NEW YORK, May 16, 2011 /PRNewswire/ — Siberian Energy Group Inc. (the “Company”) (OTCBB: SIBN) announced that on May 11, 2011 it acquired 100% of the outstanding share capital of Rare Minerals Corporation (“RMC”) through a Share Exchange Agreement. RMC shareholders will receive 65,200,000 shares of the Company (two shares for each share of RMC), representing 99% of the Company’s outstanding common stock post-transaction. As a result of the Share Exchange, RMC became a wholly-owned subsidiary of the Company. RMC (through a wholly-owned subsidiary) owns 100% of the Koklanovskoe molybdenum-tungsten Deposit located in the Russian Urals which was discovered and subsequently explored between 1985 and 1988.

Although the Company can provide no assurances that such materials will be found in commercial quantities, it believes that the Deposit is potentially suitable for open-pit mining and may contain molybdenum, tungsten, gold, fluorite, bismuth, copper and/or other rare and semi-rare earth metals, which it will not be able to confirm or determine until additional exploration activities are undertaken on the Deposit. The Company notes that it does not currently have sufficient funding to begin exploration efforts and will need to raise capital to undertake such activities.

With the current prices of molybdenum concentrate, tungsten and other semi-rare earth metals, the Company believes that entry into this sector, in addition to continuing to explore opportunities in the oil and gas sector, could create significant shareholder value due to the dependency of many industries on such minerals, and increasing demand and supply constraints.

Additional information regarding the Share Exchange Agreement and RMC can be found in the Company’s Form 8-K filing, filed with the Securities and Exchange Commission on May 13, 2011.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words “believes,” “expects,” “intends,” “anticipated,” or “may,” and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Except for historical information, all of the statements, expectations and assumptions contained in the foregoing are forward-looking statements that involve a number of risks and uncertainties. It is possible that the assumptions made by management are not necessarily the most likely and may not materialize. In addition, other important factors that could cause actual results to differ materially include the following: business conditions and the amount of growth in the Company’s industry and general economy; competitive factors; ability to attract and retain personnel; the price of the Company’s stock; and the risk factors set forth from time to time in the Company’s SEC reports, including but not limited to its annual report on Form 10-K; its quarterly reports on Forms 10-Q; and any reports on Form 8-K. The Company takes no obligation to update or correct forward-looking statements, except as required by law, and also takes no obligation to update or correct information prepared by third parties that are not paid for by the Company.

SOURCE Siberian Energy Group Inc.