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      Rare Element Initiates 2009 Rare-Earths Drilling Program
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Vancouver, BC - Rare Element Resources Ltd. (TSX-V: RES) (the
"Company") is pleased to announce that drilling has begun on the
resource expansion program for rare-earth-element (REE) mineralization
on the Company's Bear Lodge property of northeastern Wyoming.
Drill-hole locations have been chosen as step-offs of the known
mineralization, to test other high-potential targets, and to provide
additional material for metallurgical testing of a suite of samples
that are representative of the entire rare-earth deposit (see news
release of June 15, 2009). Initial metallurgical testing of the
near-surface oxide portion of the deposit has provided very encouraging
results that could lead to a commercially viable process (see news
release of July 15, 2009). Metallurgical work is continuing at the
Mountain States R & D International laboratory near Tucson, Arizona.

The initial ten core holes of the drill program will test the updip
extension of oxide mineralization of the Bull Hill Southwest resource
that contains the bulk of the REE mineralization. Expansion of the
deposit uphill, above the defined resource area in the uppermost
portion of the oxidized carbonatite dikes, has potential to gain
substantial additional tonnage of oxidized mineralized material.

A number of drill holes will test the Bull Hill Northwest target,
located about 300 meters (1,000 ft) northerly from the Bull Hill
Southwest target as offsets to historical Hecla drill-hole WP-2. Angle
hole WP-2 intercepted nearly 56 m (186 ft) of near-surface, high-grade
REE mineralization. Several closely spaced holes will be drilled to
determine and test the orientation and continuity of the
mineralization.

Most holes in the overall program are designed to offset known
mineralization; however a number of holes are planned to test new
target concepts. One of the target concepts is a large REE-mineralized
carbonatite plug hypothesized to occur at depth southwest of the Bull
Hill diatreme. The Company's geologists recognize the similarities of
the Bear Lodge REE-bearing carbonatites with the large Mountain Pass
rare-earths deposit in California and will be exploring for an
analogous large system. Approximately 5000 m (16,500 ft) of drilling
are planned for the total 2009 program.

Rare Element Resources Ltd (TSX-V:RES) is a publicly traded
mineral-resource company focused on gold and strategic metals,
specifically the rare-earth elements. Rare Element Resources and
Newmont have entered into the Sundance gold exploration project on the
Company's Wyoming property. Newmont has the right to earn a 65% working
interest in Rare Element Resources' 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 Resources' Bear Lodge, Wyoming property also encompasses
one of the largest disseminated rare-earth occurrences in North America
(M.H. Staatz, 1983, US Geological Survey Professional Paper 1049-D). In
parallel with the Sundance gold-focused exploration project, Rare
Element Resources has completed drilling of twelve holes, estimation of
an inferred resource (NI 43-101 compatible), and testing of
metallurgical samples to independently advance the rare-earth potential
of its property.

ON BEHALF OF THE BOARD
Donald E Ranta, PhD, PGeo,
President & CEO

For information, refer to the Company's website at
www.rareelementresources.com or contact:
Donald E Ranta, President & CEO, (604) 687-3520
don@rareelementresources.com
Mark T. Brown, CFO, (604) 687-3520 ext 242
mtbrown@pacificopportunity.com

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, who take 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.

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Copyright (c) 2009 RARE ELEMENT RESOURCES LTD. (RES.V)  All rights
reserved.  For more information visit our website at
http://www.rareelementresources.com/ or send
mailto:info@rareelementresources.com
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