Rare Earth Metals Inc is pleased to announce the analytical results from the first drill hole completed on the Clay-Howells Prospect in northern Ontario. The initial hole was drilled on the northeast extension of the prospect to ensure the mineralization extended out this far. A 144.5 meter wide zone of carbonatite/magnetite was intersected with widespread anomalous REEs and Niobium.

The first hole (CH-01) gave the following results:

             From(m)   To(m)     Thickness    TREO      Nb2O5    Fe2O3

             35.5      180.0     144.5 m      0.45%     0.17%    33.73%

    Incl.    76.6      82.5      5.9 m        0.23%     1.11%    43.08%

    Incl.    92.0      102.0     10.0 m       1.01%     0.13%    42.67%

Note: All measurements are down-hole lengths and as best as can be discerned these should represent between 70% to 90% of the true widths. The Rare Earth Element assays are given as Total Rare Earth Oxides (TREO) and the Total Iron is given as Fe2O3.

Commented Michael Stares, the Company's President and CEO, "We are very encouraged by these results which confirm the presence of REEs and Niobium in the Clay-Howells Magnetite Zone. Our initial model was that of a large tonnage Iron/REE/Niobium System, with higher grade internal zones and we are optimistic that this will unfold as the drill program continues. We are also very encouraged by the iron grade, which is in the same range as many standalone iron mines."

The current drill program is focused on re-defining the historic Clay-Howells Magnetite Deposit and establishing the grade of Rare Earth Elements, Niobium and Iron in the deposit. The deposit was previously drilled in 1958 when an iron ore resource was outlined, however, no systematic work was done for Rare Earth Elements or Niobium. Sampling of historic drill core by the Company in July, 2009, had resulted in values up to 4.71% TREO over 4.6 m and 0.94% Nb2O5 over 12.2 meters (see previous press release by the Company dated January 6, 2010).

All sampled drill core was split, with half the core bagged and sent to a prep lab in Thunder Bay. The samples were analyzed at Activation Laboratories utilizing inductively coupled plasma mass spectrometer. The digestion technique was total digestion that employs a lithium metaborate/tetraborate fusion.