Vancouver, BC -- Rare Element Resources Ltd. (TSX-V: RES) ("Rare Element" or the "Company") announces that the $7.8 million financing announced on March 17, 2010 has been fully subscribed, and part of the Over-Allotment Option has been exercised by the Agents. The financing was for a total of 2,531,501 units (the "Units") of the Company at a price of $3.50 per Unit (the "Offering Price"), for gross proceeds of $8,860,253. Each Unit is comprised of one common share and one-half of one transferable common share purchase warrant (a "Warrant"). Each full Warrant entitles the holder thereof to purchase one common share of the Company (a "Warrant Share") until April 13, 2012, at a price of $4.75 per Warrant Share.

The proceeds of the financing will be used for the following key items in advancing the Bear Lodge Rare Earth Element deposit, and general corporate purposes:

• Completion of an updated NI 43-101 compliant REE resources report
• Continued metallurgincal test work to advance the process for REE recovery
• Completion of the scoping study currently underway
• An expanded REE drill program to begin in the summer.
• Other plans to advance the project subject to successful completion of the items listed above.

The Company paid $531,615 cash commission (6% of the gross proceeds of the Offering) to the Agents and issued 151,890 Agents' Warrants (6% of the number of Units sold) for their services in connection with the Offering. Each Agents' Warrant entitles the holder thereof to purchase one Unit at the Offering Price at any time up to April 13, 2012.

The Units were offered for sale in each of the Provinces of Alberta, British Columbia and Ontario and on a private placement basis in the United States pursuant to exemptions from the registration requirements of the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), and in accordance with the applicable securities laws of any state of the United States.