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FSC / Press Release


Rare Earth Metals to begin drilling at Clay-Howells


Thunder Bay, Ontario CANADA, January 21, 2011 /FSC/ - Rare Earth Metals Inc. (RA - TSX Venture),is pleased to announce that as a follow-up to encouraging results from last year's prospecting program, it has finalized arrangements to conduct a 2000 meter diamond drilling program at its Clay-Howells project in northern Ontario.


The drill contract has been awarded to Landdrill International Ltd. of Moncton, New Brunswick, and diamond drilling equipment is expected to arrive at the Clay-Howells exploration camp located 40 kilometers north of Kapuskasing, Ontario in early February.


The Clay-Howells property consists of 45 patented claims (mining and surface) and 49 unpatented claims (mining) totaling 11,781 hectares, and is underlain by a large circular 10 kilometer diameter Alkalic - Carbonatite Complex which hosts the Clay-Howells magnetite/REE/Nb Prospect and a number of untested magnetic targets. The proposed 2000 meter drill program will be carried out to test the higher priority untested magnetic targets.


These Alkalic - Carbonatite Complexes are very unique and are the host rocks to most of the more significant REE deposits including the Bayon-Obo Mine in China, the largest rare earth producer in the world, and Molycorp's Mountain Pass Mine in California. This style of mineralization is generally defined by their magnetic signature as is the prospect at Clay-Howells, where the host is a 50 to 100 meter thick massive to banded magnetite unit with significant REE and Niobium mineralization. Intersections from recent drilling in March, 2010 included values up to 0.69% TREO, 0.14% Nb205, 57.8% Fe203/105.3 meters including: 1.088% TREO, 0.14% Nb205 and 65.95% Fe203/ 16.9 meters. The property is accessible by existing forest roads leading north from the mill town of Kapuskasing, where infrastructure including highway, railroad, pipelines and airports are readily available.


Paul Nielsen, 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 two advanced projects in Ontario and Newfoundland and Labrador, all 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. Additional information concerning the Corporation is contained in documents filed by the Corporation with securities regulators, available under the company's profile 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."