Rare Element shares to trade on the Toronto Stock Exchange on May 27, 2011

NYSE-Amex: REE & TSX-V: RES

VANCOUVER, May 26, 2011 /PRNewswire/ - Rare Element Resources Ltd. (NYSE-Amex: REE and TSX-V: RES) (the "Company" or "Rare Element") announced that its common shares will begin trading on the Toronto Stock Exchange, the senior equity trading market in Canada, as of Friday, May 27, 2011. The Company will retain its current trading symbol - "RES".

Mark T. Brown, CFO, commented that "After listing on the NYSE Amex on August 18, 2010, it made sense to also graduate the trading of our shares in Canada from Tier One of the TSX Venture Exchange to the TSX main trading board. We would like to thank the TSX Venture Exchange staff for their assistance over the past 10 years in being a part of building Rare Element into one of the top rare earth companies in North America. We look forward to the benefits and greater exposure that this new listing will provide as we continue to advance our rare earth and gold projects in Wyoming."

Rare Element's common shares and options trade on the NYSE Amex under the symbol REE in United States dollars. Rare Element's common shares have also regularly traded in Germany on the Frankfurt Stock Exchange under the symbol "R8V" in euros. In addition, like many companies listed in Canada, trades in the Company's common shares are often completed on alternative trading platforms which regularly account for over 10% of the trading volume in Canada for Rare Element's common shares.

Rare Element currently has 43,871,173 common shares outstanding and approximately US$72 million in cash and no debt.

Rare Element Resources Ltd (TSX-V: RES & NYSE-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, CFO

Forward Looking Statements

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", "has potential to", or "intends' or by discussions of strategy or intentions. 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. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company's business model; future operations, products and services; the impact of regulatory initiatives on the Company's operations; the size of and opportunities related to the market for the Company's products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance.

Forward-looking statements used in this discussion are subject to various risks and uncertainties, most of which are difficult to predict and generally beyond the control of the Company. If risks or uncertainties materialize, or if underlying assumptions prove incorrect, our actual results may vary materially from those expected, estimated or projected. Forward-looking statements in this document are not a prediction of future events or circumstances, and those future events or circumstances may not occur. Given these uncertainties, users of the information included herein, including investors and prospective investors are cautioned not to place undue reliance on such forward-looking statements.

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. 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.

SOURCE Rare Element Resources Ltd.