Mr. Kenneth Kaczkowski reports

NEW ENERGY ANNOUNCES PRIVATE PLACEMENT WITH STRATEGIC INVESTORS

New Energy Metals Corp. has arranged a non-brokered private placement with arm's-length strategic investors consisting of 2,857,143 units of the company at a price of 35 cents per unit for gross proceeds of $1-million.

The offering includes an overallotment option that could increase the total gross proceeds to $1.2-million. Each unit consists of one common share of the company and one-half of one transferable common share purchase warrant, with each warrant exercisable for one common share at a price of 75 cents per warrant share for a period of 12 months from the closing of the offering subject to the following acceleration provision.

If, at any time after the date of issuance of the warrant, the closing price of the company's common shares on the TSX Venture Exchange (or such other stock exchange on which the common shares may be traded from time to time) is at or above $1.10 per share for a period of 10 consecutive trading days, in which event the company may, within five days of the triggering event, accelerate the expiry date of the warrants by giving notice thereof to the holders of the warrants, by way of a news release, and, in such case, the warrants will expire on the day that is 30 calendar days after the date on which such notice is given by the company announcing the triggering event, and all rights of holders of such warrants shall be terminated without any compensation to such holder.

Proceeds from the offering are expected to be used for general corporate obligations and working capital purposes.

The closing of the offering is subject to certain conditions, including, but not limited to, the approval of the TSX-V.

All securities issued under the offering will be subject to a hold period of four months and one day in Canada from the closing of the offering in accordance with the rules and policies of the TSX-V and applicable Canadian securities laws.

About New Energy Metals Corp.

New Energy Metals is a Canadian-based resource company listed on the TSX-V under the symbol ENRG. The company has an option to purchase a 100-per-cent interest in the Troitsa copper property, covering approximately 7,000 hectares, located in the Omineca mining division of British Columbia.

We seek Safe Harbor.