Rare Element Engages Ore Reserves Engineering for NI 43-101 Resource Estimation and Technical Report of Rare-earth Mineralization

    TSX-V: RES
    Ref: 10-2008

    VANCOUVER, Aug. 18 /CNW/ - Rare Element Resources Ltd. (TSX V: RES) (the
"Company") is pleased to announce the Company has engaged Ore Reserves
Engineering (O.R.E.) to further its project development activities on the Bear
Lodge rare-earths property located in northeastern Wyoming. The Company
continues to advance the commercial understanding of Bear Lodge rare earths by
defining and expanding the resource and determining the recoverability of the
REE within that resource by conducting metallurgical testing. Principal plans
for the remainder of the year are to drill for rare-earth mineralization and
to work toward rare-earth resource estimation.

    Drill-hole Database Compilation and Resource Estimation

    Following Datamine North America's compilation of the Bear Lodge
drill-hole database, O.R.E. has begun analyzing the data to determine the
optimal placement of new drill holes to accomplish a resource estimate.
Additional work will include modeling of the rare-earth mineralization to
understand its size, shape, and internal continuity, followed by resource
estimation. Alan C. Noble, P.E., is the Principal Engineer of O.R.E. and is a
Qualified Person for the purpose of Canadian NI 43-101, Standards of
Disclosure for Mineral Projects, and he will be the principal author of the
planned Technical Report.
    A historical resource on the Bear Lodge property, defined and estimated
by Hecla Mining Company in 1990, was 3.9 million tonnes averaging 3.8% REO(*)
(not compliant with requirements of NI 43-101). The new resource estimate will
evaluate and update this historical resource to the current standards and will
incorporate the drilling done during the past several years by Rare Element
Resources. The Technical Report combined with the ongoing metallurgical test
work will provide the Company with a good understanding of the deposit and an
idea of the potential products that the Company will look to bring to market.

    (*) Because this resource estimate was prepared before the introduction
    of NI 43-101, it should be treated as a historical estimate only.
    Investors are cautioned that recent independent verification has not been
    completed and Rare Element Resources has not completed sufficient work to
    independently verify the historical resource estimate. The Company is not
    treating the historical estimate as NI 43-101 defined resources and
    reserves verified by a qualified person, and the historical estimate
    should not be relied upon.

    Rare Element Resources Ltd (TSX-V:RES) is a publicly traded
mineral-resource company focused on gold and strategic metals, specifically
the rare-earth elements. Rare Element Resources and Newmont have entered into
the Sundance gold exploration project 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 one
of the largest disseminated rare-earth occurrences in North America (M.H.
Staatz, 1983, US Geological Survey Professional Paper 1049-D). In parallel
with the Sundance gold-focused exploration project, Rare Element Resources has
completed drilling of eight holes to independently advance the rare-earth
potential of its property and is currently planning another drill program.

    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, 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.

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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