Rare Element Resources completes $1.8 million private placement grants options

VANCOUVER, July 24 /PRNewswire-FirstCall/ -- Rare Element Resources Ltd. (TSX-V: RES) has completed the $1.8 million financing consisting of 1.2 million units. The additional funds will be used to provide working capital for the Company's rare earths exploration program, for exploration on new projects, and to help ensure that Rare Element continues to be in a strong financial position. These funds will also assist in completing the work as recommended in Rare Element's National Instrument 43-101-compliant rare earths resource report as filed on SEDAR.

Each unit consists of one common share and one-half of one non-transferable common share purchase warrant issued for $1.50 per unit. Each two warrants allow the holder to purchase one additional common share for a period of 18 months from the closing date for additional consideration of $2.10. There are no insiders participating in this offering and no commission is being paid. There will be a four month hold on the securities issued.

Upon the completion of this offering, Rare Element will have approximately 27.5 million common shares outstanding.

Rare Element has also granted 200,000 options to a consultant of the Company at a price of $2.09 pursuant to the Company's option plan.

Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral resource company focused on gold and strategic metals such as the rare-earth elements. Rare Element and Newmont have entered into the Sundance gold exploration joint venture on the Company's Wyoming property. Newmont has the right to earn a 65% working interest in Rare Element's property, excluding any rights to the rare-earth elements and uranium but including rights to gold and other metals, by performing US$5 million in property work expenditures over a five-year period. Newmont also has the right to earn an additional 15% working interest by completing a positive project feasibility study.

Rare Element's Bear Lodge property, Wyoming, also encompasses one of the largest disseminated rare-earth occurrences in North America (M H Staatz, 1983, US Geological Survey Professional Paper 1049D). In parallel with the Sundance gold-focused exploration project, Rare Element has completed a NI 43-101 compliant resource estimate and a Technical Report on the Bear Lodge Rare-Earth Mineralization. The Company is also building on the successful metallurgical testing program of the oxide material drill samples collected during 2008.

ON BEHALF OF THE BOARD Mark T. Brown, CA Director and CFO

Donald E. Ranta, PhD, P. Geo., 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 content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Rare Element Resources Ltd.

CONTACT: refer to the Company's website at http://www.rareelementresources.com/
or contact: Donald E Ranta, President CEO, [phone],
[e-mail]; Mark T. Brown, CFO, [phone] ext 242,
[e-mail]