Canada Rare Earth Arranges Long Term Supply of Rare Earth Concentrate from Brazilian Joint Venture Project - Seite 2

The long term supply/sales arrangement is subject to the commencement of Mata Azul's mining and concentrating operations which, in turn, is subject to a number of factors including financing, regulatory approvals and viable operations.

Tracy A. Moore, CEO and President of Canada Rare Earth commented: "We are very pleased to have entered into the long term supply arrangement with Mata Azul. The Mata Azul property has excellent potential to host significant quantities of critical rare earth elements contained within workable mineralogy (monazite and xenotime). The property has the potential to support a large separation refinery business in Brazil and complements our global business strategy of establishing multiple refineries in various globally significant locations. The Company is currently in advanced negotiations with several potential investors to finance up to a 10,000 metric ton refinery in Brazil. Whether negotiations are successful with those particular potential investors the Company believes that having secured a potential long term supply of rare earths will result in end users or other conventional commercial lenders being willing to provide project financing. If financing is obtained and a concentration facility is completed the Mata Azul project will represent a rich source of rare earth concentrate well suited to our proposed refineries, in volumes that enable planning for large scale operations producing a full spectrum of rare earth oxides on a long term basis and at an advantageous price."

Canada Rare Earth cautions investors that the proposed Mata Azul project is in the conceptual stage and there is no assurance that results of exploration of the property and associated metallurgy will be sufficiently successful to warrant development or that rare earth concentrate will be produced to the standards and volumes that would be required to make the project commercially viable.

CEC Rare Earth Corp. was instrumental in facilitating this purchase agreement and, as a result, 712,500 options have become fully vested leaving a further 2,137,500 options available for vesting with the delivery of future long term contracts.

ABOUT CANADA RARE EARTH CORP.

Canada Rare Earth Corp. is developing a vertically integrated business within the global rare earth industry by focusing on establishing rare earth separation refineries. This initiative is undertaken in conjunction with CEC Rare Earth Corporation, which has access to personnel experienced with designing, building and operating rare earth separation refineries. Additionally, the Company has several exploration properties exhibiting multi element potential including rare earths. 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 Canada Rare Earth Corporation web site at www.canadarareearth.com.