Rare Element Resources Ltd. announced that it has been awarded a $4.4 million grant from the Wyoming Energy Authority (the WEA) to be utilized for the advancement of the Company's rare earth element processing and separation demonstration plant project in Upton, Wyoming. The grant is a cost reimbursement award for future expenditures related to the project, which is also supported by the U.S. Department of Energy (the DOE) through a previously announced financial award. The total project cost is approximately $44 million, with $21.9 million provided through the DOE.

The rare earth processing and separation plant project, led by General Atomics Synchron, is nearing the final design review milestone, which is expected to be complete by the end of this year. This milestone will allow the Company to advance through the first go/no go decision point with the DOE. Upon the DOE's approval to proceed, the WEA grant will be available to the Company, subject to the details to be contained in a memorandum of understanding between the Company and the State of Wyoming.

The demonstration plant will utilize the Company's proprietary technology and is expected to produce commercial-grade neodymium/praseodymium (Nd/Pr) high-purity oxide that is used in producing high-strength permanent magnets. These high- strength permanent magnets are a key component in the manufacture of electric vehicles and wind turbines, among other technology uses. Previously stockpiled material from the Company's Bear Lodge deposit in northeast Wyoming will be processed in the plant.

Synchron and General Atomics are privately held companies engaged in the development and production of advanced technology products and systems for the energy and defense sectors. General Atomics is an affiliate of Synchron, the Company's majority shareholder. Rare Element Resources Ltd. is a publicly traded, strategic materials company focused on delivering rare earth products for technology, energy and defense applications by advancing the Bear Lodge Critical Rare Earth Project in northeast Wyoming.

Bear Lodge is a significant mineralized district containing many of the less common, more valuable, critical rare earths that are essential for high-strength permanent magnets, electronics, fiber optics, laser systems for medical technology and defense, as well as technologies like electric vehicles, solar panels and wind turbines. Wyoming Energy Authority advances Wyoming's energy strategy by driving data, technology, and infrastructure investments.