Mr. Ramon Barua reports

BRAZILIAN DELEGATION OF SENIOR AUTHORITIES VISITS ACLARA'S HEAVY RARE EARTHS PILOT PLANT IN CHILE

Aclara Resources Inc. hosted a delegation of representatives from the state of Goias, Brazil, in Concepcion, Chile, on Feb. 15, 2024. The purpose of the visit was to demonstrate the environmentally sustainable features of its patented technology, which has been implemented at the company's pilot plant in Chile and which will be used at the Carina Module project, located in Goias, Brazil. This visit followed Aclara's meeting with the authorities in Goias on Oct. 25, 2023, when the company's management presented the Carina Module project for the first time to the Governor and several other senior officials of the State of Goias.

Aclara chief executive officer Ramon Barua commented: "We extend our gratitude to the Brazilian authorities for this fruitful visit to our pilot plant in Chile. They had the opportunity to observe first-hand our environmentally responsible operations, witnessing the processing of the ionic clays sourced from our Carina Module project in Brazil. Our visitors share our commitment to sustainable mineral extraction and have conveyed their support for expediting the development of the Carina Module. Also, the Brazilian authorities visited our Aclara House in Penco and witnessed first-hand how our company interacts with the local community. Aclara remains fully committed to closely collaborating with the government of Goias to ensure the success of this project."

Visit highlights:

• Key government representatives from the State of Goias that took part in the visit included:
  • The Secretary of Environment and Sustainable Development, Andrea Vulcanis, who will oversee the permitting process for the Carina Module;
  • The Secretary of Industry, Trade and Services, Joel Santana, responsible for attracting investment in Goias;
  • The state deputy and president of the Chamber of Mines and Energy, Lineu Olimpio;
  • President of the Goias State Extractive Industries Union, Luiz Vessani.
• The Brazilian delegation of representatives took a guided tour of Aclara's pilot plant in Penco, Chile, where they learned how the circular mineral harvesting process works. They saw first-hand that the clean process uses only recycled water, recirculating 95 per cent of the water used back into the system, and the low carbon footprint of the extraction method as the ionic clays are processed without the need for grinding or milling. The guests were also able to note that a tailings dam is not needed and that 99 per cent of the reagent used to separate the clays from the rare earths also is recycled back into the process.
• The delegation of representatives also visited one of Aclara's social engagement projects in Penco and held a meeting with local authorities, including the Governor of the Biobio region. Meetings with company representatives included discussions regarding the global rare earth market, the Carina Module project, and opportunities for collaboration between Aclara and the government of Goias.

Carina Module piloting

Piloting of the Carina Module ionic clays started the last week of December, 2023, and will be completed at the end of February, 2024. The company expects to produce between 10 kilograms and 15 kilograms of heavy rare earth mixed carbonates, which will be key to continuing commercial discussions with potential separators, other stakeholders from the rare earth value chain and original equipment manufacturers.

About Aclara Resources Inc.

Aclara Resources is a development-stage company that focuses on heavy rare earth mineral resources hosted in ion-adsorption clay deposits. The company currently has two projects under development: the Penco Module in the Bio-Bio region of Chile and the Carina project in the state of Goias, Brazil.

Aclara's rare earth extraction process offers several environmentally attractive features. It does not involve blasting, crushing or milling and therefore does not generate tailings, thus eliminating the need for a tailings 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 -- ammonium sulphate. Further, harmful levels of radionuclides, typical of hard-rock rare earth deposits, are not concentrated within the Aclara flow sheet.

Simultaneously, alongside the development of the Carina and Penco projects, the company intends to identify and evaluate further opportunities to increase future production of heavy rare earths. This will involve greenfield exploration programs and the development of additional projects within the company's concessions in Brazil, Chile and Peru.

We seek Safe Harbor.