Significant Gold Assays Reopen Rare Element-Newmont 2007 Drill Program



    TSX-V: RES

    Results include 36.6 metres grading 1.35 g/t gold within 155.5 metres
    grading 0.66 g/t gold.

    VANCOUVER, Oct. 2 /CNW/ - Rare Element Resources Ltd (TSX-V: RES)
announces that Newmont North America Exploration Limited (Newmont), the
manager of its Sundance gold-exploration joint-venture with Rare Element
Resources in Wyoming, has reported significant gold-silver grades over
substantial thicknesses from the 2007 drill program. As a result, the Sundance
joint venture is planning to resume drilling to follow up on these promising
results.
    "The recently reported results from the Sundance Joint Venture with
Newmont are very exciting," says Don Ranta, new President & CEO of Rare
Element Resources. "We have intercepted substantial thicknesses of gold-silver
mineralization right from surface to depths of up to 285 metres, with the
highest grades at the surface. These results indicate potential for a
significant mineralized system that is largely oxidized and support Newmont's
decision to re-start the drill program to get additional results before the
end of the year." A reverse-circulation drill rig has been mobilized to drill
five step-out holes in the area of drill-hole SUN 021. Planned total metreage
for the five holes is approximately 1,060.

    
    Results for eight holes drilled in 2007 were provided by Newmont,
highlights of which are presented below and details provided in the attached
Table 1.

    Hole No.     Target   From(m)  To(m)  Interval(m)  Gold(g/t)  Silver(g/t)
    -------------------------------------------------------------------------
    SUN-021      Carbon     0.0    285.1     285.1        0.40       2.8
    -------------------------------------------------------------------------
    Including               0.0    155.5     155.5        0.66       3.5
    -------------------------------------------------------------------------
    Including               0.0     36.6      36.6        1.35       6.2
    -------------------------------------------------------------------------
    SUN-022      Carbon     0.0     91.5      91.5        0.36       3.0
    -------------------------------------------------------------------------
    Including               0.0     45.7      45.7        0.66       3.3
    -------------------------------------------------------------------------
    

    The drill holes at Carbon are also highly anomalous in silver, copper,
rare elements (such as cesium, lanthanum, lithium, thallium, yttrium) and
other elements that could be useful pathfinders for gold. The drill holes at
Taylor tend to be less anomalous in copper but still anomalous for rare
elements, tellurium and some of the other pathfinders.
    The scope of the 2007 drill program was restricted to sites that had been
previously permitted for exploration drilling, so only three holes were
planned. Based on encouraging results, five additional holes were completed
and now a further five are to be drilled, for a total of 13 holes in 2007. The
original 2007 drilling was designed to gather geological information on the
gold mineralization and test concepts and new areas. The systematic drill
testing for grade and tonnage of a newly identified, potentially large-scale
gold system cannot proceed until a permit is in place that will allow much
greater flexibility for drill hole locations than is currently available. A
key component of this permit is the Environmental Assessment, which is in
progress with an expected completion during the summer of 2008.

    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. Paso Rico (USA) Inc, a subsidiary of Rare Element
Resources, and Newmont North America Exploration Limited, a subsidiary of
Newmont Mining Corporation, have entered into the Sundance gold-exploration
joint venture on Rare Element Resources' 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.
    The Sundance joint venture is employing the alkaline-intrusive complex
gold-exploration model, as exemplified by the Cripple Creek, Colorado gold
deposit. Exploration results generated by Sundance suggest similarities
between Cripple Creek and Rare Element's Bear Lodge property.
    Rare Element Resources' Bear Lodge, Wyoming property also encompasses the
largest disseminated rare-earth occurrence in North America (M H Stats, 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 news release of 15 February 2007).

    ON BEHALF OF THE BOARD

    Donald E Ranta, PhD, PGeo,

    President & CEO

    William H. Bird, 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. Bird 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, 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.

    
      Table 1.  Significant intercepts from the eight 2007 drill holes.
      -----------------------------------------------------------------

                      Gold     Silver       Select Intercepts, metres
                      Grade    Grade
                     (grams/  (grams/
    Hole No.          tonne)   tonne)
    and                for      for                            Gold   Silver
    Target   Length   entire   entire  From     To  Interval   grams/ (grams/
    area        (m)    hole     hole    (m)     (m)     (m)    tonne)  tonne)
    -------------------------------------------------------------------------
    SUN-013c  231.1    0.25     1.2     3.0    44.2    41.2     0.49    0.8
    Taylor                             61.0    85.4    24.4     0.29    1.3
                                       91.5   102.1    10.7     0.28    1.4
                                      131.1   138.7     7.6     0.26    1.5
                                      208.8   221.0    12.2     0.66    0.9
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-020   247.0   0.16     1.6     4.6     71.6    67.1     0.22    2.0
    Carbon                            99.1    117.4    18.3     0.21    1.4
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-021   285.1   0.40     2.8     0.0    155.5   155.5     0.66    3.5
    Carbon                             0.0     36.6    36.6     1.35    6.2
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-022    91.5   0.36     3.0     0.0     45.7    45.7     0.66    3.3
    Carbon
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-023   259.1   0.12     1.7     1.5      9.1     7.6     0.28   16.4
    Taylor                            48.8     56.4     7.6     0.22    1.1
                                     125.0    134.1     9.1     0.25    1.3
                                     239.3    253.0    13.7     0.21    2.5
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-025   152.4   0.10     1.1    82.3     89.9     7.6     0.36    1.1
    Taylor
    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-026   152.4   0.23     1.7     0.0     67.1    67.1     0.32    1.5
    Taylor                           112.8    150.9    38.1     0.21    2.6

    -------------------------------------------------------------------------

    -------------------------------------------------------------------------
    SUN-027   213.4   0.12     0.8     1.5     13.7    12.2     0.35    0.6
    Taylor                            83.8    102.1    18.3     0.21    0.7
                                     182.9    190.5     7.6     0.21    1.3
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------


    Table 2. Comparison of 2006 trench and drill-hole assays for Carbon and
    Taylor targets indicates confirmation of broad gold mineralization zones
                g/t=grams per tonne, m=metres

    Target     Drill Hole  Thick(m) Gold (g/t)  Trench  Width(m)  Gold (g/t)
    -------------------------------------------------------------------------
    Carbon SE    SUN 002     13.7      1.01        3      70.1       1.00
    -------------------------------------------------------------------------
         "       SUN 001      9.1      1.17        3      18.3       2.25
    -------------------------------------------------------------------------
         "       SUN 001      6.1      1.01       4N      57.9       0.62
    -------------------------------------------------------------------------
    Taylor       SUN 008     19.8      1.04      10N      24.4       1.28
    -------------------------------------------------------------------------
         "       SUN 011      4.6      1.57      10E       6.1       1.39
    -------------------------------------------------------------------------
         "       SUN 009     62.5      0.66       9E      73.2       0.56
    -------------------------------------------------------------------------
    





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

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