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Rare Element Resources Reports Successful Initial Leach Tests - October Exploration Field Work Completed, Two Holes Drilled.

Trading Symbol: TSX-V: RES

VANCOUVER, Nov. 9 /PRNewswire-FirstCall/ -- Rare Element Resources Ltd. (TSX-V:RES) is pleased to announce that initial successful metallurgical leach tests have been completed for the Bear Lodge Rare-Earth Project. The purpose of these tests, which were undertaken at Metcon Research Inc of Tucson, Arizona, was to determine initial leach and other chemical characteristics of the two main types of Bear Lodge rare-earth-element (REE) mineralization.

These initial leach-test data have successfully provided the first indication of the bulk composition of the Bear Lodge REE mineralization and how it will respond to the general application of leach processes. They also provide a basis for fine tuning the leach process to more economically extract the Bear Lodge REE's. Testing of the mineralization will continue with the goal of identifying the full range of physical-chemical characteristics of the mineralization and of optimizing the leach and other metallurgical processes.

Metallurgical Test Results

One composite sample each of the two types of Bear Lodge mineralization, oxidized and non-oxidized, were subjected to leach by hydrochloric acid (HCl), sulfuric acid (H2SO4) and sodium hydroxide (NaOH). Table 1 below provides 14-element and total REE's assays for the composite samples used in the tests (total REE's assays are oxidized mineralization - 7.97% and non-oxidized mineralized - 3.44%). The oxidized mineralization responded to the HCl leach with an indicated excellent recovery of 94% of the total REE's. The non- oxidized mineralization also responded well to the HCl leach with an indicated recovery of 70% of the REE's. The H2SO4 leach slightly improved the recoveries in non-oxidized mineralization (indicated 73%) but was less effective with the oxidized Mineralization (indicated 65%). Neither type of mineralization responded to the NaOH leach. Table 2 below provides the HCl and H2SO4 leach recoveries for 14 REE's.

The excellent HCl recovery for the high-grade oxidized REE mineralization indicates that the REE's in this mineralization are tied up almost exclusively in carbonate minerals. This is as expected. The main REE mineral identified in this material to date is the carbonate bastnaesite ((Ce,La)CO3(F,OH)), which is one of the main commercially mined REE minerals. The main REE mineral in the non-oxidized mineralization is ancylite (SrCe (CO3)2(OH)(H2O)), which is also a carbonate and easily exploited for commercial production; however, the lesser HCl-leach recovery of the REE's in the non-oxidized mineralization indicates that a significant proportion of one or more non-carbonate REE minerals is probably present in this material. Brockite ((Ca,Th,Ce)PO4.H2O), which responds less well to HCl, is known to occur and there also may be other, as yet unidentified minerals. In the oxidized mineralization, any non-carbonate REE minerals may have been altered, during oxidation, to the easily leached carbonate REE's. (Mineral chemical formulae generally only indicate the REE structural site with the symbol for the more common REE. Any REE can occupy these sites as they all have very similar physical-chemical properties.)

Further Metallurigal Tests

As a general reference for the expected metallurgical response of the Bear Lodge material, Rare Element Resources uses the basics of the commercially proven production process developed for the REE deposit at Mountain Pass, California. The Bear Lodge and Mountain Pass REE occurrences both are hosted in carbonatite and contain similar carbonate-style REE mineralization.

The Mountain Pass commercial process consists of two parts; a mechanical upgrade of the raw ore as well as a chemical leach extraction of a concentrate. Rare Element Resources' next step in the metallurgical testing of the Bear Lodge REE mineralization is to design an initial series of mechanical- upgrade tests. As a starting point, this series of tests also will rely on the Mountain Pass commercial production process. The initial tests will utilize samples of the same composites that were created for the leach tests. Gravity, magnetic and flotation processes will be included in the test flow sheet to remove as much waste material as possible. This reduces the amount and cost of the leach chemicals required to extract the REE's from the resulting concentrate.

Exploration Results

Two drill holes have been completed as part of the October exploration program has completed two drill holes; RES05-1 (total length 285 metres) and RES05-2 (total length 377 metres). Both holes were step-outs along the projected strike of rare-earth-bearing carbonatite dike-swarms, which were originally intersected by Rare Element Resources 2004 exploration drilling and by Hecla Mining Company drilling. The drill holes targeted the dike-swarms at depths of from 175 metres to 300 metres. Hole RES05-1 did not cut structures similar to those intersected by past drilling. Hole RES05-2 did cut the carbonatite bodies and structures that were intersected by Hecla drill-hole WP-6. The FMR zone (oxidized mineralization) and first carbonatite zone (non-oxidized mineralization) were narrower than those intersected in hole WP-6. The second stockwork carbonatite zone (non-oxidized mineralization) was of comparable thickness to that in hole WP-6.

In the area of hole RES05-1 the carbonatite dike-swarms either change dip and strike or are reduced in significance and, therefore, were missed by the hole. The drilling program was suspended to provide the opportunity to assess the results. Logging and assaying of the core from the two completed drill holes will begin shortly. This will provide information to further assess the completed holes and to assist in locating the dike-swarms in the area of hole RES05-1.

Rare Element Resources is also examining the gold exploration potential of its Bear Lodge Project. A joint venture is presently considered to be the best approach to pursue this potential.

Rare Element Resources Ltd

Rare Element Resources is a publicly traded mineral-resource company focused on strategic metals and rare-earth elements, which have been called the "catalysts for high-tech living." These elements are required by many new technologies, including nickel-metal-hydride batteries and the motors, generators and batteries used in hybrid cars. The US market for rare-earth elements exceeds US$1 billion, with most supplied by China. US Geological Survey Professional Paper 1049D states that Wyoming's Bear Lodge Mountains host the largest disseminated rare-earth-element occurrence in North America. Rare Element Resources' Bear Lodge property covers the more significant of these mineralized areas and the Company could potentially become an important North American source of rare-earth elements.

The Bear Lodge alkalic-intrusive complex hosts gold, as well as rare- earth mineralization. Previous gold exploration on the Company's property has discovered significant gold occurrences in intrusive breccia bodies and numerous geochemical gold anomallies. Rare Element Resources intends to evaluate these occurrences as it pursues the exploration for rare-earth elements.
 ON BEHALF OF THE BOARD

 William H Bird, PhD, PGeo, President & CEO

 Further information is available at http://www.rareelementresources.com/ or
 contact: William H Bird, President, (604) 687-3520, birdwill@aol.com
 Mark T Brown, Director, (604) 687-3520, mtbrown@pacificopportunity.com





William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Dr Bird. This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual future-period results to differ materially from forecasts.
 Table 1. Composite-test-sample head assays in milligrams of REE's per
 kilogram
 (10,000 g/t (equal sign) 1%).

 -------------------------------------------------------------------------
 Rare-Earth
 Element Oxidized Sample (g/t) Non-oxidized Sample (g/t)
 -------------------------------------------------------------------------
 Lanthanum 23,400 (2.34%) 11,200 (1.12%)
 -------------------------------------------------------------------------
 Cerium 35,900 (3.59%) 16,000 (1.60%)
 -------------------------------------------------------------------------
 Praseodymium 3,830 (0.38%) 1,480 (0.15%)
 -------------------------------------------------------------------------
 Neodymium 13,400 (1.34%) 4,720 (0.47%)
 -------------------------------------------------------------------------
 Samarium 1,620 (0.16%) 487 (0.04%)
 -------------------------------------------------------------------------
 Europium 308 98.9
 -------------------------------------------------------------------------
 Gadolinium 647 207
 -------------------------------------------------------------------------
 Terbium 41.2 16.5
 -------------------------------------------------------------------------
 Dysprosium 134 55.6
 -------------------------------------------------------------------------
 Holmium 13.5 5.9
 -------------------------------------------------------------------------
 Erbium 21.1 8.3
 -------------------------------------------------------------------------
 Thulium 2.3 1.0
 -------------------------------------------------------------------------
 Ytterbium 415 163
 -------------------------------------------------------------------------
 Lutetium 2.0 0.7
 -------------------------------------------------------------------------
 Total REE's 79,734 (7.97%) 34,440.9 (3.44%)
 -------------------------------------------------------------------------




The samples, pulverized to 100% 150 mesh, were analyzed by the Inductive Coupled Plasma Mass Spectrometry (ICP-MS) technique at Research & Productivity Council Inorganic Analytical Services (Fredericton, NB, Canada). A 1,000-gram composite sample of oxidized REE mineralization was prepared using equal weights from 2004 drill-hole cores RESO4-1 (section 58 metres to 70 metres) and RESO4-1 (section 70 metres to 80 metres). A 1,000-gram composite sample of non-oxidized REE mineralization was prepared using equal weights from 2004 drill-hole cores RESO4-1 (section 825 metres to 830 metres) and RESO4-1 (section 830 metres to 840 metres).

The assays for these Bear Lodge REE sample composites are generally considered to be high for REE occurrences. They are well within the range of assays reported for drill intercepts of Bear Lodge REE-bearing mineralization and they are within the range of assays for material mined and processed over the last 50 years at Mountain Pass, California. Therefore, these composites represent a reasonable sample for the initial metallurgical tests. These assays are reported for the metallic REE's; however, REE markets generally quote prices for rare-earth-element oxides (REO's) rather than REE's. Converting the above Total REE percentages to total REO percentages derives approximate numbers of 9.6% REO's for the oxidized sample and 4.2% REO's for the non-oxidized sample.

The sale price for the various light REE's or REO's (the Bear Lodge occurrence is of light REE's or those first seven elements shown on the above table) depends on the REE or mix of REE's, the particular chemical compound, the quality, the quantity and the term of the contract. Prices may be quoted for hydroxides and chlorides as well as oxides and begin within the range of from US$2.00 to US$3.00 per pound of REO (1% (equal sign) 20 pounds). The sale price is variable and determined by contract between the supplier and the user. There is no public commodity exchange for REE's. These assays, assay comparisons and price information are for reference only and there can be no reliance upon them for the purposes of evaluating the Bear Lodge REE occurrences. Rare Element Resources' Bear Lodge REE Project, in its present state of exploration, does not have a resource or reserve that is compliant with Canada National Instrument 43-101. Without a resources or reserve, there is no way to calculate costs for exploitation of these occurrences. Also, Rare Element Resources does not have a contract from which to estimate a potential future sale price for the Bear Lodge REE's.
 Table 2. Results of hydrochloric (HCl) and sulfuric (H2SO4) acid leach
 tests for oxidized and non-oxidized REE composite samples.

 Oxidized Sample Non-oxidized sample
 -------------------------------------------------------------------------
 HCl % H2SO4% HCl % H2SO4%
 Rare Earth recovery recovery recovery recovery
 -------------------------------------------------------------------------
 Lanthanum 90.69 72.98 68.12 91.10
 -------------------------------------------------------------------------
 Cerium 97.88 52.76 70.44 50.62
 -------------------------------------------------------------------------
 Praseodymium 90.25 77.57 72.78 44.01
 -------------------------------------------------------------------------
 Neodymium 91.02 78.02 72.96 50.62
 -------------------------------------------------------------------------
 Samarium 90.84 75.60 73.91 66.97
 -------------------------------------------------------------------------
 Europium 90.71 73.44 74.29 82.55
 -------------------------------------------------------------------------
 Gadolinium 91.77 71.10 78.12 94.75
 -------------------------------------------------------------------------
 Terbium 92.54 69.66 75.43 82.55
 -------------------------------------------------------------------------
 Dysprosium 93.32 70.78 75.76 44.01
 -------------------------------------------------------------------------
 Holmium 93.90 71.41 75.87 75.69
 -------------------------------------------------------------------------
 Erbium 94.78 70.80 77.82 66.97
 -------------------------------------------------------------------------
 Thulium 95.23 71.70 72.44 94.75
 -------------------------------------------------------------------------
 Ytterbium 90.56 70.59 67.17 84.21
 -------------------------------------------------------------------------
 Lutetium 97.19 77.73 74.67 84.21
 -------------------------------------------------------------------------
 Weighted Total REE 94 65 70 73
 -------------------------------------------------------------------------



CONTACT: Further information is available at http://www.rareelementresources.com/ or contact: William H Bird, President, (604) 687-3520, birdwill@aol.com; Mark T Brown, Director, (604) 687-3520, mtbrown@pacificopportunity.com
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