August 4, 2010

Thunder Bay, ON – Rare Earth Metals Inc (“Rare Earth Metals”, “RA” or the “Company”) (TSX VENTURE:RA) is pleased to announce initial geochemical results from the first round of sampling at its Letitia Lake/Red Wine property in west central Labrador (see previous press release dated July 20, 2010). The program consists of both channel sampling on areas previously identified and prospect sampling as part of the follow-up on approximately 70 new anomalies identified in a 3621 line kilometer airborne magnetic and radiometric survey completed earlier this month. These initial results confirm the potential of the Letitia Lake/Red Wine property to host significant deposits of Rare Earth Elements, Niobium and Beryllium. Also of significance regarding this emerging Rare Earth camp is its proximity to infrastructure with road access only 40 km to the west and the Churchill Falls hydro electric dam next door. The 2010 sampling and geological mapping program has been successful in substantially extending the strike extent of historic Rare Metals showings (Mann #1, Mann #2, Michelin and Two Tom), and has resulted in the discovery of a number of new areas of mineralization. Work to date has outlined two styles of Rare Earth Element mineralization. The first style is represented by the Mann #1 Deposit and Michelin prospect which are generally Light REO dominated with substantial Niobium and Beryllium mineralization. The second is characterized by an abundance of Eudialyte mineralization and is dominated by Heavy REOs. Initial geochemical results received to date are from mineralization of the first style and are outlined below:

Mann #1 Trenching

Preliminary geochemical results were received from channel samples taken from Trench-1 resulting in economically significant amounts of Rare Earth Elements, Niobium and Beryllium. Channel samples were taken over a 30.0 meter width and this 30.0 meter composite averaged 1.35% TREO (Total Rare Earth Oxides), 0.52% Nb2O5, and 0.31% BeO. The TREO values were predominately Light Rare Earths (92-97%) with the higher valued Neodymium (Nd2O3) averaging 0.21% over the 30 meters. The true horizontal thickness of the zone is not known as ground conditions prevented further sampling to the north and south extents of this 50 meter wide radiometric anomaly. Analytical results from channel sampling of an additional five trenches covering a 600 meter strike length of the zone are expected to be available later this month. The zone has been mapped intermittently and with radiometrics over a strike length of more than 2 km.

Michelin

The Michelin mineralization is located 4.0 km west of the Mann #1. Geochemical analysis of 67 samples from the 2.0 km long Michelin radiometric anomaly ranged from 0.17% up to 5.29% TREO, 0.005% up to 2.18% NbO5, and 0.003% up to 0.56% BeO. The Rare Earths were made up of 78% to 97% Light REOs and 3% to 22% Heavy REOs. Thirty-five of the 67 grab samples returned values > 1% TREO, 13 samples returned values >1% NbO5, and 20 samples returned values > 0.2 % BeO. Values of Nd2O3 ranged from 0.03% to 1.06% averaging 0.29% Nd2O3 for the 67 samples. In addition, 4 samples returned >1% Zn up to 1.63% Zn. Two trenches were also completed on the Michelin Zone and channel sample results are expected by mid August. A map of the sample locations can be found on the company’s website at www.RareEarthMetals.ca

Mann #2

The Mann #2 showing is hosted within a strong radiometric anomaly which can be traced over a strike length of 1.1 km by the airborne magnetic-radiometric survey just completed by the company, and is considered to be the extension of the Mann #1, located 5.0 km to the northeast. A total of 62 grab samples and 12.5 m of channel sampling have been completed across the mineralized zone. Results are pending.

Two Tom

The Two Tom showing is located 18 km east of the Mann #1 Zone. The showing is highlighted by the recently completed airborne as a strong radiometric anomaly and is one of eight discrete anomaly clusters within the eastern Letitia Lake/Two Tom Lake claim block that have strike extents ranging from 500 meters to 1200 meters. Of particular note are the results from sampling of an angular boulder/subcrop area taken in early July, which exhibit a strong similarity with the Mann #1 mineralization. This sample returned the highest Niobium value to date of 2.95% Nb2O5 along with 1.0% TREO and 0.41% BeO. Since completion of the airborne, a total of five mineralized zones have been identified and these have been the focus of detailed sampling. Results from this work are expected by mid August.

Field work, including prospecting, channel sampling and geological mapping is continuing on the various known mineralized zones and new prospects. Results from this will be released as they become available. Diamond drilling on the Mann #1 is scheduled to begin around mid August.

All prospect and channel samples were delivered by Company personnel to Activation Laboratories sample preparation facility in Happy Valley-Goose Bay. The samples were processed and representative pulps sent to Activation Laboratories analytical facility in Ancaster, Ontario for analysis. The digestion technique was total digestion that employs a lithium metaborate/tetraborate fusion and the analysis is completed using ICP/MS.

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.

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

”Michael Stares”

President and CEO

“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.”

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.

FOR FURTHER INFORMATION PLEASE CONTACT:

Rare Earth Metals Inc

Michael Stares

President and CEO

Phone: (807) 623-6840

Fax: (807) 623-9526

www.RareEarthMetals.ca