Mr. Randall Scott reports

RARE ELEMENT RESOURCES FILES NI 43-101 TECHNICAL REPORT DETAILING PREVIOUSLY ANNOUNCED 65 PERCENT INCREASE IN TOTAL M&I RARE-EARTH MINERAL RESOURCES

Rare Element Resources Ltd. has filed a National Instrument 43-101 technical report on the mineral reserves and resources, and development of the Bull Hill mine for the Bear Lodge rare earth project, located near Sundance, Wyo. The technical report updates the resource for the project and confirms the details provided in the company's press release dated March 18, 2013, entitled "Rare Element Reports 65 Percent Increase of Total M&I Rare-Earth Mineral Resource at Bear Lodge." It incorporates more than 57,000 feet (17,300 metres) of exploration and development drilling conducted by the company in 2012. The full technical report, prepared by Alan C. Noble, PE, principal engineer of Ore Reserves Engineering (ORE) and a qualified person for the purpose of Canadian National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101), is available under the company's SEDAR profile or on the company's website. The technical report supersedes the previous technical report filed by the company in April, 2012.

Key highlights from the company's drilling program to date include the following:

• Increase in the total measured and indicated (M&I) oxide resource at Bear Lodge from 7.5 million tons (6.8 million tonnes) to 14.7 million tons (13.3 million tonnes) at an average grade of 3.22 per cent rare earth oxide (REO), based on a 1.5-per-cent cut-off grade. This represents an increase in total pounds of REO resource of 65 per cent, from 571 million to 944 million pounds;
• Upgrade of the M&I resource at the Bull Hill deposit and establishment of the first-ever indicated resource at the Whitetail Ridge deposit, located just northwest of the Bull Hill deposit;
• Identification of high-grade zones that constitute an M&I resource of six million tons (5.4 million tonnes) grading 4.72 per cent REO at a cut-off grade of 3 per cent within the overall Bear Lodge resource.

"We are very pleased with the success of our 2012 drill program in expanding the Bear Lodge resource while maintaining a strong average grade of over 3.2 per cent REO. Our project district has an excellent distribution and high abundance of critical rare earth elements, the higher-valued elements that we expect to experience better demand growth and price support over the longer term. Both the quantity and quality of our updated resource makes us confident in our assertion that the Bear Lodge project is now a world-class, critical rare earth district," stated Randall J. Scott, president and chief executive officer. "The increase in high-grade mineralization also gives us flexibility on our mine size and production rate, and may allow us to pursue an initial higher-grade, lower-production scenario with lower capital cost if desired. This gives us flexibility and makes us better able to adjust to changing market conditions," he added.

SUMMARY OF M&I RESOURCE (TOTAL OXIDE (i)) BY DEPOSIT AT A 1.5% TREO CUT-OFF GRADE  
                                                                            
                                                         Contained   Contained
                             Tons      Tonnes    Grade     TREO lb     TREO kg
Location                (millions)  (millions)    TREO%  (millions)  (millions)

Greater Bull Hill
Measured                     1.94        1.76     3.93         153        69.5
Indicated                   10.46        9.49     3.22         674       306.4
Total M&I                   12.40       11.25     3.33         827       375.9
Whitetail Ridge
Measured                       --          --       --          --          --
Indicated                    2.25        2.04     2.61         117        53.2
Total M&I                    2.25        2.04     2.61         117        53.2
Project total
Measured                     1.94        1.76     3.93         153        69.5
Indicated                   12.71       11.53     3.11         791       359.5
Total M&I                   14.65       13.29     3.22         944       429.0
Previous estimate
(April, 2012)
Total
Measured                     2.10        1.91     3.95         170        77.3
Indicated                    5.40        4.90     3.75         401       182.3
Total M&I                    7.50        6.81     3.81         571       259.6

(i) Total oxide equals oxide plus oxide-carbonate                                    

The exploration and development drilling program undertaken by the company in 2012 included 68 core holes, for a total of 57,419 feet (17,506 m), and 42 reverse-circulation drill holes, for a total of 24,805 feet (7,562.5 m). The reverse-circulation drill holes were used for exploration purposes and are not included in the resource estimation. In addition, 14 large-diameter (PQ- and HQ-sized) holes totalling 6,853 feet (2,089 m) provided bulk sample material for metallurgical testing. The technical report includes the results from all core drilling undertaken by the company between 2009 and 2012.

The company's resource in the inferred category for all mineralization types increased to 42.3 million tons (38.4 million tonnes) with an average grade of 2.59 per cent REO, from 34.6 million tons (31.4 million tonnes) at an average grade of 2.83 per cent REO in 2012. Of the updated inferred resource, 31.4 million tons is contained in near-surface oxide and oxide-carbonate material.

The qualified mineral reserves identified in the previous technical report dated April, 2012, have been carried forward. A new reserve has not been calculated under the technical report. These reserve estimates will be updated as part of the upcoming feasibility study, expected to begin in mid-2013.

For more details on the M&I and inferred resources, as well as the rare-earth-element distribution and impact of cut-off grades on these deposits, please see the press release issued by the company on March 18, 2013, or view the complete technical report, both of which can be found on the company's website. All resources reported herein comply with National Instrument 43-101.

Rare Element defines critical rare earth elements as neodymium (Nd), praseodymium (Pr), europium (Eu), terbium (Tb), dysprosium (Dy) and yttrium (Y), based on their projected future demand and generally higher per-kilogram price.

Qualified persons

The new resource model and the NI 43-101 technical report on the Bear Lodge property was prepared by Alan C. Noble, PE, principal engineer of Ore Reserves Engineering (ORE), Jaye T. Pickarts, chief operating officer of Rare Element, and Richard Larsen, engineering manager of Rare Element. Alan Noble, PE, is the qualified person for the purpose of Canadian National Instrument 43-101 -- Standards of Disclosure for Mineral Projects (NI 43-101) for this technical report. Mr. Noble performed the mineral resource estimation and is the primary author of the technical report. Jaye T. Pickarts, PE, and Richard K. Larsen, PE, assembled the geological, exploration, metallurgy and engineering activity information for this report, and they are both qualified persons. Mr. Pickarts was engaged in the preparation of metallurgical test programs and baseline environmental studies on the Bear Lodge project. In 2011, he became the company's chief operating officer, and he thereafter managed and supervised all of the metallurgical and engineering programs for the project. Mr. Larsen worked on the property as a geologist for Duval Corp. from 1975 to 1978. Mr. Larsen was hired by the company in December, 2011, as senior development geologist, then engineering manager. He was responsible for managing and supervising the company's development drilling at the Bull Hill REE deposit in 2012.

Mineral resources are not reserves

Mineral resources that are not mineral reserves do not have demonstrated economic viability. Mineral resource estimates do not account for minability, selectivity, mining loss and dilution. These mineral resource estimates are in the measured, indicated and inferred mineral resource categories. Inferred mineral resources are normally considered too speculative geologically for the application of economic considerations that would enable them to be categorized as mineral reserves. There is also no certainty that these inferred mineral resources will be converted to measured and indicated mineral resource categories through further drilling or into mineral reserves once economic considerations are applied.

Rare Element announced positive economic results from its prefeasibility study (PFS) on March 1, 2012, and a revised news release on April 12, 2012. The PFS established a proven plus probable mineral reserve for the Bull Hill deposit that contains 7,914,000 tons (7.2 million tonnes) at a grade of 3.12 per cent REO and at a cut-off grade of 1.1 per cent REO.

We seek Safe Harbor.