TMX group

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.