Rare Element Announces Positive Economic Results from Pre-Feasibility Study at Bear Lodge

Rare Element Resources Ltd.

is pleased to announce the results of a positive Pre-Feasibility Study for the Bear Lodge project, Wyoming. The PFS was commissioned to provide a technical document for the resource model, present the technical activities for the rare-earth exploration program, provide a detailed process description and present an economic analysis of the rare-earth resources. The results of the PFS show that the Bear Lodge project is technologically feasible with robust returns on invested capital. Mr. Randall Scott, President and CEO, stated, "We are very encouraged with these results. The PFS was designed to provide an engineering and economic assessment of the viability of the Bear Lodge project and, more specifically, the Bull Hill Rare-Earth Element (

) open pit mine, and these results clearly demonstrate the solid economics of this project. We feel that conservative economic data were utilized in this report so to receive such positive results clearly shows the merit of the Bear Lodge project and we will continue on with the development of a bankable feasibility study. Additionally, we will be finalizing a National Instrument (

) 43-101 technical report in the near term and that report will be filed with regulatory agencies. The NI 43-101 technical report will include the updated mineral reserve and resource estimates that will encompass those drill results from the 2011 exploration season for which we already have received assay results."