Rare Element Reports Rare-Earths Drilling and Metallurgical Test Results

TSX-V: RES

VANCOUVER, Feb. 4 /PRNewswire-FirstCall/ – Rare Element Resources Ltd. (TSX-V:RES) is pleased to announce rare-earth-element (REE) assay results from four holes of the 2008 core drilling program completed on the Company’s 100% owned Bear Lodge Property located in northeastern Wyoming, USA. Three of the holes were drilled into the Bull Hill Southwest target, where a historical resource had been previously estimated. The fourth hole was drilled to test an area with both REE and gold potential. Highlights of the drill program include relatively thick intercepts in three holes and higher grades in drill holes RES 08-1 and 08-3. These results will assist the company in completing its first NI 43-101 independent resource report which it expects to have done in the first half of 2009.

Metallurgical testing during 2008 made significant strides forward, but additional work needs to be done. Rare-earth ores are difficult to treat in the best of situations, and the Bear Lodge mineralization is no exception to this rule.

Drilling Results

The rare-earth mineralization encountered in three of the four drill holes is primarily contained within the near-surface oxidized equivalents (FMR) of carbonatite dikes that intrude a body of heterolithic intrusive breccia along the southwest flank of Bull Hill, within the Bear Lodge alkaline-igneous complex. REE assay values are reported by convention as the combined oxide equivalents (REO) of the fifteen elements in the series. The oxide equivalents are approximately 15.6% higher than the combined metal assay values. The Bear Lodge project contains predominantly the “light” REE (lanthanum, cerium, praseodymium, neodymium, samarium, europium, and gadolinium), and in particular the first four of these. Assays from the REE-mineralized sections of the holes are summarized in the table below.

    Drill-hole RES 08-1

    (bearing N 45 degrees E, inclination -45 degrees, total depth 904 feet,
    Bull Hill Southwest extension target)

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    Interval  Intercept  True Thickness  Mineralized Lithology   Total % REO
    --------  ---------  --------------  ---------------------   -----------
    (feet)     (feet)       (feet)

    410 - 485.5 75.5         54.3               FMR dike           4.86%REO

    -------------------------------------------------------------------------

    Drill-hole RES 08-2

    (bearing N 45 degrees E, inclination -45 degrees, total depth 1054 ft,
    Bull Hill Southwest target)

    38 - 163     125         52.8               FMR dike           2.46%REO
    273 - 386    113           68               FMR dike           3.42%REO

    -------------------------------------------------------------------------

    Drill-hole RES 08-3

    (bearing N 45 degrees E, inclination -45 degrees, total depth 994 ft,
    Bull Hill Southwest target)

    22 - 215     193          170               FMR dike           4.12%REO
    480 - 489      9          7.9               FMR dike          15.28%REO
    967 - 988     21          7.2            Carbonatite dike      2.89%REO

    -------------------------------------------------------------------------

    Drill-hole RES 08-4

    (bearing S 60 degrees W, inclination -60 degrees, total depth 1886 ft,
    East Taylor Bowl target)

    866 - 886     20           14            Carbonatite dike     2.27% REO

    -------------------------------------------------------------------------

Assaying of the rare-earth elements was conducted by Activation Laboratories (ActLabs) in their Ancaster, Ontario assay facility. The samples were prepared and subjected to lithium metaborate fusion, followed by ICP analysis and a mass spectroscopy finish. ActLabs is recognized as an internationally respected analytical laboratory with extensive experience in rare-earth-element analysis.

“We are pleased with the results of our rare-earth drilling and continue to advance the project with a continuation of the metallurgical testing program to determine a feasible method of concentrating the rare-earth-bearing minerals,” states President Don Ranta. A summary of the entire Rare Element exploration program for rare earths from 2004 through 2007 was released on April 23, 2008.

Metallurgical Testing

The most recent phase of metallurgical testing continued through 2008 to determine the technical feasibility of recovering the rare-earth values from the Bear Lodge mineralization. Initial efforts were directed toward preconcentration to upgrade REE values prior to the use of higher cost hydrometallurgical procedures. These preconcentration techniques included gravity concentration (jigs, tables, spirals, etc.), heavy media separation (HMS), and flotation.

The results of preliminary preconcentration (upgrading) tests by physical separation processes on the unoxidized REE-mineralized material indicates that a reasonable sink-float separation is technically feasible under the best test condition of -3/8-inch crush size and a liquid density of 2.85 g/cm(3). Results of this test indicate an overall recovery of about 80 percent in the preconcentrate within about 50 weight percent of the original material. This preconcentrate was then further treated by the flotation process to recover the sulfide fraction as a potential source of H(2)SO(4) required in the hydrometallurgical treatment of the preconcentrate to recover the REE values. Using the leaching concept, it is technically feasible to obtain a recovery of about 84 percent from the preconcentrate or an overall recovery of about 67 percent from the original mineralized material. Testing of the transitional (unoxidized + oxidized) material gave slightly lower overall recoveries.

Rare- earth ores are difficult to treat in the best of situations, and the Bear Lodge mineralization is no exception to this rule. Through a careful program of research and development at the Mountain States R & D International laboratory, additional preconcentration testing will be conducted to find a technique to further upgrade the REE values, and leach testing the preconcentrate with heat and additional leach time is expected to raise the REE extraction above 90 percent.

The Company will select samples from the 2008 core drilling program for further metallurgical study and testing. Beneficiation tests will be conducted on oxidized, and unoxidized, rare-earth mineralized carbonatite samples to determine the feasibility of producing commercial rare-earth products.

Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral-resource company focused on gold and rare-earth elements. In addition to the REE exploration and evaluation efforts, the Company and Newmont have entered into the Sundance gold-exploration venture 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.

    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. The TSX Venture Exchange has not reviewed, and does not accept responsibility for the adequacy or accuracy of this release.

SOURCE Rare Element Resources Ltd.