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LAKEWOOD, COLORADO -- (Marketwire) -- 03/18/13 -- Rare Element Resources Ltd. (NYSE Amex: REE)(NYSE MKT: REE)(TSX: RES) (the "Company") reports that it has filed its transitional report and audited consolidated financial statements on Form 10-K for the six months ended December 31, 2012 on www.sec.gov and www.sedar.com. The transitional report is filed following the Company's change in fiscal year-end from June 30 to December 31 and reports the six month period ending December 31, 2012.

As to the financial report filing, Randall J. Scott, President and Chief Executive Officer stated, "We are pleased at the overall position of the Company at the end of 2012 and into 2013. The recently announced a 65% increase in our Measured and Indicated resource at Bear Lodge with its strong Critical Rare Earths content, the progress on the proprietary oxalate process, and a healthy cash balance provides an excellent basis for continued progress towards the Bear Lodge REE project Feasibility Study."

Update on the Bear Lodge REE Project:

Resource Estimate Update

The Company's Form 10-K and recent press release regarding updated resource estimates announced 14.7 million tons grading 3.22% REO at 1.5% cutoff grade. The Company is preparing an updated National Instrument 43-101 ("NI 43-101") report, which will be filed and available under the Company's SEDAR profile at www.sedar.com within the timeline required by NI 43-101.

Dr. James Clark, Vice President of Exploration for the Company, states "We are extremely pleased with the substantial increase in our estimated M&I Resource at Bear Lodge, as well as the further confirmation of the continuity of the Bull Hill REE deposit and the Whitetail Ridge resource area. The increased M&I resources in those deposits will be incorporated into the upcoming Feasibility Study. Further, the results we have reported confirm the zones of HREE-enrichment (Eu, Tb, Dy, and Y) at Whitetail Ridge and Carbon and illustrate the growing significance of this world-class source of CREOs."

Metallurgy and Project Development

Earlier this year, a coordinated effort of the Company's geologists and metallurgists provided a selection of eleven sample sites that exhibit variable mineralogy and are spatially representative of the expanded mine footprint. SGS Lakefield completed confirmatory metallurgical testwork and provided additional design data.

Mountain States Research and Development (MSRDI), under the direction of Dr. Roshan Bhappu, has conducted HREE testwork on sample material from the Whitetail Ridge, Carbon and East Taylor areas. Physical upgrading methods as well as hydrometallurgical processing have been applied in the testwork. Based on these results, results from exploration drilling at Whitetail Ridge, and preliminary drilling at Carbon and East Taylor, we have determined to integrate the development of the Whitetail Ridge HREE-enriched area into the FS and permitting timeline for the Bear Lodge REE Project. Inclusion of the Whitetail Ridge zone in the FS may provide enhanced project economics.