Mr. Ramon Barua reports

ACLARA ANNOUNCES DISCOVERY OF 168 MT IONIC CLAY MINERAL RESOURCE AT ITS CARINA MODULE IN GOIAS, BRAZIL

Aclara Resources Inc. has released the maiden mineral resource estimate (MRE) for its regolith-hosted ion adsorption clay project located in the state of Goias, Brazil, known as the Carina Module.

Highlights:

• The initial inferred mineral resource for the project is estimated at 168 million tonnes with a grade of 1,510 parts per million total rare earth oxide (TREO) and 477 ppm desorbable rare earth oxide (DREO).
• The average net smelter return (NSR) value of the resource is $32.3 (U.S.)/t when using a cut-off value of $7.4/t (U.S.).
• The deposit contains significant quantities of dysprosium (Dy), terbium (Tb), neodymium (Nd) and praseodymium (Pr), which are the rare earth elements critical to the production of permanent magnets used in electric vehicles and wind turbines.
• Recovery of rare earths from the project is fully compatible with the technology patented and successfully demonstrated on a pilot scale by Aclara in Chile, designed to minimize both cost and environmental footprint.
• The near-surface location of the deposit results in a very low strip ratio (less than 0.4) providing a positive backdrop for a low-cost mining operation.
• The 168 Mt of inferred mineral resources at the Carina Module complements the 27.5 Mt of measured and indicated mineral resources, and 1.7 Mt of inferred mineral resources at Aclara's Penco Module in Chile.

Next steps:

• Production of samples by processing the project's ionic clays at Aclara's pilot plant in Chile during December, 2023, and January, 2024;
• Completion of a preliminary economic assessment (PEA) in January, 2024;
• Pursuit of additional resources through the completion of a reverse circulation (RC) drilling campaign, which is already under way and scheduled to be completed in Q2 2024.

Aclara chief executive officer Ramon Barua commented:

"The combination of its large size and attractive grades makes the Carina Module an outstanding deposit of ionic clays and significantly increases Aclara's total resource base. The fact that we can apply our patented metallurgical recovery process, which combines competitive costs with superior environmental qualities, provides a promising backdrop for the upcoming preliminary economic assessment. We are excited by the possibility of becoming a significantly larger supplier of magnetic rare earths, especially dysprosium, given how critical these elements are in our planet's fight against climate change."

Mineral resource statement

The mineral resource has been estimated using the results obtained from 201 auger drill holes (1,630 metres) and 1,418 samples. At a $7.4 (U.S.)/t NSR cut-off the mineral resource stands at 168 million tonnes in the inferred mineral resources category, at 1,510 ppm TREO containing an average Dy and Tb grade of 42.1 ppm and 6.9 ppm, respectively. The mineral resource is reported in accordance with the requirements of National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

Cut-off determination and selection

The MRE is pit-constrained using GEOVIA Whittle 2022 software, with an overall slope angle of 25 degrees and a mining cost of $2.13 (U.S.)/t. The MRE is reported at an NSR marginal cut-off cost of $7.4 (U.S.)/t based on processing costs, plus royalties and general and administrative cost estimates. The NSR calculation uses recoveries that are based on preliminary metallurgical test work performed by the AGS Laboratory in La Serena, Chile.

• Selling prices for rare earth oxides: The price estimates in U.S. dollar/kilogram used for pit optimization are lanthanum oxide -- 0.68, ceric oxide -- 0.69, praseodymium oxide -- 144.18, neodymium oxide -- 150.75, samarium oxide -- 2.39, europium oxide -- 27.45, gadolinium oxide -- 71.55, terbium oxide -- 1,789.25, dysprosium oxide -- 477.25, holmium oxide -- 137.25, erbium oxide -- 59.10, thulium oxide -- 0.0, ytterbium oxide -- 19.85, lutetium oxide -- 834.75, yttrium oxide -- 2.86;
• Metallurgical recoveries: Obtained from the 1,432 drilling sample analyses performed by AGS Laboratory in La Serena, Chile, tested under conditions that carry out desorption at a pH of 4.0, plus a synthetic lixiviant solution designed to emulate the predicted concentrations of recycled salts generated in the closed-circuit process;
• Plant efficiency: Variable by element, ranging from 90.5 to 99.1 per cent with an approximate average of 94 per cent;
• Carbonate transportation and selling cost -- 3.2 U.S. cents/kg of carbonates;
• Carbonate purity -- 92.7 per cent.

All technical and economic parameters will be subject to further consideration during the preparation of the PEA, which is expected to be issued in January, 2024.

Aclara's low-cost and environmentally friendly production process

Aclara's extraction process presents several attributes that are favourable from a cost and environmental perspective. Notably, this process refrains from employing energy-intensive techniques such as blasting, crushing or milling. REE-rich clays will be extracted using mechanical excavation as opposed to explosives and will benefit from an average strip ratio of less than 0.4. Furthermore, it obviates the generation of tailings, thereby negating the need for a tailings storage facility. The patented extraction process maximizes the recirculation of water within the process. The ionic clay feedstock demonstrates susceptibility to leaching via a common fertilizer (ammonium sulphate), and concurrently, it does not engender the concentration of radionuclides. All these attributes result in a low-cost, low-carbon-footprint mining operation that is positioned very favourably when compared with other rare earths producers.

Auger drilling campaign summary

A total of 201 auger holes over a combined length of 1,630 metres were drilled between February and August, 2023, and form the basis of the initial MRE covering approximately 1,400 hectares within the project area. The average drill hole spacing across the mineralized area was 200 metres, with an area in the northeast of the resource drilled to 100 metre centres for the purposes of confirming variogram parameters in this area.

Reverse circulation drilling campaign

The average drill depth of the MRE is 8.1 metres, which did not consistently reach the bottom limits of the lower Pedolith and Saprolite. Over 70 per cent of the auger drill holes indicated a high anomalous exchangeable fraction in the last interval, which suggested that the deposit remained open at depth. As a result, a 9,090-metre RC drilling campaign has been planned, which will reach the bottom limit of the saprolite zone and may result in the discovery of additional inferred mineral resources at depth of the deposit.

The company is currently executing the initial phase of the RC drilling campaign, which includes 1,500 metres within 56 drill holes. As of the date of this news release, 47 holes had been completed measuring a total of 1,275 metres.

The remaining 7,590 metres of the RC campaign will commence at end of Q1 2024 after receiving the suppression permits necessary to enter the remaining areas of the project. The complete set of results of the RC drilling campaign is expected by the end of Q2 2024.

Geology and geological interpretation

The dominant lithologies of the project are pink porphyritic biotite granite composed of quartz, oligoclase, microcline and annite as essential minerals. Leucogranite is the secondary lithology, characterized by quartz, albite and microcline. The contact of the biotite granite and leucogranite is given by faults trending from northeast to southwest. This fault event created a fracture zone where hydrothermal alteration is exhibited, giving rise to greisenized granites and gresisens. According to alteration and stratigraphic position, the regolith column in the project area was subdivided into upper pedolith (UP), lower pedolith (LP), upper saprolite (US), lower saprolite (LS) and saprock (SapRock).

Sampling, assay and quality assurance/quality control protocols

The 201 auger drill holes were sampled at intervals of 0.5 metre to two metres, for a total of 1,418 samples. The analytical batches included 233 QA/QC samples. All samples were sent for total REE analysis (REY T) to the ALS laboratory in Lima, Peru, and desorption (REY D) analysis to AGS laboratory in La Serena, Chile. The methodology for collecting the auger drill samples was designed following recommendations by expert mining industry groups GeoAnsata and GE21.

The quality of the assay data for the rare earth elements dysprosium (Dy), neodymium (Nd), praseodymium (Pr) and terbium (Tb) was statistically evaluated by GE21 based on QA/QC samples (analysis of certified reference materials, field duplicates and sample split duplicates, fine and coarse blanks) and via the execution of twin holes. GE21 is a Brazilian-based engineering consultancy with considerable experience in resource modelling and estimation. It considers the assay results to be of sufficient precision and accuracy to support the estimation of the mineral resources.

Estimation methodology and reporting of mineral resources

High-grade capping supported by statistical analysis was completed on two-metre composites and applied to the project resource estimate.

The MRE was completed using the Leapfrog Edge software to generate a block model consisting of parent blocks measuring 50 metres by 50 metres by four metres with subblocks of 12.5-metre-by-12.5-metre-by-two-metre dimensions.

Variography was performed for each of the five geological domains in the project zone, for three groups of elements: heavy rare earth elements plus yttrium (gadolinium, terbium, dysprosium, holmium, erbium, thulium, ytterbium, lutetium, yttrium), light rare earth elements minus cerium (lanthanum, praseodymium, neodymium, samarium, europium), and cerium (Ce), which showed a poor correlation with the other two groups.

Grade interpolation for each of the 15 rare earth elements was performed via ordinary kriging into the parent blocks using hard boundaries. Estimation was conducted using a strategy to control geometry and number of samples in the interpolation.

Block estimation was validated visually, by global bias analysis and by trend analysis.

In situ bulk density was assumed to have a value of 1.8 t/cubic metre for the pedolith profile, based on similar projects in the region.

The MRE is classified as inferred mineral resources. The classification was based on level of confidence in the data, geological continuity and geostatistical parameters appropriate to deposit type.

Qualified persons

The technical information in this news release, including the information related to geology, drilling and mineralization, has been reviewed and approved by geologist Fabio Xavier (MAIG No. 5179) and mining engineer Porfirio Rodriguez (FAIG No. 3708), associated with GE21. GE21 is a specialized, independent mineral consulting company.

Mr. Rodriguez has more than 40 years of experience in the field of mineral resource and reserve estimate. Mr. Rodriguez is a fellow of the Australian Institute of Geoscientists (FAIG) and is a qualified person as defined under National Instrument 43-101.

The MRE has been prepared by Mr. Xavier. Mr. Xavier is a member of Australian Institute of Geoscientists (AIG) and is a qualified person (QP) as defined under NI 43-101. He is responsible for the MRE and has reviewed and approved the scientific and technical information related to the MRE contained in this news release.

Mr. Rodriguez and Mr. Xavier visited the project from Aug. 16 to Aug. 18, 2023, during the execution of the auger drilling campaign, conducted by the GE21 team under the co-ordination of geologist Andre Costa (FAIG No. 7967). The visit was supported by Aclara's exploration manager, Luiz Jorge Frutuoso.

Mr. Frutuoso is a fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and fellow of Australian Institute of Geoscientists (AIG) and is a qualified person as defined under NI 43-101. Relevant geological information, database and analysis of the QA/QC relating to the project were provided by Mr. Frutuoso.

A technical report for the project, to be prepared in accordance with NI 43-101, will be filed under the company's profile on SEDAR+ within 45 days of this news release.

About Aclara Resources Inc.

Aclara is a development-stage company that focuses on heavy rare earth mineral resources hosted in ion-adsorption clay deposits. Its primary project is known as the Penco Module and is located in the BioBio region of southern Chile. The company is also evaluating a second module, the Carina Module, located in the state of Goias in central Brazil.

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