U.S. Rare Earths, Inc., (OTCBB: UREE), a rare earths exploration company with mining claims located in Lemhi County, Idaho and Beaverhead County, Montana as well as the Powderhorn and Wet Mountain areas of Colorado, announced today that UREE is one of only four rare earth companies in the United States referenced in the 2011 U.S. Department of Energy (DOE) Critical Materials Strategy Report officially presented today at the Center for Strategic & International Studies in Washington, D.C. The DOE report indicates that five rare earths -- neodymium, dysprosium, europium, terbium and yttrium -- are under critical supply constraints in both the near-term (now until 2015) and medium-term (2015 to 2025). The report underscores the risks of continued U.S. dependency on foreign sources of metals and minerals and the adverse impact on green energy development.

The 2011 DOE study follows the Department's 2010 report, in which U.S. Rare Earths' Lemhi Pass, Idaho property is identified as the only deposit in the United States containing significant quantities of the heavy rare earths [[pages 30-31]], including all five specific REE's on the DOE critical supply list. The considerable resources noted in the DOE report include the UREE claims in the Lemhi Pass and Diamond Creek.

According to James Hedrick, former U.S. Geological Survey rare earths commodity specialist and Chairman of U.S. Rare Earths' Advisory Board: "U.S. Rare Earths' analytical data indicates that the company is one of the few domestic resources with significant heavy rare earths."

Michael D. Parnell, CEO, said, "We are very pleased to be recognized for the second straight year in the U.S. Department of Energy report. Our rare earth properties could help supply the projected demand of the United States military and civilian green industries, thus assisting in eliminating the dependence the United States currently has on foreign sources."

About U.S. Rare Earths, Inc.

U.S. Rare Earths, Inc., (OTCBB: UREE), is a mineral exploration, mining and claims acquisition company based in Lonoke, AR. Formerly Colorado Rare Earths, Inc., the company holds over 12,000 acres of mining claims for rare-earth elements in Colorado, Idaho and Montana. In Colorado these include the Powderhorn Property in Gunnison County, and Wet Mountain Property in Fremont and Custer Counties. Additional claims include the Lemhi Pass Property in Lemhi County, Idaho and Beaverhead County, Montana; Diamond Creek and North Fork Properties in Lemhi County, Idaho and the Sheep Creek Property in Ravalli County, Montana. Rare earth elements are critical to many existing and emerging 21st century applications including clean-energy technologies such as hybrid cars and electric vehicles; high-technology applications including cell phones and digital music players; hard disk drives used in computers; microphones; fiber optics; lasers; and in addition, critical defense applications such as global positioning systems, radar and sonar; satellite communications and stealth technology, including those used for industrial, military and homeland security. The rare earths are also used in advanced water treatment applications for domestic and foreign aid use. For more information visit www.usrareearths.com.

Rubenstein Public Relations
Liz Petrova
212-843-9335
lpetrova@rubensteinpr.com
or
Investor Relations:
U.S. Rare Earths, Inc.
Patrick Kennedy
254-559-6464
kennedy@usrareearths.com