EANS-News: Tantalus Rare Earths AG / 2nd new high grade REE mineralisation found - Update on results from Target 4 (with document)

--------------------------------------------------------------------------------
Corporate news transmitted by euro adhoc. The issuer/originator is solely
responsible for the content of this announcement.
--------------------------------------------------------------------------------

Company Information/Drilling update

Düsseldorf (euro adhoc) - 2nd new high grade REE mineralisation found
- Update on results from Target 4

(Tantalus-AG, Düsseldorf, 30. August 2011) The Directors of Tantalus
Rare Earths AG ("TRE"), a German company exploring an extensive area
of secondary rare earth mineralisation at surface and primary,
near-surface bedrock rare earth mineralisation in north-western
Madagascar (the "TRE Project"), are pleased to announce an update on
new assay results from their pitting programme on Target 4, the
Caldera Target.

Target 4 encompasses 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, 186 of the 365 planned pits have
been excavated.

New assay results received from ALS Chemex, Canada for 39 more pits
confirm the presence of a near-surface rare earth enriched zone and
substantiate the economic potential of the target. The pits reached
maximum depths of 10m or were stopped when groundwater or bedrock was
encountered. At least 10 out of the 39 pits appear to have ended in
mineralisation. Additionally, the TREO grades increase sharply with
depth.

The highest TREO grade encountered is 0.48% over 0.50m. The
percentage of the more valuable heavy rare earth oxides varies
between 9 and 32% of TREO, with a maximum ratio of 42% in one sample.
Where the underlying bedrock is composed of alkaline igneous rocks,
the average TREO content reached up to 0.21 %. Pit n° 074 revealed
bedrock REE mineralisation at a depth of -3.00 m with a TREO grade of
1.85%.

The results to data indicate that niobium, tantalum, tin, gallium and
zirconium are partly enriched and potentially constitute economic
by-products. Significantly, uranium and thorium levels are very low,
reducing future mining and environmental risks.

In response to the discovery of high-grade bedrock-hosted REE
mineralisation, all pitting on Target 4 has been suspended. Instead,
two trenches, each 100 m long and 6 m deep, are being currently
excavated over the bedrock mineralisation. After logging and sampling
of the trenches, pitting will resume.

Elsewhere on the property, exploration activities are advancing
rapidly. On the Ampasibitika Prospect (Target 1), a total 15,900m of
diamond drilling has been completed to date. An update on the
drilling progress and the results will follow and be presented before
the end of this month. On the Befitina Prospect (Target 3), 185 pits
have been excavated so far, with another 11 in progress. At the
Ampasibitika South prospect (Target 5), 75 pits have been excavated
to date, with another 6 in progress.

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

"The pitting results substantiate the enormous potential of Target 4
to represent a large tonnage, low grade REE resource. The discovery
of high-grade bedrock REE mineralisation, which has similar
characteristics to the new mineralisation type from Target 5, is
amazing. Earlier, French, Malagasy and Russian explorers considered
this part of the intrusion to be non-prospective for REE
mineralisation. Before we start drilling, we will do more pitting and
trenching on this target to improve our knowledge of the geological
setting."

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 numerous 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 feasibility 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 [at] tre-ag.com
Internet: http://www.tre-ag.com

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/Uz551T1M

Further inquiry note:
for further information please contact:
Ivan Murphy, Director TRE AG, Tel: +44 (0) 20 3214 9930
Ana Ribeiro Blythe Weigh Communications Tel: +44 (0) 207 138 3206
or +44 (0) 7980 321 505

end of announcement euro adhoc
--------------------------------------------------------------------------------

Attachments with Announcement:
----------------------------------------------
http://resources.euroadhoc.com/us/Uz551T1M

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