VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 23, 2013) - Tasman Metals Ltd. (News - Market indicators)(NYSE MKT:TAS)(NYSE Amex:TAS)(FRANKFURT:T61) ("Tasman" or the "Company"). Mark Saxon, President & CEO, is pleased to announce the submission of an application for a Mining Lease ("ML") covering the Olserum heavy rare earth element (REE) project in Sweden. This follows the recent granting of a 25 year ML for Tasman's nearby Norra Karr REE deposit. The application documents for the Olserum ML were prepared by consulting group Golder Associates AB and recently lodged with the Swedish Mining Inspectorate (Bergsstaten). Tasman anticipates processing of the ML application by the Bergsstaten shall take 6 to 12 months.

The filing of this ML application required that Tasman complete environmental monitoring, flora and fauna surveys, ground water testing, community and stakeholder meetings and basic infrastructure planning for the Olserum site. A granted ML under the Swedish Mining Act is valid for 25 years, when it is available for renewal.

Tasman's 100% owned Olserum project has a resource estimate calculated in accordance with the standards of the Canadian Institute of Mines ("CIM") as provided in tables 1 and 2 below. It is located approximately 10km from the Baltic coast, 30km north of the town of Västervik and 200km SSW of Stockholm. The land is currently used for mixed forestry operations, and is owned by a Swedish forestry company. Olserum is proximal to road, rail, power and operating ports, plus skilled personnel, minimizing the need for offsite infrastructure to be built by the Company.

Olserum is considerably smaller than Tasman's flagship heavy REE project Norra Karr. However, mineralogical work has shown REE's to be hosted by xenotime and monazite, both of which have well established processing pathways, therefore reducing the metallurgical risk associated with this project. Olserum has a high contribution of the high value critical REE's (dysprosium (Dy), yttrium (Y), neodymium (Nd), terbium (Tb)). Olserum's proximity and easy road access to European markets stands as a unique operating advantage for the project.

"Submitting this Mine Lease application is an important step in the development of our Olserum project," said Mark Saxon, Tasman's President and CEO. "Sweden's simple and well tested Mining Act, year-round operating conditions and established infrastructure and skill base has allowed rapid and low cost progress to be achieved. Norra Karr and Olserum together give Tasman an advanced REE project portfolio that few if any competitors in the sector can provide."

Mineral processing and metallurgical research has begun on the Olserum REE project. The first phases of work are being completed by the mineral processing division of the Finnish Geological Survey (GTK), financed by the European Commission under the EURARE project as announced by Tasman on July 17, 2013.

The qualified person for the Company's exploration projects, Mark Saxon, President and Chief Executive Officer of Tasman and a Member of the Australian Institute of Geoscientists and Australasian Institute of Mining and Metallurgy, has reviewed and verified the contents of this release.

Table 1: Indicated Resource Estimate for the Olserum Deposit.

Table 2: Inferred Resource Estimate for the Olserum Deposit.

Notes:

About Tasman Metals Ltd.

Tasman Metals Ltd is a Canadian mineral exploration and development company focused on Rare Earth Elements (REE's) in the European region and is listed on the TSX Venture Exchange under the symbol "TSM" and the NYSE-MKT under the symbol "TAS". REE demand is increasing, due to the metals' unique properties that make them essential for high technology and environmentally-beneficial applications. Since over 95% of REE supply is sourced from China, the European Union is actively supporting policy to promote domestic supply of REE's, to ensure the security of high-tech industry. Tasman's exploration portfolio is uniquely placed, with the capacity to deliver "high-tech" metals from politically stable, mining friendly jurisdictions with developed infrastructure.

The Company's Norra Karr project in Sweden is one of the most significant heavy REE resources in the world. The resource is unusually low in radioactive metals relative to peer projects, with less than 15 ppm each of uranium and thorium.

For more information regarding rare earth elements, see the Rare Metal Blog at http://proedgewire.com/rare-earth/.

On behalf of the Board,

Mark Saxon, President & CEO

The TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange), the NYSE MKT nor the Frankfurt Stock Exchange accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note to U.S. Investors Concerning Mineral Resources and Reserves. In this news release, the definition of "mineral resources" is that used by the Canadian securities administrators and conforms to the definition utilized by CIM in the "CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines" adopted on August 20, 2000 and amended December 11, 2005.

The standards employed in estimating the mineral resources referenced in this news release differ significantly from the requirements of the United States Securities and Exchange Commission (the "SEC") and the resource information reported may not be comparable to similar information reported by United States companies. The term "resources" does not equate to "reserves" and normally may not be included in documents filed with the SEC. "Resources" are sometimes referred to as "mineralization" or "mineral deposits". While the terms "mineral resource", "measured mineral resource", "indicated mineral resource" and "inferred mineral resource" are recognized and required by Canadian regulations, they are not defined terms under standards in the United States and normally are not permitted to be used in reports and registration statements filed with the SEC. The terms "mineral reserve", "proven mineral reserve" and "probable mineral reserve" are Canadian mining terms as defined in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101") and the CIM - CIM Definition Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM. These definitions differ from the definitions in the United States Securities and Exchange Commission Industry Guide 7 ("SEC Industry Guide 7") under the Securities Act of 1933. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or prefeasibility studies, except in rare cases. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

The estimation of measured, indicated and inferred mineral resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned (i) not to assume that measured or indicated resources will be converted into reserves and (ii) not to assume that estimates of inferred mineral resources exist, are economically or legally minable, or will be upgraded into measured or indicated mineral resources. It cannot be assumed that the Company will identify any viable mineral resources on its properties or that any mineral reserves, if any, can be recovered profitably, if at all. As such, information contained in this news release and the documents incorporated by reference herein concerning descriptions of mineralization and resources under Canadian standards may not be comparable to similar information made public by United States companies in SEC filings.

Cautionary Statements. Certain statements found in this release may constitute forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect the speaker's current views with respect to future events and financial performance and include any statement that does not directly relate to a current or historical fact. Such statements reflect the current risks, uncertainties and assumptions related to certain factors including, without limitations, competitive factors, general economic conditions, customer relations, uncertainties related to the availability and costs of financing, unexpected geological conditions, success of future development initiatives, imprecision in resource estimates, ability to obtain necessary permits and approvals, relationships with vendors and strategic partners, the interest rate environment, governmental regulation and supervision, seasonality, technological change, changes in industry practices, changes in world metal markets, changes in equity markets, environmental and safety risks, and one-time events. Should any one or more of these risks or uncertainties materialize, or should any underlying assumptions prove incorrect, actual results may vary materially from those described herein. Forward-looking statements cannot be guaranteed and actual results may vary materially due to the uncertainties and risks, known and unknown, associated with such statements. Shareholders and other readers should not place undue reliance on "forward-looking statements", as such statements speak only as of the date of this release.