Rare Element Options Eden Lake Rare-Earth Property to Medallion

  Rare Element Resources Ltd. ("Rare Element") (TSX VENTURE: RES) and Medallion Resources Ltd. ("Medallion") (TSX VENTURE: MDL) announce that they have signed a letter of intent whereby Rare Element will grant to Medallion an option ("Option") to earn a 65% interest in a joint venture to explore the Eden Lake rare-earth-element property, Manitoba, Canada ("Property"). Over the next 30 days, Rare Element and Medallion plan to complete due diligence and begin work on a definitive agreement that includes the terms of the letter of intent and governs the Option period and the contemplated joint venture. Option terms are presented below.

Rare Element president Don Ranta said "We are very pleased to have the former president of Rare Element, Dr William Bird, working with us again on this exceptional Eden Lake rare-earth property. Medallion, with support from the Rare Element team, will test and advance the property using the latest, most effective techniques. Dr Bird, who is highly qualified and experienced in rare-earth exploration, will provide the leadership to ensure that the work is done to our best advantage."

Dr Bird responds, "Exploring the Eden Lake rare-earth property with Dr Ranta and Rare Element is a tremendous opportunity for the Medallion shareholders. I believe that Eden Lake is one of the top ten rare-earth prospects in North America. The recent Eden Lake discovery of elevated levels of yttrium and heavy-rare-earth elements in multiple styles of mineralization expands the potential for multiple targets over the eight square kilometres of intensely mineralized rare-earth-rich rocks. Eden Lake is an extraordinary first project for Medallion's planned program of rare-metal project acquisitions."

Option Terms

For Medallion to acquire and maintain its Option to earn a 65% joint-venture interest in the Property, Medallion must complete, over a five-year period, the following cash and share payments to Rare Element and complete the following Property-exploration work-commitment expenditures:

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Five-Year Option to earn 65%
interest in joint venture to                     Medallion's   Property Work
explore Eden Lake property      Cash payment   common shares      commitment
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Initial payment                      $25,000
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At the signing of the
 definitive agreement                $25,000
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Upon TSX Venture
 Exchange's approval                 $50,000         200,000
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End of first year                    $50,000         200,000        $250,000
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End of second year                  $100,000         200,000        $500,000
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End of third year                   $200,000         200,000        $500,000
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End of fourth year                  $500,000         500,000        $500,000
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End of fifth year                   $500,000         500,000        $500,000
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TOTAL                             $1,450,000       1,800,000      $2,250,000
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Production from the Property is subject to an underlying 3% Net Smelter Return royalty ("NSR") in favour of the prospector that originally staked the property. Half of this NSR may be purchased for $1.5 million.

Upon completion of the cash and share payments and work commitments, Medallion may exercise its Option to acquire a 65% interest in a joint venture with Rare Element, which will be created to further explore and develop the Property (Medallion will hold 65% and Rare Element will hold 35%).

Medallion will be the operator of the exploration program during the Option period and, as the majority interest holder, Medallion would be the operator of the joint venture, as well.

Terms of the letter of intent and the definitive agreement are subject to regulatory approval.

Rare Element Resources Ltd (TSX VENTURE: RES) is a publicly traded mineral resource company focused on rare-earth elements and gold. In addition to the REE exploration and evaluation efforts, the Company and Newmont have entered into the Sundance gold exploration joint venture on the Company's Wyoming property. Newmont has the right to earn a 65% working interest in Rare Element Resources' property, excluding any rights to the rare-earth elements and uranium but including rights to gold and other metals, by performing US$5 million in property work expenditures over a five-year period. Newmont also has the right to earn an additional 15% working interest by completing a positive project feasibility study. Gold exploration drilling began in July for the 2009 program, and rare-earth drilling began in August.

Medallion Resources Ltd (TSX VENTURE: MDL) explores for rare-earth elements, lithium and other metals required by the new energy-saving technologies. Increasing interest in energy conservation and environmental protection are fuelling intense interest in, and public awareness of these critical commodities. As understanding and demand increase, Medallion is well positioned to take part in potential breakthroughs in the exploration for these rare metals.

ON BEHALF OF THE RARE ELEMENT RESOURCES BOARD OF DIRECTORS

Donald E. Ranta, PhD, PGeo, President & CEO

ON BEHALF OF THE MEDALLION RESOURCES BOARD OF DIRECTORS

William H Bird, PhD, PGeo, President & CEO

Donald E Ranta, PhD, PGeo, serves the Rare Element Board of Directors as an internal, technically Qualified Person. Technical information in this news release has been reviewed by Dr Ranta and has been prepared in accordance with Canadian regulatory requirements that are set out in National Instrument 43-101. This news release was prepared by Rare Element management, who take full responsibility for content.

Medallion Management, who takes full responsibility for content, prepared this news release. William H Bird, PhD, PGeo, who serves the Board of Directors of Medallion Resources as an internal, technically Qualified Person, has reviewed this release. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Medallion's future acquisition and exploration plans, objectives or goals, including words to the effect that Medallion or its management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in these statements. Such risks include expectations that may be raised by discussing potential acquisitions. Also, in order to proceed with Medallion's exploration plans, additional funding is necessary and, depending on market conditions, this funding may not be forthcoming on a schedule or on terms that facilitate Medallion's plans.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contacts: Rare Element Resources Ltd. Mark T Brown CFO [phone] ext 242 [e-mail] Rare Element Resources Ltd. Donald E Ranta [phone] [e-mail] www.rareelementresources.com Medallion Resources Ltd. William H Bird [phone] [e-mail] Medallion Resources Ltd. Erica C Bearss [phone] [e-mail] www.medallionresources.com