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Rare Element increases financing to $1,500,000, files Tier One application

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^{Published in Business and Finance on Friday, May 22nd 2009 at 15:50 GMT, Last Modified on 2009-05-22 15:51:35 by Market Wire}  

 TSX-V: RES VANCOUVER, May 22 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company") announces that the Company has agreed to increase the financing announced on May 19, 2009, by $750,000 to $1,500,000 or 2 million Units due to strong demand and is fully subscribed. Each Unit consists of one common share and one half of one common share purchase warrant. Each whole warrant allows the holder to purchase one additional common share for a period of 18 months from the closing date for additional consideration of $1.00. Tier One application -------------------- Rare Element has filed an application with the TSX Venture Exchange to become a Tier One listed issuer. The TSX Venture Exchange has issued comments on the application and the recently filed NI 43-101 compliant geological resource report which the Company is in the process of responding to. Donald E. Ranta, President & CEO, commented that: "We were pleasantly surprised by the demand for our financing and are now well positioned to follow up on the recommendations in the Company's recent Technical Report which provides an estimate of the current resource at Bear Lodge-9.8 Million-Ton Inferred Mineral Resource Averaging 4.07% Rare-Earth Oxides(*). (As announced on March 23, 2009). Several people have asked about the economics of the project and some information is provided in the NI 43-101 compliant geological resource report filed on [ www.sedar.com ] beginning on Page 107. We will be making some format edits to the NI 43-101 compliant report as requested by the TSX Venture Exchange to complete the Tier One application. We are currently planning for additional metallurgical test work and a summer drill program as recommended in the report." (*) The mineral resource estimate was completed by Mr. Alan C. Noble, P.E., principal engineer of Ore Reserves Engineering, and is based on geological interpretations supplied by the Company to ORE and subsequently modified by ORE. Mr. Noble is an independent qualified person for the purposes of National Instrument 43-101 standards of disclosure for mineral projects of the Canadian Securities Administrators and has verified the data disclosed in this release. 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 and planning a 2009 drilling program to increase the resources. 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. 

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 ]