Increase In Inferred Mineral Resources At Carina Module

TORONTO - Aclara Resources Inc. reported on the mineral resource estimate (MRE) of the Carina Module, Aclara's ion adsorption clay project located in Goiás, Brazil, which reflects an inferred mineral resource of 298 Mt, an increase from the previously reported inferred mineral resource. The inferred mineral resource for the Carina Module is estimated at 298 Mt, which represents a 77% increase compared to the previously reported inferred mineral resource of 168Mt. The estimate of contained amounts of magnetic elements1 increased approximately 69% compared to the amount reported in the 2023 Resource Statement, reflecting an increase in contained heavy rare earths (dysprosium and terbium (DyTb)), from 8,240t to 13,470t, and an increase in contained light rare earths (neodymium and praseodymium (NdPr)), from 49,832t to 84,565t. Rare earth magnetic elements (i.e. DyTb and NdPr) are critical to the production of permanent magnets that are used in electric vehicles and wind turbines.

Metallurgical recoveries of rare earths from the Carina Module remain compatible with the technology patented and successfully demonstrated on a pilot scale by Aclara at its pilot plant located in Chile, which is designed to minimize both cost and environmental footprint. The near-surface location of the deposit results in a low strip ratio (0.2) providing a positive backdrop for low-cost mining operations.

Secured two additional mining rights adjacent to its existing mineral rights in the Carina Module through a public bidding process conducted by the Brazilian National Mining Agency ("Agencia Nacional de Mineração" or "ANM"). The two new mining rights will enable Aclara to explore new areas in the future and further optimize the design of the Carina Module.

The next steps are: 1) The anticipated completion of an updated preliminary economic assessment of the Carina Module in September 2024. 2) Continuation of the Carina Module pre-feasibility study 3) Completion of a 15,200-meter Phase 2 reverse circulation ("RC") 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. 4) Execution of a metallurgical test campaign during H2 2024 and H1 2025. Sample collections will 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. 5) Installation and operation of a new semi-industrial scale pilot plant in the State of Goias, Brazil during Q2 2025. The piloting operation will be aimed at (i) confirming the processing parameters and final process flowsheet design for the feasibility study, (ii) generating a high purity HREE carbonate for separation trials in support of future off-take agreements, and (iii) demonstrating to relevant stakeholders the environmental sustainability of the process design.