company personnel to Actlabs' sample preparation facility in Happy Valley-Goose Bay. The samples were processed and representative pulps sent to Actlabs' analytical facility in Ancaster, Ontario. The digestion technique was total digestion that employs a lithium metaborate/tetraborate fusion and the analysis is completed using ICP, ICP/MS and XRF techniques. For QA/QC purposes Rare Earth Metals systematically inserts standards, duplicates and blanks into every sample batch. Actlabs is an ISO 17025 (Lab 266) and NELAP (lab E87979) accredited lab for specific registered tests.

The Rare Earth Element assays are reported as Total Rare Earth Oxides (TREO), the Niobium assays are given as Niobium Oxide (Nb2O5), and the Beryllium assays are given as Beryllium Oxide (BeO). The TREO includes all the Rare Earth Oxides plus Yttrium Oxide. As per industry standard the TREO are broken down into Light Rare Earth Oxides (LREO) and Heavy Rare Earth Oxides (HREO). The LREO consists of Ce2O3, La2O3, Nd2O3, Pr2O3 and Sm2O3 and the HREO consists of Eu2O3, Gd2O3, Tb2O3, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3 and Y2O3. The %HREO is calculated by dividing the HREO by the TREO. The most abundant REEs from the drill hole composites described above are in decreasing order: Cerium, Lanthanum and Neodymium. A breakdown of the most abundant REEs from the drill holes can be found on the Company's website at www.RareEarthMetals.ca.

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 (REE) deposits. The Company's shares are listed on the TSX-V exchange under the symbol RA and the OTCQX exchange under the symbol RAREF. The Company presently has two advanced projects in Ontario and Newfoundland and Labrador, both exhibiting multi element potential (REEs, Niobium, Beryllium, Zirconium and Iron Ore) and proximity to available infrastructure. Its flagship properties are the Clay-Howells Prospect and the Red Wine Project. The Company has recently acquired additional properties in the Coldwell Complex near Marathon, Ontario and the Lavergne-Springer REE Prospect near Sturgeon Falls, Ontario. Additional information concerning the Company is contained in documents filed by the Company with securities regulators, available under the Company's profile at www.sedar.com. For more information please visit the Rare Earth Metals web site at www.rareearthmetals.ca.

ON BEHALF OF THE BOARD OF DIRECTORS OF RARE EARTH METALS INC.:

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.

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