Gabo Mining Ltd V.MDL

BUYING RES AND MDL... HMMMMMM

[csm0507]

Global Hunter Securities—Sole U.S. Placement Agent

For $8,860,253 in Financing for Rare Element Resources Ltd.

Client Information

Rare Element Resources Ltd.

(TSX-V:RES), based in Vancouver,

Canada, is a publicly traded mineral

resource company focused on

exploration and development of

rare-earth elements and gold on the

Bear Lodge property in Northwest

Wyoming.

Gold exploration in the Bear Lodge

Mountains has been conducted for

several decades. The property

encompasses one of the largest

disseminated rare-earth

occurrences in North America.

Rare Element holds a 100%

interest in the Bear Lodge property,

is continuing with drilling and a

metallurgical testing program, and

has begun a scoping study to

accomplish a preliminary

engineering-economic assessment

of the rare-earth project.

Transaction Information

Global Hunter Securities acted as

the sole U.S. placement agent in

the follow-on offering of Rare

Element Resources. The Company

announced a $7.8 million financing

that was fully subscribed, consisting

of 2,250,000 units at a price of

$3.50 per unit. Subsequently, part

of the Over-Allotment Option was

exercised, consisting of 281,501

units. The total financing amounted

to 2,531,501 units at $3.50 per unit,

with 50% warrant coverage for 24

months at a strike price of $4.75.

Net proceeds of approximately

$8,860,253, which included the

Over-Allotment Option, will be used

for the advancement of the

Company's Bear Lodge, Wyoming,

Rare Earth Elements (REE) project,

as well as for general corporate

purposes.