Rare Earth Metals Outlines New Strategy for Vertically

Rare Earth Metals Outlines New Strategy for Vertically Integrated
Rare Earth Company, Including Future Heavy Rare Earth Refinery
THUNDER BAY, ONTARIO -- (Marketwire) -- 12/06/12 -- Rare Earth Metals
Inc. ("Rare Earth Metals", "REM" or the "Company") (TSX
update regarding progress on finalizing REM's global rare earth
vertical integration strategy and management's action plans.  
REM's management team, board of directors and advisory board, along
with its strategic alliance partner, CEC Rare Earth Corporation
("REC"), have the background, knowledge and experience to complete
all aspects of the production and marketing of rare earth metals.
This strategy takes full advantage of the REM/REC alliance and
includes all aspects of the rare earth industry from exploration and
mining to constructing and managing large scale rare earth separation
plants. The group will also take advantage of its international
business development expertise and its excellent international
government relations.  
Tracy A. Moore, President and CEO of REM stated: "We are very pleased
to outline REM's proposed action plans to generate future revenues
and to commission the design and construction of a heavy rare earth
refinery in 2013 for completion in 2014. As a result of our strategic
alliance, REC is prepared to begin planning and engineering work on
future refining capacity for REM. Furthermore, the action plan
anticipates the generation of "revenue and sales" relationships in
2013 by leveraging REC's connections to secure supply allocations in
China and outside China. These are the initial key building blocks
for REM to realize its vision of a vertically integrated rare earth
business. Over the past three months REC has been collaborating with
REM in finalizing the details of a four year action plan designed to
achieve our goals. REM has been negotiating with REC to access REC's
expertise in refinery design, construction and operations as well as
securing access to its partners."  
REM's vision is to establish a minimum of 10,000 metric tonnes ("MT")
of full spectrum refining capability over the next four years. We
expect the refineries will be built in modules of 1,000 to 5,000 MT
(annual output c
apacity) in multiple locations, with the ability to
separate both light and more importantly, heavy rare earths. The
capability to refine heavy rare earths differentiates us from other
projects and is, again, based on the expertise and ability of REC and
its affiliates.  
The strategy entails three key aspects or platforms which are
outlined below. The benefits of successful implementation are obvious
and include an early stream of revenue and an increased profit margin
as each milestone is realized. Additionally, early entry in the rare
earth market will help raise REM's profile and strengthen its
business ability, reputation and credibility. The three key platforms
1. REM becoming a strategic rare earth supplier in 2013 

--  REM's financial resources will be focused on near-term business
    development with the goal of generating sales revenue by establishing
    REM as a supplier of rare earth oxides ("REOs") to leading international
    manufacturers of hi-tech and green-tech products through REC's
    connections in China and outside China. 
--  Secure access to 500 MT of REOs, increasing to 3,000 MT annually by 2015
    for sale to customers. Increase REM's focus on the rare earth industry
    by divesting of its coal and graphite properties. These are non-
    strategic assets. 
--  Seek partners to fund the continuing exploration of REM's Canadian rare
    earth properties, while maintaining the rights to separate rare earths
    from the properties. REC has access to Asian exploration companies
    interested in Canadian properties. 

2. REM establishing itself as one of the earliest non-Chinese HREE
Refineries: 2013 - 2014  
Establish REM refining capacity / capability sufficient to produce
500 to 1,500 MT annually of REOs by mid-2014 (overweighted to heavy
rare earths). Negotiate with one of REC's affiliates outside of China
to acquire REM proprietary refining capacity. 

--  Leverage REC's skills of designing, constructing and operating full
    spectrum (light and heavy) rare earth refineries to build a dedicated
    REM production capacity on an existing rare earth refinery site 
--  Secure near term HREE concentrate streams to feed into REM's refinery 
--  Become the rare earth separation partner for recycling operators to
    augment REM's supply of rare earths 
--  Secure relationships with major international manufacturer users of rare
    earths as their strategic rare earth partner/supplier 

3. REM developing into a leading Full Spectrum, Vertically Integrated
Rare Earth Business outside of China: 2013 - 2016  
Expand REM's annual production capacity to more than 10,000 MT of
full spectrum (heavy and light) separated rare earths through: 

--  Acquisition of existing refineries through REC's relationships 
--  Expansion on existing sites 
--  Specifically design and construct purpose built refineries 
--  Secure rare earth concentrate off-takes for future production and
--  Extend downstream capabilities to separated rare earth products such as
    alloys, specialty and co-precipitate products, and powders 

Stated Michael Stares, board member and former President and CEO of
REM, "We are very pleased with the progress made over the past two
months by REC and the new direction the Company has taken. The
association with rare earth producers and refineries has added a new
dimension by providing a team focused on supplying product and
services to the rare earth market. We look forward to the coming
months and the new opportunities that lie ahead for REM." 
Rare Earth Metals Inc. has recently entered into a strategic advisory
agreement with CEC Rare Earth Corp. ("REC") to assist the Company in
developing a vertically integrated business within the global rare
earth industry. The relationship with REC provides the Company with
access to REC's experienced personnel as well as its business model
which includes the full spectrum of the rare earth industry including
the designing, building and establishment of operations for rare
earth refineries outside of China as well as the ongoing sales and
marketing of refined rare earths. In addition to its relationship
with REC the Company presently has several rare earth properties
exhibiting multi-element potential (REEs, niobium, beryllium,
zirconium and iron ore). 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. 
Tracy A. Moore, CEO & President 
For more information on the Company, investors should review the
Company's filings that are available at www.sedar.com.  
Company information distributed through the Market Access Program is
based upon information that Standard & Poor's considers to be
reliable, but neither Standard & Poor's nor its affiliates warrant
its completeness or accuracy, and it should not be relied upon as
such. This material is not intended as an offer or solicitation for
the purchase or sale of any security or other financial instr
Certain information set out in this News Release constitutes
forward-looking information. Forward-looking statements (often, but
not always, identified by the use of words such as "expect", "may",
"could", "anticipate" or "will" and similar expressions) may describe
expectations, opinions or guidance that are not statements of fact
and which may be based upon information provided by third parties.
Forward-looking statements are based upon the opinions, expectations
and estimates of management of Rare Earth Metals Inc. ("REM") as at
the date the statements are made and are subject to a variety of
known and unknown risks and uncertainties and other factors that
could cause actual events or outcomes to differ materially from those
anticipated or implied by such forward-looking statements. 
Those factors include, but are not limited to, the successful and
timely completion of its vertical integration strategy including
identifying and negotiating with viable, long term sources of rare
earths, transitioning rare earth exploration properties into mines,
fund raising to support mining operations, identifying and
negotiating with rare earth refineries situated outside of China
either to acquire partly or entirely, or commissioning the design,
build and operation of one or more rare earth separation refineries
to be situated outside of China, raising sufficient funds to support
the construction and operation of each refinery, reliance on third
parties to meet projected timelines, entering into long term
contracts with international manufacturers on terms acceptable to
REM, risks related to the receipt of all required approvals including
those relating to the commencement of production at selected mines
and for each refinery yet to be identified, delays for each in
obtaining permits, licenses and operating authorities, environmental
matters, water and land use risks, risks associated with the industry
in general, commodity prices and exchange rate changes, operational
risks associated with exploration, development and production
operations, delays or changes in plans, risks associated with the
uncertainty of reserve or resource estimates, health and safety
risks, uncertainty of estimates and projections of production, costs
and expenses, the adequacy of the Company's financial resources and
the availability of additional cash from operations or from financing
on reasonable terms or at all, political risks wherever REM may
conduct business, risks associated with the relationship between REM
and/or its business partners and local governments wherever REM
conducts business, radioactivity and related issues, dependence on
one or a few mineral projects, loss of key personnel, factors
discussed in the Company's public disclosure record, and other
factors that could cause actions, events or results not to be as
anticipated. In light of the risks and uncertainties associated with
forward-looking statements, readers are cautioned not to place undue
reliance upon forward-looking information. Although REM believes that
the expectations reflected in the forward-looking statements set out
in this press release or incorporated herein by reference are
reasonable, it can give no assurance that such expectations will
prove to have been correct. Except as required by law, REM does not
assume any obligation to update forward-looking statements as set out
in this news release. The forward-looking statements of REM contained
in this News Release, or incorporated herein by reference, are
expressly qualified, in their entirety, by this cautionary statement
and the risk factors contained in REM's regulatory filings available
at www.sedar.com. 
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. 
Rare Earth Metals Inc.
Tracy A. Moore
CEO & President
(604) 685-5535
Rare Earth Metals Inc.
Michael Stares
Corporate Communications
(807) 623-6840
(807) 623-9526 (FAX)
Standard and Poor's Customer Contact:
Richard Albanese
(212) 438-3647
Standard and Poor's Media Relations Contact:
Michael Privitera
(212) 438-6679
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