Rare Earth Metals to begin drilling Red Wine/Letitia Lake properties

August 12, 2010

Thunder Bay, ON – Rare Earth Metals Inc (“Rare Earth Metals”, “RA” or the “Company”) (TSX VENTURE:RA) is pleased to announce that as a follow up to encouraging results from this year’s trenching program, it has finalized arrangements to conduct a 1500 meter diamond drilling program at its Red Wine/Letitia Lake project in west-central Labrador.

The drill contract has been awarded to Landdrill International Ltd. of Moncton, New Brunswick, and diamond drilling equipment is expected to arrive at the Red Wine/Letitia Lake exploration camp located on the Orma Lake Road north of Churchill Falls, Labrador in the coming days.

Drilling will commence on the Mann #1 Deposit, and will progress to other targets as they are developed through trench sampling over the next month. Trench results on the Mann #1 Trench -1 and Trench -2 were announced on Aug. 4, 2010 and Aug. 10, 2010 respectively. Mineralization of significant width and grade has been defined through channel sampling at this deposit, and other REE showings and associated radiometric anomalies are currently being targeted for continued trenching/sampling. Pending additional results from the ongoing trenching program on a number of untested anomalies, the Company expects to test a total of four target areas in response to the encouraging results obtained to date.

The Company would like to acknowledge the Government of Newfoundland and Labrador for providing funding assistance under the JCEAP program which will subsidize approximately 50% of the eligible costs attributable to the proposed drill program, up to a maximum of $150,000 subsidy.

Maps of the Red Wine/Letitia Lake property and the Mann #1 trenches are located on the Company’s website at www.rareearthmetals.ca.

Wayne Reid, PGeo, is aqualified 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, Zirconium 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