TSX-V: RES Ref: 09-2008



    VANCOUVER, July 29 /EMWNews/ - Rare Element Resources Ltd.

(TSX VENTURE: RES) (the "Company") is pleased to report that drilling has

begun on the initial drill targets for rare-earth-element (REE)

mineralization on the Company's Bear Lodge property of northeastern

Wyoming. Drill-hole locations have been chosen to expand the historical

rare-earth discoveries made by Hecla Mining Company and to provide

additional material for metallurgical testing.



    The initial core holes of the drill program will test a southeasterly

extension of the carbonatite dike system that contains the bulk of the REE

mineralization on the Bull Hill Southwest target and, if successful, could

expand the mineralized zone. Most holes are designed to offset known

mineralization, and one hole may test a new target concept. Approximately

1000 meters of drilling are planned for the 2008 program.



    Rare Element Resources Ltd (TSX-V:RES) is a publicly traded

mineral-resource company focused on gold and strategic metals, specifically

the rare-earth elements. Rare Element Resources and Newmont have entered

into the Sundance gold exploration project on the Company's Wyoming

property. Newmont has the right to earn a 65% working interest in Rare

Element Resources' property, excluding any rights to the rare-earth

elements and uranium, but including rights to gold and other metals, by

performing US$5 million in property work expenditures over a five-year

period. Newmont also has the right to earn an additional 15% working

interest by completing a positive project feasibility study.



    Rare Element Resources' Bear Lodge, Wyoming property also encompasses

one of the largest disseminated rare-earth occurrences in North America

(M.H. Staatz, 1983, US Geological Survey Professional Paper 1049-D). In

parallel with the Sundance gold-focused exploration project, Rare Element

Resources has completed drilling of eight holes to independently advance

the rare-earth potential of its property and is currently planning another

drill program.






    ON BEHALF OF THE BOARD

    Donald E Ranta, PhD, PGeo,

    President & CEO

    Donald E. Ranta, PhD, PGeo, serves the Board of Directors of the

Company as an internal, technically Qualified Person. Technical information

in this news release has been reviewed by Dr. Ranta and has been prepared

in accordance with Canadian regulatory requirements that are set out in

National Instrument 43-101. 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.



    CONTACT: refer to the Company's website at http://www.rareelementresources.com

or contact: Donald E Ranta, President & CEO, (604) 687-3520,

[email protected]; Mark T. Brown, CFO, (604) 687-3520 ext 242,

[email protected]