Rare Element acquires Nuiklavik REE Project in Labrador, Canada

	    TSX-V: RES

	    VANCOUVER, Jan. 7 /CNW/ - Rare Element Resources Ltd (TSX-V: RES) is
pleased to announce the acquisition of the Nuiklavik rare-earth-element (REE)
prospect from Altius Resources Inc. ("Altius"). The property is located
approximately 25 kilometers from tide water and 50 kilometers from the
community of Hopedale, Labrador, Canada.
	    Altius initiated the project in 2006 to target volcanic-hosted
uranium-type deposits. Previous work in the 1980s and 1990s by the Geological
Survey of Newfoundland and Labrador ("GSNL") included regional lake-sediment
sampling, mapping, and various follow-up geochemical studies targeting
lake-sediment anomalies. The GSNL identified and documented twenty-four
yttrium-zirconium-niobium-REE, fluorine and base-metal occurrences at
Nuiklavik and prepared reports which investigated REE enrichment within the
Nuiklavik volcanic rocks.
	    The geology underlying the Nuiklavik property comprises Precambrian
peralkaline volcanic and plutonic rocks. The area is geologically similar in
age and geochemical character to the Strange Lake peralkaline complex, which
hosts the Strange Lake REE deposit. Both the intrusive suite at Nuiklavik and
the Strange Lake complex comprise circular-shaped features of peralkaline
granite with elevated Zr-Y-Nb and REE geochemical signatures.
	    More recent work by Altius included a high resolution helicopter-borne
magnetic and radiometric survey with follow up geological mapping and
prospecting. This work by Altius over two field seasons resulted in the
discovery of numerous additional uranium and rare-earth occurrences in both
volcanic rocks and felsic dikes which cut the overlying volcanic package.
Limited sampling of the felsic dikes and other felsic intrusive rocks by
Altius yielded up to 1.4% zirconium oxide, 1.27% yttrium oxide, 1.15% niobium
oxide, and 1.1% total rare-earth oxides with heavy REE representing up to 67%
of the total rare-earth-oxide component.
	    Rare Element has agreed to acquire 100% of the project for the payment of
200,000 common shares and the granting of a Gross Overriding Royalty of 2% to
Altius. The transaction is subject to other regulatory approvals. Rare Element
plans to find a partner to explore this project as it did with the recently
acquired Eden Lake REE project.

	    Rare Element Resources Ltd (TSX-V: RES) is a publicly traded mineral
resource company focused on gold and strategic metals such as the rare-earth
elements. Paso Rico (USA) Inc, a subsidiary of Rare Element Resources, and
Newmont North America Exploration Limited, a subsidiary of Newmont Mining
Corporation, have entered into the Sundance gold-exploration joint venture on
Rare Element Resources' 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, US Geological Survey Professional Paper 1049D). In parallel with the
Sundance gold-focused exploration project, Rare Element Resources is
independently advancing the rare-earth potential of its property with the
ongoing 2009 drilling program, continuation of metallurgical testing, and
initiation of engineering studies.

	    <<
	    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. 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.






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	    /For further information: refer to the Company's website at
www.rareelementresources.com or contact: Donald E Ranta, President & CEO,
(604) 687-3520, don@rareelementresources.com; Mark T. Brown, CFO, (604)
687-3520 ext 242, mtbrown@pacificopportunity.com/