Ucore Rare Metals: US DoD Approves US$1.8 Million Payment

December 13, 2024 at 07:50 AM EST

Halifax, Nova Scotia--(Newsfile Corp. - December 13, 2024) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") is pleased to advise that the US Department of Defense (the "DoD") has approved modifications to the Company's existing Other Transaction Agreement (the "OT Agreement" or "Award") and the corresponding payment of US$1.8 million for the completion of milestones under the Award.

The Award was made through the Company's wholly owned subsidiary, Innovation Metals Corp., to conduct rare earth element ("REE") separation work at the Company's RapidSX^TM Commercial Demonstration Facility ("CDF") in Kingston, Ontario.

As previously reported, the Company was awarded the US$4 million OT Agreement to demonstrate the commercial efficacy of its RapidSX™ separation technology to the DoD, including:

The capability to commercially deploy a sustainable domestic (United States and Canada) processing facility for converting heavy and light rare earth feedstock sources to salable individual rare earth products.
A new, innovative refining/separation process that increases the ability to create domestic rare earth processing plants.

The modifications amended the existing agreement to more closely align payment milestones to the commercial objectives of the project, including:

significant business progress towards the establishment of a Western Supply chain
over 2,600 hours of Demo Plant operation in a simulated commercial environment processing tonnes of mixed rare earth elements
1,000s of hours of conventional SX pilot operation for direct comparative analysis

The payment will bring the total payments received to date under the OT Agreement to US$ 2.3 million.

The supply of rare earth products has been the subject of increasing attention and is highlighted in the 2024 National Defense Authorization Act, which will implement a ban on the import of rare earth products from China and other covered countries for use in the National Defense Industry. The ban is scheduled to take effect from January 1, 2027.

"We are tremendously appreciative of the support that we have received from the US DoD," stated Pat Ryan, Chairman and CEO of Ucore. "The need for a domestic rare earth supply chain, as highlighted in the 2024 National Defense Authorization Act has never been higher. We look forward to continuing our work with the DoD and other industry participants to ensure domestic supply of these critical materials."

The Company will continue the execution of its DoD heavy REE Project through the first half of 2025 and then transition to the completion of its previously announced C$4.28M light REE demonstration project with the Government of Canada.

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About Ucore Rare Metals Inc.

Ucore is focused on rare- and critical-metal resources, extraction, beneficiation, and separation technologies with the potential for production, growth, and scalability. Ucore's vision and plan is to become a leading advanced technology company, providing best-in-class metal separation products and services to the mining and mineral extraction industry.

Through strategic partnerships, this plan includes disrupting the People's Republic of China's control of the North American REE supply chain through the near-term establishment of a heavy and light rare-earth processing facility in the U.S. State of Louisiana, subsequent Strategic Metal Complexes in Canada and Alaska and the longer-term development of Ucore's 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska, USA.

Ucore is listed on the TSXV under the trading symbol "UCU" and in the United States on the OTC Markets' OTCQX® Best Market under the ticker symbol "UURAF."

For further information, please visit www.ucore.com.

Forward-Looking Statements

This press release includes certain statements that may be deemed "forward-looking statements." All statements in this release (other than statements of historical facts) that address future business development, technological development and/or acquisition activities (including any related required financings), timelines, events, or developments that the Company is pursuing are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance or results, and actual results or developments may differ materially from those in forward-looking statements.

Regarding any disclosure in the press release above about the US Department of Defense or the Government of Canada Programs and the expected successful progress and resulting milestone payments from these Programs, the Company has assumed that the Programs (including each of their milestones) will be completed satisfactorily. For additional risks and uncertainties regarding the Company, the CDF, the Demo Plant and ongoing Programs (generally), see the risk disclosure in the Company's MD&A for Q3-2024 (filed on SEDAR on November 18, 2024) (www.sedarplus.ca) as well as the risks described below.

Regarding the disclosure above in the "About Ucore Rare Metals Inc." section, the Company has assumed that it will be able to procure or retain additional partners and/or suppliers, in addition to Innovation Metals Corp. ("IMC"), as suppliers for Ucore's expected future Strategic Metals Complexes ("SMCs"). Ucore has also assumed that sufficient external funding will be found to complete the Demo Plant demonstration schedule and also later prepare a new National Instrument 43-101 ("NI 43-101") technical report that demonstrates that the Bokan Mountain Rare Earth Element project ("Bokan") is feasible and economically viable for the production of both REE and co-product metals and the then prevailing market prices based upon assumed customer offtake agreements. Ucore has also assumed that sufficient external funding will be secured to continue the development of the specific engineering plans for the SMCs and their construction. Factors that could cause actual results to differ materially from those in forward-looking statements include, without limitation: IMC failing to protect its intellectual property rights in RapidSX™; RapidSX™ failing to demonstrate commercial viability in large commercial-scale applications; Ucore not being able to procure additional key partners or suppliers for the SMCs; Ucore not being able to raise sufficient funds to fund the specific design and construction of the SMCs and/or the continued development of RapidSX™; adverse capital-market conditions; unexpected due-diligence findings; the emergence of alternative superior metallurgy and metal-separation technologies; the inability of Ucore and/or IMC to retain its key staff members; a change in the legislation in Louisiana or Alaska and/or in the support expressed by the Alaska Industrial Development and Export Authority ("AIDEA") regarding the development of Bokan; the availability and procurement of any required interim and/or long-term financing that may be required; and general economic, market or business conditions.

Neither the TSXV nor its Regulation Services Provider (as that term is defined by the TSXV) accept responsibility for the adequacy or accuracy of this release.

CONTACTS

Mr. Michael Schrider, P.E., Ucore Vice President and Chief Operating Officer, is responsible for the content of this news release and may be contacted at 1.902.482.5214.

For additional information, please contact:

Mark MacDonald
Vice President, Investor Relations
Ucore Rare Metals Inc.
1.902.482.5214
mark@ucore.com

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/233667

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Ucore Rare Metals: US DoD Approves US$1.8 Million Payment

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