Rare Element Resources Announces Results of Oversubscribed Rights Offering of Common Shares

Rare Element Resources Ltd. (the “Company” or “RER”) (OTCQB: REEMF) is pleased to report that its previously announced rights offering of common shares was oversubscribed and generated approximately US$35.8 million in gross proceeds.

Because the rights offering, which expired on March 11, 2024, was oversubscribed, the shares available for issuance will be allocated proportionately among shareholders who exercised their oversubscription privileges based on the number of shares each shareholder subscribed for under its basic subscription privilege. Any excess subscription payments received by the subscription agent will be returned by the subscription agent to investors, without interest or deduction.

Preliminary results indicate that, pursuant to the rights offering, the Company will be issuing approximately 298.1 million common shares (including approximately 206.8 million common shares to be issued to holders who exercised their basic subscription privilege) at US$0.12 per share. Of the total shares to be issued, approximately 244.4 million common shares will be issued to the Company’s majority shareholder, Synchron, which exercised its basic subscription and oversubscription privileges in full. The Company will effectively be issuing all of the common shares that were available for subscription under the rights offering. It is expected that the new common shares will be issued by March 15, 2024. Following the issuance of new common shares pursuant to the rights offering, it is expected that Synchron will own approximately 70.6% of the issued and outstanding common shares of the Company.

As set forth in the Company’s prospectus relating to the rights offering, the Company plans to use the proceeds from the offering to progress the Company’s business strategy to support commercialization and fund activities to support the advancement of the Bear Lodge rare earth elements project (the “Bear Lodge REE Project”), which includes funding the operation of a rare earth processing and separation demonstration plant for a period of time that is expected to be sufficient to provide the information to support a commercialization decision, acquiring real property, updating the mineral resource model and technical reports, and advancing permitting, environmental support, and basic engineering, as well as for other general corporate purposes.