EANS-News: Tantalus Rare Earths AG / Results from pitting programme (with document)

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Company Information/First results received from pitting programme

Düsseldorf (euro adhoc) - Tantalus Rare Earths AG
First results received from pitting programme

(Tantalus Rare Earths AG, Düsseldorf, 27th July 2011) The Directors
of Tantalus Rare Earths AG ("TRE"), the German company exploring an
extensive, secondary rare earth mineralisation at surface and a
primary, near surface bedrock rare earth mineralisation in
north-western Madagascar (the "TRE Project"), are pleased to provide
the first assay results from their pitting programme on Target 4, the
Caldera Target.

Target 4 is the inner part of the south-eastern Ampasibitika
Intrusion. The caldera measures approximately 7 km in diameter and
has a total surface area of some 31 km². It is underlain by alkaline
igneous rocks intermixed with smaller portions of sediments into
which they intruded. In April 2011 TRE commenced an extensive pitting
programme on this target. To-date, 155 pits have been excavated down
to maximum depths of 10 m, with another 11 pits currently in
progress. The company initially plans a total of 365 pits on this
target. An earlier reconnaissance soil geochemistry survey indicated
the presence of widespread rare earth mineralisation accompanied by
elevated grades of tantalum, niobium, zirconium and gallium.

The first assay results received from Alschemex, Canada for all four
of the pits confirm the presence of REE bearing argillaceous
laterites ("clays") at depth. The pits reached final depths of 6 to 7
m and were stopped when a shallow groundwater horizon was
encountered. Three out of the four pits were mineralised. In two
pits, the TREO grades increase with depth. Deeper drilling will be
required to determine the true thicknesses of the REE bearing clays
and to investigate the possible bedrock mineralisation of these
anomalous grades. Diamond drilling on this target, and others, is
scheduled for the 2nd half of 2011.

The maximum TREO grade encountered was 0.29%. The percentage of the
more valuable heavy rare earth oxides averaged between 12 and 26% of
TREO, with a maximum ratio of 35 %. Niobium, tantalum, tin, gallium
and zirconium are also enriched and could constitute possible
by-products at a later stage. Uranium and thorium levels are very
low, reducing future environmental risks.

Elsewhere on the property, exploration activities are being continued
at an increased speed. On Target 1, the Ampasibitika Prospect, a
total 13,140 m of diamond drilling has been completed to date. On
Target 3, the Befitina Prospect, 55 pits have been completed and
another 21 are in progress. Along the southern extension of Target 1,
on Ampasibitika South (Target 5), pitting has commenced with 12 pits
completed and 5 pits in progress. More geologists are currently being
hired, and the pitting programme on Target 2, Ambaliha, is due to
commence in late July. With the arrival of man portable drill rigs
("window samplers"), pitting will partly be replaced by this faster
and less invasive sampling technique.

TRE has appointed metallurgical consultants to carry out tests on the
REE bearing clays. The aim of this test work is to identify as soon
as possible a low-cost extraction process through leaching or
combined magnetic/gravity separation.

More than 1500 assay results from the ongoing diamond drilling
programme on Target 1 and the pitting/window sampling programmes on
Targets 3, 4 and 5 are expected to be with the company within the
next few weeks.

Commenting on these results, Wolfgang Hampel, Chief Geologist and COO
of Tantalus Rare Earths AG said:

"These results are a very important step forward in order to define a
very high tonnage, low grade REE resource. They further confirm our
assumption that in fact most of the 170 km² sized area underlain by
alkaline intrusives could be covered by an almost continuous layer of
REE bearing argillaceous laterites. Given the huge tonnage, the other
target elements could also constitute valuable by-products. The
thorium and uranium grades are so low, that we will face no
environmental issues with these radioactive elements."

At the current speed of exploration activities, the Directors of
Tantalus expect to be able to publish their first NI 43-101 compliant
resource estimates in early Q4 of this year. By the end of calendar
2011, we hope to be able to give a resource estimate for some 50 % of
the total surface area overlain by REE bearing clays.

The summary table showing the TREO, % of HREO, niobium oxide,
tantalum oxide, tin, gallium, zirconium oxide, uranium oxide and
thorium oxide from four pits on Target 4 is attached to this release
as a PDF.

Notes to Editors

About Tantalus Rare Earths ("TRE")

TRE is a German incorporated holding company whose subsidiaries are
engaged in the exploration and development of rare earths. TRE's
shares are quoted on the Open Market of the Frankfurt Stock Exchange.

TRE's principal asset is an exploration project located in
north-western Madagascar and comprises rare
earth-tantalum-niobium-zirconium-hafnium enriched dykes and sills and
Rare Earth Element ("REE") bearing argillaceous laterites derived
from the weathering of underlying alkaline intrusives.

There are early indications that most of the alkaline intrusive
bodies within the concession are overlain by REE bearing argillaceous
laterites. TRE is therefore considering the whole area underlain by
alkaline intrusives (150 to 170 sq km) as prospective for secondary
REE mineralisation in the weathering crust.

The exploration programme aims to define the primary (vein/skarn
hosted) and secondary (argillaceous laterites) mineralisation present
on the concession towards a NI 43-101 compliant mineral resource
estimate and support a detailed feasiblity study towards mine
development and production.

Tantalus Rare Earths AG
Berliner Allee 12
40212 Düsseldorf
Deutschland
Telefon: +49 (0)211 52391 430
Telefax: +49 (0)211 52391 200
e-Mail: contact@tre-ag.com
Internet: http://www.tre-ag.com/

Attachments with Announcement:
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http://resources.euroadhoc.com/us/X3YWoyFT

Further inquiry note:
Ivan Murphy, Executive Director
c/o Blythe Weigh Communications Tel: +44 (0) 207 138 3204

Matthew Neal or Paul Weigh
Blythe Weigh Communications Tel: +44 (0) 207 138 3204

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Attachments with Announcement:
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http://resources.euroadhoc.com/us/s1wZiS1u
http://resources.euroadhoc.com/us/X3YWoyFT

company: Tantalus Rare Earths AG
Berliner Allee 12
D-40212 Düsseldorf
phone: +49 (0)211 52391 430
FAX: +49 (0)211 52391 200
mail: contact [at] tre-ag.com
WWW: http://www.tre-ag.com
sector: Holding companies
ISIN: DE000A0SMSL4, DE000A1KRQE7
indexes:
stockmarkets: free trade/entry standard: Frankfurt
language: English