Rare Element Reports - 2007 Drill Program Expands Gold Zone at Bear Lodge Year-end Summary of Sundance Gold Venture

    Results include 9.1 meters averaging 1.18 g/t gold within 85.4 meters
    averaging 0.47 g/t gold

    TSX-V: RES

    VANCOUVER, Jan. 31 /CNW/ - Rare Element Resources Ltd (TSX-V: RES) is
pleased to announce that Newmont North America Exploration Ltd (Newmont), the
manager of the Sundance gold exploration joint venture in Wyoming, has
reported new gold results for the final seven holes of its 2007 drill program.
Several of these holes expanded the gold mineralized zone in the Carbon
target, and mineralization remains open in several directions as shown in
Figure 1 (see http://files.newswire.ca/675/RareFigure1Carbon.doc).
    Newmont re-started the drill program in October to test extensions of the
Carbon target with seven additional holes before year-end. These angle holes
intercepted substantial thicknesses of gold mineralization from near surface
to depths of 244 meters. All seven holes contain additional low-grade gold
mineralization beginning near the surface. The assay results indicate
potential for a large-scale oxidized mineralized system and support Newmont's
decision to re-start the drill program.
    Results for the seven additional holes were provided by Newmont,
highlights of which are presented below and details provided in Table 1.

    Hole No.     Target         From (m)    To (m)   Interval (m)  Gold (g/t)
    SUN-038      Carbon            1.5       86.9      85.4          0.47
    Includes                      48.8       57.9       9.1          1.18

    The scope of the 2007 drill program was restricted to sites that had been
previously permitted for exploration drilling, so only three holes were
initially planned. Encouraging results warranted the drilling of five
additional holes, and a further expansion with another seven drilled, for a
total of 15 holes for the year in the permitted area. The original 2007
drilling was designed to gather geological information on the gold
mineralization and test concepts and new areas; additional drilling expanded
the gold mineralized zones.
    A systematic program of drill testing for grade and tonnage of a
potentially large gold system is expected to proceed once a new exploration
permit is in place allowing much greater flexibility for drill-hole locations
than is currently available. Newmont's permitting efforts are progressing in
order to allow an expanded drill program on up to 200 acres. Permit approval
could occur later in 2008.

    Summary of Sundance Gold Venture: Newmont North America Exploration
Limited, a subsidiary of Newmont Mining Corporation, is earning an interest in
the Company's Bear Lodge property (excluding REEs and uranium) in northeastern
Wyoming. Advantages provided to Rare Element Resources by the Sundance
gold-focused venture include:

    -   No expense or substantial effort required by Company personnel;
    -   Full financing for the first five years;
    -   Project management and technical expertise provided by Newmont; and
    -   Added credibility of working with a major gold company.

    Rare Element Resources believes that the venture with Newmont will be the
    best way to maximize the potential of the Bear Lodge gold exploration,
    while allowing Rare Element Resources to continue evaluating the
    potential of its rare-earth-element deposits. Adjacent to some of the
    gold targets are extensive high-grade rare-earth-element (REE)
    occurrences in carbonatite dikes within the same complex.

    A revival and recent substantial advancement in the understanding of the
alkaline-igneous gold exploration model (in particular at Cripple Creek,
Colorado), coupled with the strong gold market, have renewed and intensified
gold exploration interest in the Bear Lodge property. The property exposes
significant gold occurrences in a large, strongly altered alkaline-igneous
complex and these features attracted the attention of several major companies
over the years.
    The Sundance gold exploration venture at the Company's Bear Lodge
property is managed by Newmont. Upon signing of the definitive venture
agreement in mid-year 2006, Newmont was conducting geologic mapping,
geophysical surveys, soil and rock-chip geochemical surveys, and trenching.
The focus of the initial exploration was on the Taylor and Carbonprospects,
where historical work had identified gold mineralization. Newmont's work
confirms areas of anomalous gold, arsenic, antimony and tellurium on a number
of prospects, including all three targets mentioned above, which are
coincident with widespread potassic alteration in rocks of the
alkaline-intrusive complex. Rock samples from Taylor, where visible gold has
been identified in outcrop, consistently returned the highest gold values
assaying up to ten grams of gold per tonne. These studies indicate potential
for the definition of near-surface gold deposits, as well as potential for
deeper higher-grade gold occurrences. Results from the 26 holes drilled by the
Sundance gold venture at the Carbon and Taylor targets during 2006 and 2007
indicate thick intercepts of near-surface gold mineralization, with some of
the better results including:

    -   47.3 m of 0.56 g/t Au (includes 9.1 m of 1.17 g/t) plus 6.1 m of
        1.01 g/t Au - Carbon
    -   38.1 m of 0.40 g/t Au plus 57.9 m of 0.53 g/t Au (includes 12.2 m of
        1.09 g/t) - Carbon
    -   18.3 m of 0.55 g/t Au - Taylor
    -   111.3 m of 0.40 g/t Au - Taylor
    -   126.5 m of 0.44 g/t Au (includes 19.8 m of 1.04 g/t) - Taylor
    -   189.0 m of 0.42 g/t Au (includes 62.5 m of 0.66 g/t) - Taylor
    -   57.9 m of 0.41 g/t Au (includes 4.6 m of 1.57 g/t) - Carbon
    -   41.2 m of 0.49 g/t Au - Taylor
    -   155.5 m of 0.66 g/t Au (includes 36.6 m of 1.35 g/t) - Carbon
    -   45.7 m of 0.66 g/t Au (includes 13.7 m of 1.33 g/t) - Carbon
    -   85.4 m of 0.47 g/t Au (includes 9.1 m of 1.18 g/t) - Carbon

    The 26 exploration holes drilled by the Sundance gold venture to date all
contain gold mineralization and are concentrated on the Carbon and Taylor
targets. These two targets are approximately one kilometer apart, and each is
approximately two kilometers west of the Smith target area (formerly called
the East and West Breccias), which is reported to contain a small historical
gold resource.
    Exploration work planned for 2008 is designed to build on the successful
2006-07 trenching and drilling program. Work will include, in addition to
drilling, detailed geological, geochemical and geophysical studies and
completion of the exploration permitting efforts. The gold exploration
joint-venture agreement calls for Newmont expenditures to total US$1.2 million
prior to June 2008. Newmont has met initial requirements by expending over
US$1 million by year-end2007.

    Comparison to Cripple Creek: The Bear Lodge district is composed of the
upper levels of a mineralized alkaline-igneous complex, which is interpreted
to be very similar to the more deeply eroded Cripple Creek alkaline-igneous
complex in Colorado. For reference, the Cripple Creek mining district hosts a
deposit that has produced more than 23 million ounces of gold since its
discovery in 1878. Gold production plus resources for the Cripple Creek
district total more than 30 million ounces. Gold occurs primarily in narrow
vein sets over a vertical range in excess of 1,000 meters; and economically
important gold mineralization also is present near surface in hydrothermal
breccias as low-grade, bulk-tonnage deposits that are currently being mined.
    Exploration results generated by the Sundance venture highlight the
similarities between Cripple Creek and Rare Element Resources' property. The
Bear Lodge geology, alteration types, gold grades, and aerial extent of the
mineralization continue to fit the Cripple Creek model and are comparable to
those of the deposit presently being mined at the profitable, large open-pit
Cripple Creek & Victor (CC&V) gold mine in Colorado. For example, drilling at
Bear Lodge returned gold values over long intervals that are reported above,
and CC&V mine statistics with similar grades and thicknesses were reported in
a Company news release of April 17, 2007. For more detailed Sundance results,
refer to Company news releases of December 14, 2006 and January 18, 2007 and
October 2, 2007.
    Some key aspects of the gold exploration model and the similarities
between Bear Lodge and Cripple Creek are as follows:

    -   At Bear Lodge and Cripple Creek, many surface rock-chip samples,
        collected by a variety of major companies over the last 30 years,
        carry gold values in excess of one g/t. Historically, the highest
        grade of these samples assayed over fourteen g/t gold at Bear Lodge.
    -   Broad areas have strong (greater than or equal to 100 parts per
        billion (ppb) gold) and moderate (50 to 99 ppb gold) gold anomalies
        in rock- chip and soil samples (100 ppb = 0.1 ppm (equal
        sign) 0.1 g/t).
    -   Gold mineralization is structurally controlled and closely associated
        with widespread strong potassium feldspar-pyrite (+/- carbonate)
        metasomatic alteration.
    -   Veinlets and wall rocks contain disseminated rare-earth-element
        minerals, and apatite crystals have rims enriched in rare-earth
    -   Other anomalous elements that characterize mineralization in the
        complexes include potassium, tellurium, arsenic, antimony,
        molybdenum, barium and strontium.
    -   The Bear Lodge alkaline-igneous rocks, which are dominated by
        phonolitic and trachytic sills, dikes, and plugs (as well as numerous
        related late-stage intrusions and intrusive breccia bodies), could
        represent the upper levels of an alkaline-igneous system similar to
        that exposed at Cripple Creek.

    The Bear Lodge property has a well- documented, hydrothermally altered
and mineralized system with rock types, minerals and structures that match
major features of the alkaline-igneous gold exploration model as it is
expressed at Cripple Creek. Past exploration efforts paid little attention to
the Bear Lodge potential for deeper-seated, high-grade gold deposits targeted
by the Cripple Creek model; and near-surface low-grade, bulk-tonnage gold
mineralization has become more economically significant with the increase in
gold price. We now have an excellent gold exploration venture, which is based
on this model and operated by Newmont, one of the best gold exploration teams
in the mining industry. The Sundance partners look forward to the 2008
exploration program to confirm and expand on the earlier 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. 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
    Rare Element Resources' Bear Lodge, Wyoming property also encompasses the
largest disseminated rare-earth occurrence in North America (MH Staatz, 1983,
US Geological Survey Professional Paper 1049-D). In parallel with the Sundance
gold-focused exploration project, Rare Element Resources is independently
advancing the rare-earth potential of its property with the completion of 2007
drilling, and the initiation of a metallurgical testing program (see news
releases of February 15, 2007 and December 17, 2007).


        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.

    Table 1. Significant gold intercepts from seven additional 2007
    drill holes.

    Hole No.                Gold Grade
    and                   (grams/tonne)                                 Gold
    Target                 for entire                       Interval  (grams/
    Area       Length (m)     hole      From (m)    To (m)     (m)     tonne)
    SUN-032      193.5         0.12       24.4       30.5       6.1     0.31
    Carbon                               141.8      147.9       6.1     0.45
                                         173.8      179.9       6.1     0.22

    SUN-033      195.1         0.21        7.6       15.2       7.6     0.40
    Carbon                                32.0      114.3      82.3     0.31
                                         123.5      129.6       6.1     0.23
                                         163.1      175.3      12.2     0.20

    SUN-034      176.8         0.26        4.6       59.5      54.9     0.31
    Carbon                                97.6      160.1      62.5     0.37
                                         164.6      173.8       9.1     0.24

    SUN-035      298.7         0.21       33.5       41.2       7.6     0.35
    Carbon                                44.2       50.3       6.1     0.23
                                          64.0       70.1       6.1     0.29
                                          94.5      175.3      80.8     0.39
                                         198.2      208.8      10.7     0.29
                                         228.7      243.9      15.2     0.36

    SUN-036      231.6         0.20       10.7       51.8      41.2     0.36
    Carbon                                57.9       70.1      12.2     0.25
                                          91.5      114.3      22.9     0.25
                                         135.7      147.9      12.2     0.25
                                         186.0      195.1       9.1     0.25

    SUN-037      128.0         0.12       70.1       79.3       9.1     0.30
    Carbon                               111.3      122.0      10.7     0.26

    SUN-038      233.2         0.23        1.5       86.9      85.4     0.47
    Carbon                (includes)      48.8       57.9       9.1     1.18
                                         132.6      138.7       6.1     0.25
                                         170.7      176.8       6.1     0.20


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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