Rare Element announces $3,000,000 financing

    TSX-V: RES

    VANCOUVER, Sept. 11 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES)
("Rare Element" or the "Company") announces that the Company has agreed to
complete a $3 million financing consisting of 1 million Units. The additional
funds will be used to provide working capital for the Company's rare earths
exploration program at the Bear Lodge Project in Wyoming and for general
working capital. These funds will also assist in completing the work as
recommended in the Company's NI 43-101 compliant rare earths resource report
filed on www.sedar.com and allow the Company to acquire and explore other
    Each Unit will be priced at $3.00 and consists of one common share and
one common share purchase warrant. Each full warrant will allow the holder to
purchase one additional common share for a period of 18 months from the
closing date for additional consideration of $4.25. There are no insiders
participating in this offering and no commission is being paid.
    Mark T. Brown, CFO, stated that "We are happy to be able to raise these
funds with minimal dilution to our current shareholders."
    The gold and rare earths drill programs are currently underway at the
Bear Lodge REE and Sundance gold projects in Wyoming and results will be
announced when received.

    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.

    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.

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

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