Dr. Donald Ranta reports

RARE ELEMENT REPORTS ADDITIONAL RARE EARTH ASSAYS FROM THE BULL HILL SW RESOURCE AREA

Rare Element Resources Ltd. has released rare earth element (REE) assay results from an additional nine drill holes completed during its 2010 core drilling program at the company's 100-per-cent-owned Bear Lodge property, located in northeastern Wyoming, United States. Assays are pending for another 23 drill holes. The current results are from the Bull Hill Southwest resource area, where an updated NI 43-101-compliant resource was estimated and reported in Stockwatch May 26, 2010. The objectives of the 2010 drilling program were to expand the Bull Hill SW oxide resource and upgrade the resource category, and to explore for additional REE resources at the Bull Hill NW and Whitetail Ridge target areas. Previous assay results from the Bull Hill SW resource area and the Whitetail Ridge REE target area were reported in Stockwatch Sept. 15 and Nov. 9, 2010.

Highlights from the current group of assays in the Bull Hill SW resource area include the following intercepts:

• RES10-23 -- 196 feet at 2.82 per cent TREO (total rare earth oxide; includes 70 feet at 4.13 per cent TREO) and 15.5 feet at 8.33 per cent TREO;

• RES10-24 -- 52 feet at 3.08 per cent TREO and 14.5 feet at 5.86 per cent TREO;

• RES10-25 -- 42 feet at 6.15 per cent TREO;

• RES10-26 -- 19 feet at 6.33 per cent TREO and 28.5 feet at 4.53 per cent TREO;

• RES10-27 -- 138.5 feet at 2.63 per cent TREO and 140 feet at 2.90 per cent TREO;

• RES10-28 -- 183 feet at 3.55 per cent TREO (includes 76 feet at 5.29 per cent TREO);

• RES10-35 -- 140 feet at 2.64 per cent TREO (includes 53.7 feet at 4.07 per cent TREO).

Jim Clark, vice-president exploration, states: "The assay results continue to demonstrate the continuity of the mineralized bodies at the Bull Hill SW resource area. Results from the 2010 drill program should allow us to expand the limits of the deposit and upgrade the resource category in our next NI 43-101-compliant resource estimate planned for completion early in the second quarter of 2011."

Drilling results

The REE deposits in the Bear Lodge Mountains of northeastern Wyoming occur within a large alkaline igneous complex that domes adjacent Paleozoic and Mesozoic sedimentary rocks. The REE mineralization is hosted in dikes and veins of carbonatitic intrusive bodies and their near-surface oxidized equivalents (FMR). FMR refers to the major mineral constituents of the highly oxidized, former carbonatite dikes that occur in the depth range between the surface and 300 to 500 feet (91 to 152 metres) beneath the surface. A zone of partly oxidized carbonatite, termed transitional carbonatite has variable thickness and occurs beneath the FMR zone and above the deeper zone of unoxidized carbonatite.

REE assay values are reported by convention as the combined oxide equivalents (REO) of the 15 elements in the lanthanide series plus yttrium. The oxide equivalents are approximately 15.6 per cent higher than the combined metal assay values. The Bear Lodge project contains predominantly the light REE (lanthanum, cerium, praseodymium and neodymium), and economically important quantities of several of the heavy REE (europium, dysprosium and terbium).

Bull Hill SW resource area

REE mineralization in the Bull Hill SW resource area is contained within intrusive dikes, veins and stockwork of FMR, transitional carbonatite, and carbonatite that invade heterolithic intrusive breccia of the Bull Hill diatreme. Stockwork refers to a rock cut by a network of small veins or dikes that contain the mineralization. Most of the low-grade mineralization (1 to 2.5 per cent REO) within the Bull Hill area deposits occurs in stockworks. Most of the REE mineralization in the current set of holes occurs within FMR dikes and veins.

All of the holes reported here were drilled along a bearing of N45E from a series of sites on a resource evaluation grid established for the Bull Hill SW deposit in conjunction with Ore Reserves Engineering, the company's resource estimation consultant. The bearing, inclination and significant assay intercepts from the REE-mineralized sections for each of the drill holes are summarized in the table.

        SUMMARY OF NEW REE-MINERALIZED DRILL INTERCEPTS AT THE BULL 
                           HILL SW RESOURCE AREA

Drill hole Interval  Intercept  Est. true
              (feet)     (feet) thickness  Mineralized lithology       TREO (%)

RES10-23    274-470        196        150  Transitional carbonatite dikes
                                           and stockwork                  2.82
(includes 70 feet @ 4.13)
          752-767.5       15.5         14  FMR dike                       8.33             
RES10-24       0-52         52         52  FMR stockwork                  3.08  
          121.3-133       11.7       10.9  FMR dike and stockwork         4.67  
          150.5-165       14.5         14  FMR dike and stockwork         5.86  
            247-250          3        1.5  FMR dike                       8.62  
          330-337.5        7.5        7.3  Transitional carbonatite dike  5.98  
          607.5-613        5.5          5  Transitional carbonatite dike  5.08  
            821-833         12        7.3  Carbonatite dike               4.80  
          891-910.5       19.5       11.2  Carbonatite dikes              2.43  
            952-972         20       12.9  Carbonatite dikes              2.48  
RES10-25    296-301          5        4.7  FMR dike and stockwork         3.43  
            618-660         42         24  Carbonatite dike and veins     6.15  
RES10-26    168-177          9          9  FMR stockwork                  2.37  
            276-295         19       16.9  FMR dike                       6.33  
            331-365         34         32  FMR dikes and stockwork        3.18  
            415-423          8        6.9  FMR dike                       5.07  
          805.5-837       28.5         14  Carbonatite dike               4.53  
RES10-27      34-67         33         30  FMR dikes and stockwork        3.33  
            139-142          3          2  FMR veins                      3.43  
          398-536.5      138.5        120  Transitional carbonatite dikes
                                           and stockwork                  2.63  
            568-708        140         70  Transitional carbonatite dikes 2.90  
            742-746          4        2.6  Carbonatite veins              6.59  
RES10-28    12-41.5       29.5       29.5  FMR stockwork                  2.35             
            160-252         92         92  FMR stockwork                  1.85             
            290-473        183        117  Transitional carbonatite dikes 
                                           and stockwork                  3.55 
(includes 76 feet @ 5.29)
RES10-30    22.5-26        3.5          3  FMR dike                      15.23  
          105.5-116       10.5          7  FMR dike and stockwork         2.45  
            413-423         10          3  FMR dike                       2.06  
RES10-32  503.5-513        9.5        3.2  FMR veins                      6.62  
        572.5-582.5         10         10  FMR stockwork                  2.20  
RES10-35      38-68         30         25  FMR dikes and stockwork        2.29              
            219-249         30         30  FMR stockwork                  1.73              
            279-309         30         25  FMR dikes and stockwork        2.50              
            379-519        140         90  Transitional carbonatite dikes 
                                           and stockwork                  2.64
(includes 53.7 feet @ 4.07)
            545-549          4        2.3  Carbonatite dike               6.45              
          657-689.3       32.3       18.5  Carbonatite dikes              2.71 

The drilling results continue to demonstrate that the target FMR and carbonatite bodies exhibit strong REE mineralization over a strike length of more than 1,400 feet (426 m). Interpretive correlations of drill intercepts suggest a structural bias toward vertical or near vertical dips and a transitional change in strike from northwesterly to almost due north in the northern part of the resource area.

Assaying and quality control

ALS Chemex conducted the assaying for the rare earth elements in its assay facility in Vancouver, B.C. ALS Chemex Vancouver is accredited to ISO 9001 and operates according to ALS Group standards consistent with ISO 17025 methods at other laboratories. The samples were prepared and subjected to lithium metaborate fusion, followed by ICP analysis and a mass spectroscopy finish.

Analytical quality is monitored through the use of randomly inserted quality control samples, including standards, blanks and duplicates, which are blinded to the analytical laboratory. Results of the analyses at ALS Chemex are evaluated continuously by the company's QA/QC consultant, Dr. Jeffrey Jaacks, who is a qualified person according to National Instrument 43-101, and the results indicate acceptable accuracy and precision. Blank analyses also indicate no issues with carry-over contamination. The company is continuing to conduct a series of analytical round-robin test of four laboratories using samples with a known range of chemistry. The purpose of these tests is to evaluate the continuing performance of the primary lab and to rank and rate the several labs that could be used as check labs or alternative options as a primary laboratory.

Dr. Donald E. Ranta, PhD, PGeo, president and chief executive officer, 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.

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