Rare Element Resources Closes $1,075,000 Financing



    TSX-V: RES

    VANCOUVER, Nov. 6 /CNW/ - Rare Element Resources Ltd (TSX-V: RES)
announces that it has now completed the non-brokered private placement for
$1,075,000. The offering consists of 1,075,000 units at $1.00 per unit. Each
unit comprises one common share and one-half of a non-transferable
share-purchase warrant. A whole warrant may be exercised to purchase one
additional common share of the Company at $1.35 per share, for a period of
eighteen months from the private-placement closing date.
    President Dr Donald Ranta commented, "These additional funds will provide
working capital for the Company's Bear Lodge, Wyoming, rare-earth exploration,
and help to ensure that Rare Element is in a stronger financial position for
the future. With Newmont still earning its interest in the Sundance Joint
Venture, the Company has the benefit of extensive exploration work being
completed at a small cost to the Company."
    Dr Ranta recently returned from the Bear Lodge property, where he met
with Newmont's exploration team. Dr Ranta was impressed with the detailed
geological-geochemical-geophysical data being collected and the scope of the
Newmont team's program. The team is enthusiastic and well qualified to explore
the gold potential of the Bear Lodge alkaline intrusive complex. There has
been excellent progress with the drilling program and geological work that is
currently underway.

    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 (REE's). The author of US Geological Survey Professional Paper 1049D
stated that what is now Rare Element Resources' Bear Lodge REE property is the
largest disseminated REE occurrence in North America. REE's, which have been
called "catalysts for high-tech living," are required for many new
technologies, including nickel-metal-hydride batteries and the motors,
generators and batteries used in hybrid cars. The US market for REE's exceeds
US$1 billion, with most supplied by China.
    The Rare Element Resources' Bear Lodge property also has gold-exploration
potential. Previous gold exploration has identified numerous gold geochemical
anomalies and gold occurrences in intrusive breccia bodies. The surface
geology exposes the upper levels of a mineralized alkaline intrusive complex,
which is geologically similar to the igneous intrusive complex that hosts the
Cripple Creek, Colorado, gold deposits.
    Paso Rico (USA) Inc, a wholly owned subsidiary of Rare Element Resources,
and Newmont North America Exploration Limited, a subsidiary of Newmont Mining
Corporation (Newmont), have entered into a gold exploration venture, named the
Sundance Joint Venture, on the Company's Bear Lodge property. Newmont has the
right to earn a 65% working interest in Rare Element Resources' Bear Lodge
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.

    ON BEHALF OF THE BOARD

    Mark T Brown CA CFO

    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 prepared in accordance with Canadian regulatory
requirements set out in National Instrument 43-101 and reviewed by Dr Ranta
This news release was prepared by Company management, who take full
responsibility for content. The TSX Venture Exchange has not reviewed and does
not accept responsibility for the adequacy or accuracy of this release.
Forward-looking statements in this release are made pursuant to the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
that may cause the Company's actual future-period results to differ materially
from forecasts.





For further information:

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

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RARE ELEMENT RESOURCES LTD.

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