23 February 2010 - VANCOUVER, BC: Rare Element Resources Ltd ("Rare Element" - TSX-V: RES) and Medallion Resources Ltd ("Medallion" - TSX-V: MDL) announce that they have completed and executed a definitive option agreement whereby Rare Element grants to Medallion an option ("Option") to acquire a 65% interest in a joint venture to explore the Eden Lake rare-earth-element (REE) property, located in western Manitoba, Canada ("Property"). Medallion has filed the definitive option agreement, along with an NI 43-101-compliant Technical Report on the Eden Lake property, with the TSX Venture Exchange for final approval. Option terms are presented below.

"We are pleased to confirm our working relationship with Rare Element, President Don Ranta and his team," said Bill Bird, president of Medallion. "As we evaluate available data and plan our upcoming 2010 program, it's clear to me that we have one of the best REE projects in North America. The Eden Lake REE geology is a unique combination of an alkalic intrusive complex with essential carbonatite, a large area of multiple styles of REE mineralization and a potential for elevated heavy REE's. Eden Lake also is one of the very few significant REE properties in Canada within practical range of roads, power and mining-friendly communities. Our team of recognized REE veterans is ready to go to work."

Dr Ranta adds, "The execution of Rare Element's agreement with Medallion sets the stage for significant achievement at the Eden Lake REE property. The collation and re-evaluation of data and the completion of the airborne geophysical survey announced earlier this month is a solid beginning. We are excited by Medallion's rapid progress and Dr Bird's enthusiasm, which are justified by the quality of the Eden Lake property."

Option Terms

For Medallion to maintain its Option to acquire 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 expenditures:

Production from the Property will be 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 that 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.

The Eden Lake REE property is a recent discovery and one of the ten-most-promising North American REE prospects. A very large mineralized area, high-grade assays and multiple-mineralization styles support a number of targets for REE mineralization over a large surface area. Elevated yttrium and heavy-REE geochemical-sample values indicate a potential for concentrations of the more valuable heavy REE's. The property is located 20 kilometres northwest of the town of Leaf Rapids in western Manitoba, which offers supportive regional infrastructure & logistics. According to the Fraser Institute, mining-friendly Manitoba is considered the second-best jurisdiction in the world for exploration and mining. The property is expected to present few permitting, environmental or social concerns