RARE ELEMENT RESOURCES LTD. (an exploration stage company) CONSOLIDATED BALANCE SHEETS AS OF JUNE 30 (Expressed in US Dollars) (USD $)	Jun. 30, 2011		Jun. 30, 2010
CURRENT
Cash and cash equivalents	$ 72,311,970		$ 11,460,476
Marketable securities	53,238	[1]		[1]
Accounts receivable	327,281		17,054
Prepaid expenses	353,235		71,419
Total Current Assets	73,045,724		11,548,949
Equipment	145,160	[2]	40,057	[2]
Mineral properties	1,669,060	[3]	1,711,368	[3]
Marketable securities	201,484	[1]		[1]
Reclamation bonding	422,283	[4]	110,533	[4]
TOTAL ASSETS	75,483,711		13,410,907
CURRENT
Accounts payable and accrued liabilities	1,019,146		410,005
Due to related parties	73,959	[5]	12,023	[5]
Total Current Liabilities	1,093,105		422,028
Asset retirement obligation	100,540	[6]		[6]
Derivative liability	195,953	[7]	1,981,931	[7]
TOTAL LIABILITIES	1,389,598		2,403,959
SHAREHOLDERS' EQUITY
SHARE CAPITAL	91,357,438	[8]	19,014,540	[8]
ADDITIONAL PAID-IN CAPITAL	9,504,099	[8]	2,105,176	[8]
ACCUMULATED OTHER COMPREHENSIVE LOSS	3,306
DEFICIT	(26,770,730)		(10,112,768)
TOTAL SHAREHOLDERS' EQUITY	74,094,113		11,006,948
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 75,483,711	[9]	$ 13,410,907	[9]

[1] Note 3

[2] Note 6

[3] Note 4

[4] Note 7

[5] Note 11

[6] Note 9

[7] Note 8

[8] Note 10

[9] See also Note 1, Nature of operations and Note 13, Commitments and contingencies