Rare Element Comments on Recent Market Activity

VANCOUVER, Aug. 24 /CNW/ - Rare Element Resources Ltd. (TSX-V: RES; AMEX: REE) ("Rare Element" or "the Company") is not aware of any material undisclosed information or corporate developments.

The Company confirms that, further to its press release on August 18, 2010, it continues to work toward defining a commercial process for rare-earth-element (REE) concentration from oxide samples collected on the Company's 100%-owned Bear Lodge property, Wyoming, USA.

In addition, the Company confirms that, further to its press release on July 13, 2010, the drilling on the Sundance gold project, which lies on the same property as the Bear Lodge rare-earths project in Wyoming, is currently underway.

The Company became listed on the NYSE Amex ("AMEX") in the United States on August 18, 2010 under the ticker symbol "REE" and continues to be listed on the TSX Venture Exchange under the symbol "RES" in Canada.

Rare Element Resources Ltd (TSX-V:RES; AMEX:REE) is a publicly traded mineral resource company focused on exploration and development of rare-earth elements and gold on the Bear Lodge property.

Rare-earth elements are key components of the green energy technologies and other high-technology applications. Some of the major applications include hybrid automobiles, plug-in electric automobiles, advanced wind turbines, computer hard drives, compact fluorescent light bulbs, metal alloys, additives in ceramics and glass, petroleum cracking catalysts, and a number of critical military applications. China currently produces more than 95% of the 130,000 metric tonnes of rare-earths consumed annually worldwide, and China has been reducing its exports of rare earths each year. The rare-earth market is growing rapidly, and is projected to accelerate if the green technologies are implemented on a broad scale.

ON BEHALF OF THE BOARD

Mark T. Brown, CA, Director & CFO

This news release was prepared by Company management, who take full responsibility for content. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

For further information: refer to the Company's website at www.rareelementresources.com or contact: Mark T Brown, CFO, [phone] ext 242, [email protected]; Donald E Ranta, [phone], [email protected]