Rare Element Bench Scale Metallurgical Processing Tests Produce a 90+% REO Concentrate

Rare Element Bench Scale Metallurgical Processing Tests Produce a 90+% REO 
LAKEWOOD, COLORADO -- (Marketwire) -- 03/04/13 --  

--  Technology produces high purity rare earth oxide (REO) concentrate
    without solvent extraction technology for impurity removal 
--  Proprietary technology designed to: 
    --  Increase recoveries of rare earth elements and the grade of the
        concentrate increased from approximately 45% to 90+%. 
    --  Provide reduced raw material requirements through recycling and
        regeneration of acid 
    --  Enhance management of byproducts and process residues 
    --  Provide enhanced ability to further separate and upgrade final rare
        earth products 
    --  Provide environmental benefits from reduced "environmental
--  Provisional U.S. Patent filed for "Rare Earth Element Extraction"
    process technology

Rare Element Resources Ltd. (NYSE MKT:REE)(NYSE Amex:REE)(TSX:RES)
(the "Company") is pleased to provide further information regarding
its proprietary process technology that enhances the efficiency of
rare earth recovery. The new metallurgical process consists of
Hydrochloric (HCl) acid leaching at moderate temperature, selective
precipitation of rare earth elements (REEs) with oxalic acid, and
calcination of REE oxalates at elevated temperature to produce a high
purity mixed REO powder, with accompanying capture of kiln flue
Jaye Pickarts, Chief Operating Officer, stated "We are extremely
pleased with the development to-date of this exciting technology, and
the potential benefits the proprietary process brings to the project
and our customers. As we continue our lab scale testwork, the final
results will support our upcoming definitive feasibility study,
scheduled to start in mid-2013". 
The rare earth ore from the Bull Hill mine will be upgraded
physically on site to produce the REE-rich pre-concentrate solids for
treatment at the hydrometallurgical facility in Upton, Wyoming. The
process will employ a hot chloride solution to extract over 90% of
the REEs into a pregnant leach solution (PLS). Using closed reactor
vessels, the PLS will react with oxalic acid powder under optimized
conditions to facilitate selective precipitation of REEs.
Approximately 95-99% of REEs are precipitated from the PLS, leaving
behind all the major base metals in solution. 
The REE-rich oxalate precipitates are converted to their oxide form
in a calcination process. The mass of REE-oxalates is reduced by as
much as 50% and the calcine powder contains 90+% pure mixed REO. This
is a significant improvement from the 45% concentrate which was used
as the basis for the economic calculation in the Preliminary
Feasibility Study completed in 2012. The REO powder can be
re-dissolved selectively in an appropriate acid to isolate traces of
residual impurities, or it could be sold to a third party refinery.
The filtrate or barren PLS from the oxalate reactor contains a
significant amount of HCl acid, which is recovered by distillation.
The vapor is condensed by cooling water and contains approximately
20% hydrochloric acid. This acid is then recycled for use in the
chloride leach circuit. The number of process reagents is
significantly reduced, and the economic benefit of recycling HCl acid
to the leach reactors is significant. 
The process was tested successfully in a bench scale program and is
currently being corroborated at two commercial metallurgical
laboratories. We anticipate the availability of results within the
next several weeks, at which time we will provide an update.
Following the successful completion of the testwork, the process
technology will be incorporated into our planned pilot plant
testwork, leading to the formal start of our definitive feasibility
study in mid-2013. 
Rare Element Resources has filed a provisional patent with the U.S.
Patent Office regarding oxalate process technology for the recovery
of rare earth products from its Bear Lodge Project. 
For information please refer to the Company's website at
Rare Element Resources Ltd. is a publicly traded mineral resource
company focused on exploration and development of rare-earth elements
(REEs), with a significant distribution of critical rare earths
(CREEs). In addition to the REE exploration and evaluation efforts,
the Company controls the Sundance gold project, which is located on
the same property in Wyoming. 
Cautionary Statement 
Jaye T. Pickarts, P.E., serves as the Chief Operating Officer of the
Company and as an internal, technically Qualified Person. Technical
information in this news release has been reviewed by Mr. Pickarts,
and has been prepared in accordance with Canadian regulatory
requirements that are set out in National Instrument 43-101. For a
description of the key assumptions, parameters and methods used by
the Company to estimate mineral reserves and resources, as well as
data verification procedures and a general discussion of the extent
to which the estimates may be affected by any known environmental,
permitting, legal, title, taxation, socio-political, marketing or
other relevant factors, please see the Technical Reports for our
project as filed on SEDAR at www.sedar.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", "has potential to", or "intends' or
by discussions of strategy or intentions. Such forward-looking
statements involving statements regarding the future likelihood of
success of our process technology, anticipated testwork results and
recovery estimates, involve known and unknown risks, uncertainties
and other factors, and 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.
Forward-looking statements are statements that are not historical
facts, and include but are not limited to, estimates and their
underlying assumptions; statements regarding plans, objectives and
expectations with respect to the effectiveness of the Company's
business model; future operations, products and services; outcomes of
technology development and use; the impact of regulatory initiatives
on the Company's operations; the size of and opportunities related to
the market for the Company's products; general industry and
macroeconomic growth rates; expectations related to possible joint
and/or strategic ventures and statements regarding future
Rare Element Resources Ltd.
David Suleski
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