Mr. Kenneth Kaczkowski reports

NEW ENERGY METALS ANNOUNCES NON-BROKERED PRIVATE PLACEMENT

New Energy Metals Corp. has arranged a non-brokered private placement of up to one million units at a price of 12.5 cents per unit for aggregate gross proceeds of up to $125,000.

Each unit will consist of one common share in the capital of the company and one transferable common share purchase warrant. Each warrant will entitle the holder to acquire one additional share at an exercise price of 16.5 cents per warrant share for a period of five years from the date of issuance. The warrants will be subject to an acceleration provision whereby, if the closing price of the shares on the TSX Venture Exchange equals or exceeds 50 cents for 10 consecutive trading days, the company may accelerate the expiry date of the warrants by issuing a news release announcing such acceleration. In such event, the warrants will expire on the date that is 30 days following the date the notice.

The company intends to use the net proceeds from the offering for general working capital purposes.

Pursuant to Multilateral Instrument 61-101,Protection of Minority Security Holders in Special Transactions, the company advises that certain insiders may participate in the offering. Such participation will constitute a related party transaction within the meaning of MI 61-101. The company intends to rely on the exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation by related parties is not expected to exceed 25 per cent of the company's market capitalization.

All securities to be issued in connection with the offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws. Completion of the offering remains subject to the acceptance of the TSX Venture Exchange.

About New Energy Metals Corp.

New Energy Metals is a Canadian-based resource company listed on the TSX Venture Exchange under the symbol ENRG. The company holds an option to purchase a 100-per-cent interest in the Troitsa copper property covering approximately 7,000 hectares located in the Omineca mining division of British Columbia.

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