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CANADA RARE EARTH CORP. FILES AUDITED ANNUAL FINANCIAL 
STATEMENTS AND MANAGEMENT DISCUSSION AND ANALYSIS

July29, 2015

Canada Rare Earth Corp. ("CREC" or the "Company") ( TSXV: LL ) is pleased to advise that its audited annual financial 
--->statements for the year ended March 31, 2015 and related management  discussion and analysis have been filed on our we
--->bsite (www.canadarareearth.com) and on SEDAR. We encourage readers to review both documents and, in the interim, we ar
--->e pleased to provide the following highlights.

Overview

Canada Rare Earth is a Canadian development stage developing a vertically integrated business within the global rare e
--->arth industry.  Historically, the Company was engaged solely in the exploration and development of precious metal and 
--->base metal mineral properties. More recently our focus has been directed to properties with the potential to host rare
---> earth elements with a view to ultimately developing a vertically integrated rare earth business. 

Outlook for Rare Earths and CREC's Focus

With greater awareness of the global supply chain and, in particular, China's dominance in the processing of rare eart
--->h concentrate, the Company, starting in September 2012,  expanded its business focus to include the down-stream proces
--->sing of rare earth products.

Rare earth raw materials and value-added products are essential to many "green" technologies such as hybrid vehicles a
--->nd wind power devices, and the Company believes that the global efforts to reduce reliance on fossil fuels in favour o
--->f alternative energy sources presents an extremely attractive opportunity for producers of rare earth elements. In add
--->ition to the emerging "green" technology sector there continues to be an increased demand for rare earths in the tradi
--->tional markets including applications in the military and electronics sectors. 

China is host to the vast majority of rare earth concentrate processing and without a viable alternative, the Company 
--->along with most, if not all, rare earth mines and sources situated outside of China are currently forced to sell, dire
--->ctly or indirectly, to the Chinese dominated industry which, under the Chinese national government's direction, is bei
--->ng consolidated into six major state-owned organizations.

The supply of rare earth oxides has been largely dominated by China with approximately 86% of the world's production i
--->n 2014, although China has only approximately 42% of the known reserves of rare earths. Accordingly the introduction o
--->f new high quality rare earth sources situated outside of China and, very importantly, the proven ability to process t
--->he rare earths into individual rare earth elements to exacting specifications outside of China, will be critical to al
--->leviating the "Chinese dominance angst" suffered by the world's largest manufacturing companies. 

The Company's goal has evolved to developing a "mine to market" vertically integrated business model by becoming a ful
--->ly integrated rare earth producer. Over the past two years, the Company has taken a number of steps to effect its tran
--->sformation from a narrowly focused rare earth exploration company to become a "mine to market" rare earth business inv
--->olved in all of the various stages from exploration, mining and concentrating to producing oxides, metals and alloys. 
--->Each facet of the business model is inter-related with the others and the development must be organized in a simultane
--->ous, synchronized and planned manner.

Next steps in our plans include financing, planning and development activities for rare earth properties and establish
--->ing separation capacity for rare earth concentrate by one or more refineries set up outside of China. If commercially 
--->advantageous and possible, the Company will participate in the ownership of such refineries established outside of Chi
--->na.

Simultaneously, we intend to establish sales channels between available rare earth concentrate supply and customers in
---> China. 

The Company has established a business relationship with CEC Rare Earth Corporation ("REC"), a private British Columbi
--->a corporation that is an affiliate of CREC and an Asian based group of companies (the "Asian Group") (REC and the Asia
--->n Group collectively the "Venture Partners"). The Asian Group owns one fully operational refinery in China and owns an
--->other in Laos that is fully constructed but which is not yet operational as permitting is pending. 

The Venture Partners have more than ten years of engineering experience directly related to rare earth refinery design
--->, construction and importantly to operations. In particular, the Asian Group has been instrumentally involved with the
---> design and construction of more than ten rare earth refineries. REC is controlled by one of our directors and the Asi
--->an Group is controlled by a relative of that director. The Venture Partners and the Company are evaluating a number of
---> rare earth refinery initiatives with the goal of pursuing one or more projects 

The Company believes that by virtue of access to rare earth sources and most importantly access to rare earth separati
--->on capacity with extensive design, build and operating experience, it is well positioned to become a leading business 
--->within the global rare earth industry.

Corporate Developments - Highlights

The Company's objective is the development of an integrated rare earth business with rare earth properties in Canada, 
--->South America and elsewhere and refining and processing capabilities in various jurisdictions including Asia, the Cari
--->bbean and South America. Other initiatives include:
Maintaining and preparing our core resource properties.
Arranging for the sale of non-core resource properties.
Establishing necessary and complementary down-stream business relationships. 
Devoting considerable time, energy and focus on raising funds for our core properties, related down stream business in
--->terests and overhead expenses.

Some of our specific developments and initiatives include:
From mid-September 2014 to date the Company has assisted with the permitting and strategic planning and financing of a
---> completed, full-spectrum rare earth refinery situated in Laos for a monthly fee of US$25,000 and the opportunity to p
--->urchase or earn an interest in the refinery.
Based on test results and the design of the Laos refinery, the prospective rare earth concentrate from the Mata Azul p
--->roperty would be suitable feedstock. 
We have entered into a number of agreements relating to the Mata Azul prospective rare earth property in Brazil:
a joint venture agreement to advance exploration and establish mining and concentration operations for rare earth and 
--->other mineral rights; 
the right but not the obligation to purchase all of the rare earth concentrate to be produced from the Mata Azul prope
--->rty for 20 years; and 
two letters of intent to sell 10,000 metric tons annually, of rare earth concentrate sourced from the Mata Azul proper
--->ty, to two affiliated full spectrum rare earth separation refineries situated in Asia. The minimum selling prices exce
--->ed the maximum purchase prices of the rare earth concentrate.
We have been active in selling off non-core properties:
in September 2014, we optioned the Hinton Coal property for $1,020,000 payable over three years and we are entitled to
---> a royalty of $0.15 per ton on future production. We have received $40,000 of payments towards the purchase price plus
---> have recouped certain property taxes. The due diligence period has been extended because of the weak market for coal 
--->but the optionee continues to be interested in the property;
in February 2015, the Company completed the sale of the Manitouwadge graphite property. We generated $159,000 of proce
--->eds and we are entitled to receive a 2% royalty on future production; and
we have listed for sale the surface rights for the Springer property and have taken steps to list the surface and mine
--->ral rights for one of our other properties.
We have been interacting with the privately owned Delaware company that owns several properties in Haiti to discuss fi
--->nancing prospects for continuing exploration and possibly mining on the property on which we have the 25 year lease fo
--->r a potential refinery site. Development of the property would provide cost advantages for our prospective refinery pr
--->oject.


Financial Results for the Year Ended March 31, 2015 - Highlights
Generated $392,000 of positive cash flow from the sale and optioning of non-core properties and from consulting servic
--->es.
Spent $37,000 of property related expenses to maintain and develop our property portfolio (down from $124,000 in the p
--->revious year) and incurred $952,000 of other cash-based expenses including about $200,000 relating to the Mata Azul pr
--->operty (an increase from $904,000 in the previous year).
At year end have $691,000 of net working capital (a reduction of $625,000 compared to the balance of $1,316,000 at the
---> previous year end). Our plans do not include an equity raise within the next year. Rather we will continue efforts to
---> sell off non-core assets and recoup funds from projects such as Mata Azul once funded. Additionally, we anticipate ch
--->arging management fees to various initiatives.
Commenting on the Company's financial statements and the various corporate initiatives of the Company over the past ye
--->ar Tracy A. Moore, CEO said "The Company is sufficiently well capitalized and strategically positioned to allow it to 
--->develop several industry relationships in the rare earth sector to enable the Company to achieve its corporate goals."
---> 
ON BEHALF OF THE BOARD OF DIRECTORS OF CANADA RARE EARTH CORP: 
Tracy A. Moore, CEO & President
 "Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of th
--->e TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." The information containe
--->d herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-lookin
--->g statements relate to information that is based on assumptions of management, forecasts of future results, and estima
--->tes of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projection
--->s, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-l
--->ooking statements."  Forward-looking statements are subject to a variety of risks and uncertainties which could cause 
--->actual events or results to differ from those reflected in the forward-looking statements, including, without limitati
--->on: risks related to failure to obtain adequate financing on a timely basis and on acceptable terms; risks related to 
--->the outcome of legal proceedings; political and regulatory risks associated with mining, exploration and operations; r
--->isks related to the maintenance of stock exchange listings; risks related to environmental regulation and liability; t
--->he potential for delays in exploration or development activities or the completion of feasibility studies; the uncerta
--->inty of profitability; risks and uncertainties relating to the interpretation of drill results, the geology, grade and
---> continuity of mineral deposits; risks related to the inherent uncertainty of production and cost estimates and the po
--->tential for unexpected costs and expenses; results of prefeasibility and feasibility studies, and the possibility that
---> future exploration, development or mining results will not be consistent with the Company's expectations; risks relat
--->ed to the price fluctuation of rare earths and other commodities; and other risks and uncertainties related to the Com
--->pany's prospects, properties and business detailed elsewhere in the Company's disclosure record. Should one or more of
---> these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary 
--->materially from those described in forward-looking statements. Investors are cautioned against attributing undue certa
--->inty to forward-looking statements.  These forward looking statements are made as of the date hereof and the Company d
--->oes not assume any obligation to update or revise them to reflect new events or circumstances.  Actual events or resul
--->ts could differ materially from the Company's expectations or projections

For more information on the Company, Investors should review the Company's filings that are available at www.sedar.com
--->. 
FOR FURTHER INFORMATION PLEASE CONTACT: 
Contact Information: 
 Tracy A. Moore
CEO & President
(604) 638-8886