Mr. Robbin Lee reports

RARE ELEMENT RESOURCES ANNOUNCES $3.4 MILLION REGISTERED DIRECT OFFERING

Rare Element Resources Ltd. has entered into a definitive purchase agreement with a single institutional investor pursuant to which it agreed to sell an aggregate of 5,230,770 common shares and warrants to purchase up to 2,615,385 common shares in a registered direct offering. The purchase price for each unit, consisting of one common share and a warrant to purchase 0.5 common share, is 65 U.S. cents, representing an approximate 15-per-cent discount to the five-day volume-weighted average price ending on April 23, 2015. The warrants will be exercisable, at a price of 85 U.S. cents per share, immediately following issuance and will expire three years from the date of issuance. The closing of the offering is expected to take place on or about April 29, 2015, subject to the satisfaction of customary closing conditions, including the approval of the Toronto Stock Exchange and New York Stock Exchange. Proceeds from the offering will be used for predevelopment of the Bear Lodge rare earth element project, including for progression of permitting, continued testwork on rare earth element separation, engineering and optimization studies, and progression of a feasibility study, as well as for working capital and other general corporate purposes.

H.C. Wainwright & Co. LLC acted as exclusive placement agent in connection with the offering.

A shelf registration statement (file No. 333-189235) relating to the common shares and warrants issued and issuable in the offering has been filed with and declared effective by the Securities and Exchange Commission. A prospectus supplement relating to the offering will be filed by the company with the SEC. Copies of the prospectus supplement, together with the accompanying prospectus, can be obtained at the SEC's website, or from Rare Element Resources, 225 Union Blvd., Suite 250, Lakewood, Colo., 80228, or from H.C. Wainwright & Co. by e-mailing.

We seek Safe Harbor.