Successful Drill Program Continues at Rare Element Resources-Newmont Gold Venture



    TSX-V: RES

    VANCOUVER, April 17 /CNW/ - Rare Element Resources Ltd (TSX-V: RES)
announces that the Sundance gold-exploration project, which is a joint venture
between Paso Rico (USA) Inc., a subsidiary of Rare Element Resources
(Company), and Newmont North America Exploration Limited, a subsidiary of
Newmont Mining Corporation (Newmont), will begin 2007 drilling on the
Company's Wyoming property in June. Newmont manages the gold exploration for
the Sundance project. Exploration work for 2007 is designed to build on the
successful 2006 trenching and drilling program. It will include, in addition
to drilling, detailed environmental, geological, geochemical and geophysical
studies. The gold-exploration joint-venture agreement calls for Newmont
expenditures to total US$1.2 million prior to June, 2008. Newmont has met the
initial requirement by expending at least US$ 500,000 by 31 May 2007.
    "The Sundance project partners are very pleased with the promising
results of the 2006 exploration," reports Company President Bill Bird. "These
results clearly warrant the upcoming 2007 work program, as well as the
planning for the following year, which includes an environmental assessment to
support a potentially larger drill program.
    "Sundance employs the alkaline-intrusive complex gold-exploration model,
as exemplified by the plus 23-million-ounce Cripple Creek, Colorado gold
deposit. Exploration results generated by Sundance continue to highlight the
similarities between Cripple Creek and the Rare Element Resources property.
The Sundance geology, grades and aerial extent of the mineralization, along
with various engineering conditions, continue to fit the model and are
comparable to those of the ore presently being mined at the profitable, large
open-pit Cripple Creek & Victor (CC&V) gold mine in Colorado. For example,
2006 trenching and drilling at Sundance returned significant gold values over
long intervals, such as 70.1 metres grading 1.00 gram of gold per tonne and
62.5 metres grading 0.66 gram of gold per tonne (refer below to table 1, for
additional Sundance results, and table 2, for CC&V mine statistics. For more
detailed Sundance results, refer to Company news releases of 14 December 2006
and 18 January 2007). The Sundance partners look forward to the 2007 and 2008
exploration programs to confirm the 2006 results."

    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. 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 gold-focused
exploration by the Sundance project partners, Rare Element Resources plans to
independently advance the rare earth potential of its property through
drilling and metallurgical testing planned for 2007 (see Company news release
of 15 February 2007).

    ON BEHALF OF THE BOARD

    William H Bird, 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 prepared in accordance with Canadian regulatory
requirements set out in National Instrument 43-101 and reviewed by Dr Bird.
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 Sundance 2006 trench and drill-hole assays for
Carbon SE and Taylor targets indicate 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
    -------------------------------------------------------------------------
    Carbon SE  SUN 011       4.6      1.57       10E       6.1      1.39
    -------------------------------------------------------------------------
    Taylor     SUN 009      62.5      0.66       9E       73.2      0.56
    -------------------------------------------------------------------------


               Table 2.  Cripple Creek & Victor gold mine, 2005
    Calculated using data provided on the CC&V Gold Mining Company web site
    (www.ccvgoldmining.com)

      Total ounces of gold produced (1995-2005)                  2.5 million
      Tons ore developed and permitted for production (2005)     300 million
      Ounces of gold permitted for production
       @ 0.016 oz/ton (2005)                                  4.8 million
      Tons of ore produced (2005)                                 20,070,829
      Ounces of gold produced (2005)                                 329,625
      Gold grade in ounces per ton for ore produced (2005)             0.016
      Gold grade in grams per tonne for ore produced (2005)             0.54
      -----------------------------------------------------             ----

      Ounces of gold produced from Cripple Creek district since
       discovery in late 1800's                                  +23 million
    

    %SEDAR: 00019662E




For further information:

For further information: refer to the Company's website at
www.rareelementresources.com or contact: William H Bird, President & CEO,
(604) 687-3520 ext 229, birdwill@aol.com; Mark T Brown, CFO, (604) 687-3520
ext 242, mtbrown@pacificopportunity.com

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RARE ELEMENT RESOURCES LTD.

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