Completes Acquisition of Critical Metal Properties and Closes Private Placement - Cobalt is First Priority

Press Release

Namibia Rare Earths Inc.

Completes Acquisition of Critical Metal Properties and

Closes Private Placement - Cobalt is First Priority

• Closes transaction with Gecko Namibia (Pty) Ltd . to acquire a majority

interest in seven projects with concurrent $550,000 private placement

• Diversifies Namibia Rare Earths Inc .’s single commodity focus from heavy

rare earths on the Lofdal project into a broader portfolio of critical metals

crucial for the electric vehicle industry including cobalt, lithium, graphite,

tantalum, niobium, and gold

• First priority given to cobalt exploration program at Kunene in northern

Namibia

• Shares to recommence trading on the TSXV

Halifax, Nova Scotia February 21, 2018 – Namibia Rare Earths Inc. (“Namibia Rare Earths”

or the “Company”) (TSXV:NRE) today announced it had completed the acquisition of a

portfolio of critical metal properties (the “Properties”) from Gecko Namibia (Pty) Ltd.

(“Gecko Namibia”) in consideration for the i ssuance of 64,000,000 common shares of

Namibia Rare Earths (“Property Acquisition”). The Company also announced that it had

closed a $550,000 private placement (“Private Placement”). Both of these transactions were

announced in the Company’s press release of November 10, 2017. The shares of the

Company are expected to recommence trading on the TSXV today.

This transaction provides Namibia Rare Earths with a high ly prospective, diversified portfolio

of critical metals and at the same time has secured a highly experienced strategic partner.

Gecko Namibia and its subsidiaries are substantial participants in the Namibian resource

sector with a proven track record in the mining ind ustry. The portfolio of properties acquired

from Gecko Namibia will expand the Company’s commodity base from solely heavy rare

earths to a variety of highly critical commodities including cobalt, copper, zinc, lithium,

graphite, tantalum, niobium, nickel, and gold (Figure 3). Ground holdings in Namibia

will increase from 221 km2 (Lofdal) to over 6,850 km2.

Proceeds from the Private Placement will fund the initial exploration program on the Kunene

Cobalt-Copper Project in northern Namibia which is contiguous with a significant new

discovery of stratabound cobalt mineralization that is being drilled off by Celsius Resources

(Figure 1). Namibia Rare Earths ’ exploration program on its properties will focus on

confirming cobalt mineralization in areas of demonstrated potential from historic regional

soil geochemical surveys to develop drill targets for subsequent follow-up. The Company

has immediate access to over 12 ,000 soil samples collected from previous work over 2, 142

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km2 which will be systematically analysed for cobalt. Provision has also been made for a

rock sampling program on the Warmbad Lithium Project in southern Namibia.

Kunene Cobalt-Copper Project - Cobalt Anomalies Already Identified from Regional

Soil Geochemistry and Drill Holes

The Kunene project area is contiguous with ground being actively explored for cobalt by

ASX-listed Celsius Resources (Figure 1). The recognition of stratabound cobalt

mineralization associated with low grade copper and zinc mineralization in black shales in

the Kunene region by Gecko Exploration has formed the cornerstone of Celsius Resource s’

current drilling program at Opuwo. Celsius is undertaking a 15,000 m drilling program to

develop a JORC compliant mineral resource to support their stated “Initial Exploration

Target of between 33 and 41 million tonnes, grading approximately 0.13% - 0.17% cobalt

and 0.45% - 0.65% copper” (Celsius press release dated May 18, 2017)1.

Figure 1 – Kunene Co-Cu Project Area Showing Principal Targets Associated with DOF

Horizon, Structural Lineaments and Regional Soil Geochemical Anomalies (Cobalt)

1 It is noted that the potential quantity and grade is conceptual in nature, and that there has been insufficient

exploration to estimate a Mineral Resource, and it is uncertain if further exploration will result in the estimation of a

Mineral Resource.”

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Fieldwork at Kunene will comprise focused geological mapping, rock sampling and detailed

soil sampling over areas already identified with cobalt potential from historic work (Figure

1). Th e historic database was collected during a previous exploration period with First

Quantum Minerals which was focused on the discovery of large -scale, orogenic copper

deposits and failed to undertake systematic analyses for cobalt in associated black shales.

First Targets on Kunene

The regional soil database covered the entire area of interest (2,142 km2) but at a very

wide sampling grid with ICP analysis at 1 km line spacing and 1 km sampling intervals. This

sampling density has identified significant, large scale geochemical anomalies but more

detailed sampling is required to determine the source and to define drill targets. Additional

soil sampling was carried out on the regional grid with every second line sampled at 100 m

intervals but analyses were performed with handheld XRF s which d id not collect reliable

data on cobalt. This archive of over 12,000 soil samples will be utilized for selected ICP

analyses for cobalt and other pathfinder elements to define specific targets within the

regional anomalies. NRE has already submitted 3,850 of these archived samples for cobalt

analysis and a llowance has been made for the collection of an additional 500 infill soil

samples over selected drill target areas.

1. DOF Extension and Western Targets - Cobalt mineralization on the Celsius ground is

hosted by the Dolostone Ore Formation (“DOF”) which has been mapped over a strike

length of more than 30 km up to the boundary of EPL4347 which is held by NRE. O ne of

the priority targets for NRE is the potential extension of this horizon for an additional 40

km to the west across EPL4347 and EPL3825. The target area on EPL4347 is completely

covered by alluvium and the extension is inferred from the airborne magnetic and

hyperspectral surveys. The DOF horizon is well defined from drilling by Celsius and

ranges from 3 -10 m in thickness making it a difficult target to see on the wide -spaced

regional geochemical sampling grid. There are also large-scale cobalt anomalies of 2 -6

km in basement rocks on NRE’s ground immediately south of the interpreted extension

of the DOF (Western Targets, Figure 1).

2. Steilrand and Okanihova Lineaments - First Quantum Minerals focused their

exploration efforts on orogenic copper mineralisation south of the DOF Horizon. T he

central part of EPL 4347 is characterized by extensive hydrothermal alteration known as

the Steilrand -Okanihova hydrothermal system where orogenic copper mineralisation

occurs along major faults . Black shale horizons within this area are similar to the DOF

but were never systematically analysed for cobalt unless there was significant visible

copper mineralization.

Re-analysis of 37 archived samples has confirmed DOF style mineralization in one of the

reverse circulation (“RC”) holes along the Okanihova lineament. Borehole KHRC04

(Figure 1) showed increasing cobalt values up to 700 ppm Co with potassium depletion

(indicating hydrothermal alteration) in black shales over 5 meters at the bottom of the

hole. Anomalous zones of coba lt mineralization (120 -450 ppm Co) were also confirmed

in a second hole (KHRC08) drilled 8 km northeast of KHRC04.

Gecko has made provision for availability of a diamond drill rig to test the up -dip

extension of the anomalous cobalt and copper intercepts in KHRC04 to provide

geological and structural information on the nature of the mineralization. Geological

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mapping and rock sampling along these structures will be undertaken, and archived soil

samples have been submitted for cobalt analysis from this area.

Warmbad Lithium Project - New Pegmatite Occurrences Mapped near Tantalite

Valley Mine

The Warmbad project comprises 605 km 2 (EPL6439) and hosts numerous pegmatite

occurrences with documented Li, Ta, Nb, Be and REE mineralization (Figure 2). Pegmatites

in the Tantalite Valley District have been mined since about 1946 for beryl, columbite -

tantalite, lithium and bismuth minerals. Mineralization from historic records of pegmatite

occurrences in the area are reported as lepidolite, spodumene, ambl ygonite, rubellite and

tantalite.

Figure 2 – Mineral Occurrences and Pegmatites Showing Newly Mapped Pegmatite Swarm

on Warmbad Exclusive Prospecting Licence

The area has recently been mapped in detail by the Geological Survey of Namibia and the

Council of Geosciences (South Africa) which has provided significantly updated geological

information. A key result of the government mapping campaign is the delineation of

previously unknown extensive pegmatite swarms of up to 13 km strike length. None of

these pegmatites have ever been sampled and have obvious potential for Li, Ta and REE

mineralization given their proximity to documented mineral occurrences of the Geological

Survey of Namibia. NRE f ield teams will be assist ed by geologists from the Geological

Survey of Namibia to locate outcrops and undertake reconnaissance sampling. Detailed

follow-up of mineralized areas will identify drill targets for lithium, tantalum and/or rare

earths as applicable.

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Property Acquisition and Private Placement

Namibia Rare Earths has acquired Gecko Namibia’s 95% interest in a portfolio of exploration

properties consisting of 14 exploration prospecting licences (“EPLs”) four of which are

pending, one mineral deposit retention licence (“MDRL”) and Gecko Namibia’s rights under

an option agreement to acquire a 60% interest in a further exploration prospecting licence

which interest may, subject to the terms of the option agreement, be increased to 80%.

Figure 3 – Namibia Rare Earths’ Critical Metals Project Portfolio

One of the fundamental strategic advantages in the partnership with Gecko Namibia is the

flexibility the diversified portfolio provides in making targeted investments based on

commodity market condi tions. Each project brings a focused value proposition and can be

advanced in a strategic manner based on available resources, investor interest and merit. A

balanced approach can be taken to levels of investment in early stage versus advanced

metallurgical studies and economic assessment as warranted. The immediate focus will be

on the cobalt opportunity within the project portfolio.

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In conjunction with the Property Acquisition, Gecko Namibia and Gerald J. McConnell, Chair

of the Board of Namibia Rare Earths, have each completed a private placement with the

Company in the amount of $275,000 at $0.05 per share for total gross proceeds to the

Company of $550,000 (“Private Placement”). A total of 11,000,000 common shares of

Namibia Rare Earths were issued pursuant to the Private Placement. The common shares of

the Company issued pursuant to the Private Placement are subject to a four -month hold

period expiring June 22, 2018.

Upon completing the Property Acquisition and Private Placement, Gecko Namibia now owns

69,500,000 common shares representing 43.80% of the outstanding common shares of the

Company.

Namibia Rare Earths and its insiders are at arm’s length with Gecko Namibia and there were

no finder’s fees payable in connection with the Property Acquis ition or the Private

Placement.

Following the closing of the Acquisition, Glenn Williams and Doug Jackson resigned as

members of the Board of Namibia Rare Earths and Pine van Wyk and Steve Kapp were

appointed to the five-member board with Gerald McConnell remaining as Chair. Pine van

Wyk was also appointed Chief Executive Officer of Namibia Rare Earths based in Namibia

and Donald Burton remains as President.

Donald M. Burton, P.Geo. and President of Namibia Rare Earths Inc., is the Company’s

Qualified Person and has reviewed and approved this press release.

About Namibia Rare Earths Inc.

Namibia Rare Earths Inc. is focused on the accelerated development of the Lofdal Rare

Earths Project and on building a critical metals portfolio in Nam ibia. The common shares of

Namibia Rare Earths Inc. trade on the TSX Venture Exchange under the symbol “NRE”.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that

term is defined in the policies of the TSX Venture Exchange) accepts respon sibility

for the adequacy or accuracy of this release.

For more information please contact -

Namibia Rare Earths Inc.

Don Burton, President

Tel: +01 (902) 835-8760

Fax: +01 (902) 835-8761

Email: [email protected]

Web site: www.NamibiaRareEarths.com

The foregoing information may contain forward -looking information relating to the future performance of Namibia Rare Earths Inc. Forward -

looking information, specifically, that concerning future performance, is subject to certain risks and uncertainties, and actual results may differ

materially. These risks and uncertainties are detailed from time to time in the Company's filings with the appropriate securities commissions.

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