Rare Element Reports 65 Percent Increase of Total M&I Rare-Earth Mineral Resources at Bear Lodge

Rare Element Reports 65 Percent Increase of Total M&I Rare-Earth Mineral 
Resources at Bear Lodge 
- Total Measured and Indicated (M&I) oxide resources increase 65%,
from 571 million pounds to 944 million pounds of contained Rare Earth
Oxide (REO) 
- Total high-grade M&I oxide mineral resources of 14.7 million tons
grading 3.22% REO at 1.5% cutoff grade 
- Includes a high-grade core M&I resources of 6 million tons grading
4.72% REO at 3% cutoff grade that could support an initial
higher-grade, lower production scenario and transition into full
plant capacity and lower initial capital cost 
- Includes high-grade Indicated (I) oxide mineral resource at the
HREE-enriched Whitetail Ridge deposit of 2.25 million tons grading
2.61% REO at 1.5% cutoff grade 
LAKEWOOD, COLORADO -- (Marketwire) -- 03/18/13 -- Rare Element
Resources Ltd. (NYSE Amex:REE)(NYSE MKT:REE)(TSX:RES) (the "Company")
today announced a 65% increase to its total Measured and Indicated
(M&I) rare earth elements (REE) resources estimate at the Bear Lodge
Project, from 571 to 944 million pounds of rare earth oxide (REO).
The updated NI 43-101 compliant resource estimate includes the first
Indicated resource at the HREE- enriched Whitetail Ridge deposit and
high grades of Critical Rare Earth Oxides (CREOs) in all deposits. 
Randall J. Scott, President and Chief Executive Officer stated "We
are extremely pleased with the meaningful increase in our estimated
M&I resource at Bear Lodge. Our work in 2012 resulted in a much
larger quantity of REE resource, confirmation of the peripheral zones
of HREE-enrichment, and highlights the significance of this growing
world-class source of CREOs. The increased M&I resource will be
incorporated into the upcoming Feasibility Study, which is on
schedule to commence in mid-2013." 
Critical Rare Earth Oxides (CREO) 
Critical rare earth oxides (CREOs) are those with the highest value,
and for which the strongest future growth is projected. We refer here
to the oxides of Nd, Pr, Eu, Tb, Dy, and Y as CREOs. The resource
estimates for the Greater Bull Hill and Whitetail Ridge REE deposits
show high grades for all of the CREOs. The Whitetail Ridge deposit is
particularly enriched in the HREE component of the CREOs as well as
the exploration targets located further to the west. 
Resource Estimate 
The updated resource is derived from an REE drill hole database that
includes 216 core holes and 16,920 assay samples, completed by the
Company between 2008 and the end of 2012. The estimate includes
deposits in the Greater Bull Hill area and the HREE-enriched
Whitetail Ridge deposit. The drilling indicates significant potential
for further expansion of all resources, including additional
HREE-enriched resources at the Whitetail Ridge deposit and nearby
The total M&I mineral resources estimate for the Greater Bull Hill +
Whitetail Ridge deposits at a cutoff grade of 1.5% REO is summarized
in Tables 1 & 2 for the near-surface oxide (OX) and oxide-carbonate
(OxCa) zones. The M&I oxide resources for total REO at a range of
cutoff grades is given in Table 3. The estimated REE resource in the
Indicated category for the HREE-enriched Whitetail Ridge deposit only
is summarized in Table 4. 
Subject to a Feasibility Study, the data in Table 2 indicate
sufficient M&I oxide resources to support the possibility of a 40+
year mine life at the previously published preliminary feasibility
study production rate of 1000 tons per day. The resource data in
Table 3 indicate that there may be significant enough tonnages of
material at higher grades to support an initial higher-grade/lower
production mining option with lower capital costs that could
transition into full plant design capacity over a period of several
years (for example, 6 million tons grading 4.72% REO at a 3% cutoff
grade). This option will be considered in the upcoming Feasibility
Study, scheduled to commence mid-2013. 
Total estimated REE mineral resources and detailed REO grades in the
Inferred category for the Greater Bull Hill area deposits plus
Whitetail Ridge are given in Table 5. REE resources in the Inferred
category for all mineralization types increased to 42.3 million tons
grading 2.59% REO in 2013 from 34.6 million tons at 2.83% REO in
2012. Total Inferred Oxide resources (Ox+OxCa) increased from 25.7
million tons grading 2.86% REO in 2012 to 31.4 million tons at 2.68%
REO in 2013. 
Geology and Mineralization 
The Bull Hill area deposits contain the bulk of the current
resources. They comprise steeply-dipping FMR
(FeOx-MnOx-REE)-carbonatite dike swarms with dominant northwesterly
and subordinate northerly trends mainly intersecting the Bull Hill
diatreme breccia. Carbonatite dikes at depth are interpreted to
transition toward the surface into either oxide-carbonate bodies or
FMR bodies, which range in size from sub-millimeter veinlets to large
dikes more than 100 feet (30 m) in width. 
The Whitetail Ridge deposit is more enriched in HREEs and is
distinguished by a zone of FMR dikes and stockwork that invade the
Whitetail Ridge diatreme breccia and adjacent trachyte/phonolite
intrusive rocks. Expansion of the Indicated REE resource at Whitetail
Ridge is a key objective of the Company's planned 2013 drilling
The major dike sets in all of the resource areas are accompanied by
peripheral zones of lower-grade stockwork REE mineralization. The
term "stockwork" refers to a rock cut by a network of small veins or
dikes that contain the mineralization. REE grades in the stockwork
zones range between about 0.5% and 2.5% REO. The Company is
continuing its investigation of low-cost physical processing methods
to upgrade the contained REE mineralization in the stockwork for
eventual inclusion with the resources. 
Cutoff Grade & Metallurgy 
The resource size is sensitive to an assumed cut-off grade, which is
sensitive to metallurgical operating costs. See Table 3 for cut-off
grade sensitivities. The Company will conduct pilot scale
metallurgical testing on more than 21 tons (19.1 tonnes) of
mineralized material in 2013 in conjunction with its planned
Feasibility Study (FS). Metallurgy of the FMR oxide zone is well
established and was reported previously. Metallurgical testing of the
oxide-carbonate zone resource is in progress. Bench-scale
optimization and variability testing is ongoing for both
mineralization types. 
Mineral Resources are not Reserves 
Mineral resources that are not mineral reserves do not have
demonstrated economic viability. Mineral resource estimates do not
account for minability, selectivity, mining loss, and dilution. These
mineral resource estimates are in the measured, indicated, and
inferred mineral resource categories. Inferred mineral resources are
normally considered too speculative geologically for the application
of economic considerations that would enable them to be categorized
as mineral reserves. There is also no certainty that these inferred
mineral resources will be converted to M&I mineral resource
categories through further drilling or into mineral reserves once
economic considerations are applied. 
The Company announced positive economic results from its
Pre-Feasibility Study (PFS) on 1 March 2012, and in a revised news
release on 12 April 2012. The PFS established a Proven plus Probable
mineral reserve for the Bull Hill deposit that contains 7.9 million
tons (7.2M metric tonnes) at a grade of 3.12% REO and at a cutoff
grade of 1.1% REO. 
Quality Assurance 
The mineral resource estimate was completed by Mr. Alan C. Nobl
P.E., principal engineer of Ore Reserves Engineering (ORE), and is
based on geological interpretations supplied by the Company to ORE
and subsequently modified by ORE. Mr. Noble is an independent
Qualified Person under NI 43-101 - Standards of Disclosure for
Mineral Projects ("NI 43-101") of the Canadian Securities
Administrators, and Mr. Noble has verified the data disclosed in this
release. Mr. Noble will prepare the updated NI43-101 report, which
will be filed and available under the Company's SEDAR profile at
www.sedar.com within 45 days. 
The Rare Element Resources' field programs were carried out under the
supervision of Dr. James G. Clark, Vice President of Exploration and
John T. Ray, who is a Qualified Person for the purposes of National
Instrument 43-101 - Standards of Disclosure for Mineral Projects of
the Canadian Securities Administrators. A detailed QA/QC program was
implemented for the 2007 through 2012 drill programs. The QA/QC
program was organized by Dr. Jeffrey Jaacks. Dr. Jaacks and Dr. Clark
have verified the sampling procedures and QA/QC data delivered to
ORE. They share the opinion that the data are of good quality and
suitable for use in the resource estimate. 
A full table of significant drill results from the Company's 2012
exploration program, along with maps and sections detailing the
location of the drill holes, are available in our press release dated
11 March 2013 and posted on our website at
Markets for Rare Earths 
REEs 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 in steel, additives in ceramics and glass, petroleum
cracking catalysts, and many others. Rare earths are critical and
enabling metals for the green technologies. 
Please refer to the tables in the Appendix for details of the M&I and
Inferred tons and grade in this news release. All resources reported
herein comply with NI 43-101. 
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. 
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.
Forward-looking statements are statements that are not historical
facts, and include but are not limited to, mineral resource estimates
and their underlying assumptions; the anticipated mine life of the
project and possible timing and options being considered in the
Feasibility Study. 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, our estimates
of mineral resources; capital costs estimates; processing technology
effectiveness; fluctuations in demand for, and price of, rare earth
products; timing of and unexpected events at the Bear Lodge property;
delay or failure to receive government approvals and permits; timing
and availability of external financing on acceptable terms; the
timing of a Feasibility Study and matters that will be discussed
therein; plans for pilot scale metallurgical testing; technical,
permitting, mining or processing issues; changes in U.S. and Canadian
securities markets; and fluctuations in input costs 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 Form 10-K for the fiscal year ended June 30, 2012. We expect
that the above estimates 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. 
Cautionary Statement 
John T. Ray, MS, Rare Element's qualified person under Canadian NI
43-101, supervised the preparation of the scientific and technical
information concerning the Company's mineral project contained in
this news release. For a description of the key assumptions,
parameters and methods used 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. 
Cautionary Note to U.S. Investors - The United States Securities and
Exchange Commission permits U.S. mining companies, in their filings
with the SEC, to disclose only those mineral deposits that a company
can economically and legally extract or produce. We may use certain
terms in public disclosures, such as "measured," "indicated,"
"inferred" and "resources," that are recognized by Canadian
regulations, but that SEC guidelines generally prohibit U.S.
registered companies from including in their filings with the SEC.
U.S. investors are urged to consider closely the disclosure in our
Form 10-K which may be secured from us, or from the SEC's website at
For additional information please refer to the Company's website at
To view the figure and tables associated with this release, please
visit the following links:
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. 
Rare Element Resources Ltd.
David Suleski
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