Rare Element Purchases Bear Lodge Royalty and Provides Update on Permit for Exploration...

Rare Element Purchases Bear Lodge Royalty and Provides Update on Permit for
Exploration Drill Program

TSX-V: RES

VANCOUVER, April 29 /PRNewswire-FirstCall/ - Rare Element Resources Ltd.
(TSX-V: RES) ("Rare Element" or the "Company") is pleased to report the
re-purchase of the royalty interest (the "Royalty") on certain claims, plus an
area of interest, on the Bear Lodge property, Wyoming, from Freeport-McMoRan
Corporation ("Freeport"). The royalty is on all minerals produced on the
claims, and the area of interest, that cover approximately six square miles in
the center of the district, including both rare-earth and gold mineralization
occurrences. In addition, Rare Element and Newmont North America Exploration
Limited ("Newmont") are progressing on gaining final approval of a permit to
conduct drilling programs scheduled to begin in the summer of 2009.

Bear Lodge NSR Repurchase
-------------------------

The 50 unpatented claims with the royalty were held previously by Freeport
(then known as Phelps Dodge Corporation Mining Division), and were transferred
to a wholly owned subsidiary of Rare Element, by way of a "Mineral Lease and
Option for Deed" signed on March 30, 2000. Subsequently, the mineral lease and
option agreement was terminated and replaced on September 30, 2002, with a
production royalty of 2% net smelter returns ("NSR") payable to Freeport. Rare
Element repurchased the Royalty for a one time payment, and there are no other
royalties outstanding on the Bear Lodge property.
Rare Element's gold and precious metals partner, Newmont, as Manager, has the
right to elect for the Venture to acquire this royalty, other than as it
relates to the Rare Earths and Uranium, within a certain time frame. If
Newmont elects to do so, a portion of the cost of the royalty acquisition
would be born by Newmont with such cost to be credited toward Newmont's earn
in requirement under the venture agreement.
Mark T. Brown, Chief Financial Officer of Rare Element noted that "The only
royalty on the Bear Lodge Project is now held by Rare Element itself which
bought the royalty but did not cancel it. The royalty covers all metals,
including gold and rare earth elements, at Bear Lodge. With the recent
positive exploration results of both the rare earths and gold exploration
programs, we felt it was time to clean up this royalty which had been
outstanding for 7 years."

Exploration Permit Status
-------------------------

The Sundance gold exploration venture, which is a joint venture between Paso
Rico USA, Inc. (Rare Element's wholly owned subsidiary) and Newmont, has
received a "Record of Decision" on the exploration permit, subject to an
appeals period that has now expired. Two appeals were received by the US
Forest Service and are currently being considered and evaluated. The permit,
once approved, will allow for an expanded drilling program on the Bear Lodge
property. Detailed drilling plans for the 2009 program are being formulated by
Newmont with input from Rare Element Resources.

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.

ON BEHALF OF THE BOARD
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.

SOURCE Rare Element Resources Ltd.

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