Mr. Randall Scott reports

RARE ELEMENT APPOINTS RANDALL J. SCOTT AS PRESIDENT AND CEO

Rare Element Resources Ltd. has appointed Randall Scott, MBA, as president and chief executive officer of the company as of Dec. 15, 2011.

Mr. Scott is a metallurgical engineer with over 30 years of experience in the industry. His experience includes leading performance teams in operations, administration, project development, program management, business development and major improvement initiatives for companies ranging in size from entrepreneurial start-up to major mining companies. His strong project management skills with emphasis on creating a team environment will benefit shareholders, stakeholders and employees of the company.

Most recently, Mr. Scott was vice-president, corporate responsibility and strategy, with Thompson Creek Metals Co. His prior experience includes senior vice-president and vice-president of Cyprus Amax Coal Co. with responsibilities ranging from western operations, including mines in the Gillette area of Wyoming, Appalachian operations and process management. He also worked for Cyprus Metals Co. as vice-president and general manager of the Bagdad mine, and also of the Sierrita mine, both in Arizona. Earlier he worked for Pincock Allen & Holt as executive vice-president.

Mr. Scott holds a bachelor of science degree in metallurgical engineering from the Colorado School of Mines and an MBA degree from the University of Arizona.

Norman Anderson will step down from the chairman of the board position, but will remain a director of the company while Dr. Donald Ranta, former president and CEO, has been named chairman.

Dr. Ranta led the search for Mr. Scott and noted that: "Rare Element is extremely pleased to have such a high-calibre individual to lead the company as it transitions from exploration to development and as the Bear Lodge project progresses toward future production. Throughout his career, Mr. Scott has repeatedly demonstrated his ability to create and communicate strategic vision and to lead diverse, multidisciplinary teams in fast-changing and challenging environments. He has created and managed successful relationships with important stakeholders including internal and external customers, local communities and suppliers. Mr. Scott's experience in mine development, mining operations and leadership of all aspects of mining companies will be another strong asset for Rare Element as we contemplate future rare-earth production from the Bear Lodge project in Wyoming."

Dr. Ranta has been the president and chief executive officer of Rare Element since 2007. In his new role as chairman and director of the company, he will continue to focus on building shareholder value through investor relations, financing, strategic partnership arrangements, off-take agreements, and support and oversight of the development of the company's flagship rare-earth project in Wyoming.

With the addition of Mr. Scott and the transition of Dr. Ranta to chairman of the board, the management of Rare Element has been significantly expanded to meet the challenges involved with growing from an exploration and development company into an anticipated rare-earth-element-producing company. This team of dedicated and highly experienced professionals includes:

• Jaye Pickarts, PE, chief operating officer, with over 25 years experience in project evaluation and operations;
• David Suleski, BBA, CPA, chief financial officer, with over 20 years of accounting and financial experience in the mineral industry;
• Dr. James Clark, PhD, LGeo, vice-president of exploration, with over 25 years experience and extensive exploration experience working at the Bear Lodge property intermittently since 1986;
• George Byers, vice-president of government and community relations, with over 35 years of experience in mining and energy governmental relations at federal, state and local levels.

We seek Safe Harbor.