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PRELIMINARY NOTES
As used in this Annual Report on Form 10-K (“Annual Report”), references to “Rare Element,” the “Company,”
“we,” “our,” or “us” mean Rare Element Resources Ltd., our predecessors and consolidated subsidiaries, or any one
or more of them, as the context requires. Rare Element is focused on advancing into production its Bear Lodge rare
earth elements project (the “Bear Lodge REE Project”) that is located primarily on the Bear Lodge property, near the
town of Sundance in the state of Wyoming (the “Bear Lodge Property”). (See Part I. Item 1. “Business”).
Change in Fiscal Year-End
On September 7, 2012, the Company’s Board of Directors approved a change in our fiscal year-end from June 30 to
December 31, with the change to the calendar year reporting cycle beginning January 1, 2013. The intent of the
change was to align the reporting of our financial results more closely with that of our peers. References in this
report to “fiscal 2012” and “fiscal 2011” indicate the twelve-month periods ended June 30, 2012 and 2011,
respectively. References to the “transition period” denote the six-month period from July 1, 2012 to December 31,
2012.
Currency
Financial information is presented in accordance with generally accepted accounting principles (“GAAP”) in the
United States (“U.S. GAAP”).
In this Annual Report, unless otherwise specified, all dollar amounts are expressed in thousands of United States
Dollars (“$” or “US$”). If necessary, we may disclose certain information in Canadian Dollars (“CDN$”).
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Annual Report contains forward-looking statements, within the meaning of Section 27A of the Securities Act
of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended
(the “Exchange Act”), and forward-looking information within the meaning of applicable Canadian securities laws
(collectively, forward-looking statements”), with respect to our business prospects, plans, objectives, goals,
strategies, future events, capital expenditures and exploration and development efforts. Words such as, but not
limited to, “anticipates,” “expects,” “intends,” “forecasts,” “likely,” “projects,” “plans,” “believes,” “seeks,”
“estimates,” “may,” “will,” and similar expressions (including negative and grammatical variations) tend to identify
forward-looking statements.
Although we believe that our plans, intentions and expectations reflected in these forward-looking statements are
reasonable, we cannot be certain that these plans, intentions or expectations will be achieved. Actual results,
performance or achievements could differ materially from those contemplated, expressed or implied by the forward-
looking statements contained in this Annual Report.
Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans,
intentions, projections, objectives, assumptions or future events or performance (often, but not always, using words
or phrases (including grammatical variations) such as “expects” or “does not expect,” “is expected,” “anticipates” or
“does not anticipate,” “plans,” “estimates” or “intends,” or stating that certain actions, events or results “may,”
“could,” “would,” “should,” “might” or “will” be taken, occur or be achieved) are not statements of historical fact
and may be forward-looking statements. Forward-looking statements in this Annual Report, include, but are not
limited to statements regarding the following:
