Rare Element Resources Ltd. (NYSE MKT:REE)(TSX:RES), a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project, is extending its 2013 development drilling program in order to provide key data leading to the development of a mineable pit focused on the high-grade zone within the Bull Hill deposit. It will also investigate the potential for an even higher-grade core within that zone that might be mined in the early production years to further improve Project economics. The program will also generate additional bulk samples for use in the ongoing pilot plant test program. This drilling is being undertaken after engineering work, performed in advance of the Feasibility Study, identified the high-grade development option as economically attractive.
 

“We have already delineated zones of high-grade mineralization at the Bear Lodge Project that aggregate 6.0 million tons of Measured and Indicated resource with an average grade of 4.72% total rare earth oxides using a 3.0% cutoff grade. The area that the drilling will target is the Main Zone, which contains 4.9 million tons of these resources at an average grade of 4.84% total rare earth oxides,” stated Dr. James Clark, Vice President of Exploration. “The results of the additional development drilling will help generate a detailed model of an area within this zone that appears to contain significantly higher abundances of rare earths. This information will not only help develop the high-grade pit design but will expand our understanding of the rare earth grade distribution within the high-grade zone. Early mine production from the high grade core has the potential to boost project economics even further by providing accelerated cash flow during the early years of operations.”
 

The extended drill program includes a total of 28 holes and approximately 14,000 feet (4,268m) of drilling. The drilling will encompass 22 PQ-diameter core holes and six reverse circulation (RC) drill holes. Most of the drilling will be done from existing access roads and drill sites. The program will begin when the Company receives the required approval from the US Forest Service, which is expected in time to complete the program during the 2013 drill season. Results will be available for inclusion in the upcoming Feasibility Study.
 

Bear Lodge High Grade – Measured & Indicated Resource (Total Rare Earth Oxide (TREO) at 3.0% Cutoff Grade)

                           Tons      Tonnes  Average   Contained   Contained

                     (Millions)  (millions)    Grade    TREO lbs     TREO Kg

                      Contained   Contained    TREO%  (Millions)  (Millions)

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Bull Hill Main Zone

  Measured                  1.1         1.0     5.40         119          54

  Indicated                 3.8         3.4     4.69         356         162

    Total                   4.9         4.4     4.84         475         216

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Total Bear Lodge

 High Grade

  Measured                  1.1         1.0     5.40         118          54

  Indicated                 4.9         4.4     4.57         448        204

    Total                   6.0         5.4     4.72         566         258

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Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths. The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project is currently underway.