Rare Element Resources Advances Proprietary Separation Technology as Market Seeks New Sources of Critical Rare Earths

LITTLETON, Colo.–(BUSINESS WIRE)–Rare Element Resources Ltd. (“RER” or the “Company”) (OTCQB: REEMF) is
pleased to announce additional significant progress on the previously
announced third-party pilot scale testwork relating to its proprietary
rare earth separation technology. This work is being conducted by
Umwelt-und Ingenieurtechnik GmbH Dresden (“UIT”), an affiliate of
Synchron, a significant shareholder of the Company. RER engaged UIT to
conduct a pilot plant campaign in February 2019 to verify, at pilot
plant scale, all process steps from the hydrometallurgical process
already validated to the final separation of Nd/Pr oxide.

UIT is currently operating a large-scale hydrometallurgical pilot plant
in Germany. Preliminary results, using RER’s proprietary technology,
indicate the successful extraction of Nd/Pr and other rare earth
elements, contained in a high-purity rare earth oxide (REO). UIT will
continue to operate the pilot plant to produce REO from ore obtained at
the Company’s Bear Lodge Project in Wyoming. Once sufficient REO is
produced, UIT will begin the separation test phase, scheduled for the
third quarter of 2019. The separation pilot plant test will utilize the
Company’s enhanced proprietary technology to produce several products –
a high-purity neodymium/praseodymium (Nd/Pr) oxide, lanthanum (La)
oxide, and a mixed mid- and heavy rare earth concentrate. The enhanced
process, if successful, is expected to significantly reduce process
steps and operating costs as well as further reduce environmental
impacts and associated costs.

The testwork is progressing at a time when sources of rare earths
outside of China are considered critical as illustrated by the current
trade issues between the United States and China. Reported Nd/Pr prices
have risen more than 35% in the past few months due to the escalating
trade restrictions.

Randall J. Scott, President and CEO of RER, stated, “Worldwide
recognition of the critical nature of rare earths, including the
products that will be produced from the rare earth minerals at our Bear
Lodge Project in Wyoming, continues to intensify. We now have
significant additional third-party confirmation and optimization of our
proprietary technology for the separation and production of market-ready
Nd/Pr oxide. Bear Lodge is one of the highest-grade Nd/Pr rare earth
resources in the world. Current market demand for non-Chinese sources of
the key Nd/Pr product needed for permanent magnets, especially for
defense systems, electric vehicles and electronics, makes the timing of
the project even more important. Input from members of Congress and
federal agencies have revealed a high level of interest in the Bear
Lodge project, particularly due to our more sustainable technology and
the inclusion of magnet elements in our ore.”

Environmental baseline studies, updated in 2018, and the proprietary
processing and separation technology confirmation, support the
continuation of permitting and licensing for the Bear Lodge Project.
Given the critical nature of rare earth materials, the U.S. Department
of Commerce announced on June 6, 2019 new streamlined permitting
initiatives for critical minerals projects, like Bear Lodge, which
should accelerate the permitting timeline.

Synchron and its affiliated General Atomics companies are a privately
held group of companies engaged in advanced research, technology,
products and systems for the energy and defense sectors.

Rare Element Resources Ltd. is a publicly traded, strategic
materials company focused on delivering rare earth products for
technology, energy and defense applications by advancing the Bear Lodge
Critical Rare Earth Project in northeast Wyoming. Bear Lodge is a
significant mineralized district containing many of the less common,
more valuable, critical rare earths that are essential for high-strength
permanent magnets, electronics, fiber optics, laser systems for health
and defense, as well as many evolving technologies like electric
vehicles, solar panels and wind turbines.

Please contact Randy Scott at +1 720-278-2460 or [email protected],
for additional information.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning
of securities legislation in the United States and Canada. Except for
statements of historical fact, certain information contained herein
constitutes forward-looking statements. Forward-looking statements are
usually identified by our use of certain terminology, including “will,”
“believes,” “may,” “expects,” “should,” “seeks,” “anticipates,” “plans,”
“has potential to,” or “intends,” or by discussions of strategy or
intentions. Such forward-looking statements include statements regarding
the impact of the completed and ongoing testwork to the Company and the
Bear Lodge Project, including the ability to restart permitting of the
project following testwork completion, testwork progression plans and
timelines, and the potential ramifications and applications of its rare
earth technology, or governmental initiatives. Factors that could cause
actual results to differ materially include, but are not limited to, the
Company’s ability to remain compliant with U.S. Securities and Exchange
Commission (SEC) reporting requirements, market conditions, and other
matters discussed under the caption “Risk Factors” in our Annual Report
on Form 10-K for the fiscal year ended December 31, 2018, and our other
periodic and current reports filed with the SEC and available on www.sec.gov
and with the Canadian securities commissions available on www.sedar.com.
There can be no assurance that future developments affecting the Company
will be those anticipated by management. Please refer to the discussion
of these and other uncertainties and risk factors set out in our filings
made from time to time with the SEC and the Canadian regulators,
including, without limitation, our reports on Form 10-K and Form 10-Q.
Any forward-looking statement made by us in this news release is based
only on information currently available to us and speaks only as of the
date on which it is made. While we may elect to update our
forward-looking statements at any time, we undertake no obligation to
publicly update any forward-looking statement, whether written or oral,
that may be made from time to time, whether as a result of new
information, future developments or otherwise.

Contacts

Randy Scott, +1 720-278-2460
[email protected]