Development Milestone Achieved at Rare Element's Bear Lodge Project

LAKEWOOD, COLORADO -- (Marketwired) -- 05/23/13 -- Rare Element Resources Ltd. (NYSE Amex: REE)(NYSE MKT: REE)(TSX: RES) (the "Company"), a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project, is pleased to announce that is has received notification by the U.S. Forest Service (USFS) indicating that the Bear Lodge Project Plan of Operations is sufficient for the NEPA process to formally proceed. This notification allows the Company to advance the Project to the next step in the development process.

"We appreciate the efforts of the Bear Lodge District Forest Service office for the careful review of the proposed plan of operations for Bear Lodge and look forward to working with them as we advance the Project," said Jaye T. Pickarts, Chief Operating Officer. "Completion of this step is a major environmental milestone as it included a review of every aspect of our planned operations and incorporated the extensive environmental and engineering work we have done to date. Rare Element Resources will continue to provide the necessary technical information and support for the NEPA process and to work with the USFS and other state and federal agencies to ensure the Bear Lodge Project is developed in a timely and environmentally responsible manner," he concluded.

The Plan of Operations for Mining Activity on National Forest Systems Lands for the Bear Lodge Project provides a detailed outline of the planned operations, affected areas and environmental protection measures currently anticipated by the Company. A copy of the plan will be available on the Company's website at www.rareelementresources.com starting on June 1, 2013.

NEPA Review

The USFS is the lead agency in charge of the NEPA process, which will evaluate the potential impacts of the Project and identify relevant mitigation measures. An Environmental Impact Statement ("EIS") will be prepared as part of process. In support of the EIS, the Company has been collecting baseline data within the project area for the last three years.

"We are very pleased to have completed this major project milestone," said Randall J. Scott, President and Chief Executive Officer. "We consider ourselves very fortunate to have our project located in the great mining State of Wyoming. The existing infrastructure and talent pool in northeast Wyoming are excellent. We acknowledge Wyoming's elected officials at all levels, State business leaders, and area residents who have a true appreciation of the value of natural resource development done right. We look forward to being a productive member of these great communities for a long time to come."

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 northeastern 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.

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 permitting process and progress and project development plans for the future. 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, the progress of our Bear Lodge Project, fluctuations in demand for, and price of, rare earth products; timing of and unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; 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 factors in our Transition Report on Form 10-K for the six months ended December 31, 2012. We expect that the above estimates as to development plans, processes, time frames and financial needs 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 these estimates at any time, we do not undertake to update any estimate 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.

Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.

Contacts:

Rare Element Resources Ltd.

Robbin Lee

720-278-2462
rlee@rareelementresources.com
www.rareelementresources.com