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Rare Element Resources Ltd
Symbol RES
Shares Issued 44,096,674
Close 2012-02-27 C$ 6.04
Market Cap C$ 266,343,911
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Rare Element drills 49.2 m of 2.01 ppm at Sundance

2012-02-27 16:45 ET - News Release

Ms. Anne Hite reports

RARE ELEMENT REPORTS 2011 GOLD DRILLING ASSAY RESULTS, INCLUDING THE BEST RESULTS EVER

Rare Element Resources Ltd. has released assay results from 34 rotary (reverse circulation) and two core holes drilled at the Sundance gold project, Wyoming (drill holes SUN-093 to SUN-128). A total of 36 drill holes containing 22,930 feet (6,989 metres) were drilled during 2011, including 20 holes on near-surface targets within oxide zone mineralization at the Taylor and Smith target areas and 15 holes (7,925 feet/2,416 metres) of condemnation drilling in a proposed tailings disposal site in Section 16. Additionally, six core holes (1,945 feet/593 m) were drilled in the Taylor area to define a zone of coincident heavy-rare-earth-element and gold mineralization. Gold exploration activity during 2011 was focused on: 1) step-off drilling from known mineralization, 2) new target area testing and 3) condemnation of an area proposed for tailings disposal. This press release covers the results of all the gold exploration drilling in 2011 while previous drilling results were reported in press releases Oct. 27, 2011, and Dec. 5, 2011.

John T. Ray, exploration manager for the company, stated: "SUN-116, located at the Smith target area, has the highest gold grades and thickest interval of more than one gram per tonne gold ever reported for the entire district and is open in two directions. We are excited about the discovery of this new prospect and anticipate determining the size and orientation of its high-grade nucleus. Most of the holes in the East Taylor area have significant near-surface intercepts of more than one gram per tonne gold. Our goal of the 2011 drilling to find areas of higher-grade gold mineralization was achieved. Over the next few years, additional drilling will be needed to determine the extent of this mineralization."

Smith gold target

In 2010, drill hole SUN-060 intersected 0.89 gram per tonne gold over 85.5 metres, including 1.3 g/t over 44.2 m along the strike of the main pseudoleucite body in veined phonolite wall rock. SUN-116 is a follow-up hole situated 100 metres west of SUN-060 and oriented to intersect a mineralized trend believed to be perpendicular to the main zone. Assays from SUN-116 returned 1.21 g/t Au over 176.8 m, including 4.5 g/t Au over 24.4 m, and penetrated similar host rock of K-feldspar veined phonolite. This represents, by far, the highest grade and thickest gold drill intercept in the 50-year exploration history of the entire Bear Lodge alkaline complex. Drill hole SUN-117, collared west of SUN-116, contains an intercept of 1.35 g/t Au, and SUN-118 has 1.24 g/t Au each over widths of 12.2 m. Farther to the west, SUN-119 has significant intercepts exceeding 0.5 g/t Au. These data are beginning to define a new target area of noteworthy grade adjacent and perpendicular to the main Smith deposit. The occurrence of open-space K-feldspar veining and the higher-grade intervals (up to 11.4 g/t Au) within this new zone is suggestive of a feeder structure. One-half kilometre east of the main Smith deposit, drill holes SUN-123 and SUN-125 are follow-up tests of 2010 drill hole SUN-069, which contains an intercept of 0.49 g/t Au over 27.4 m, coincident with a northeast-trending valley structure. Similar grades over narrower intervals in SUN-123 and SUN-125 suggest potential for a new area of low-grade gold mineralization. Assays from core hole SUN-120C are pending. Eight rotary holes containing 5,410 feet (1,649 m) were drilled to test areas adjacent to and outboard of the Smith gold resource area (SUN-115 through SUN-119, SUN-122, SUN-123 and SUN-125). Gold mineralization at Smith is hosted by a steeply dipping, brecciated pseudoleucite dike that strikes northwesterly. The mineralization extends from the surface to a depth of 1,000 feet (300 m) and remains open at depth.

   SELECTED SIGNIFICANT GOLD INTERCEPTS FROM THE 2011 DRILLING PROGRAM
          AT THE SMITH TARGET AREA, SUNDANCE PROJECT, WYOMING   
           (greater than 20 feet and greater than 0.40 g/t Au)   
                                                                              GT=
                                                                            gram 
                     From           Length                   Grade     thickness
Hole No.   TD (ft)    (ft)  To (ft)    (ft)    Length (m)     (ppm)           (m)

SUN-115       520     300      320      20           6.1      0.43           2.6
SUN-116       815     165      225      60          18.3      0.49           9.0
                      235      815     580         176.8      1.21         213.4
SUN-117       620     125      165      40          12.2      1.35          16.4
SUN-118       545     115      135      20           6.1      0.44           2.7
                      245      275      30           9.1      0.41           3.8
                      325      365      40          12.2      1.24          15.2
                      490      520      30           9.1      0.41           3.7
SUN-119       660
                      205      225      20           6.1      0.52           3.2
                      550      590      40          12.2      0.45           5.5
                      615      645      30           9.1      0.61           5.6
SUN-120C      847                         Assays pending
SUN-122       975     650      670      20           6.1      0.42           2.6
                      745      770      25           7.6      0.43           3.3
                      810      850      40          12.2      0.44           5.4
                      940      960      20           6.1      0.64           3.9
SUN-123       600     460      480      20           6.1      0.51           3.1
                      520      550      30           9.1      0.46           4.2
SUN-125       675     605      655      50          15.2      0.45           6.9

Taylor gold target

Representative grades within the mineralized plume at Taylor range from 0.42 to 0.67 g/t Au over thicknesses of 56 to 192 m. In 2010, SUN-090 penetrated a higher-grade portion of the plume that assayed 1.34 g/t Au over 62.5 m with coincident heavy-rare-earth-element-enriched mineralization. Eleven rotary holes (7,550 feet/2,301 m) were drilled at Taylor in 2011 to define a potential minable resource (SUN-104 through SUN-114). The gold mineralization at Taylor is contained within a 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). In 2011, core drilling was conducted in the vicinity of rotary hole SUN-090 to determine controls on the HREE enrichment and coincident gold mineralization. Results included 1.93 g/t Au over 39.5 m, 1.38 g/t Au over 24.7 m and 2.01 g/t Au over 49.2 m, respectively. In the same cluster and 30 m to the east, RES11-31 assayed 0.77 g/t Au over 71.3 m from surface to a depth of 234 feet, RES11-32 contains 0.55 g/t Au over 70.7 m from surface to a depth of 232 feet, and RES11-33 has 0.49 g/t Au over 49.7 m from the surface to a depth of 163 feet. These results indicate an approximate width of 120 m for this easterly trending zone of gold mineralization and HREE enrichment. Gold assay results are pending for RES11-28.

Rotary drill results from the Taylor area are also shown. Drill holes SUN-109 and SUN-110 identify the continuation of anomalous gold mineralization to the northwest on the west side of Taylor Ridge, whereas drill holes SUN-104, SUN-105, SUN-108 and SUN-111 effectively cut off gold mineralization on the east side of Taylor Ridge. The gold intercepts in SUN-113, including 0.93 g/t Au over 7.6 m, are associated with a cylindrical resistivity anomaly and show potential for the development of another satellite deposit on the west side of the ridge. Drill hole SUN-114 failed to reach its target depth to test historical gold intercepts, owing to poor ground conditions.

    SELECTED SIGNIFICANT GOLD INTERCEPTS FROM THE 2011 DRILLING PROGRAM
             AT THE TAYLOR TARGET AREA, SUNDANCE PROJECT, WYOMING
(significant intercepts (greater than 20 feet and greater than 0.40 g/t Au)

                                                                     GT=gram
                                       Length                Grade thickness
Hole No. TD (ft)  From (ft)  To (ft)      (ft)  Length (m)    (ppm)       (m)

RES11-                                                                      
26          139        9.5      139       130        39.5     1.93      76.3
RES11-                                                                      
26A          81          0       81        81        24.7     1.38      34.1
RES11-                                                                      
27          580          6      168       162        49.2     2.01      98.9
                       238      268        30         9.1     0.58       5.3
                       549      580        31         9.4     0.69       6.5
RES11-                                                                      
31          260          0      234       234        71.3     0.77      55.2
RES11-                                                                      
32          385          0      232       232        70.7     0.55      38.8
RES11-                                                                      
33          500          0      163       163        49.7     0.49      24.5
SUN-104     785        155      175        20         6.1     0.53       3.2
SUN-106     680         20       50        30         9.1     0.42       3.9
                       210      250        40        12.2     0.44       5.4
                       590      610        20         6.1     0.42       2.6
SUN-107     530          0       20        20         6.1     0.53       3.2
SUN-109     750          0       20        20         6.1     0.42       2.6
                        40      125        85        25.9     0.57      14.8
                       540      585        45        13.7     0.50       6.8
                       700      720        20         6.1     0.75       4.6
SUN-110     750        420      450        30         9.1     0.50       4.5
                       595      615        20         6.1     0.41       2.5
SUN-112     630        290      310        20         6.1     0.55       3.3
SUN-113     600        275      300        25         7.6     0.93       7.0
                       430      455        25         7.6     0.48       3.6
SUN-114     660        135      160        25         7.6     0.56       4.3
                       185      215        30         9.1     0.45       4.1

Section 16 area

Section 16 is an area east of Bull Hill that is under consideration for a stockpile and waste facility for the proposed rare-earth-element mine. During 2011, 15 rotary holes aggregating 7,533 feet/2,296 m were drilled to assess the REE and gold mineralization potential. Limited drilling of four holes on the west side of Section 16 suggests minimal exploration potential manifested in drill hole SUN-093 by an isolated, narrow gold zone assaying 0.46 g/t Au over 7.6 m and thin and sparse iron-manganese-rare-earth dikes. Most of the remaining holes were drilled in the central portion of the section. Although no significant REE mineralization was encountered, anomalous gold mineralization is identified in four holes. Drill holes SUN-098, SUN-101, SUN-126 and SUN-128 contribute to the definition of an anomalous zone that is subject to additional evaluation in 2012.

 SELECTED SIGNIFICANT GOLD INTERCEPTS FROM THE 2011 DRILLING PROGRAM
         AT THE SECTION 16 AREA, SUNDANCE PROJECT, WYOMING     
(significant intercepts (greater than 20 feet and greater than 0.40 g/t Au)  

                                                                     GT=gram
                               To    Length                        thickness
Hole No.   TD (ft) From (ft)  (ft)      (ft) Length (m) Grade (ppm)       (m)
                                                                            
SUN-093       500        75   100        25        7.6        0.46       3.5
SUN-098       620       425   460        35       10.7        0.75       8.0
SUN-099       635       585   615        30        9.1        0.73       6.7
SUN-101       385       305   325        20        6.1        0.40       2.5
                        360   385        25        7.6        0.50       3.8
SUN-103       505       465   505        40       12.2        0.41       5.0
SUN-126       600       265   410       145       44.2        0.58      25.7
                        490   510        20        6.1        0.41       2.5
SUN-128       590       105   130        25        7.6        0.44       3.3
                        240   265        25        7.6        0.46       3.5
                        355   375        20        6.1        0.47       2.9
                        480   535        55       16.8        0.43       7.2

Donald E. Ranta, PhD, PGeo, 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, which takes full responsibility for the content.

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