Creates flexibility for financing options as project advances

June 11, 2013 - Lakewood, Colorado - Rare Element Resources Ltd. (NYSE MKT: REE and TSX: RES) announced today that it has made a concurrent filing of a universal shelf registration statement on Form S-3 (the "Shelf Registration Statement") with the Securities and Exchange Commission ("SEC") and a shelf prospectus (the "Canadian Shelf") with certain Canadian securities regulators. The Shelf Registration Statement, when declared effective by the SEC, and the Canadian Shelf, when accepted by the Canadian securities regulators, will allow the Company to offer and sell, from time to time in one or more public offerings, up to $50,000,000 of debt or equity securities or a combination thereof.

"An effective shelf registration will provide the Company financing flexibility, with timely and cost-effective access to capital, as we move forward with the development of the Bear Lodge Critical Rare Earth Project," said David Suleski, Chief Financial Officer. "Funding under a shelf registration statement is an attractive option for Rare Element, one which is not necessarily available to other companies in our sector. Once effective, it will allow us to react quickly to changing market conditions and make our offerings more attractive to institutional investors. This will support our goal of becoming North America's next rare earth producer."

The specifics of any future offering, along with the prices, terms and use of proceeds of any such securities offer by Rare Element, will be determined at the time of such offering and will be described in detail in a prospectus supplement filed at the time, should any such offering occur.

Each of the Shelf Registration Statement and the Canadian Shelf has been filed but neither has yet become effective. The securities registered may not be sold, nor may offers to buy be accepted, prior to the time the shelf registrations statements have become effective.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor shall there be any sale of the securities in any state, province or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under securities laws of any such state, province or jurisdiction. An offering of the securities covered by the Shelf Registration Statement and the Canadian Shelf will only be by means of a written prospectus supplement.

Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths. The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project is currently underway.

Copies of the prospectus included in the Shelf Registration Statement and the Canadian Shelf may be obtained at www.sec.gov and www.sedar.com, or at the Company's website at www.rareelementresources.com or by contacting Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.

For additional information, please contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.

Forward Looking Statements
This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are usually identified by our use of certain terminology, including "will", "believes", "may", "expects", "should", "seeks", "anticipates", "plans", "has potential to", or "intends" or by discussions of strategy or intentions. Such forward looking statements include statements regarding the permitting process and progress and project development plans for the future. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the progress of our Bear Lodge Project, fluctuations in demand for, and price of, rare earth products; success of process technology under testing; timing of and unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; and general economic conditions. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors in our Transition Report on Form 10-K for the six months ended December 31, 2012. We expect that the above estimates as to development plans, technology and other processes, time frames and financial needs will change as new information is received and that actual results will vary from these estimates, possibly by material amounts. While we may elect to update these estimates at any time, we do not undertake to update any estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this press release represent management's estimate as of any date other than the date of this press release.