Mr. Ramon Barua reports

ACLARA RECEIVES U.S. GOVERNMENT INVESTMENT

Aclara Resources Inc. has received a commitment from the U.S. International Development Finance Corp. (DFC) for up to $5-million (U.S.) in project development funding for the company's Carina heavy rare earths project in Goias, Brazil. Pursuant to the terms of DFC's funding, the project development funds may be converted into equity of the company upon the company completing a single financing event of more than $50-million (U.S.), or multiple financing events totalling at least $75-million (U.S.) within a period of 12 months), for the construction of the Carina project. Upon the financing event, DFC will also have a preferential option to be mandated to directly provide and/or arrange for financing or investment in the Carina project.

The strategic investment provided under DFC's Project Development Program will primarily fund a feasibility study for the Carina project. The feasibility study, which was initiated in July, 2025, and is expected to be completed by the end of the first quarter of 2026, is being conducted by Hatch Ltd. as a continuation of the prefeasibility study scheduled for release in September, 2025. The Carina project is projected to commence operations in 2028.

DFC is the U.S. government's development finance institution that partners with the private sector to mobilize capital for strategic investments around the world. The project development funds will be released over the course of the preparation of the feasibility study and will be based on the achievement of milestones forming integral parts of the feasibility study. No interest is payable on the project development funds, and the repayment of the project development funds may be triggered by DFC upon the company achieving the financing event for the construction of the Carina project. No security interest will be granted by the company in connection with the project development funds.

Ramon Barua, chief executive officer of Aclara, commented: "We are deeply honoured to have been selected by the U.S. DFC as a recipient of the project development funds. This initial investment is not only a validation of Aclara's strategy, but also an important first step toward a larger commitment from DFC once we complete the feasibility study for the Carina project, which is already under way and expected to be finalized early next year.

Having such a strong partner helps de-risk the development of our project in Brazil while providing additional confidence to potential off-takers currently evaluating Aclara as a long-term supplier of heavy rare earths. The investment also highlights the strategic importance of heavy rare earths to the United States and the critical need to secure them from sustainable and reliable sources.

We are proud to welcome DFC as a partner and extend our sincere gratitude to their team for their trust and commitment. We look forward to building on this collaboration as we advance the Carina project toward becoming a cornerstone of a resilient and sustainable Western supply chain."

Aclara mine-to-magnet strategy

Aclara Resources is making steady progress toward its vertically integrated "mine-to-magnet" strategy, aimed at establishing a responsible and transparent supply of heavy rare earths for global markets. The company is advancing two cornerstone projects in South America -- the Carina Module in Brazil and the Penco Module in Chile -- while simultaneously developing a U.S.-based separation facility that will serve as the critical mid-stream link in Aclara's value chain.

In Brazil, Aclara is operating a mixed rare earth carbonate pilot plant, an important milestone that validates its proprietary circular mineral harvesting process. This environmentally focused technology recycles more than 95 per cent of water and 99 per cent of reagents, eliminates tailings and enables complete revegetation of mining sites -- setting a new benchmark for sustainable rare earth production.

In the United States, the company has completed conceptual engineering for a state-of-the-art separation facility designed with waste minimization and zero liquid discharge systems. Aclara also announced a collaboration with Virginia Tech to host and operate its heavy rare earth separation pilot plant, which will provide a vital platform for technology validation, process optimization and work force training. This initiative marks a key step toward establishing a full-scale U.S. facility capable of converting mixed rare earth carbonates from Aclara's South American projects into separated oxides.

Downstream, Aclara is advancing a 50:50 joint venture with Chilean steelmaker CAP S.A. to produce rare earth metals and alloys, providing the essential feedstock for permanent magnets. Complementing this, the company has entered into a strategic alliance with global magnet manufacturer Vacuumschmelze to integrate these materials into magnet production, positioning Aclara as one of the only fully ESG-(environmental, social and governance)-compliant "mine-to-magnet" supply chains in the world.

About Aclara Resources Inc.

Aclara Resources is focused on building a vertically integrated supply chain for rare earths alloys used in permanent magnets. This strategy is supported by Aclara's development of rare earth mineral resources hosted in ionic clay deposits, which contain high concentrations of the scarce heavy rare earths, providing the company with a long-term, reliable source of these critical materials. The company's rare earth mineral resource development projects include the Carina project in the state of Goias, Brazil, as its flagship project and the Penco module in the Biobio region of Chile. Both projects feature Aclara's patented technology, named circular mineral harvesting, which offers a sustainable and energy-efficient extraction process for rare earths from ionic clay deposits. The circular mineral harvesting process has been designed to minimize the water consumption and overall environmental impact through recycling and circular economy principles. Through its wholly owned subsidiary, Aclara Technologies, the company is further enhancing its product value by developing a rare earths separation plant in the United States. This facility will process mixed rare earth carbonates sourced from Aclara's mineral resource projects, separating them into pure individual rare earth oxides.

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