Vancouver, British Columbia - July 19th, 2012 - Canada Rare Earths Inc. ("Canada Rare Earths" or "the Company") (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) announces that it has granted to directors, officers, employees and consultants an aggregate of 1,525,000 incentive stock options under the Company's 2011 Stock Option Plan. The options will be exercisable for a period of five years, at a price of $0.10 per share, subject to regulatory approval.

For more information on Canada Rare Earths Inc., please visit www.canadarareearths.com or call 604.685.5851.

On Behalf of the Board,

"Ron MacDonald"

Executive Chairman, Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.