Ms. Robbin Lee reports

RARE ELEMENT RESOURCES CLOSES $3.4 MILLION REGISTERED DIRECT OFFERING

Rare Element Resources Ltd. has closed its $3.4-million offering of common shares and warrants in a registered direct offering in the United States that resulted in net proceeds, after expenses, of approximately $3.2-million. For further details about the offering, please see the company's press release dated April 24, 2015. All dollar references are in U.S. dollars.

"Rich in critical rare earths and well located in northeast Wyoming, we believe the Bear Lodge project is in an exceptional position to help serve as a cornerstone for the re-establishment of a North American rare earth supply chain," said Paul H. Zink, senior vice-president and chief financial officer. "This financing will help us continue our work on permitting and certain engineering and optimization studies necessary to support our feasibility study, as well as continue our test work on elemental separation, which offers the opportunity to move up the value chain."

As previously disclosed, the company sold, to a single institutional investor, 5,230,770 units at 65 cents per unit for gross proceeds of $3.4-million. Each unit consisted of one common share and one warrant, good for three years, to purchase 0.5 of a common share at a purchase price of 85 cents per share.

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

We seek Safe Harbor.