Rare Element Resources Ltd. announced that the U.S. Department of Energy's (the "DOE") Office of Energy Efficiency and Renewable Energy has finalized its National Environmental Policy Act ("NEPA") review of the Company's planned rare earth processing and separation demonstration plant (the "Demonstration Plant") to be built in Upton, Wyoming. This completes the federal permitting activity prior to construction. The DOE NEPA review was consistent with the U.S. Nuclear Regulatory Commission's NEPA review, with both resulting in a finding of no significant impact.

The Company is awaiting next stage budget approval from the DOE, which is providing approximately 50% of the project costs, to commence construction. The Demonstration Plant will advance the Company's proprietary recovery and separation technology, and the operational and economic data generated will be essential to the design of a commercial-scale plant. The Company was pleased to host a public Open House to celebrate the progression of the project and hold a ceremony on October 9, at the Upton, Wyoming Community Center.

Rare earths? unique characteristics, including their ability to enhance magnetic properties, reduce corrosion and improve heat resistance, make them essential to many hi-tech applications. These characteristics, coupled with China?s current monopoly of the rare earth market, has led the DOE and Department of Defense to deem them ?critical?

when considering the nation?s stated clean energy goals and strategic national defense initiatives. Both the Biden and Trump Administrations directed that steps be taken to establish alternative sources for rare earths, ones that reduce the risk of supply disruption and ensure a secure supply for the nation.