Rare Element Purchases Bear Lodge Royalty and Provides Update on Permit for Exploration Drill Program



    TSX-V: RES

    VANCOUVER, April 29 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES)
("Rare Element" or the "Company") is pleased to report the re-purchase of the
royalty interest (the "Royalty") on certain claims, plus an area of interest,
on the Bear Lodge property, Wyoming, from Freeport-McMoRan Corporation
("Freeport"). The royalty is on all minerals produced on the claims, and the
area of interest, that cover approximately six square miles in the center of
the district, including both rare-earth and gold mineralization occurrences.
In addition, Rare Element and Newmont North America Exploration Limited
("Newmont") are progressing on gaining final approval of a permit to conduct
drilling programs scheduled to begin in the summer of 2009.

    
    Bear Lodge NSR Repurchase
    -------------------------
    
    The 50 unpatented claims with the royalty were held previously by
Freeport (then known as Phelps Dodge Corporation Mining Division), and were
transferred to a wholly owned subsidiary of Rare Element, by way of a "Mineral
Lease and Option for Deed" signed on March 30, 2000. Subsequently, the mineral
lease and option agreement was terminated and replaced on September 30, 2002,
with a production royalty of 2% net smelter returns ("NSR") payable to
Freeport. Rare Element repurchased the Royalty for a one time payment, and
there are no other royalties outstanding on the Bear Lodge property.
    Rare Element's gold and precious metals partner, Newmont, as Manager, has
the right to elect for the Venture to acquire this royalty, other than as it
relates to the Rare Earths and Uranium, within a certain time frame. If
Newmont elects to do so, a portion of the cost of the royalty acquisition
would be born by Newmont with such cost to be credited toward Newmont's earn
in requirement under the venture agreement.
    Mark T. Brown, Chief Financial Officer of Rare Element noted that "The
only royalty on the Bear Lodge Project is now held by Rare Element itself
which bought the royalty but did not cancel it. The royalty covers all metals,
including gold and rare earth elements, at Bear Lodge. With the recent
positive exploration results of both the rare earths and gold exploration
programs, we felt it was time to clean up this royalty which had been
outstanding for 7 years."

    
    Exploration Permit Status
    -------------------------
    
    The Sundance gold exploration venture, which is a joint venture between
Paso Rico USA, Inc. (Rare Element's wholly owned subsidiary) and Newmont, has
received a "Record of Decision" on the exploration permit, subject to an
appeals period that has now expired. Two appeals were received by the US
Forest Service and are currently being considered and evaluated. The permit,
once approved, will allow for an expanded drilling program on the Bear Lodge
property. Detailed drilling plans for the 2009 program are being formulated by
Newmont with input from Rare Element Resources.

    Rare Element Resources Ltd (TSX-V:RES) is a publicly traded mineral
resource company focused on gold and strategic metals such as the rare-earth
elements. Rare Element 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's 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's Bear Lodge property, Wyoming, also encompasses one of the
largest disseminated rare-earth occurrences in North America (M H Staatz,
1983, US Geological Survey Professional Paper 1049D). In parallel with the
Sundance gold-focused exploration project, Rare Element has completed a NI
43-101 compliant resource estimate and a Technical Report on the Bear Lodge
Rare-Earth Mineralization. The Company is also continuing with a metallurgical
testing program of the drill-hole samples collected during 2008.

    
    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, which
takes 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.


    %SEDAR: 00019662E




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, don@rareelementresources.com; Mark T. Brown, CFO, (604)
687-3520 ext. 242, mtbrown@pacificopportunity.com

Organization Profile

RARE ELEMENT RESOURCES LTD.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890