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:




----------------------------------------------------------------------------
Five-Year Option to earn 65%
interest in joint venture to                     Medallion's   Property Work
explore Eden Lake property      Cash payment   common shares      commitment
----------------------------------------------------------------------------
Initial payment                      $25,000
----------------------------------------------------------------------------
At the signing of the
 definitive agreement                $25,000
----------------------------------------------------------------------------
Upon TSX Venture
 Exchange's approval                 $50,000         200,000
----------------------------------------------------------------------------
End of first year                    $50,000         200,000        $250,000
----------------------------------------------------------------------------
End of second year                  $100,000         200,000        $500,000
----------------------------------------------------------------------------
End of third year                   $200,000         200,000        $500,000
----------------------------------------------------------------------------
End of fourth year                  $500,000         500,000        $500,000
----------------------------------------------------------------------------
End of fifth year                   $500,000         500,000        $500,000
----------------------------------------------------------------------------
TOTAL                             $1,450,000       1,800,000      $2,250,000
----------------------------------------------------------------------------



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.
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