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Rare Earth Metals Announces Completion of a Joint Venture Agreement With Ucore Rare Earth Metals to Fund Exploration on the Northcott Heavy Rare Earth Prospect in Western NL

THUNDER BAY, ONTARIO--(Marketwire - Dec. 3, 2010) - Rare Earth Metals Inc ("Rare Earth Metals", "RA", "REM" or the "Company") (TSX VENTURE:RA - News) is pleased to announce that it has entered into a joint venture with Ucore Rare Metals Inc ("Ucore") (TSX VENTURE:UCU - News) to jointly fund exploration and development of the recently acquired Northcott Option, located in western Newfoundland.The Northcott Property is a 20 claim unit property which was recently optioned by RA (see RA press release dated November 10, 2010 for a summary of the terms of the Northcott Option Agreement). Recent prospecting by the owners had identified an area of angular float containing anomalous Rare Earth Elements which exhibited high Heavy Rare Earth Element ratios. The property is underlain by the Hare Hill per-alkaline intrusive suite which is host to a number of known REE and U showings.During a property examination by RA personnel, a total of four samples were taken and results ranged from 0.83% to 1.77% Total Rare Earth Oxides (TREO) with an average of 1.22% TREO. The ratio of Heavy Rare Earth Oxides (HREO including Y2O3) to TREO ranged from 63% to 71% with an average of 68%. Within the REO package the most abundant oxides included Y2O3 which ranged from 0.38% to 0.83% (average of 0.55%), Ce2O3 which ranged between 0.10% and 0.22% (average 0.17%), La2O3 between 0.05 % and 0.10% (average 0.07%), Nd2O3 between 0.06% to 0.12% (average 0.09%) and Dy2O3 between 0.05% to 0.10% (average 0.07%). A trenching/sampling program focused on defining the mineralization controls is in progress.Terms of the joint venture with Ucore allows for both companies to maintain a 50% interest in the Northcott Property by funding 50% of the acquisition, exploration and development costs. RA will be the operator and funding for the initial $50,000 trenching and sampling program has been guaranteed by both companies. Once either party has expended in excess of $200,000 on the Property, and decides not to fund future programs it will be diluted pro rata to a 1% NSR. The agreement is subject to TSX approval.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 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.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 CEOThis 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."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."