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Drilling Begins at Rare Element';s Sundance Gold Venture

^{Published on 2009-07-21 06:43:23, Last Modified on 2009-07-21 06:43:33 - Market Wire}
 

 TSX-V: RES VANCOUVER, July 21 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES) is pleased to announce that the Sundance gold-exploration venture between Paso Rico (USA) Inc., a subsidiary of Rare Element Resources, and Newmont North America Exploration Limited, a subsidiary of Newmont Mining Corporation (Newmont), has begun drilling for gold on the Company's Wyoming property. Newmont manages gold exploration at the Sundance Gold Venture and is just beginning the 4th year of earning a 65% interest in the project by spending US$5 million over a five year period. Following a lengthy effort to permit disturbance on up to 200 acres, exploration work for 2009 is focused on the expansion of known gold-mineralized areas and the discovery of higher grade gold mineralization. "Rare Element is excited by the results of the past gold exploration," reports President Don Ranta. "These results clearly warrant the current 2009 work program, and with the new permit in hand, many additional target areas will be available for testing." In addition, the Company's drilling program to expand the rare-earth resource and to discover other rare-earth resources on the Bear Lodge property is scheduled to begin in mid-August. 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 building on the successful metallurgical testing program of the oxide material drill 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. 

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 ]