Mr. Kenneth Kaczkowski reports

NEW ENERGY METALS CORP. CLOSES NON-BROKERED PRIVATE PLACEMENT

New Energy Metals Corp. has closed a non-brokered private placement of 900,000 units for gross proceeds of $112,500.

Each unit consists 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 are 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 issuance of the notice.

The company intends to use the net proceeds of the offering for general working capital purposes. The company may reallocate the proceeds in its discretion for sound business reasons.

All securities issued in connection with the offering are 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 final approval of the TSX Venture Exchange.

A director of the company subscribed for 100,000 units for aggregate consideration of $12,500. Such participation constitutes a related party transaction within the meaning of Multilateral Instrument 61-101, Protection of Minority Security Holders in Special Transactions. The company is relying on the exemptions from the formal valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, respectively, as the fair market value of the insider participation does not exceed 25 per cent of the company's market capitalization.

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 has 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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