ACLARA ANNOUNCES UPDATED PEA FOR ITS FLAGSHIP CARINA MODULE

ACLARA ANNOUNCES UPDATED PEA FOR ITS FLAGSHIP CARINA MODULE

After-tax NPV   8   of US$1 .   5   billion   using   base case price   forecast

After-tax NPV   8   of US$   2   .   2   billion   using   incentive   price   forecast   (   excluding C   hin   ese supply   )

 Aclara Resources Inc. ("Aclara" or the "Company") (TSX: ARA) is pleased to announce the results of the Company's updated preliminary economic analysis (the "PEA") on its regolith-hosted ion adsorption clay project located in the State of Goiás, Brazil, known as the Carina Module (the "Project").

The technical report titled "Preliminary Economic Assessment Update - Carina Rare Earth Element Project - Nova Roma , Goiás, Brazil " (the "Report" or "Carina Module PEA") dated September 5 , 2024 was prepared in accordance with National Instrument 43-101- Standards of Disclosure for Mineral Projects ("NI 43-101") by GE21 Consultoria Mineral ("GE21"), a specialized, independent mineral consulting company located in Belo Horizonte, Brazil . The Report, with an effective date of May 3, 2024 , supports the disclosures made by Aclara in its August 9, 2024 press release announcing the updated maiden mineral resources estimate (the "MRE") for the Project (the " August 2024 Press Release"). There are no material differences in the mineral resources or results of the preliminary economic assessment as described in the Report and the results disclosed in the August 2024 Press Release. The Report has been filed and can be found under the Company's profile on SEDAR+ ( www.sedarplus.ca ) and on Aclara's website ( www.aclara-re.com ).

Highlights

  • Robust economics
    • After-tax Net Present Value ("NPV") of ~US$1.5 billion using an 8% discount rate pursuant to the base case price forecast projected by Argus Media ("Argus")
    • 27% internal rate of return over the 22-year life of mine and a payback period of 4.2 years
    • Low initial capital costs of US$593 million and low sustaining capital costs of US$86 million
    • Average annual 1 net revenue and EBITDA of US$505 million and US$366 million , respectively
    • High average net smelter return ("NSR") of US$52.0 per tonne processed compared to a low average production cost of US$13.6 per tonne processed
    • Incentive price forecast scenario projected by Argus provides significant upside. This scenario is supported by critical raw material regulations such as the European Critical Raw Materials Act and the United States Inflation Reduction Act, which focus on creating supply chains beyond China
    • After-tax NPV of ~US$2.2 billion using an 8% discount rate pursuant to the incentive price forecast by Argus (which excludes Chinese supply)
  • Significant production of magnetic REEs and high product quality
    • Average annual production 1 of 191 tonnes DyTb representing approximately 13% of China's 2023 official production 2

_________________________________

1 Annual average does not consider the first year of ramp-up and the last year of ramp-down.

2 The resulting Chinese production of DyTb derived from its 2023 rare earth oxides quotas for mining production is approximately 1,520 tonnes (source: The Chinese Ministry of Industry and Information Technology).

    • Average annual production 1 of 1,350 tonnes NdPr contributing to a balanced mix of light and heavy REEs in the final product
    • Very high content of DyTb and NdPr in the mixed carbonate of 4.0% and 28.5%, respectively
    • Concentration of REEs in the mixed carbonate of 91.5% 3 . High purity product facilitates further separation and recoveries

__________________________________

3 Purity is expressed as REO equivalent.

  • Expedited path to early production
    • Memorandum of Understanding signed with the State of Goiás and Nova Roma Municipality in Brazil to accelerate the analysis and evaluation of the permitting process and implementation of the Carina Module
    • Commissioning estimated to commence in 2029. The Company is evaluating the possibility to expedite the production schedule to begin between 2027 and 2028
  • Low environmental impact
    • Process designed to minimize environmental impact: it does not use explosives; there is no crushing nor milling; approximately 95% of the water used is recirculated; the main reagent is a common fertilizer; no liquid residue is produced, negating the need of a tailings dam
    • Minimal CO 2 footprint is supported by a combination of low energy consumption and a high percentage of renewable energy within the Goiás power grid
  • Upside potential
    • Exploration potential for lateral expansion to the east of the Carina Module as a result of recently secured mineral rights adjacent to the Company's existing mineral rights
    • Metallurgical optimization program projected to commence in Q4 2024 will serve as additional inputs for a prefeasibility study of the Carina Module and to form the basis for a new piloting operation scheduled for Q2 2025
  • Strong financial backing

    • Key shareholders in Eduardo Hochschild and Hochschild Mining provide financial support to advance the Project
    • Strategic partnership with CAP S.A. in its Chilean subsidiary derisks project financing for the Penco Module and allows Aclara to focus incremental corporate resources to the Carina Module

  • Strong bedrock for vertical integration
    • Adds to the Company's Penco Module production of DyTb for a total DyTb annual average production 1 of 241 tonnes, which represents 16% of China's 2023 official DyTb production
    • Mixed REE carbonate produced expected to be separated and converted into metals and alloys by Aclara Technologies Inc., the Company's US based subsidiary developing REE processing technologies
    • Strategic partnership signed with VACUUMSCHMELZE GmbH & Co. KG aimed at developing a mine to magnet solution

Ac   l   ara'   s   CEO, Ramon Barua , commented:

"   The PEA highlights the Carina Module   's   notable   economic potential, with an after-tax   NPV   of   US   $1.5 billion   based on   the   base case price forecast   ,   and   US   $2.2 billion   when   considering   the   incentive price   for   e   cast   . These figures underscore the   P   roject's   status as a   high-quality   heavy rare earth asset   ,   designed to deliver significant   annual   dysprosium and terbium   production   ,   representing   approximately 13% of Chin   a   's   official   output   in 2023   .

T   he   medium to long   -term   outlook   for rare earth elements, particularly heavy rare earths, remain   s   strong   due to their global scarcity.   I   ncreasing   international   regulations are enhancing the develop   ment of   alternative supply chains   beyond   China   , and   Argus's incentive price forecast   indicates   substantial upside   potential for rare earths   in response to future demand   .

Our focus is now on expediting the path to early production. We have recently signed a Memorandum of Understanding with the State of Goiás and Nova Roma Municipality   in Brazil   as a means   to accelerate the permitting process and facilitate the swift implementation of the Carina Module   ,   with the goal   of   start   ing production   between 2027 and 2028."

Key Project   Parameters   Compared to Previous PEA

Table 1 and Table 2 list the relevant parameters associated with the Project's operating and financial metrics as compared to the previous preliminary economic assessment filed on January 23, 2024 (the "Previous PEA"):

  • 25% increase in after-tax NPV from US$1.2 billion to US$1.5 billion using an 8% discount rate, despite lower REE price forecast
  • Slower growth of magnetic REE 4 prices following the short-term deacceleration of electric vehicle demand compared to the Previous PEA. In addition, lower expected increase in Nd price, partially offset by higher expected increase in Dy price compared to the Previous PEA. REE price forecast provided by Argus aligns well with global supply/demand fundamentals.
    • Nd price compound annual growth rate 2023-2034: PEA 7% vs. Previous PEA 10%
    • Dy price compound annual growth rate 2023-2034: PEA 12% vs. Previous PEA 11%
  • ~30% increase in life of mine from 17 years to 22 years provides support for potential capacity increases in the future
  • Total capital costs (initial capital costs and sustaining capital costs) maintained at the same level as prior estimates

Table 1:   Key Project Operating Parameters   Compared to Previous PEA



PEA

Previous PEA


Unit

Total

Annual
Average*

Total

Annual
Average*

Mining and Processing






Life of Mine

years

22

-

17

-

Total Process Plant Feed

million tonnes (dry)

203.0

9.6

149.5

9.6

Total Waste Mined

million tonnes (dry)

64.2

3.0

43.3

2.6

Strip Ratio

-

0.3

0.3

0.3

0.3

Production






Total Rare Earth Oxides

tonnes

99,931

4,736

70,307

4,498

Neodymium & Praseodymium (NdPr)

tonnes

28,514

1,248

18,546

1,190

Dysprosium (Dy)

tonnes

3,420

163

2,802

178

Terbium (Tb)

tonnes

587

28

479

30

*Note: Annual average does not include the first year of ramp-up and the last year of ramp-down

__________________________________

4 Magnetic REE include Neodymium (Nd), Praseodymium (Pr), Dysprosium (Dy) and Terbium (Tb).

Table   2   : Key Project   Financial   Parameters   Compared to Previous PEA



PEA

Previous PEA



Base Case

(Chinese Prices)

Incentive Case

(Non-Chinese Prices)

Base Case

(Chinese Prices)


Unit

Total

Annual
Average*

Total

Annual
Average*

Total

Annual
Average*

Financials








Net Revenue

US$ million

10,554

505

13,091

626

7,355

474

Net Smelter Return

US$/t

52.0

-

64.5

-

49.2

-

Basket Price (2029-2034)

US$/kg

88.8

-

104.6

-

107.4

-

Basket Price (LOM)

US$/kg

122.4

-

142.8

-

121.2

-

Production Cost

US$ million

2,757

129

2,757

129

1,965

125

Unit Cost

US$/t processed

13.6

-

13.6

-

13.1

-

Unit Cost

US$/kg REO

27.6

-

27.6

-

27.9


EBITDA

US$ million

7,586

366

10,072

485

5,243

340

EBITDA Margin

%

72

-

77

-

71

-

Income Tax

US$ million

2,334

118

3,172

154

1,532

101

Effective Tax Rate

%

36.1

-

35.9

-

36.2

-

Initial Capital

US$ million

592.6

-

592.6

-

575.8

-

Royalty Purchase Cost

US$ million

6.5

-

6.5

-

6.5

-

Sustaining Capital

US$ million

85.8

-

85.8

-

106.2

-

Financial Returns








Pre-Tax Net Present Value (8%)

US$ million

2,337

-

3,051

-

1,880

-

Pre-Tax Internal Rate of Return

%

32.2

-

40.5

-

35.7

-

Post-Tax Net Present Value (8%)

US$ million

1,483

-

2,159

-

1,186

-

Post-Tax Internal Rate of Return

%

26.5

-

33.1

-

28.6

-

Payback Period

years

4.2

-

3.4

-

3.6

-

*Note: Annual average does not include the first year of ramp-up and the last year of ramp-down

Figure 1: Projected life of mine post-tax free cash flow – base case price scenario (CNW Group/Aclara Resources Inc.)

Sensitivity Analysis

A sensitivity analysis was undertaken to evaluate the impact on NPV through variation of the basket price, discount rate, CAPEX, OPEX and metallurgical recovery rates.

The discount rate was evaluated by varying its value from 4% to 12% while the remaining attributes were evaluated by varying their values from 80% to 120% (Figure 2).

Figure 2: Sensitivity analysis testing the impact on NPV (CNW Group/Aclara Resources Inc.)

Mineral Resource Statement

The Carina Module's mineral resources have been estimated using the results obtained from 283 auger drill holes ( 2,101m ), 80 reverse circulation holes ( 2,003m ) and 3,789 samples. At a US$7.4 /t NSR cut-off, the Carina Module is estimated to contain 297.6 million tonnes ("Mt") in the inferred mineral resource category @ 1,452 ppm TREO containing an average Dy and Tb grade of 39 ppm and 6 ppm, respectively (Table 3). The MRE is reported in accordance with the requirements of NI 43-101.

Table   3   . Carina Module Inferred Mineral Resource Estimate   (Effective   May   3,   202   4   )

Mineral Classification

Mass

(Mt)

Total Oxide Grade (ppm)

Oxide Content (t)

TREO

NdPr

Dy

Tb

TREO

NdPr

Dy

Tb

Inferred

297.6

1,452

284

39

6

432,003

84,565

11,573

1,897

Total

297.6

1,452

284

39

6

432,003

84,565

11,573

1,897

Notes:

1.  CIM (2014) definitions were followed for mineral resources.

2.  Mineral resources are estimated above an NSR value of US$7.4/t.

3.  Mineral resources are estimated using average long term metal prices and metallurgical recoveries (see PEA for details).

4.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Project Description

The Project is based on standard open pit extraction techniques using conventional hydraulic excavators and 44t payload haulage trucks to extract and deliver the clays to the process plant. The process plant has been located close to the centre of mass of the mining operation to minimise the total haulage distance over the life of mine. Given the friable nature of the clays and the shallow depth of the extraction zones, no aggressive nor energy-intensive techniques such as drilling and blasting are required to extract the clays from the pits. Table 4 lists the key input parameters used in the mine design.

Table   4   :   Key   M   ine   D   esign   P   arameters

Description

Unit

Value

Pit Optimization



Overall Slope Angle

degree

25

Reference Mining Cost

US$/t mined

2.13

Mining Recovery

%

98.5

Mining Dilution

%

1.5

Processing Cost

US$/t processed

10.46

Selling Cost

US$/kg REO

7.032

Federal Royalty

% of revenue

3

REO Price

US$/kg REO

variable by REO

Pit design



Bench Height

m

4

Berm Width

m

3.5

Bench Slope Angle

degree

38

Ramp Width

m

12

Ramp Gradient

%

10

Scheduling



Minimum Operational Area

m

25

Plant feed

Mt/year

9.6

Once the clay is delivered to the process plant, it will be washed using an ammonium sulfate solution to extract the REEs from the clay surfaces. No crushing, grinding nor milling is needed to free the REEs from the clays as they are extracted through a non-invasive ion-exchange reaction process whereby ammonium sulfate ions replace REE ions on the surface of the clay thereby liberating the REEs into solution. The REEs in solution are then removed through a pH-adjusted precipitation process and then passed through a high-pressure filter to remove any remaining liquids, resulting in the production of a high-purity REE carbonate ready for shipment to a separation facility. The process plant will have an average production rate of 4,736 t/year of REO within the concentrates.

Any unwanted impurities such as aluminium and calcium that have been extracted from the clays during the ion exchange process are similarly removed through a precipitation process and then recombined with the washed clays before being transported to a dry stacking storage facility for the first five years of the life of mine. Beginning in year 6, the washed clays will be back-filled to the mined-out extraction zones to initiate the mine closure process.

A water recovery system integrated into the process plant cleans and regenerates the remaining process liquors such that they can be reintroduced into the feed. The treated water is reused in a closed circuit to reduce water consumption thereby preventing the release of process water into the environment. This allows the process plant to operate with the minimum of make-up water and allows the main reagents to be regenerated and reused within the process plant.

Before the barren clays exit the process plant, they are washed with clean water within standard plate-and-frame filter presses. This will remove any residual ammonium sulfate from the clays before they are returned to either a dry stacking facility or used to back-fill the extraction zones to be safely used during revegetation.

The Project includes the necessary infrastructure to provide make-up water for the process plant, supply power to the site, and provide a road network to service the operation, amongst others.

Electrical power for the processing plant, truck shop, administration offices, and other facilities will be supplied by the national power utility through overhead power transmission lines from a sub-station located approximately 90 km from the project site.

REE   Market Outlook   and Pricing 5

Vehicle electrification, wind turbines and the transition to renewable energy sources will continue to drive demand for REEs in terms of volume and, especially, value. This will primarily affect the REEs used in alloys to fabricate permanent magnets (i.e., Dy, Nd, Pr, and Tb). The supply of clean heavy REEs, especially Dy, has become problematic because few projects target heavy REE deposits. For the medium term, the market will continue to rely on China and Myanmar for heavy REE feedstocks.

The prices of permanent magnet REEs dropped significantly in 2023 due to a weak recovery from lockdowns in China and economic challenges in other areas. The prices of Nd, Pr, and Tb fell 40–45% from early 2023 and July 2024 . However, the Dy price outperformed the market, falling only 20–25% over the same period, indicating a more constrained supply of Dy as compared to other permanent magnet REEs. Argus expects permanent magnet REE prices to increase steadily for the remainder of the decade, with the possibility of increasing at a faster rate in the early 2030s absent additional supply from new projects or increases in the availability of secondary (recycled) REEs. Dy prices are expected to continue to outperform the general permanent magnet REE market due to a tighter supply/demand balance going forward. Between the years 2023 to 2034, Nd, Pr, and Tb prices are predicted to rise at a rate of 5–8% per year, whereas Dy prices are expected to increase 12% per year.

According to Argus, there are two external factors which could have the potential to positively affect future REE prices: so-called 'green' premiums; and critical material policies (particularly within Europe and the US). Critical materials policies and regulations being enacted globally, specifically the European Critical Raw Materials Act and the United States Inflation Reduction Act, are focussed on creating raw material supply chains that are not reliant on China , which could provide advantages to non-Chinese suppliers of REEs in terms of market access and, potentially, pricing premiums. In May 2023 , the US Department of Energy identified Dy as the most critical mineral in terms of its importance to the energy sector and the risks of supply chain disruption.

In an effort to account for critical raw material regulations, Argus has modelled an incentive price for magnetic rare earths, where the rare earths market effectively has a dual pricing model (Chinese and non-Chinese) that forecasts the level that REE prices would have to reach to incentivize the supply of REE from producers outside of China. Under the incentive price scenario, the forward curve for Dy grows at 15% per year, compared to 12% per year in the base case scenario (Table 5).

Table 5:   Dysprosium Price Forecast


2022

2023

2028

2034

2023 vs

2022
(%)

2028 vs

2023
(%)

2034 vs

2028
(%)

CAGR

2023–
2034
(%)

Dy









Base Case Price* (US$/kg)

384

331

595

1,100

–14

80

85

12

Incentive Price (US$/kg)

384

331

515

1,400

–14

56

170

15

Total supply (×1,000 t REO)

1.7

2.6

3.6

4.4

50

39

23

5

Total demand (×1,000 t REO)

2.8

3.3

5.3

7.0

16

62

32

7

Surplus/deficit index (2018 = 100)

98

96

77

43

*99.5–99.9% fob China

The following provides an example of illustrating the potential decoupling of rare earths prices between those sourced from and outside of China , modelled using gallium, germanium and antimony. In September 2024 , China will be adding antimony to its export controls for certain metals (in addition to gallium and germanium, which were made subject to its export controls in August 2023 ). US-delivered prices for antimony have increased approximately 25% as compared to prices for antimony sourced from China , while prices for gallium and germanium sourced on an ex-works China basis have reflected a potential premium of up to 85% in the case of gallium (currently a premium of 45%) and up to 25% in the case of germanium (currently a premium of 10%) (Figure 3). The incentive pricing scenario seeks to emulate a situation where the main economies such as the United States , Europe and Japan are required to supply rare earths outside of China supported by critical materials policies/regulations being enacted in such countries.

_______________________________

5 Argus Media

Figure 3: Chinese and non-Chinese sourced Antimony, Gallium and Germanium price evolution since January 2023 (CNW Group/Aclara Resources Inc.)

In consideration of the price forecasts provided by Argus, the basket price of the Carina Project has been modelled through the life of mine, reflecting expected commercial discounts (Figure 4 and Figure 5).

Figure 4: Evolution of basket price vs. commercial discounts throughout the Carina Module life of mine in base case scenario (Chinese) (CNW Group/Aclara Resources Inc.)

Figure 5: Evolution of basket price vs. commercial discounts throughout the Carina Module life of mine in incentive scenario (non-Chinese) (CNW Group/Aclara Resources Inc.)

Targeted   Development Timeline

The permitting process is currently underway and the technical development of the Project will continue with a feasibility study of the Carina Module scheduled to be delivered in 2026 and commencement of operations projected to begin in 2029 (Table 6). Following the Memorandum of Understanding signed with the Government of Goiás and the Municipality of Nova Roma , the Company is evaluating the possibility to expedite the production schedule to begin between 2027 and 2028.

Table 1: Key Project Operating Parameters Compared to Previous PEA (CNW Group/Aclara Resources Inc.)

Proposed   Next Steps

  • Continuation of the Carina Module pre-feasibility study as previously reported in the Company's press release dated May 6, 2024
  • Completion of a 15,200m Phase 2 reverse circulation drill campaign aimed at converting inferred mineral resources to a measured and indicated mineral resources category, which is expected to be completed by Q4 2024
  • Completion of the environmental and social baseline studies required for environmental permitting process during H2 2024
  • Execution of a metallurgical test campaign during H2 2024 and H1 2025 with sample collections to be obtained through sonic drilling and sent to SGS Lakefield for mineralogical and recovery characterization, to serve as additional inputs for the Carina Module prefeasibility study and to form the basis for a new piloting operation
  • The Company is aiming to complete the installation and operation of a new semi-industrial scale pilot plant in the State of Goias, Brazil during Q2 2025. The piloting operation is intended to (i) confirm the processing parameters and the final process flowsheet design for the feasibility study, (ii) generate a high purity HREE carbonate for separation trials in support of future off-take agreements, and (iii) demonstrate to relevant stakeholders the environmental sustainability of the final process design

Qualified Person   s

The technical information in this press release has been reviewed and approved by geologist Fábio Xavier, mining engineer Porfírio Cabaleiro Rodriguez, geographer and environmental analyst Mrs. Branca Horta of GE21 Consultoria Mineral Ltd., as well as Chemical Engineer Stuart J Saich of Promet101 Consulting Pty Ltd. GE21 is a specialized, independent mineral consulting company based in Belo Horizonte, Brazil , and Promet101 is an independent process engineering consulting company based in Santiago, Chile . Mr. Jorge Frutuoso , Aclara Geology Manager, and Mr. Juan Pablo Navarro Ramirez , Chief Geologist for Aclara, acted as the Qualified Person for the geological sections of the report.

Mr. Xavier is a Member of Australian Institute of Geoscientists (MAIG #5179) and is a Qualified Person as defined under NI 43-101. He is responsible for the mineral resource estimate and has reviewed and approved the scientific and technical information related to the mineral resource estimate contained in this press release.

Mr. Rodriguez is a fellow of the Australian Institute of Geoscientists (FAIG #3708) and is a Qualified Person as defined under NI 43-101. He has more than 40 years of experience in mineral resource/reserve estimation and is the leader of the Project acting as overall supervisor with respect to the objectives of the Report.

Mrs. Horta is a Member of the Australian Institute of Geoscientists (MAIG #8145) and is a Qualified Person as defined under NI 43-101. She has reviewed and approved the content of the Report as it relates to environmental and permitting attributes of the Project.

Messrs. Rodriguez and Xavier visited the project from August 16 to August 18, 2023 , during the auger drilling campaign executed by the GE21 team under the coordination of Geologist André Costa (FAIG#7967). Mr. Xavier returned to the project from July 17 to July 18, 2024 , during the reverse circulation drilling campaign conducted by the Aclara team under the coordination of Geologist Luiz Jorge Frutuoso Junior (FAIG#8100).

Mr. Frutuoso Junior , Aclara's Exploration Manager, supported both visits.Mr. Saich is a professional chemical engineer with more than 37 years' relevant experience in metallurgy and process design development. He is with a member of the Australian Institute of Mining and Metallurgy (FAUSIMM, (#222028), the Canadian Institute of Mining (CIM # 631368), the Society for Mining, Exploration & Metallurgy (SME# 04101270) and is a Qualified Person as defined under NI 43-101.

Mr. Frutuoso is a Fellow of Australian Institute of Geoscientists (FAIG #8100) and Fellow of Australasian Institute of Mining and Metallurgy (FAusIMM #3044851) is a Qualified Person as defined under NI 43-101. He is responsible for the geological sections and has reviewed and approved the scientific and technical information related to the mineral resource estimate contained in this press release.

Mr. Navarro is a Member of Australian Institute of Geoscientists (MAIG #9021) and is a Qualified Person as defined under NI 43-101. He is responsible for the geological sections and has reviewed and approved the scientific and technical information related to the mineral resource estimate contained in this press release.

About Aclara

Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. The Company's rare earth mineral resource development projects include the Carina Module in the State of Goiás, Brazil as its flagship project and the Penco Module in the Bio-Bio Region of Chile .

Aclara's rare earth extraction process offers several environmentally attractive features. Circular mineral harvesting does not involve blasting, crushing, or milling, and therefore does not generate tailings and eliminates the need for a tailing's storage facility. The extraction process developed by Aclara minimizes water consumption through high levels of water recirculation made possible by the inclusion of a water treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer main reagent, ammonium sulfate. In addition to the development of the Penco Module and the Carina Module, the Company will continue to identify and evaluate opportunities to increase future production of heavy rare earths through greenfield exploration programs and the development of additional projects within the Company's current concessions in Brazil , Chile , and Peru .

Aclara has decided to vertically integrate its rare earths concentrate production towards the manufacturing of rare earths alloys. The Company has established a U.S.-based subsidiary, Aclara Technologies Inc., which will focus on developing technologies for rare earth separation, metals, and alloys. Additionally, the Company is advancing its metals and alloys business through a joint venture with CAP S.A., leveraging CAP's extensive expertise in metal refining and special ferro-alloyed steels.

Forward-Looking Statements

This press release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard to, among other things, mineral continuity, grade, methodology, development timeline, production timing and upside at the Carina Module, the Company's exploration plan, drilling campaigns and activities in Brazil and the expectations of the Company's management as to the results of such exploration works and drilling activities, timing, cost and scope in respect of the exploration activities in Brazil , the results and interpretations of its updated maiden MRE and the PEA relating to the Carina Module, the timing and issuance of a prefeasibility study and feasibility study for the Carina Module and related exploration and other work programs in respect thereof, the initiation and timing of environmental, archeological and geological studies for the Carina Module, the progression of and pricing forecast of the REE market, and other statements that are not material facts.   Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to risks related to operating in a foreign jurisdiction, including political and economic risks in Chile and Brazil ; risks related to changes to mining laws and regulations and the termination or non-renewal of mining rights by governmental authorities; risks related to failure to comply with the law or obtain necessary permits and licenses or renew them; cost of compliance with applicable environmental regulations; actual production, capital and operating costs may be different than those anticipated; the Company may be not able to successfully complete the development, construction and start-up of mines and new development projects; risks related to fluctuation in commodity prices; risks related to mining operations; and dependence on the Penco Module and/or the Carina Module. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of the foregoing factors, among others, please refer to the risk factors discussed under "Risk Factors" in the Company's annual information form dated as of March 22, 2024 , filed on the Company's SEDAR+ profile.   Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this press release is provided as of the date of this press release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

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Aclara Secures Funding from Corfo's Innovation High-Tech Program for Artificial Intelligence Project

Aclara Secures Funding from Corfo's Innovation High-Tech Program for Artificial Intelligence Project

Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that its Chilean subsidiary, REE Uno, has been awarded a research, development and innovation grant of US$ 730,000 from the Innovation Management Division of the Chilean Economic Development Agency ("CORFO") to implement and further develop a new exploration technology using artificial intelligence ("AI") models. Combined with Aclara's own investment, the initiative will have total funding of approximately US$ 1.0 million

This initiative harnesses advanced multi-variable machine learning models to analyze and interpret complex data, revolutionizing rare earth element ("REE") exploration, particularly associated with ionic clay deposits. The algorithms are designed to process large volumes of geological and geospatial data generated both internally as well as acquired from third parties, all of which is stored and organized within a centralized database developed by Aclara.

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Aclara Receives Support from the U.S. Department of Commerce

Aclara Receives Support from the U.S. Department of Commerce

Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that it is working with the U.S. Department of Commerce's International Trade Administration, through its SelectUSA program, to conduct a study aimed at identifying the optimal site for Aclara's planned separation facility in the United States (the "Location Study

The SelectUSA program fosters business investment that supports economic development and job creation in the United States. To date, SelectUSA has facilitated over $250 billion in investments, creating or retaining more than 230,000 jobs across the country.

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Toronto Stock Exchange, Aclara Resources Inc., The View from the C-Suite

Toronto Stock Exchange, Aclara Resources Inc., The View from the C-Suite

Ramon Barua, Chief Executive Officer, Aclara Resources Inc. ("Aclara Resources" or the "Company") (TSX: ARA), shares their Company's story in an interview with TMX Group.

The View From The C-Suite video interview series highlights the unique perspectives of listed companies on Toronto Stock Exchange and TSX Venture Exchange. Videos provide insight into how company executives think in the current business environment. To see the latest View From The C-Suite visit https://www.tsx.com/en/c-suite

About Aclara Resources Inc. (TSX: ARA)

Aclara Resources Inc. (TSX: ARA) is a development-stage company that focuses on heavy rare earth mineral resources hosted in Ion-Adsorption Clay deposits. The Company's rare earth mineral resource development projects include the Penco Module in the Bio-Bio Region of Chile and the Carina Module in the State of Goiás, Brazil.

Aclara's rare earth extraction process offers several environmentally attractive features. Circular mineral harvesting does not involve blasting, crushing, or milling, and therefore does not generate tailings and eliminates the need for a tailing's storage facility. The extraction process developed by Aclara minimizes water consumption through high levels of water recirculation made possible by the inclusion of a water treatment facility within its patented process design. The ionic clay feedstock is amenable to leaching with a common fertilizer main reagent, ammonium sulfate. In addition to the development of the Penco Module and the Carina Module, the Company will continue to identify and evaluate opportunities to increase future production of heavy rare earths through greenfield exploration programs and the development of additional projects within the Company's current concessions in Brazil, Chile, and Peru.

Aclara has decided to vertically integrate its rare earths concentrate production towards the manufacturing of rare earths alloys. The Company has established a U.S.-based subsidiary, Aclara Technologies Inc., which will focus on developing technologies for rare earth separation, metals, and alloys. Additionally, the Company is advancing its metals and alloys business through a joint venture with CAP S.A., leveraging CAP's extensive expertise in metal refining and special ferro-alloyed steels.

Product or service names mentioned herein may be the trademarks of their respective owners.

To learn more, visit: https://www.aclara-re.com/

SOURCE Toronto Stock Exchange

MEDIA CONTACT:
Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/227819

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Aclara Announces Update on its Rare Earths Separation Project

Aclara Announces Update on its Rare Earths Separation Project

Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce the completion of a conceptual engineering study for its rare earths ("REE") separation project, currently being developed by its U.S.-based subsidiary, Aclara Technologies. The separation flowsheet concept, based on solvent extraction, was developed in collaboration with the Saskatchewan Research Council. This concept provided the foundation for Hatch to complete a Class 5-AACE CAPEX and OPEX estimate, while also incorporating robust environmental features such as significant waste reduction and zero liquid discharge. The initial results are highly encouraging, and positions Aclara to become the first vertically integrated heavy rare earths company outside of Asia

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Update Regarding the Penco Module Permitting Process

Update Regarding the Penco Module Permitting Process

Aclara Resources Inc. ("Aclara" or "Company") (TSX:ARA) informs that the evaluation process of the Penco Module's Environmental Impact Assessment ("EIA") continues and has now formally received from the Environmental Service Assessment ("SEA") the consolidated report with the observations and questions ("ICSARA") received from the different agencies involved in the evaluation process

The Company is diligently working to file its response addressing questions and observations received by the end of Q1, 2025. The Company is committed to working with the SEA throughout the assessment and review process.

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First Helium Licenses First of Two Wells Targeting Leduc Light Oil at Worsley

First Helium Licenses First of Two Wells Targeting Leduc Light Oil at Worsley

First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced receipt of regulatory licensing approval to proceed with the drilling of its proven undeveloped ("PUD") 7-30 location, which has been assigned proved plus probable undeveloped reserves of 196,700 barrels 2 by Sproule Associates Limited ("Sproule") 1 its independent evaluator. The Company continues to advance the licensing process for its high-impact 7-15 Leduc anomaly target and is working to secure drilling and ancillary services to drill both wells in a sequential, cost-effective manner.

"With drilling license in hand for the 7-30 PUD location, we are moving ahead to secure the required services necessary to drill both our 7-30 PUD well along with our high impact Leduc anomaly, 7-15, which on seismic is approximately 5X the areal extent of our successful 1-30 light oil pool discovery," said Ed Bereznicki, President & CEO of First Helium. "With success, the combined oil potential from these two operations would provide immediate cash flow and meaningful near-term value for our shareholders. It would also set the stage to execute on ten additional, highly prospective lower risk drilling locations," added Mr. Bereznicki.

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US bill on map of Africa.

Biden Admin Makes Big Angola Investment to Counter China’s Critical Minerals Dominance

US President Joe Biden directed an additional US$600 million to the Lobito Corridor project during a visit to Angola, reinforcing a commitment to enhancing critical minerals supply chains in the African region.

The funding builds on the US$553 million committed earlier this year to the corridor, which connects the copper-rich Democratic Republic of Congo (DRC) and Zambia to Angola’s Atlantic coast.

The US has now invested more US$1.1 billion in the project, with the latest amount reportedly supporting related sectors as well, including agriculture, clean energy, health and digital access.

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Energy Fuels and Madagascar Government Execute Memorandum of Understanding to Further Advance Toliara Critical Mineral Project in Madagascar

Energy Fuels and Madagascar Government Execute Memorandum of Understanding to Further Advance Toliara Critical Mineral Project in Madagascar

Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) (" Energy Fuels " or the " Company "), a leading U.S. producer of uranium, rare earth elements (" REE "), and critical minerals, is pleased to announce that it has entered into a Memorandum of Understanding (the " MOU ") with the Government of Madagascar (the " Government ") setting forth certain key terms applicable to the Company's Toliara titanium, zirconium, and REE project (the " Toliara Project " or " Project "), located in southwestern Madagascar .

Energy Fuels Inc. is an industry leader in uranium and rare earth elements production for the energy transition. (CNW Group/Energy Fuels Inc.)

As previously announced , on November 28, 2024 , the Madagascar Council of Ministers, as Chaired by the President of Madagascar , lifted the suspension on the Toliara Project, which was originally imposed in November 2019 . The lifting of the Suspension allows the Company to continue development of the Project, re-establish community programs, and advance activities necessary to achieve a positive final investment decision (" FID ").

The MOU announced today is the culmination of extensive negotiations over several years with the Malagasy Government on fiscal and other terms applicable to the Toliara Project and a major step forward in advancing the Project. While the Company is progressing towards an FID, which is expected to be made in approximately 14 months, the Company will continue working with the Government of Madagascar to formalize the terms and conditions set out in the MOU through the implementation of a " Stability Mechanism " consisting of one or a combination of the following: (a) submittal of an Investment Agreement to the Madagascar Parliament for approval as law and certification of the Toliara Project (" Project Certification ") under existing law establishing a special regime for large scale investments in the Malagasy mining sector (the " LGIM "); (b) promulgation of amendments and revisions to the existing LGIM (the " LGIM Amendment ") in a form that provides for the necessary certainty of financial and legal terms, and reasonable financial, operational and legal requirements, for large-scale projects and have Project Certification under the amended LGIM, together with an Investment Agreement (if reasonably required) submitted to Parliament for approval as law; and/or (c) another agreed upon mechanism that achieves the necessary certainty of financial and legal terms, and reasonable financial, operational and legal requirements, applying to large-scale mining projects.

Mark S. Chalmers , President and CEO of Energy Fuels commented: "As I've said before, I believe the Toliara Project is a 'generational' critical mineral project that has the strong potential to operate well beyond many of our lifetimes. Therefore, it is vital to Energy Fuels, and to our Base Resources subsidiaries, that the Republic of Madagascar and the communities in the vicinity of the Project enjoy significant benefits that go beyond jobs, economic development, and sustainable operations that respect human rights, local culture, and the environment. To achieve this vision, the MOU signed today creates the framework for a long-term mutually beneficial partnership between a U.S. critical mineral company and the people of Madagascar . We look forward to continuing to work with the Government of Madagascar to formalize the terms of the MOU and grow our relationship with what we believe will be the largest U.S. investment in the country's history."

Key Terms and Conditions of the MOU

Under the MOU, the Company has agreed to pay a five percent (5%) royalty (and no other) on mining products and deliver US$80 million after Project Certification in development, community, and social project funding, including a total of $30 million within 30 days after Project Certification, another $10 million within 30 days after achieving a positive FID and an additional $40 million by the fourth year of operations. In addition, the Company has agreed to spend at least $1 million prior to FID in the Atsimo Andrefana Region on community and social investments, and $4 million annually thereafter, indexed at 2% per annum, from commencement of construction after a positive FID. The Company has also committed to developing the Toliara Project in an environmentally, socially and fiscally responsible manner, and to observe the specific protections set out in the MOU.

The payments described above are not expected to have a material effect on the economics of this potentially multi-billion project, which (along with the appropriate disclaimers related to technical disclosure) are described in the Company's April 2024 press release . The Company is in the process of updating the September 2021 definitive feasibility study and December 2023 prefeasibility study on the Toliara Project, along with the White Mesa Mill's 2024 prefeasibility study on rare earth oxide production, to reflect current economics.

The Government has agreed in the MOU, among other things, to:

  • assist the Company with obtaining all necessary administrative authorizations for the purpose of adding REE-bearing monazite recovery to existing permits;
  • certify the Project as eligible under the LGIM (or amended LGIM, if applicable) as soon as the LGIM eligibility conditions are met; support the prompt development of the Toliara Project, including (without limitation) by causing all relevant State authorities to timely consider and grant all complete applications for permits, licenses or authorizations necessary or desirable for the development and operation of the Toliara Project in accordance with the laws of Madagascar ;
  • maintain the fiscal, legal and customs stability of the Toliara Project;
  • not, directly or indirectly, receive, take or have an interest (including an economic interest or form of production sharing arrangement, and whether carried or free-carried) in the Company or any of its assets, including the Toliara Project;
  • provide active and public support for the Toliara Project, including by publicly announcing the State's support for the Toliara Project and its development; and
  • undertake any LGIM amendments in consultation with relevant stakeholders, including the Company, to ensure that such amendments (or similar instruments with legislative force) provide the necessary certainty of financial and legal terms to address the reasonable financial, operational and legal requirements of large-scale mining projects, and otherwise supports the bankability of the Toliara Project and the ability of the Company to achieve a positive FID.

In addition, under the MOU, the Company's agreement to pay a 5% royalty on revenues and its commitments to pay the US$80 million in development, community and social funding are conditional on:

  • the terms of the Stability Mechanism being adopted in a form that is satisfactory to the Company;
  • Project Certification having been obtained; and
  • prior to Project Certification having been obtained, there being no change to the laws of Madagascar (as they apply to the Company and the Toliara Project as at the date of the MOU) that is adverse to the Company or the Toliara Project.

The MOU and its terms are expressly subject to the foregoing conditions set out in the MOU. It should be noted that there can be no assurance that the foregoing conditions will be satisfied or as to the timing of satisfaction of those conditions, or the timing for approval of the addition of monazite to the mining permit. If such conditions are not satisfied, this could delay any FID in relation to the Toliara Project or prevent or otherwise have a significant effect on the development of the Toliara Project or ability to recover Monazite from the Toliara Project.

ABOUT Energy Fuels

Energy Fuels is a leading US-based critical minerals company, focused on uranium, REEs, heavy mineral sands ("HMS"), vanadium and medical isotopes. The Company has been the leading U.S. producer of natural uranium concentrate for the past several years, which is sold to nuclear utilities that process it further for the production of carbon-free nuclear energy and owns and operates several conventional and in situ recovery uranium projects in the western United States. The Company also owns the White Mesa Mill in Utah, which is the only fully licensed and operating conventional uranium processing facility in the United States. At the Mill, the Company also produces advanced REE products, vanadium oxide (when market conditions warrant), and is preparing to begin pilot-scale recovery of certain medical isotopes from existing uranium process streams needed for emerging cancer treatments. The Company also owns the operating Kwale HMS project in Kenya which is nearing the end of its life and is developing three (3) additional HMS projects, including the Toliara Project in Madagascar, the Bahia Project in Brazil, and the Donald Project in Australia in which the Company has the right to earn up to a 49% interest in a joint venture with Astron Corporation Limited. The Company is based in Lakewood, Colorado, near Denver, with its HMS operations managed from Perth, Australia. The primary trading market for Energy Fuels' common shares is the NYSE American under the trading symbol "UUUU," and the Company's common shares are also listed on the Toronto Stock Exchange under the trading symbol "EFR." For more information on all we do, please visit http://www.energyfuels.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This news release contains certain "Forward Looking Information" and "Forward Looking Statements" within the meaning of applicable United States and Canadian securities legislation, which may include, but are not limited to, statements with respect to: any expectation that the Company will maintain its position as a leading U.S.-based uranium and critical minerals company or as the leading producer of uranium in the U.S.; any expectation that the Company will re-commence development activities on the ground, re-establish the Company's community programs or progress the other activities necessary to achieve a positive FID for the Toliara Project; any expectation that the Toliara Project is a 'generational' critical minerals project or that it has the strong potential to operate well beyond many of our lifetimes or at all; any expectation that the Company will continue working with the Government of Madagascar to formalize fiscal and other terms applicable to the Project through an investment agreement, amendments to existing laws or other mechanisms as appropriate; any expectation that rare-earth element production will be added to the existing mining permit; any expectation that the financial and legal stability of the Toliara Project will be maintained; any expectation that the Toliara Project will attain Project Certification or that the other conditions to the Company's funding obligations will be satisfied; any expectation that a positive FID will be made for the Toliara Project and the timing of any such positive FID; any expectation that the Toliara Project will be developed; any expectation that the MOU will create the framework for a long-term mutually beneficial partnership between a U.S. critical mineral company and the people of Madagascar ; and any expectation that the Company will be successful in recovering certain medical isotopes from existing uranium process streams needed for emerging cancer treatments. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects," "does not expect," "is expected," "is likely," "budgets," "scheduled," "estimates," "forecasts," "intends," "anticipates," "does not anticipate," or "believes," or variations of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, herein are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from those anticipated in these forward-looking statements include risks associated with: commodity prices and price fluctuations; engineering, construction, processing and mining difficulties, upsets and delays; permitting and licensing requirements and delays; changes to regulatory requirements; legal challenges; competition from other producers; public opinion; government and political actions; the failure of the Company to provide or obtain the necessary financing required to develop the Project; market factors, including future demand for REEs; and the other factors described under the caption "Risk Factors" in the Company's most recently filed Annual Report on Form 10-K, which is available for review on EDGAR at www.sec.gov/edgar.shtml , on SEDAR at www.sedar.com , and on the Company's website at www.energyfuels.com . Forward-looking statements contained herein are made as of the date of this news release, and the Company disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements. The Company assumes no obligation to update the information in this communication, except as otherwise required by law.

Cision View original content to download multimedia: https://www.prnewswire.com/news-releases/energy-fuels-and-madagascar-government-execute-memorandum-of-understanding-to-further-advance-toliara-critical-mineral-project-in-madagascar-302323924.html

SOURCE Energy Fuels Inc.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2024/05/c6155.html

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Chinese flag over shipping containers and coins.

China Restricts Key Critical Minerals Exports in Response to US Chip Controls

China has set new US export restrictions on essential minerals, including gallium, germanium and antimony.

The measures, announced on Tuesday (December 3) are seen as a direct response to US export controls aimed at limiting China's access to advanced semiconductor technology.

Citing national security concerns, the US recently expanded its list of companies subject to export controls to include 140 Chinese entities connected to semiconductor development.

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First Helium Advances Licensing of Strategic 7-15 and 7-30 Leduc Wells Targeting Light Oil

First Helium Advances Licensing of Strategic 7-15 and 7-30 Leduc Wells Targeting Light Oil

First Helium Inc. ("First Helium" or the "Company") (TSXV: HELI) (OTCQB: FHELF) (FRA: 2MC) today announced that it has completed surveying its proven undeveloped ("PUD") 7-30 location and is advancing through the licensing process for both the 7-30 and 7-15 locations, respectively. The 7-30 PUD well will be drilled on an existing surface location which will enable the Company to expedite drilling. The PUD well has been assigned proved plus probable undeveloped reserves of 196,700 barrels 2 by Sproule Associates Limited ("Sproule") 1 the Company's independent evaluator, and will be drilled in conjunction with the recently identified 7-15 Leduc anomaly.

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