Rare Element Reports Second Round 2010 Gold Drilling Assays

TSX-V: RES & AMEX: REE

VANCOUVER, Nov. 9 /PRNewswire/ – 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.

To View Figure 1: Plan map of Rare Element Resources’ Sundance Property and Figure 2: Plan map of part of Rare Element Resources’ Sundance Property, please
visit: http://files.newswire.ca/675/RareElement_Fig1_Fig2.doc

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.

To view Table 2 All drill holes with gold assay results to date from
2010 gold drilling program, please visit: http://files.newswire.ca/675/RareElement_Table_2.doc

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

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.

SOURCE Rare Element Resources Ltd.