Rare Earth Metals Inc.: Clarification to the News Release Dated December 6, 2012

THUNDER BAY, ONTARIO -- (Marketwire) -- 12/07/12 -- Rare Earth Metals Inc. ("Rare Earth Metals", "REM" or the "Company") (TSX VENTURE: RA)(PINKSHEETS: RAREF)(OTCQX: RAREF). The December 6, 2012 news release contains statements relating to future revenues and the construction of a heavy rare earth refinery.

Mr. Tracy A. Moore, President and CEO of the Company, would like to clarify certain statements contained within the news release of December 6, 2012. Commented Mr. Moore, "In addition to the risk factors relating to forward-looking statements contained in the release, it is important to note that a feasibility study has not been completed, there is no certainty that the proposed operations will be successfully completed or that they will be economically viable, that financing can be arranged on acceptable terms or at all to support the capital expenditure and working capital needs, nor that we will be able to source rare earth concentrate to feed into the proposed refinery on acceptable terms."

ABOUT RARE EARTH METALS

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

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

"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 instrument.

"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."

Contacts:

Rare Earth Metals Inc.

Tracy A. Moore

CEO & President

(604) 685-5535
moore@rareearthmetals.ca


Rare Earth Metals Inc.

Michael Stares

Corporate Communications

(807) 623-6840

(807) 623-9526 (FAX)
matt@rareearthmetals.ca
www.rareearthmetals.ca


Standard and Poor's Customer Contact:

Richard Albanese

(212) 438-3647
richard_albanese@standardandpoors.com


Standard and Poor's Media Relations Contact:

Michael Privitera

(212) 438-6679
michael_privitera@standardandpoors.com