Playfair Enters Agreement For Rare Earth Metals Blocks

Canada’s Playfair Mining Ltd. has entered into an option agreement with Rare Earth Metals on its six large-claim REE blocks in Labrador. The six blocks, containing 313 claims covering a combined 7,825 hectares, are located in the Letitia Lake - Red Wine region covering highly prospective ground which is enriched in both rare metals and rare earth elements (REE).

Rare Earth Metals can earn a 51% interest in Playfair's six claim blocks by making an initial payment of $15,000 and 20,000 shares and guaranteeing a minimum first year expenditures of $100,000. Thereafter, Rare Earth Metals will make further annual contract anniversary payments of cash and shares totalling $55,000 and 130,000 shares and also incur additional exploration expenditures totalling $400,000 over three years in order to earn a 51% interest in the claims. The parties will then form a joint venture to further explore and develop mineral resources on the property. REM will operate the exploration programs during the option period in consultation with Playfair.

The agreement between Playfair and Rare Earth Metals accompanies a second and separate option agreement between REM and Cornerstone Capital Resources Inc. which is similar in nature and scope. REM, via staking and the two option agreements has consolidated a coherent land package in the Letitia Lake - Red Wine River region totalling 584 claim units (146 sq. km). The Red Wine REE District is located 120 km northeast of Churchill Falls, Labrador and is within 50 kilometres of an existing resource road originating at Churchill Falls. The estimated centre of the Red Wine REE camp is only 10 kilometres southwest of the western extent of Playfair's Seal Lake Copper-Silver exploration property.

During this upcoming summer-fall exploration season, Rare Earth Metals plans to conduct airborne geophysics and follow-up sampling, with select diamond drilling on priority showings and anomalies. This will be the first time since the 1960s that any detailed field work has been done in the area.