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Press release from TheNewswire.ca

Canada Rare Earths Inc.: National Instrument 62-103 Report Disclosure

Tuesday, December 06, 2011

Canada Rare Earths Inc.: National Instrument 62-103 Report Disclosure07:15 EST Tuesday, December 06, 2011(via Thenewswire.ca) Vancouver, B.C., December 6, 2011 - David McMillan of 1500 - 1199 West Hastings Street, Vancouver, British Columbia V6E 3T5 has, through Sun Tzu Ventures Inc. ("Sun Tzu", a private company wholly-owned by Mr. McMillan), acquired beneficial ownership of an additional 2% of the outstanding common shares, including stock options exercisable into common shares, of Canada Rare Earths Inc. (the "Issuer") from the period beginning January 13, 2011 and ending on November 3, 2011, as set forth below. Mr. McMillan is a director of the Issuer. ---------------------------------------------------------------- |Date |Type/Number of Securities Acquired/Disposed|Price | |--------------------------------------------------------------| |May 12/2011|Acquired options exercisable into 100,000 |N/A | | |common shares (1) | | |--------------------------------------------------------------| |Jun 3/2011 |Acquired 11,500 common shares |$0.35 | |--------------------------------------------------------------| |Jun 6/2011 |Acquired 13,500 common shares |$0.35 | |--------------------------------------------------------------| |Jun 13/2011|Disposed of 150,000 common shares |$0.40 | |--------------------------------------------------------------| |Jul 6/2011 |Acquired 5,000 common shares |$0.44 | |--------------------------------------------------------------| |Jul 6/2011 |Acquired 16,000 common shares |$0.44½| |--------------------------------------------------------------| |Jul 6/2011 |Acquired 15,000 common shares |$0.45 | |--------------------------------------------------------------| |Aug 15/2011|Acquired options exercisable into 100,000 |N/A | | |common shares (2) | | |--------------------------------------------------------------| |Sep 15/2011|Acquired 24,000 common shares |$0.45 | |--------------------------------------------------------------| |Sep 15/2011|Acquired options exercisable into 100,000 |N/A | | |common shares (3) | | |--------------------------------------------------------------| |Sep 16/2011|Acquired 6,000 common shares |$0.45 | |--------------------------------------------------------------| |Sep 20/2011|Acquired 10,000 common shares |$0.41 | |--------------------------------------------------------------| |Sep 23/2011|Acquired 25000 common shares |$0.35 | |--------------------------------------------------------------| |Sep 27/2011|Acquired 20,000 common shares |$0.37½| |--------------------------------------------------------------| |Sep 30/2011|Acquired 23,000 common shares |$0.30 | |--------------------------------------------------------------| |Oct 4/2011 |Acquired 24,500 common shares |$0.29½| |--------------------------------------------------------------| |Nov 3/2011 |Acquired 7,000 common shares |$0.30 | |--------------------------------------------------------------| |Nov 3/2011 |Acquired 9,500 common shares |$0.31½| ---------------------------------------------------------------- (1) these options were granted to Sun Tzu on Jan 10/2011 and vested on Jul 11/2011. In accordance with National Instrument 62-104 - Take-Over Bids and Issuer Bids ("NI 62-104"), they are included above as an acquisition on May 12/2011 because Sun Tzu became entitled to exercise them 60 days later. (2)these options were granted to Sun Tzu on Aug 15/2011 and vested immediately. (3)these options were granted to Sun Tzu on Aug 15/2011 and vested on Nov 15/2011. In accordance with NI 62-104, they are included above as an acquisition on Sep 15/2011 because Sun Tzu became entitled to exercise them 60 days later. Sun Tzu previously filed a report dated January 12, 2011 pursuant to Sec. 5.2(1) of National Instrument 62-104 - Take-Over Bids and Issuer Bids disclosing the acquisition of securities of the Issuer. As at November 3, 2011, Mr. McMillan beneficially owned, directly or indirectly, 2,048,824 common shares, share purchase warrants exercisable into 666,667 common shares and stock options exercisable into 400,000 common shares of the Issuer which, assuming that the share purchase warrants and stock options are exercised, in aggregate represent 16.56% of the issued common shares of the Issuer calculated on a partially diluted basis. Mr. McMillan alone directly owns and controls 66,634 common shares of the Issuer, representing 0.35% of the issued common shares of the Issuer calculated on a partially diluted basis. Mr. McMillan alone, through Sun Tzu, has indirect ownership and control of 1,982,200 common shares of the Issuer representing 10.54% of the issued common shares of the Issuer, share purchase warrants exercisable into 666,667 common shares of the Issuer representing 3.54% of the issued common shares of the Issuer, and stock options exercisable into 400,000 common shares of the Issuer representing 2.13% of the issued common shares of the Issuer, calculated on a partially diluted basis. Mr. McMillan acquired the Shares for investment purposes. Mr. McMillan may in the future increase or decrease his ownership of securities of the Issuer from time to time depending on the business and prospects of the Issuer as well as future market conditions. Sun Tzu entered into customary stock option agreements with the Issuer with respect to the stock options disclosed herein. The common shares of the Issuer are listed on the TSX Venture Exchange under the symbol "CJC". A copy of the early warning report being filed by Mr. McMillan will be available on SEDAR (www.sedar.com) under the profile of the Issuer. Copyright (c) 2011 Thenewswire.ca - All rights reserved.