Rare-Earth Drill Program Update & Financing



    TSX-V: RES

    VANCOUVER, Oct. 15 /CNW/ - Rare Element Resources Ltd (TSX-V: RES)
announces that the 2007 rare-earth exploration program is continuing. In June,
the Company completed the first drill hole (RES 07-1), which targeted the main
zone of rare-earth mineralization at Bear Lodge, Wyoming. The drill core from
RES 07-1 was quartered and with one half sent for testing programs at a
metallurgical research facility in Tucson, Arizona. Sections of all
mineralized core were sent for assay and a split of the entire core was
retained for reference.
    The Company is currently completing the rare-earth drill program with two
additional holes (RES 07-2 & 07-3). Drill-holes RES 07-1 and 07-2 are designed
to expand knowledge of the southwest Bull Hill dike swarm and to gather
metallurgical test samples. Drill-hole RES 07-03 targets a high-grade
rare-earth carbonatite on the northwestern margin of Bull Hill. This
carbonatite was previously intersected by the Hecla Mining Company drill-hole
WP-2, which intersected 186 feet (40.3 feet true thickness) of 9.56% total
rare-earth oxides in oxidized carbonatite and 80 feet (45.9 feet true
thickness) of 5.65% total rare-earth oxide in non-oxidized carbonatite.

    Financing

    Rare Element has also arranged a non-brokered private placement of
1 million units for gross proceeds of $1 million. Each unit is comprised of
one common share and one non-transferable warrant. Each two warrants entitle
the holder to purchase one additional common share for a period of 18 months
at a price of $1.35 per common share.
    The financing proceeds will be used for general corporate purposes and
for the advancement of both the gold and rare earth element projects in
Wyoming.
    In addition, the Company has granted 25,000 options exercisable at
$1.00 per share to a consultant.

    Rare Element Resources Ltd (TSX-V:RES) is a publicly traded
mineral-resource company focused on gold and the rare-earth elements. The
Company and Newmont have entered into the Sundance gold-exploration joint
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.
    Rare Element Resources' Bear Lodge, Wyoming, property also encompasses
the largest disseminated rare-earth occurrence in North America (M H Staatz,
US Geological Survey Professional Paper 1049D). In parallel with the Sundance
gold-focused exploration project, Rare Element Resources is independently
advancing the rare-earth potential of its property with a 2007 drilling and
metallurgical testing program (see Company news release of 15 February 2007).

    ON BEHALF OF THE BOARD

    Donald E. Ranta, President & CEO

    James Clarke, PhD, PGeo, serves the Company as an internal, technically
Qualified Person. Technical information in this news release has been prepared
in accordance with Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed by Dr. Clark. This news release was prepared by
Company management, who take full responsibility for its content. The TSX
Venture Exchange has not reviewed and does not accept responsibility for the
adequacy or accuracy of this release.





For further information:

For further information: refer to the Company's website at
www.rareelementresources.com or contact: Donald E. Ranta, President & CEO,
(604) 687-3520; Mark T Brown, CFO, (604) 687-3520 ext 242,
mtbrown@pacificopportunity.com

Organization Profile

RARE ELEMENT RESOURCES LTD.

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