Tantalus Rare Earths AG: MOU with CNF / appointment to the board

Tantalus Rare Earths AG ('TRE'), the German exploration company currently exploring the large near surface rare earths occurrence in north-western Madagascar (the 'TRE Project'), is pleased to announce the following:

David Rigoll

David Rigoll, TRE's largest shareholder, is appointed an Executive Director of TRE. David Rigoll spent the first part of his career working in investment banking and broking in Australia, Asia and London, with a particular emphasis on mining. Through 2004/5 he located and secured various iron ore and petroleum exploration projects. In 2006, he identified a critical shortage of rare metals and rare earths and began a search for an appropriate project which could provide accessible deposits of high grade resources for metal supply. In 2008 he located and began development work on the TRE project.

China Nonferrous Metal Industry's Foreign Engineering & Construction Co. LTD. ('CNF')

On 13 April 2011 TRE signed a Memorandum of Understanding ('MOU') with CNF under which both parties have agreed to see whether they can work together in developing the TRE project in Madagascar. Pursuant to the MOU, CNF has agreed to visit TRE's project in Madagascar and in addition to analyse the REE bearing argillaceous laterite occurrences found there.

CNF is a leading Chinese company involved in the mining, processing and trading of non ferrous metals. At its operations in China it is involved in the processing of rare earth elements utilising its own technology.

The signing of the MOU is in line with the Board's previously announced longer-term strategy to investigate various avenues to better understand the characteristics of the REE bearing argillaceous laterite occurrences.

Jack Lifton commented that 'the REE bearing argillaceous laterites are potentially comparable to the ionic absorption clays mined in southern China that currently comprise the only producing sources of heavy rare earths in the world. CNF today refines all of the REE's in its Chinese operation using its own technology. TRE welcomes the potential cooperation of CNF in determining the feasibility of producing heavy rare earth elements as well as light rare earths elements from its REE bearing argillaceous laterites in Madagascar.'