Mr. Tracy Moore reports

CANADA RARE EARTH ENTERS INTO A SECOND SET OF HEDGED PURCHASE AND SALE AGREEMENTS

Canada Rare Earth Corp. is increasing momentum in its concentrate trading business.

The company has entered into the next set of hedged contracts to purchase and sell 310 metric tonnes of rare earth concentrate with locked-in gross profits. This volume of concentrate is 12 times the amount currently in international waters and scheduled to arrive at the company's customer's selected port in early April, 2017.

Peter Shearing, chief operating officer of Canada Rare Earth, explained, "We are confident of the ongoing buying we have arranged, and we are driving to secure immediate, dependable supply meeting the specified criteria (price, quantities and array of rare earths) in the order of 300 metric tonnes to 500 metric tonnes per month on an ongoing multiyear basis."

Canada Rare Earth is also developing sources to supply medium-term and longer-term needs such as providing feedstock to the company's prospective proprietary rare earth processing plants. These facilities are designed to produce and supply high-quality and high-purity rare earth products such as individual oxides, metals and custom products, especially to the non-China market.

Mr. Shearing continued: "Regarding the second set of contracts, 272 metric tonnes of concentrate are scheduled to leave the mine sites within seven days, be loaded on a vessel on April 7, 2017, and arrive at the ultimate buyer's selected port in mid-May, 2017. The balance of 38 metric tonnes is being completed and will be shipped near the end of April, 2017, along with product for a third set of transactions we are negotiating with the same supplier."

Tracy A. Moore, chief executive officer of Canada Rare Earth, remarked: "We are thrilled with the trading momentum we have established so far and are building on it to establish a robust and consistent supply to our customer. The current set of orders will generate over $500,000 of revenues with determined gross profits and cash flow for our company."

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