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Rare Element Summarizes Results From Its 2010 REE Exploration Program And Outlines Its 2011 REE Exploration Program

Carbon South Gold / REE Target

Two reverse circulation drill holes (SUN-076 and SUN-079) completed during the Company's 2010 Sundance gold exploration program cut significant REE mineralization in FMR vein material that intrudes trachytic and syenitic intrusive rocks (Figure 2). The drill holes totaled 1,390 feet (424m) and were collared just south of the Carbon gold target and about 1,200 feet (366m) northwest of the Whitetail Ridge REE exploration target. The REE mineralization may portend the northwestern extension of the Whitetail Ridge system or, alternatively, a distinct FMR/carbonatite mineralized system. Significant REE-bearing intercepts from the Carbon South target area are given in Table 1. If this mineralization is a continuation of the Whitetail Ridge dike system and the Bull Hill SW system, its total length may reach up to 5000 feet (1500m) in length.

The drilling data were interpreted using LeapFrog 3D software, and the interpreted deposit geometry is illustrated in Figure 6.

Figure 6. LeapFrog 3-D image of the Bull Hill and Whitetail Ridge REE deposits. -

Bulk Sampling Program

The Company conducted a bulk sample collection program of FMR vein and stockwork material during September 2010. The objective of the program was the acquisition of about 8 tons or more of oxidized, REE-mineralized FMR vein material that will be used to feed a pilot plant designed to test the commercial viability of the mineral process flowsheet developed for the REE by Mountain States Research and Development, International (MSRDI), the Company's metallurgical testing consultants. The pilot plant testing is scheduled to commence during the third quarter of 2011. It is expected to produce a bulk mixed rare earth carbonate concentrate that can be used for marketing if the Company decides to sell concentrates initially, and as test material for the separation of individual rare earth oxides as a first step toward refinement and production of high purity rare earth oxide products. Several laboratories with pilot plant capabilities are under consideration for the testing. The pilot plant test will be part of a preliminary feasibility study planned for completion in late 2011.

The bulk testing program consisted of a series of large-diameter PQ (diameter 85mm) and HQ (diameter 63.5mm) core holes that penetrate the oxide zone in the Bull Hill Southwest REE deposit. The holes were drilled from closely spaced sites near the center and southeastern parts of the deposit, where the FMR vein material occurs very close to the surface. Drilling was designed to collect samples that would be representative of material sent to the mill during the first five years of potential production. The deepest holes were drilled to a depth of approximately 190 feet (58m). Grades are likely to range between 2% and 15% REO, based on previous exploration holes from the same sites. Multiple holes were drilled from each site in fans at a common azimuth and different inclination angles designed to capture as much FMR vein material as possible. A total of 40 holes was drilled, with an aggregate footage of 2117 feet (645 m) of REE-mineralized FMR material. Thirty of the drill holes are PQ-size holes for a total footage of 1753 feet (534 m) of FMR material, and ten of the holes are HQ-size, with a total footage of 364 feet (111 m) of FMR material. The aggregate weight of REE-mineralized material collected from the drilling program is about 12,700 pounds (5,773kg). Low-grade stockwork material collected during the drilling is currently undergoing metallurgical test work at Hazen Research of Golden, Colorado in order to examine methods of inexpensive upgrade of the REE values that take advantage of the physical characteristics of the FMR vein material.

The large diameter drill core samples are augmented by bulk sample material collected at and near the surface, where FMR vein material was identified during drill site construction. This material was collected in 55 gallon drums and has an aggregate weight of about 6750 pounds (3,068kg). Collectively, the Company has a total stockpile of about 9.7 tons (8.8 tonnes) of FMR material for use in the pilot plant test work. The material is stored currently at one of the Company's leased warehouses in Sundance, Wyoming. This material will be retained there until the testing laboratory is selected and the pilot plant is built and ready for operation. The program has acquired sufficient FMR feed material required for the pilot plant study.

Rare Element Resources Ltd (TSX-V: RES & AMEX: REE ) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property.

Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys, additives in ceramics and glass, petroleum cracking catalysts, and a number of critical military applications. China currently produces more than 95% of the 130,000 metric tonnes of rare-earths consumed annually worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is growing rapidly, and is projected to accelerate if the green technologies are implemented on a broad scale.

ON BEHALF OF THE BOARD Donald E. Ranta, PhD, PGeo, President & CEO

Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person.  Technical information in this news release has been reviewed by Dr. Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101.  This news release was prepared by Company management, who take full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


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