Rare Element Applauds U.S. House Committee Passage of Strategic Resources Bill and moves office to Lakewood, Colorado, USA

TSX: RES & NYSE AMEX: REE

LAKEWOOD, CO, July 27, 2011 /PRNewswire/ – Rare Element Resources Ltd. (TSX: RES) and (NYSE-AMEX: REE) (the “Company”) today announced a very positive development from the
Natural Resources Committee of the U.S. House of Representatives and
the official opening of Rare Element’s new office in Lakewood,
Colorado, USA.

National Strategic and Critical Minerals Policy Act of 2011

“I am very pleased to learn of the unanimous passage on July 20, 2011 by
the House Natural Resources Committee of H.R. 2011.  Cong. Doug
Lamborn’s National Strategic and Critical Minerals Policy Act of 2011 is an effective and badly needed step forward toward revitalizing
America’s capacity to produce essential minerals from secure domestic
sources,” said Dr. Donald E. Ranta, President and CEO of Rare Element
Resources Ltd.

Today’s rapid pace of new applications for technology and clean energy
minerals mean that rare earth elements impact virtually everyone.  Rare
Element believes H.R. 2011 is an important component of the larger
American Energy Initiative legislative package that is moving through
the House of Representatives.  Congressman Lamborn’s bill has the
proper focus of directing efforts towards meeting current and future
demands for minerals critical to manufacturing competitiveness and
economic and national security.  It is also important to note that this
bill had unanimous consent and was well prepared by Cong. Lamborn,
Chairman Hastings and their staff.   

Rare Element noted that one emphasis in H.R. 2011 was on accelerating
and streamlining the permitting process by identifying and removing
impediments and restrictions on the production of these minerals that
are critical to our society while maintaining environmental safeguards.

The next stage is for the House of Representatives to pass this bill and
send it to the Senate where we hope it will have equally quick
approval.

New Lakewood, Colorado, USA Corporate Office

Rare Element has also established a new head office in Lakewood,
Colorado, USA, where the majority of the senior officers of the Company
reside. Lakewood, a suburb of Denver, is a short distance from the
project site in Wyoming.  The greater Denver area is home to many
mining experts and laboratories, the highly regarded Colorado School of
Mines and several senior mining companies. The new corporate office
address is:

                Rare Element Resources Ltd.
                225 Union Blvd., Suite 250
                Lakewood, Colorado 80228 USA
                Phone: 720-278-2460
                Fax: 720-278-2490

Rare Element Resources Ltd (TSX: 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 lights, 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 continue to be
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 nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX) accepts responsibility for the adequacy or
accuracy of this release.

SOURCE Rare Element Resources Ltd.