Rare Earth Demonstration Plant Update

LITTLETON, CO - Rare Element Resources Ltd. announced an updated timeline for the commencement of operations of the Company’s rare earth processing and separation demonstration plant in Upton, Wyoming. The data gathered from the operation of the Demonstration Plant, which was designed and constructed by a General Atomics-led consortium of companies, will be material in advancing the design and economics of a commercial plant utilizing the Company’s proprietary processing and separation technology. As the recently constructed Demonstration Plant progressed through the equipment shakedown process, several key design and equipment modifications were identified as necessary to achieve satisfactory operational status. RER, in conjunction with the mineral processing experts at UIT (an affiliate of General Atomics which was instrumental in advancing the technology through the successful pilot testing phase), is currently undertaking a system-wide review and will be recommending upgrades and improvements to the Demonstration Plant. Following the review, recommended modifications and upgrades will be implemented. As a result, the commencement of operations will be delayed by several months.

“As we progressed the plant toward operations during the past several months, our engineers and scientists identified multiple design and installation improvements that, if addressed now, will further increase the likelihood of successful, safe operations of our first-of-its-kind rare earth processing and separation Demonstration Plant,” said, Ken Mushinski, President and Chief Executive Officer. “The knowledge gained from the operation of this Demonstration Plant will be of utmost importance to the progression toward full-scale commercial operations with our unique technology. Understanding the critical need for a secure, domestic rare earth supply chain, the Company, with the unanimous backing of its Board of Directors, fully supports this opportunity for potential improvements through this review.”