Cadence Mineral Regulatory News (KDNC)

Rare Earth Minerals Plc

("Rare Earth Minerals" or "REM")

Conversion of Option over European Metals Holdings and Conversion of REM Loan Note

Rare Earth Minerals Plc (AIM: REM; OTC: REMMY)) announces that, further to it announcement on 30 September 2016, it has been issued 2,000,000 new ordinary shares (represented by Chess Depositary Interests or "CDI's") in European Metals Holdings Limited ("EMH's), in respect of an exercise of options at AU$0.20 per CDI. REM now holds a direct interest in 17.64% of EMH's issued share capital. On 3 October 2016, REM announced that it had agreed to invest a further A$2.6 million into EMH. For this consideration, REM would be issued 5 million ordinary shares represented by CDI's in EMH at an issue price of A$0.52 per CDI. The placement is subject to shareholder approval which will be sought by EMH at their Annual General Meeting later this month. If approved REM will hold a direct interest in EMH of 20.84%.

In addition REM has received notification of the conversion US$500,000 of its US$15 million convertible loan have been converted into 63,135,020 new ordinary shares in the Company at a price of 0.65 pence per share.

After this exercise, the outstanding balance of the convertible loan is US$13.65 million. The convertible loan has an interest rate of 5%, and the principal is convertible at 0.65 pence which represent a premium of 5 % over the closing price on 8 August 2016, the day before the loan note was announced.

Application will be made to the London Stock Exchange to admit the 63,135,020 new ordinary shares to trading on AIM. Admission of the new ordinary shares is expected to occur on or around 24 October 2016. The new ordinary shares will rank pari passu with the existing ordinary shares.

For the purpose of the Disclosure and Transparency Rules, following the issue of shares detailed above the enlarged issued share capital of the Company will comprise 7,690,025,689 ordinary shares with no Ordinary Shares held in treasury. Therefore the above figure of 7,690,025,689 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in Rare Earth Minerals under the FCA's Disclosure and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact:

Rare Earth Minerals plc +44 (0) 207 440 0647

Andrew Suckling

Kiran Morzaria

WH Ireland Limited (Nomad & Broker) +44 (0) 207 220 1666

James Joyce

James Bavister

Square1 Consulting +44 (0) 207 929 5599

David Bick

Brian Alexander

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