http://biz.yahoo.com/cnw/080218/rare_element_testing.html?.v=1

Press Release Source: Rare Element Resources Ltd. Rare Element's Rare-Earths Metallurgical Testing Underway Monday February 18, 9:30 am ET TSX-V: RES Ref: 2-2008 VANCOUVER, Feb. 18 /CNW/ - Rare Element Resources Ltd. (TSX-V:RES - News) is pleased to announce that a new phase of the rare-earth-element (REE) metallurgical test work has begun at the lab of Mountain States R&D International (MSRDI) in Tucson, Arizona. A summary of the previous test work done to date is also provided in this news release. Rare Element views this testing as an important step in determining the amenability to extraction of rare earths from the relatively high-grade rare-earths mineralized area on the Bear Lodge Property in Wyoming, USA. ADVERTISEMENT 2008 Metallurgical Test Program The 2007 drilling program was designed largely around the requirement to collect more REE sample material for metallurgical testing. Drill-hole RES 07-01 was oriented to maximize the amount of non-oxide rare-earth-bearing carbonatite encountered in the drill hole and to provide sufficient amounts of mixed (oxidized plus non-oxidized) and non-oxidized material for metallurgical testing. Drill-hole RES 07-02 was also oriented to intercept thick zones of non-oxide rare-earth-bearing carbonatite for metallurgical tests while testing the continuity of the mineralization within the historical resource identified by Hecla Mining Company. Metallurgical testing of the Bear Lodge REE mineralization is proceeding with the goal of identifying the full range of physical-chemical characteristics of the mineralization and of optimizing leaching and other metallurgical processes. Rare Element Resources has selected mineralized samples from RES 07-01 and RES 07-02 for metallurgical study and sent them to Mountain States R&D International (MSRDI) in Tucson, Arizona for testing. Beneficiation tests are being conducted primarily on both mixed and non-oxide rare-earth mineralized samples to determine the feasibility of producing commercial rare-earth concentrates. The Company recognizes that the finer-grained oxidized and partially oxidized FMR (iron-manganese-REE) type of rare-earth mineralization may have greater metallurgical challenges, but because this material represents a potential near-surface resource, a portion of the test work will be conducted on these materials. Building on the previous metallurgical test work, MSRDI will investigate non-conventional processing methods for the recovery of rare earths from the deposit. In some cases it may be easier to concentrate (or remove) the larger weight percentage of the gangue by appropriate processing techniques leaving behind smaller weight percentage of the valuable minerals in the residue (tailings). This technique is termed "reverse concentration." These are uncommon techniques; however, they effectively pre-concentrate the valuable rare-earth minerals into a smaller enriched product using the physical or physico-chemical (in case of flotation) characteristics of the gangue minerals. In this way, the major portion of the mineralized material, the gangue minerals, is discarded at a relatively coarse size. This pre-concentrate is then further processed by hydrometallurgical techniques to recover the various rare-earth products selectively. Rare Element Resources has confidence that MSRDI will investigate a variety of concentration methods to determine which methodology works best for both the mixed and non-oxidized rare-earth occurrences at the Bear Lodge property. 2005-06 Metallurgical Test Programs A number of preliminary tests have been run on the REE mineralization from the Bear Lodge project by Metcon Research Inc. and by SGS Lakefield in 2005 and 2006, respectively, on both oxidized and non-oxidized materials. The purpose of the first tests, which were undertaken at Metcon Research of Tucson, Arizona, was to determine initial leach and other chemical characteristics of the two main types of Bear Lodge rare-earth-element (REE) mineralization. Hydrochloric (HCl) and sulfuric (H(2)SO(4)) acids were found to dissolve most of the carbonates with simultaneous extraction of most of the rare earths. However, this was not a selective leach and may be considered as a potential process for selective recoveries of all the contained rare-earth values. These initial leach-test data provided the first indication of the bulk composition of the Bear Lodge REE mineralization, shown in Table 1, and how it will respond to the general application of leach processes. The tests also provide a possible basis for fine tuning the leach process to more economically extract the Bear Lodge REEs. Using HCl, the high average recovery (94%) for the high-grade oxide REE mineralization (Table 1) indicates that the REEs in this mineralization are tied up almost exclusively in carbonate minerals. This is as expected. The main REE mineral identified in the oxidized material is the carbonate bastnaesite ((REE)CO(3)(F,OH)), which is one of the principal commercially mined REE minerals. The main REE mineral in the non-oxidized mineralization is ancylite ((REE)(Sr,Ca)(CO(3))(2)(OH)(H(2)O)), which is also a carbonate and may be exploited for commercial production; however, the lesser HCl-leach recovery (70%) of the REEs in the non-oxidized mineralization indicates that it is likely that a proportion of the fine-grained bastnaesite-group minerals may be encapsulated in quartz. In the mixed mineralization, any non-carbonate REE minerals may have been altered, during partial oxidation, to the easily leached carbonate REEs. (Mineral chemical formulae generally only indicate the REE structural site with the symbol for the more common REE. Any REE can occupy these sites as they all have very similar physical-chemical properties.) Sulfuric acid gave lower average recovery (65%) for the oxide mineralization, and similar recovery (73%) for the non-oxide material. A flotation test program, conducted by SGS Lakefield of Ontario, including the hot-flotation step used previously by Molycorp's Mountain Pass REE operation, did not result in selective recoveries of the contained rare-earth values. A preliminary characterization of the mode of occurrence of various valuable rare-earth minerals as well as the gangue minerals in the mineralized material has been accomplished and the studies were curtailed do to the lack of additional sample material. The mineralogical and textural characteristics of the carbonatite bodies identify several factors that are likely to exert a strong influence on the efficiency and viability of economic extraction of the REE-bearing mineral phases. Table 1. Composite test-sample head assays in milligrams of REEs per kilogram Metcon Research (10,000 g/t equals 1%) ------------------------------------------------------------------------- Rare-Earth Element Oxidized Sample (g/t) Non-oxidized Sample (g/t) ------------------------------------------------------------------------- Lanthanum 23,400 (2.34%) 11,200 (1.12%) ------------------------------------------------------------------------- Cerium 35,900 (3.59%) 16,000 (1.60%) ------------------------------------------------------------------------- Praseodymium 3,830 (0.38%) 1,480 (0.15%) ------------------------------------------------------------------------- Neodymium 13,400 (1.34%) 4,720 (0.47%) ------------------------------------------------------------------------- Samarium 1,620 (0.16%) 487 (0.04%) ------------------------------------------------------------------------- Europium 308 98.9 ------------------------------------------------------------------------- Gadolinium 647 207 ------------------------------------------------------------------------- Terbium 41.2 16.5 ------------------------------------------------------------------------- Dysprosium 134 55.6 ------------------------------------------------------------------------- Holmium 13.5 5.9 ------------------------------------------------------------------------- Erbium 21.1 8.3 ------------------------------------------------------------------------- Thulium 2.3 1.0 ------------------------------------------------------------------------- Ytterbium 415 163 ------------------------------------------------------------------------- Lutetium 2.0 0.7 ------------------------------------------------------------------------- Total REE's 79,734 (7.97%) 34,440.9 (3.44%) ------------------------------------------------------------------------- An announcement of assay results from the last two holes of the 2007 drilling program and a summary of the entire Rare Element Resources' exploration program for rare earths will be issued shortly. Rare Element Resources Ltd (TSX-V:RES - News) is a publicly traded mineral-resource company focused on gold and the rare-earth elements. In addition to the REE exploration and evaluation efforts, the Company and Newmont have entered into the Sundance gold-exploration joint venture 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. 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. For further information refer to the Company's website at www.rareelementresources.com or contact: Mark T Brown, CFO, (604) 687-3520 ext 242, mtbrown@pacificopportunity.com Donald E Ranta, (604) 687-3520, don@rareelementresources.com