Chad McMillan, President and CEO of Vancouver-based Canada Rare Earths

"If we can come out with similar results or better, you know that's a nice bench mark for us," says Chad McMillan, president and CEO of Vancouver-based Canada Rare Earths (TMX:CJC). Chad is talking about GéoMégA who run an adjacent asset at their Montviel property. Being neighbors, does not of course, mean that GéoMégA success will rub off on his own company but there's much to indicate that it will.

"About 6 months ago we had an opportunity come across our desks in the Rare Earths space," he recalls. His company's timing was immaculate; just afterwards the situation on the ground changed dramatically. "Quickly after we closed the deal," Chad remembers,” GéoMégA made a big discovery".

The property that Canada Rare Earths has taken on is named Goéland and it is located 215 km north of Val d'Or in the Abitibi region of Quebec.

 It extends over an area of 2,585 hectares and has excellent logistics, "Take the highway, take the logging road and you're right at the project," Chad says reassuringly.

At the heart of the asset is an intrusive Carbonatite body which “appears to cover as much as 4 square kilometers.” The significance of this is that Carbonatite rock typically plays host to "some of the largest Rare Earth deposits in the world." Not only that, Chad explains, "The Carbonatite is pretty rare in that there are only 300 or so of these Carbonatites known around the world right now and a very select few that contain concentrations of rare earths that are economic to extract."

Another point in Canada Rare Earth's favor is that they benefit from two 'old' drill holes made in 1993 by a diamond prospecting company. According to Chad, the holes show drilling to a "total depth of 100 meters" of which "70 to 75 meters" was Carbonatite and the "bore ended in mineralization". That's as far as it goes for the moment "because back in '93 there wasn't a lot of interest in Rare Earths so they didn't run any assays for Rare Earth Elements.” He's also keen to reassure that the results aren't likely to be a single fluke - "I guess it should be noted they're 1.5

kilometers apart from each other. The distance apart is very significant.”

The drilling program is scheduled to begin soon. "Our Phase 1 program should be starting in the next couple of weeks. We're looking early early August the drill starts turning," he promises. With only 20 meters of overburden expected to be encountered, the company should quickly know whether the old drill-hole logs were a reliable forecast of what is likely to be found.

Chad, who is a graduate of Simon Fraser University, has a background in business, finance and communications, though after several years in the junior mining business suggests he is becoming an increasingly astute junior mining investor, too."

Chad is joined on the board of directors by his father and principal shareholder, Dave McMillan. He was with Yorkton Securities as a VP and director until he left in 2000 after 17 years of service. They also have Benoit Moreau with them as Vice President of Exploration. He has over 25 years of experience working as a geologist and, more relevantly perhaps, was the former president of GéoMégA. "He's just right for the project," Chad enthuses. "He's very savvy when it comes to the Montviel area and this Carbonatite complex."

Canada Rare Earths have some 16.7m shares issued with 22m fully-diluted. Their current share price is around $0.45 which gives them a market capitalization value of just under $8m. The share price has more than doubled since last summer but, in recent weeks, it has fallen back considerably from its record high of just under $1.40 earlier this year.

Chad is very upbeat about his company's finances: "We have $2.2m in the bank so we're financed for our Phase 1 drill program." He's also unbothered by the stock's recent fall from grace, "You see what I see here. For our part, there was a lot of excitement initially when GéoMégA made the discovery. They went on a big run and we did as well. Value is still in the offing for us for sure because of the sheer potential of the site. Our shareholders know what our stock's worth," he says.

Given that the Canada Rare Earths is in the fortunate position of not having to seek financing, combined with the potential that adjacent GéoMégA is beginning to realize, the rising demand for REE's, and the solid experience of the board; Chad believes that his company bears merit for the consideration of serious investors.

However, when it comes down to the wire, what matters most is the resource itself. "The number one reason for investing in Canada Rare Earths," says Chad, "is the target potential. It is," he pauses dramatically, "significant."

SUMMARY

Chad McMillan of Canada Rare Earths explains how his company identified an outstanding opportunity acquiring the Goéland property and its extensive Carbonatite intrusion which, according to old drill logs and backed up by neighboring GéoMégA ‘s early successes, should bear significant quantities of Rare Earth Elements.

For more information:

http://canadarareearths.com

Canada Rare Earths

520-700 West Pender Street

Vancouver BC, V6C 1G8

+ 1 (604) 685.5851   Telephone

+ 1 (604) 685.7349   Fax

Investor Relations & General Inquiries

Email Chad McMillan - President & Chief Executive Officer