Rare Element Reports Unaudited EPS of $0.04 for Six Months

Rare Element Resources Ltd.

announced that its unaudited condensed consolidated interim financial statements and Management's Discussion and Analysis for the six months ended December 31, 2010 have been filed on www.sedar.com. Exploration expenses amounted to $5,634,144 (2009 - $2,653,690) during the six months ended December 31, 2010, of which $4,684,275 (2009 - $1,646,439) was spent on the Bear Lodge Rare-Earth Project and $910,237 (2009 - $nil) was spent on the Sundance Gold Project. Both projects are located on the same property position. Administrative expenditures, including the non-cash share-based payments amounted to $1,553,394 (2009 - $1,056,777) for the period, up 47% compared to the same period last year. Loss for the period was $1,482,214 (2009 - $1,039,150) or $0.04 per share (2009 - $0.04), up 43% from the same period in the prior year. Cash and cash equivalents at December 31, 2010 were $67,008,719 (June 30, 2010 - $11,460,476), reflecting the $57.5 million financing completed in December, 2010.