Vancouver B.C. - Rare Element Resources Ltd. (NYSE Amex: "REE"; TSXV: "RES") announces assay results from additional rotary (reverse circulation) holes drilled on the Sundance Gold Project, Wyoming (drill holes SUN-067 to SUN-085). Thirty rotary drill holes totaling 19,415 feet (5,918 m) were drilled to date during 2010 on near-surface targets with oxide zone mineralization at the Smith, Carbon, and, most recently, Taylor target areas. The first announcement of drilling results (see news release dated September 21, 2010) was for the Smith target. The second area drilled was the Carbon target, and the drilling program continues at the Taylor target area. Gold exploration activity during 2010 is focused on: 1) detailed definition of known gold-mineralized targets with in-fill drilling, 2) step-off drilling from known mineralization, and 3) discovery of gold mineralization in a new peripheral gold target.

Table 1: Selected significant gold intercepts from phase II drilling at Rare Element Resources Sundance Project, Wyoming during 2010.

Carbon Gold Target

Eight drill holes were completed along the main trend of the Carbon gold zone. Previous exploration drilling focused on crackle breccia, which occurs at the margin of the Carbon diatreme (Figure 1). However, drilling in 2010 has discovered new areas of gold mineralization within the diatreme, including intercepts in SUN-071 of 0.52 g/t Au over 68.3m (including 0.96 g/t over 12.2m) and in SUN-072 of 0.59 g/t Au over 79.3m. Rather than gold merely hosted by prepared ground at the diatreme margin, it is now apparent that the Carbon diatreme itself is a source of gold mineralization. Additional drilling on the east side of the diatreme (SUN-077) was done in an area of magnetite-destructive alteration and soil gold anomalies, similar to the pattern seen in the Carbon resource area. SUN-077 represents a new gold target area 500m to the east-northeast, with an initial intercept of 0.41 g/t Au over 51.8m (Figure 2). This relationship suggests potential for additional gold resources along the margin of, and within the Carbon diatreme, that can be tracked with airborne magnetics and coincident trace element soil anomalies.

Figure 1: Plan map of Rare Element Resources' Sundance Property -- Carbon gold target showing location of 2010 drill holes (green collars) and footprint of gold mineralization containing drill intercepts greater than 300 ppb gold. (Drill hole SUN-077 located off the map to the east-northeast.)

Figure 2: Drill holes with gold assay results from second phase of 2010 gold drilling program

Taylor Gold Target

Definition drilling of the Taylor gold target is in progress, with a total of four drill holes completed (SUN-085 through SUN-088). Assays are received for the first drill hole SUN-085, which grades 0.56 g/t over 71.6m. A potential feeder structure is seen in the results of the CSAMT survey completed in 2010 as a pronounced resistivity protrusion that extends from depth to touch the gold-mineralized plume. This geophysical feature is currently being drilled. It is anticipated that another six to eight holes will be finished and assays received by the end of the year.

Table 2 All drill holes with gold assay results to date from 2010 gold drilling program.

Rare Element Resources Ltd (TSX-V: RES: AMEX: REE) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property.

Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys, additives in ceramics and glass, petroleum cracking catalysts, and a number of critical military applications. China currently produces more than 95% of the 130,000 metric tonnes of rare-earths consumed annually worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is growing rapidly, and is projected to accelerate if the green technologies are implemented on a broad scale.

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:
Mark T Brown, CFO, (604) 687-3520 ext 242 mtbrown@pacificopportunity.com .
Donald E Ranta, (604) 687-3520 don@rareelementresources.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.