The TR provides the detail surrounding the positive PFS results reported in the Company’s press release dated August 26, 2014, entitled, Rare Element Resources Announces 2014 Pre-Feasibility Study on the Bear Lodge Project. The full TR can be accessed from the Company’s SEDAR profile at www.sedar.com or from the Company’s website at www.rareelementresources.com.

As previously reported, key highlights from the Company’s PFS include:

Low initial capital cost of $290 million.
Mining of high-grade zone in Years 1 – 9 boosts initial cash flows and results in a 2.9-year payback from the start of production.
After-tax net present value (NPV) of $330 million at a 10% discount rate, and after-tax internal rate of return (IRR) of 29%.
45-year Project life based on the expanded Measured and Indicated (M&I) mineral resource.
A proprietary recovery process that consistently produces a 97+% pure, near thorium-free, total rare earth oxide (TREO) concentrate.
Average annual production of 7,510 tons (6,813 tonnes) of TREO concentrate.
Significant upside potential in resource growth, both through the inferred resource within the pit and additional exploration activities; in cost savings associated with refinement of the Company’s proprietary recovery process; in the recovery of valuable by-products to create additional revenue streams; and in moving up the value chain by undertaking downstream separation.
"Bear Lodge continues to prove to be an exceptional project with low anticipated capital costs, a long Project life, strong economics and excellent opportunity for upside," said Randall J. Scott, President and Chief Executive Officer. "We believe the PFS reflects the success of our programs over the last two years but not necessarily all the strengths of the Project. We are fortunate to have discovered not just a single deposit but a rare earth district, rich in the critical rare earths, with multiple exploration targets still to be evaluated. Our Project design allows us to supply meaningful amounts of rare earths with only $290 million of initial capital, but still gives us flexibility to respond to increased market demand. We have a proprietary recovery process that enhances conventional technology to produce a 97+% pure total rare earth concentrate, and we continue to evaluate options to optimize this process. Most importantly, we continue to advance permitting on the Project supporting our goal of being the next global producer, as we strive to help provide a secure supply of critical rare earths to manufacturers and high-tech companies around the world."

A copy of the TR can be found on the Company’s website at www.rareelementresources.com under Bear Lodge Project/Project-related Studies & Reports. For a copy of the August 26, 2014 news release mentioned above, please go to the Company’s website under Investor Information/News Releases.

Roche Engineering, Inc. is the principal author of, and is an independent engineering company that prepared, the TR on behalf of the Company. Pete Dahlberg, P.E., is the independent Qualified Person from Roche Engineering, Inc. who reviewed and approved this news release.