Ceramic Industry

Drilling Begins at Rare Element's Bear Lodge Project

June 29, 2010

Rare Element Resources Ltd. announced that drilling has begun on the Bear Lodge rare earths project in Wyoming. Exploration activity during 2010 is focused on: upgrading the resource category from inferred to measured and indicated for a portion of the rare earth-element (REE) deposit; expansion of the currently known REE deposits; and 3) discovery of additional REE-mineralized deposits within known target areas. Most of the drilling will be conducted for near-surface REE targets in the oxide zones of mineralization. Work is being conducted under a permit that allows up to 200 acres of disturbance.

One core drilling rig is now on the project site and will be used to test the Bull Hill area REE targets; a second drill rig is expected to arrive soon. Testing of the REE targets will require approximately 30-40 angle drill holes generally with depths of 400-700 ft. Additional testing of the Whitetail Ridge targets identified in 2009 will also be carried out during this program. Historic hole WP-1, drilled by Hecla Mining Co. in 1987, intersected 430 ft of strong REE mineralization in an intercept from 0 to 430 ft that averages 2.44% REO at the Whitetail Ridge area. Within the larger intercept were several 10-ft intercepts with grades ranging from 5.5% to 13.7% REO that will be followed up this year.

“Rare Element is moving the known rare earths deposit at Bull Hill into the development drilling phase in preparation for a prefeasibility study,” said Jim Clark, Ph.D., vice president of Exploration. “We are also excited with the results of the Bull Hill Northwest deposit drilling and resource estimation. The probability of defining more high-grade mineralization at Bull Hill Northwest is excellent.”

For more information, visit www.rareelementresources.com.