TSX-V: RES

VANCOUVER, Aug. 24 /CNW/ - 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

>>

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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/For further information: refer to the Company's website at

www.rareelementresources.com or contact: Donald E Ranta, President & CEO,

(604) 687-3520, [email protected]; Mark T. Brown, CFO, (604)

687-3520 ext 242, [email protected]/