Rare Element Resources Ltd. announced that the U.S. Department of Energy's (the "DOE") Office of Energy Efficiency and Renewable Energy has issued a Project Continuation Notice following its approval of the budget for construction of the Company's planned rare earth processing and separation demonstration plant (the "Demonstration Plant"). This approval, along with the DOE's recent completion of its National Environmental Policy Act review, allows commencement of construction of the Demonstration Plant, located in Upton, Wyoming. The Company expects plant operations to commence in the third quarter of 2024, following the seven-to-10-month construction period.

The Demonstration Plant is expected to advance the Company's proprietary processing and separation technology and generate the operational and economic data necessary for design of a commercial-scale plant. Rare earths' unique characteristics, especially their ability to enhance magnetic properties, make them essential to many hi-tech, defense and green applications. The risks associated with China's current monopoly of the rare earth supply chain have led the DOE and U.S. Department of Defense to deem rare earth elements "critical" when considering the nation's stated clean energy goals and strategic national defense initiatives.

Working together with the DOE and industry-leader, General Atomics, RER is advancing an innovative rare earth recovery technology and looking to create the cornerstone for a secure, domestic rare earth supply chain with development of the Company's Bear Lodge Rare Earth Project.