DECEMBER 2009 - VANCOUVER, BC: Rare Element Resources Ltd ("Rare Element" - TSX-V: RES) and Medallion Resources Ltd ("Medallion" - TSX-V: MDL) announce that they have signed a letter of intent whereby Rare Element will grant to Medallion an option ("Option") to earn a 65% interest in a joint venture to explore the Eden Lake rare-earth-element property, Manitoba, Canada ("Property"). Over the next 30 days, Rare Element and Medallion plan to complete due diligence and begin work on a definitive agreement that includes the terms of the letter of intent and governs the Option period and the contemplated joint venture. Option terms are presented below.

Rare Element president Don Ranta said "We are very pleased to have the former president of Rare Element, Dr William Bird, working with us again on this exceptional Eden Lake rare-earth property. Medallion, with support from the Rare Element team, will test and advance the property using the latest, most effective techniques. Dr Bird, who is highly qualified and experienced in rare-earth exploration, will provide the leadership to ensure that the work is done to our best advantage."

Dr Bird responds, "Exploring the Eden Lake rare-earth property with Dr Ranta and Rare Element is a tremendous opportunity for the Medallion shareholders. I believe that Eden Lake is one of the top ten rare-earth prospects in North America. The recent Eden Lake discovery of elevated levels of yttrium and heavy-rare-earth elements in multiple styles of mineralization expands the potential for multiple targets over the eight square kilometres of intensely mineralized rare-earth-rich rocks. Eden Lake is an extraordinary first project for Medallion's planned program of rare-metal project acquisitions."

Option Terms

For Medallion to acquire and maintain its Option to earn a 65% joint-venture interest in the Property, Medallion must complete, over a five-year period, the following cash and share payments to Rare Element and complete the following Property-exploration work-commitment expenditures:

Production from the Property is subject to an underlying 3% Net Smelter Return royalty ("NSR") in favour of the prospector that originally staked the property. Half of this NSR may be purchased for $1.5 million.

Upon completion of the cash and share payments and work commitments, Medallion may exercise its Option to acquire a 65% interest in a joint venture with Rare Element, which will be created to further explore and develop the Property (Medallion will hold 65% and Rare Element will hold 35%).

Medallion will be the operator of the exploration program during the Option period and, as the majority interest holder, Medallion would be the operator of the joint venture, as well.

Terms of the letter of intent and the definitive agreement are subject to regulatory approval.

Rare Element Resources Ltd (TSX-V: RES) is a publicly traded mineral resource company focused on rare-earth elements and gold. 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. Gold exploration drilling began in July for the 2009 program, and rare-earth drilling began in August.

Medallion Resources Ltd (TSX-V: MDL) explores for rare-earth elements, lithium and other metals required by the new energy-saving technologies. Increasing interest in energy conservation and environmental protection are fuelling intense interest in, and public awareness of these critical commodities. As understanding and demand increase, Medallion is well positioned to take part in potential breakthroughs in the exploration for these rare metals.