EANS-News: Tantalus Rare Earths AG / Commences Formal Joint Venture Discussions with China Non-Ferrous Metals ("NFC")and appoints HSBC as Financial Advisor

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

Company Information/Joint Venture Discussions

Düsseldorf (euro adhoc) - Commences Formal Joint Venture Discussions
with China Non-Ferrous Metals ("NFC")and appoints HSBC as Financial
Advisor

(Düsseldorf, 19 October 2011,Tantalus Rare Earths AG) 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 ("REE") mineralisation in
north-western Madagascar (the "TRE Project"), are pleased to announce
that they have commenced formal Joint Venture discussions with China
Non-Ferrous Metal Industry Foreign Engineering & Construction Company
co. LTD ("NFC") and appoints The Hong Kong and Shanghai Banking
Corporation ("HSBC") as financial advisor to TRE.

SUMMARY

* April 2011 Tantalus Rare Earths AG ("TRE") announce Memorandum of
Understanding with China Non-Ferrous Metals ("NFC") after a meeting
in Beijing hosted by Ernst & Young, China Business Group.

* May 2011 TRE host delegate of NFC on site visit to Madagascar and
TRE deliver near surface samples to NFC in China for test work.

* September 2011 as a result of the test work completed by NFC in
China TRE are invited to return to Beijing to discuss a potential
joint venture agreement to develop the project further.

* October 2011 TRE announces first in-house resource estimate for a
small portion of the total project that confirms similarities to
Chinese Rare Earth "clays" and also the discovery of high grade Rare
Earth bearing carbonate.

* October 2011 TRE appoints HSBC as financial advisor on transactions
involving potential strategic partners and investors.

Commenting on the release Ivan Murphy, Executive Director said, "We
are delighted to have entered into a formal discussion with China
Non-Ferrous who are a major global producer of Rare Earths and
potentially an ideal partner for TRE to take our very exciting
project into production. In addition, we are pleased to announce the
appointment of HSBC as financial advisor to the company. We will
update the market in due course on the progress of these
discussions."

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.

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

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

Further inquiry note:
For further information contact:

Ivan Murphy, Executive Director der 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
--------------------------------------------------------------------------------

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