Mr. Donald Ranta reports

RARE ELEMENT REPORTS FINAL 2010 GOLD DRILLING ASSAY RESULTS, INCLUDING SOME OF THE BEST RESULTS TO DATE

Rare Element Resources Ltd. is providing final 2010 assay results from seven additional rotary (reverse circulation) holes drilled on the Sundance gold project, Wyoming (drill holes SUN-086 to SUN-092). A total of 34 rotary drill holes containing 21,605 feet (6,585 metres) was drilled during 2010 on near-surface targets within oxide zone mineralization at the Smith, Carbon and, most recently, Taylor target areas. Initial drilling results were reported from the Smith target (see news release in Stockwatch on Sept. 21, 2010), and the second news release (in Stockwatch on Nov. 15, 2010) reported results primarily from the Carbon target. This third release covers the conclusion of the 2010 drill program with results from the Taylor target area. Gold exploration activity during 2010 was focused on 1) detailed definition of known gold-mineralized targets with infill drilling, 2) step-off drilling from known mineralization and 3) discovery of gold mineralization in a new peripheral gold target.

Drilling conducted to define a potential resource at the Taylor gold target area in 2010 included a total of eight drill holes (SUN-085 through SUN-092). The program was terminated owing to inclement weather. The gold mineralization at Taylor is a hovering plume-like mass hosted by Tertiary alkaline intrusions and Cambro-Ordovician sandstones of the Deadwood formation. The mineralization generally extends from the surface to a depth of about 400 feet (125 metres). Representative grades within the plume, based on results from the 2010 program, are shown in the table and include 0.56 gram per tonne over 71.6 m (SUN-085), 0.67 g/t over 137.2 m (SUN-089), 0.45 g/t over 56.4 m (SUN-091) and 0.42 g/t over 64.0 m (SUN-092). In addition, SUN-089 contains a high-grade interval of 3.05 g/t over 12.2 m between 515 feet to 555 feet (157 m to 169.2 m), which may indicate proximity to a feeder structure. Drill hole SUN-090 tested another potential feeder structure, marked by a pronounced resistivity protrusion (2010 CSAMT survey) that extends from depth and intersects the gold-mineralized plume. Gold assay results from SUN-090 contain 0.67 g/t Au over 192.1 m, including a high-grade portion with 1.34 g/t Au over 62.5 m from surface to a depth of 62.5 m.

John Ray, Sundance project exploration manager, states: "Higher-grade gold zones seen in drill holes SUN-089 and SUN-090 attest that higher-grade gold zones are present in the Taylor system, and the interpreted continuity of these zones will be used as vectors to further define their extent. An untested CSAMT resistivity anomaly west of the known gold mineralization at Taylor could represent the roots of a second satellite shoot of gold mineralization. Another key result from this year's program is the interpretation of the 'hovering' aspect of plume-like portions of both the Taylor and Carbon gold systems, where deeper intersections in drill holes can be in barren rock underlying anomalous gold at shallower depths within the plume."

   
    
        SELECTED SIGNIFICANT GOLD INTERCEPTS
				                    
Hole ID         From        To    Length    Length     Grade
                (ft)      (ft)      (ft)       (m)  (g/t Au)

SUN-085            0       235       235      71.6      0.56
SUN-086            0        70        70      21.3      0.44
                  85       105        20       6.1      0.40
                 140       190        50      15.2      0.41
                 215       235        20       6.1      0.42
                 270       290        20       6.1      0.74
                 315       335        20       6.1      0.48
                 360       390        30       9.1      0.69
                 440       460        20       6.1      0.66
SUN-087           65       155        90      27.4      0.41
                 370       390        20       6.1      0.40
SUN-089          110       560       450     137.2      0.67


SUN-090            0       630       630     192.1      0.59

SUN-091          200       385       185      56.4      0.45
SUN-092            0       210       210      64.0      0.42