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Strategic Rare Earth Metals, Inc. (OTC Markets:SREH) today released an open letter to shareholders:

Dear fellow shareholders,

Strategic Rare Earth Metals finished the first two quarters on a positive note having completed a capital restructuring earlier in the first half of the year which provides for a strong foundation on which to build. Since the time of the restructuring there has been no dilution in the company's stock as the company seeks funding that possesses acceptable terms. It remains the Company's firm position that any funding instruments should contain terms that minimize the impact on all shareholders as the company executes its business plan.

Today's economic environment has created a large number of business opportunities for companies that specialize in investments and acquisitions. Management intends to lead the Company to take advantage of the most favorable opportunities. We will be looking to make acquisitions and investments on terms that are very advantageous to SREH.

At present, Management is reviewing, as well as in discussions with a number of acquisition and investment opportunities that are being presented to us for consideration. Management believes that the signing of an additional LOI is imminent in the very near term, details of which will be released at the appropriate time. 

Bill Schaefer President Strategic Rare Earth Metals, Inc.

About Strategic Rare Earth Metals, Inc. (OTC Markets:SREH) – Strategic Rare Earth Metals, Inc. is a publicly traded company trading on the OTC Markets under the symbol SREH. For more information about Strategic Rare Earth Metals, Inc., please visit the Company's website at http://www.srehholdings.com

Forward-Looking Statement Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.

CONTACT: Bill Schaefer, President
         562-453-7643