EANS-News: Tantalus Rare Earths AG / Drilling results (with document)

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Company Information/General update and update on drilling results
from Target 1

Düsseldorf (euro adhoc) - General update and update on drilling
results from Target 1

(Tantalus-AG, Düsseldorf, 06 September 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
a general update on work progress and on new assay results from their
diamond drilling programme on Target 1, the Ampasibitika Target.

Site visit by SRK Consulting (UK) Ltd

Two members of SRK Consulting Ltd, Cardiff/UK have recently finished
their site visit to the Tantalus project. The scope of their site
visit was to control the progress of field work and the quality of
operations in order to provide an update on their Competent Person's
Report and to produce a first, non-NI43-101 compliant resource
estimate for 2 prospects. The latter is expected for mid-September
2011.

Arrival of Mr. Chris Barrett, Chartered Geologist

Mr. Chris Barrett, 40, a British Chartered Geologist, has recently
joined the field team in Madagascar. Chris has more than 15 years of
experience in the mineral exploration industry, many of which he has
spent in Africa. His role in the project will be mainly to give
support to the field crews, to restructure the growing data base and
to process data.

Work Progress

Work is currently progressing at a high speed on 5 out of the 6
target zones. New results may require more detailed work on some of
the prospects but the initial field programme for 2011 should be
finished before the end of this year.

The summary table showing the initial work programme for 2011 and the
progress until end of August 2011 is attached to this release as a
PDF.

Diamond drilling progress on Target 1 (Ampasibitika Prospect)

All three rigs are drilling 7 days a week on two 12 h shifts on the
Ampasibitika prospect, TRE's main target for bedrock REE
mineralisation and overlying REE bearing argillaceous laterites.
To-date, 214 diamond holes have been finished and a total of 16,300 m
has been drilled. At the current speed, drilling on this prospect
will be finished by December 2011.

The Company has received more assay results from ALS Chemex, Canada
for a further 11 drill holes, results for a further 35 holes are
pending. The new results confirm that the target is covered by a
continuous layer of REE bearing argillaceous laterites and that the
target is underlain a set of multiple mineralised veins that can be
followed over several kilometers strike length.

The drilled widths of the REE bearing argillaceous layer averages
8.48 m which corresponds to a true (vertical) thickness of
approximately 7 m. The TREO grades vary between 390 ppm and 1910 ppm,
averaging 753 ppm in all 11 drill holes. The ratio of HREO to TREO
averages 19 and 21 % which is fairly consistent to earlier results.
Uranium and thorium grades are continuing to be very low.

Each drill hole has intersected between 1 and 4 different mineralised veins. The
drilled widths vary between less than a metre and 23 m. The best TREO grades
reach 0.24 %, Ta, Nb, Zr, Ga and Sn are also enriched. The overall ratio
HREO/TREO is 21/79. Uranium and thorium grades are low.

Commenting on these results, Ivan Murphy, Executive Director of Tantalus Rare
Earths AG said:

"This latest announcement in conjunction with recent updates continues to
validate our drill programme and strategy. It further demonstrates that in
partnership with SRK we are now close to defining a major Rare Earth Resource on
a small portion of our prospect. We are delighted to welcome Chris Barrett to
the team who brings a lot of experience in the sector and in operating in
Madagascar'"

The summary table showing the TREO, % of HREO, niobium oxide,
tantalum oxide, tin, gallium, zirconium oxide, uranium oxide and
thorium oxide from 11 drill holes pits on Target 1 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:
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http://resources.euroadhoc.com/us/LmpSlwod

Further inquiry note:
For further information please contact:
Ivan Murphy, Director of TRE 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
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Attachments with Announcement:
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http://resources.euroadhoc.com/us/LmpSlwod

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