TSX-V: RES VANCOUVER, March 21 /CNW/ - President Bill Bird reports, "Rare Element Resources Ltd and Newmont North America Exploration Limited ("Newmont") have agreed to terms for a Bear Lodge property gold-exploration venture (news release of 19 Jan 2006). This has greatly advanced Company status and again demonstrates the exceptional merit of our Bear Lodge property. The venture will provide Rare Element Resources with a second significant project. It does this with: - None of the expense and effort normally associated with such a major acquisition. - Full financing for the first five years. - The project management and technical expertise of Newmont. - The added credibility of working with one of the major gold companies. "The gold-exploration venture with Newmont will be the best way to reap full advantage from the Bear Lodge gold potential. The Company and Newmont are working together to complete the definitive agreement for the venture. With the completion of the definitive agreement, Newmont will begin field work on our property and we are very excited about the prospects. "Bear Lodge gold exploration will be in Newmont's capable hands and Rare Element Resources now may focus on exploring the Bear Lodge property for rare- earth elements (REE's). In the past two years, drilling and metallurgical testing have added to our data base and provided the needed experience to move forward to the next stage. We are now planning the program to confirm a Bear Lodge REE resource that is fully compliant with the requirements of National Instrument 43-101 ("NI43-101"). Past drilling by several major companies has outlined a historical resource; however, much additional drilling is needed to re-interpret the historical resource and to expand the overall resource so that it complies with the new NI43-101 standards. The compliant resource and additional metallurgical testing will provide the basic data necessary to begin financial evaluation of the property and to guide the Company as it plans for a project feasibility study. "Over recent months, recognition of additional Company value, fueled by the development of the gold-exploration potential and the announcement of the pending Newmont gold-exploration venture, has nearly tripled market capitalization. We are pleased to note that efforts to increase share value have been successful. It's also of note that Newmont, in order to earn 65 percent of the gold-exploration venture, must spend US$5M, which is equal to just over half the Company's present market capitalization. This indicates that the Company's shares remain undervalued and we will continue our efforts to increase share value. "Higher share values have made possible the exercise of 2,485,000 warrants, which added $793,000 to the Company's treasury. Many of the warrants were held by associates and insiders of the Company. Shares were sold in order to exercise warrants; however, the money went directly into the treasury and overall shareholdings of many Company associates and insiders were actually increased through the process. Rare Element Resources presently has 18,063,425 shares outstanding (20,971,025 fully diluted) with 2,232,500 held by insiders. The funds from the exercise of warrants will finance Bear Lodge REE exploration, property acquisition investigations and corporate administration. "Recent advances are the direct result of hard work by the entire Rare Elements Resources team. The newest member of that team deserves mention. Scott Gibson & Co ("Scott Gibson"), our public relations consultant, has done a fine job of opening new channels over which to broadcast the Rare Element Resources story. Our story has all the right elements; - Great shareholder support and growing investor interest, - An excellent property with two significant exploration projects, - An experienced, knowledgeable and respected Board of Directors, - And, through our relationship with Pacific Opportunity Capital Ltd, a depth of financial, administrative, accountancy and governance services far beyond that offered by most junior mineral-exploration companies. "We have the right elements; but we also must communicate our story through all available means. Scott Gibson has broadened our financial-market recognition with key introductions and the fine-tuning of our public relations program. Highlights of our recent program have included attendance at the San Francisco, Vancouver and PDAC (Toronto) investment conferences. Extraordinary results include commentary by newsletter writers Lawrence Roulston, Bob Bishop and Brien Lundin. "Rare Element Resources shares are newly listed for trading on the Deutsche Brose, Freiverkehr (Frankfort Exchange, Open Market) and we intend to initiate programs to expand the European shareholder base. We now trade in Canada, USA and Germany under the following symbols: - TSX Venture Exchange RES. - USA, Pink-Sheets RRLMF. - Deutsche Brose, Freiverkehr R8V. "Recent successes are gratifying. Our task now is to expand these successes. Our main focus, of course, is the gold and REE exploration of the Bear Lodge property. We also are examining additional property acquisitions. We hope to expand our property portfolio during the next year. We will continue to expand our public relations effort as well and we will communicate regularly through news releases and the distribution of other pertinent information. Contact me ((604) 687-3520 ext 229 - birdwill(at)aol.com) or check our website (www.rareelementresources.com) for up-to-date information and progress reports." ON BEHALF OF THE BOARD William H Bird, PhD, PGeo, President & CEO William H. Bird, PhD, PGeo, serves the Board of Directors of the Company as an internal, technically Qualified Person. Technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by Dr Bird. This news release was prepared by Company management, who take full responsibility for content. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual future-period results to differ materially from forecasts.