October 17, 2013 – Lakewood, Colorado – Rare Element Resources Ltd. (the “Company”) (NYSE MKT: REE and TSX: RES), a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project, announced today that Steve Mooney has joined the Company’s Board of Directors.

Mr. Mooney is the former Chairman and Chief Executive Officer of Thompson Creek Metals Company, a then privately owned mining and metallurgical company that he founded in 1993 with the purchase of molybdenum assets from Cyprus Minerals Company and AMAX Inc.  Over the next 13 years, not only did he successfully restart operations but he significantly expanded production with the purchase of the Endako Project in British Columbia, Canada.  When sold in 2006, Thompson Creek Metals Company was the second largest primary molybdenum producer in the world.  Currently, Mr. Mooney is the principal of a private equity and investment firm with holdings in oil and gas, minerals and real estate.  Prior to Thompson Creek, Mr. Mooney held executive positions with Cyprus Copper Company, a division of Cyprus Minerals, and Gulf Mineral Resources Company, a division of Gulf Oil Corporation.  He has a degree in geological engineering from the Colorado School of Mines and is a Registered Professional Engineer in Colorado.

In 1990, Mr. Mooney was awarded the Distinguished Achievement Medal by the Colorado School of Mines (CSM) in recognition of his significant career achievements, which were deemed to have enhanced the reputation and mission of CSM. He served on the CSM Board of Trustees for two terms and was President of the Board during his second term. He has been a long-time member of the American Institute of Mining and Metallurgical Engineers and is a Director of the American Mining Association.

“Steve is a great combination of entrepreneur, engineer and businessman.  His leadership at Thompson Creek demonstrates a deep understanding of what it will take to bring a significant project like Bear Lodge into production and build it into a profitable company,” stated Dr. Donald E. Ranta, Rare Element’s Chairman of the Board.  “His experience will be a good complement to the rest of the board and his insight should prove invaluable as we continue to move the Bear Lodge project towards production.”

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.

For additional information, please visit the Company’s website at www.rareelementresources.com or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of securities legislation in the United States and Canada.  Except for statements of historical fact, certain information contained herein constitutes forward-looking statements.  Forward-looking statements are usually identified by our use of certain terminology, including “will,” “believes,” “may,” “expects,” “should,” “seeks,” “anticipates,” “plans,” “has potential to,” or “intends,” or by discussions of strategy or intentions.  Such forward-looking statements include statements regarding the gross proceeds that could be raised and shares and warrants potentially issuable under the oversubscription rights; the use of proceeds of this offering; the permitting process, anticipated progress and success; project development plans for the future; and our goal to become a rare earth producer.  Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements.  Factors that could cause actual results to differ materially include, but are not limited to, whether the election to purchase additional common shares and warrants is exercised and, if so, the purchase price for such securities; the progress of our Bear Lodge Project, fluctuations in demand for, and price of, rare earth products, and our success of process technology under testing; timing of any unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; the availability of additional capital on acceptable terms or at all; and general economic conditions.  There can be no assurance that future developments affecting the Company will be those anticipated by management.  Please refer to the discussion of these and other uncertainties and risk factors set out in our filings made from time to time with the SEC and the Canadian regulators, including, without limitation, our reports on Form 10-K and Form 10-Q.  We expect that the above estimates will change as new information is received and that actual results will vary from these estimates, possibly by material amounts.  While we may elect to update our forward-looking information at any time, we do not undertake to update at any particular time or in response to any particular event.  Investors and others should not assume that any forecasts in this press release represent management’s estimate as of any date other than the date of this press release.