Mr. Paul Zink reports

RARE ELEMENT FILES CANADIAN PRELIMINARY SHELF PROSPECTUS TO REPLACE EXPIRING SHELF PROSPECTUS FROM 2013

Rare Element Resources Ltd. has filed a preliminary short-form base-shelf prospectus with securities regulatory authorities in the provinces of British Columbia, Alberta and Ontario to replace the company's short-form base-shelf prospectus previously filed in July, 2013. Upon the company filing and receiving a receipt for its final short-form base-shelf prospectus, from the securities regulatory authorities in the qualifying jurisdictions, the company will be able to offer and sell, from time to time in one or more public offerings in the qualifying jurisdictions, up to the equivalent of $50-million (U.S.) of debt, equity or other securities of the company during the 25-month period that the Canadian shelf, including any amendments thereto, remains effective.

"The replacement of our Canadian shelf maintains the company's financing flexibility as we continue to move the Bear Lodge project forward," said Paul H. Zink, senior vice-president and chief financial officer. The Canadian shelf will complement a shelf registration statement currently effective with the U.S. Securities and Exchange Commission with approximately $30-million (U.S.) in remaining capacity. "Having effective shelf registrations in both countries can allow the company to react quickly when market conditions warrant, helping to ensure continued and timely progress on important tasks like project permitting, separation testwork and advanced engineering," he concluded.

The specifics of any future offering, along with the prices, terms and use of proceeds of any such securities offered by the company, will be determined at the time of any such offering and will be described in detail in a prospectus supplement filed at that time.

The securities registered may not be sold, nor may offers to buy be accepted, prior to the time that the securities regulatory authorities of the qualifying jurisdictions have issued a receipt for the Canadian shelf.

Copies of the preliminary short-form base-shelf prospectus may be obtained at SEDAR, at the company's website, or by contacting Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.

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