Rare Element Reports Rare-Earths Drilling and Metallurgical Test Results

    TSX-V: RES

    VANCOUVER, Feb. 4 /CNW/ - Rare Element Resources Ltd. (TSX-V:RES) is
pleased to announce rare-earth-element (REE) assay results from four holes of
the 2008 core drilling program completed on the Company's 100% owned Bear
Lodge Property located in northeastern Wyoming, USA. Three of the holes were
drilled into the Bull Hill Southwest target, where a historical resource had
been previously estimated. The fourth hole was drilled to test an area with
both REE and gold potential. Highlights of the drill program include
relatively thick intercepts in three holes and higher grades in drill holes
RES 08-1 and 08-3. These results will assist the company in completing its
first NI 43-101 independent resource report which it expects to have done in
the first half of 2009.
    Metallurgical testing during 2008 made significant strides forward, but
additional work needs to be done. Rare-earth ores are difficult to treat in
the best of situations, and the Bear Lodge mineralization is no exception to
this rule.

    Drilling Results

    The rare-earth mineralization encountered in three of the four drill
holes is primarily contained within the near-surface oxidized equivalents
(FMR) of carbonatite dikes that intrude a body of heterolithic intrusive
breccia along the southwest flank of Bull Hill, within the Bear Lodge
alkaline-igneous complex. REE assay values are reported by convention as the
combined oxide equivalents (REO) of the fifteen elements in the series. The
oxide equivalents are approximately 15.6% higher than the combined metal assay
values. The Bear Lodge project contains predominantly the "light" REE
(lanthanum, cerium, praseodymium, neodymium, samarium, europium, and
gadolinium), and in particular the first four of these. Assays from the
REE-mineralized sections of the holes are summarized in the table below.

    Drill-hole RES 08-1

    (bearing N 45 degrees E, inclination -45 degrees, total depth 904 feet,
    Bull Hill Southwest extension target)


    Interval  Intercept  True Thickness  Mineralized Lithology   Total % REO
    --------  ---------  --------------  ---------------------   -----------
    (feet)     (feet)       (feet)

    410 - 485.5 75.5         54.3               FMR dike           4.86%REO


    Drill-hole RES 08-2

    (bearing N 45 degrees E, inclination -45 degrees, total depth 1054 ft,
    Bull Hill Southwest target)

    38 - 163     125         52.8               FMR dike           2.46%REO
    273 - 386    113           68               FMR dike           3.42%REO


    Drill-hole RES 08-3

    (bearing N 45 degrees E, inclination -45 degrees, total depth 994 ft,
    Bull Hill Southwest target)

    22 - 215     193          170               FMR dike           4.12%REO
    480 - 489      9          7.9               FMR dike          15.28%REO
    967 - 988     21          7.2            Carbonatite dike      2.89%REO


    Drill-hole RES 08-4

    (bearing S 60 degrees W, inclination -60 degrees, total depth 1886 ft,
    East Taylor Bowl target)

    866 - 886     20           14            Carbonatite dike     2.27% REO


    Assaying of the rare-earth elements was conducted by Activation
Laboratories (ActLabs) in their Ancaster, Ontario assay facility. The samples
were prepared and subjected to lithium metaborate fusion, followed by ICP
analysis and a mass spectroscopy finish. ActLabs is recognized as an
internationally respected analytical laboratory with extensive experience in
rare-earth-element analysis.
    "We are pleased with the results of our rare-earth drilling and continue
to advance the project with a continuation of the metallurgical testing
program to determine a feasible method of concentrating the rare-earth-bearing
minerals," states President Don Ranta. A summary of the entire Rare Element
exploration program for rare earths from 2004 through 2007 was released on
April 23, 2008.

    Metallurgical Testing

    The most recent phase of metallurgical testing continued through 2008 to
determine the technical feasibility of recovering the rare-earth values from
the Bear Lodge mineralization. Initial efforts were directed toward
preconcentration to upgrade REE values prior to the use of higher cost
hydrometallurgical procedures. These preconcentration techniques included
gravity concentration (jigs, tables, spirals, etc.), heavy media separation
(HMS), and flotation.
    The results of preliminary preconcentration (upgrading) tests by physical
separation processes on the unoxidized REE-mineralized material indicates that
a reasonable sink-float separation is technically feasible under the best test
condition of -3/8-inch crush size and a liquid density of 2.85 g/cm(3).
Results of this test indicate an overall recovery of about 80 percent in the
preconcentrate within about 50 weight percent of the original material. This
preconcentrate was then further treated by the flotation process to recover
the sulfide fraction as a potential source of H(2)SO(4) required in the
hydrometallurgical treatment of the preconcentrate to recover the REE values.
Using the leaching concept, it is technically feasible to obtain a recovery of
about 84 percent from the preconcentrate or an overall recovery of about 67
percent from the original mineralized material. Testing of the transitional
(unoxidized + oxidized) material gave slightly lower overall recoveries.
    Rare- earth ores are difficult to treat in the best of situations, and
the Bear Lodge mineralization is no exception to this rule. Through a careful
program of research and development at the Mountain States R & D International
laboratory, additional preconcentration testing will be conducted to find a
technique to further upgrade the REE values, and leach testing the
preconcentrate with heat and additional leach time is expected to raise the
REE extraction above 90 percent.
    The Company will select samples from the 2008 core drilling program for
further metallurgical study and testing. Beneficiation tests will be conducted
on oxidized, and unoxidized, rare-earth mineralized carbonatite samples to
determine the feasibility of producing commercial rare-earth products.

    Rare Element Resources Ltd (TSX-V:RES) is a publicly traded
mineral-resource company focused on gold and rare-earth elements. In addition
to the REE exploration and evaluation efforts, the Company and Newmont have
entered into the Sundance gold-exploration 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.


    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: Mark T Brown, CFO, (604) 687-3520 ext
242, mtbrown@pacificopportunity.com; Donald E Ranta, (604) 687-3520,

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