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Colorado Rare Earths, Inc. Awards Boeing Contract for Remote Sensing

Colorado Rare Earths, Inc. recently announced the acquisition of U.S. Rare Earths, Inc. "USRE" and, together with its existing and other recent acquisitions, CREC now holds the rights to some of the most significant deposits of rare earth elements in the United States.

"Boeing's technology will greatly expand the scope and efficiency of our exploration activities and may provide definitive profiles of individual Heavy Rare Earth Elements (HREE) as well as Light Rare Earth Elements (LREE)," stated Michael Parnell, Chief Executive Officer of CREC. "We have worked diligently and have been extremely successful in acquiring large resource claims with a goal to commercialize our holdings for the U.S. market. Boeing's technology should accelerate our timetable. With Boeing's ability to expand our exploration and incorporate large-scale analysis of our claims and other possible rare-earth deposits, this contract could greatly increase our ability to become a substantial domestic supplier of rare earths for the U.S. military's strategic requirements as well as for the green technologies sector," Parnell added.

One particularly interesting find is a large vein (5 m x 600 m at the surface) proximal to the Iron Hill carbonatite southwest of Gunnison, CO, consisting dominantly of quartz and chalcedony with small amounts of lithic fragments (1-2 cm). The presence of chalcedony suggests a low-temperature epithermal hydrothermal deposition environment. This type of depositional environment preferentially supports the accumulation of HREE versus LREE. Using a hyperspectral hand-held spectrometer, absorption features suggesting the presence of europium are seen in lithic fragments in the quartz and chalcedony vein. This assessment is being verified by chemical analysis. Additional hyperspectral imagery analysis of our Powderhorn, CO claims, confirmed by fieldwork, shows the presence of additional carbonatite bodies.

The use of Boeing's spectral technology in the terrain of Colorado will be useful in both verifying Colorado Rare Earths' existing rare-earth holdings and obtaining rapid identification of additional targets. Airborne deployment of this technology will provide a large-scale exploration technique to locate and identify rare-earth surface exposures and mineralized terrains. The technique will be used in conjunction with other airborne and surface geophysical methods followed by on-the-ground sampling and authentication.

About Colorado Rare Earths, Inc.:

Colorado Rare Earths, Inc. is a mineral claims acquisition company. The Company currently focuses on rare-earth elements and owns a 100% interest in a group of Colorado, Idaho and Montana unpatented, mineral claims; the Iron Hill Property located in Gunnison County, the Wet Mountains Property located in Freemont and Custer Counties, and the Lemhi Pass District Property located in Idaho and Montana. For more information, visit the Company's web site at www.coloradorareearth.com.

About U.S. Rare Earths, Inc.:

U.S. Rare Earths, Inc. is a privately-held rare earths exploration company located In Salt Lake City, UT. U.S. Rare Earths Inc.'s management believes its holdings have concentrations of individual rare earths of both the yttrium-heavy rare earths group and the cerium-light rare earths group. The U.S. Rare Earths properties include Diamond Creek, in southeast Idaho's Webster Range and a 600-acre site in the Lemhi Pass, at an elevation of about 7,200 feet on the Continental Divide, between Idaho and the Bitterroot Range of Montana. For more information, visit the Company's web site at www.usrareearths.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, general economic conditions and the ability of the Company to market and sell its products, and the effects of competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could be inaccurate, and therefore, there cannot be assurance that any forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in any forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.

Colorado Rare Earths, Inc.
Patrick Kennedy, Investor Relations
501-676-2994 ext. 302
pkennedy@coloradorareearth.com