August 6, 2013 -- Lakewood, Colorado -- Rare Element Resources Ltd. (NYSE MKT: REE and TSX: RES), a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project, is pleased to announce the appointment of Gerald "Jerry" W. Grandey to the Company's Board of Directors. Mr. Grandey will also serve on the Company's Audit Committee. At the same time, Gregory E. McKelvey has tendered his resignation as part of the orderly transition of the Board from an exploration to development focus. Mr. McKelvey will join the Advisory Committee of the Company.

Mr. Grandey is the former Chief Executive Officer and past member of the Board of Directors of Canadian-based Cameco Corporation, one of the world's largest uranium producers accounting for 20% of world production. He joined Cameco in 1993 as Senior Vice President Marketing and Corporate Development and was appointed its President in 2000 and Chief Executive Officer in 2003. In 2010, The Harvard Business Review recognized Mr. Grandey as being one of the Top 100 CEO's in the world because of the value created for shareholders through the growth in market cap during his tenure. He retired as CEO and as a director of Cameco in 2011. Prior to Cameco, he held senior executive positions with Concord Services and Energy Fuels Nuclear, both Denver-based companies. Mr. Grandey was inducted into the Canadian Mining Hall Of Fame in 2013; awarded the Canadian Nuclear Association's Ian McRae Award in 2012 for his work in advancing nuclear energy in Canada; and was nominated for the 2011 Oslo Business for Peace Award in recognition of his efforts to facilitate nuclear disarmament. He is on the Colorado School of Mines Foundation, Board of Governors; the University of Saskatchewan's Edwards School of Business, Dean's Advisory Council: and is Chairman Emeritus for the London-based World Nuclear Association. Currently, Mr. Grandey serves on the boards of Canadian Oil Sand Ltd, Potash Corporation of Saskatchewan and Sandspring Resources. On the philanthropic side, he serves on the Boards of the Canadian Institute of Corporate Directors, the Saskatoon YMCA, Saskatchewan Junior Achievement and the Persephone Theatre. He has a degree in geophysical engineering from the Colorado School of Mines and a law degree from Northwestern University.

"Jerry is a skilled leader with a proven track record in the natural resource sector. During his time at Cameco, his vision helped build the Company into a global organization with a reputation for being a leader in enrichment technology, a great place to work and an active, responsible community member," said Dr. Donald E. Ranta, Rare Element's Chairman of the Board. "We look forward to him sharing that operational expertise with us as we bring the Bear Lodge Critical Rare Earth Project into production." Gregory E. McKelvey tendered his resignation to the Board on August 2, 2013. "As a director since 2008, Greg has played a critical role in helping the Company to identify and outline the resource at Bear Lodge as well as advance our understanding of the economic opportunity there. As a professional geologist and proven exploration executive, Greg's contributions have been meaningful to the Company. We are grateful for his contributions over the last 5 plus years and his help in advancing the Project to where it is today -- poised to be the next North American rare earth producer," concluded Dr. Ranta.

Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths. The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming. Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project is currently underway. Please visit our website at www.rareelementresources.com.