Mr. Ramon Barua reports

EUROPEAN UNION MEMBER STATE AMBASSADORS AND REPRESENTATIVES VISIT ACLARA'S RARE EARTH PROJECT IN PENCO

A European Union delegation comprising 11 ambassadors and diplomatic representatives, binational chambers, companies, and R&D (research and development) centres from various European countries has visited Aclara Resources Inc.'s rare earths project in Penco, Biobio region in Chile, to gain first-hand knowledge Aclara's rare earths initiative.

The delegation, consisting of more than 50 participants, was led by European Union Ambassador Claudia Gintersdorfer, together with ambassadors from Belgium, Denmark, Spain, France, Greece, Hungary, Italy, the Netherlands, Poland, the Czech Republic and Sweden, along with commercial councillors, economic services representatives, agencies, R&D centres, and companies from the aforementioned countries, as well as others including Germany, Austria, Croatia and Ireland.

The full-day visit included a tour of the property in Penco, where Aclara's rare earth deposit is located, enabling the delegation to directly observe the project's geology and the company's innovative circular mineral harvesting technology, characterized by the use of 100-per-cent-recycled water without drawing from natural sources, zero generation of tailings or liquid industrial waste, and a robust ecological restoration plan.

Visitors learned about the production stages for strategic rare earths such as dysprosium and terbium, essential elements for manufacturing permanent magnets used in electric mobility, renewable energy and clean technologies. The delegation also learned about technological advances developed in partnership with the company's strategic partners, including Grupo Cap, Virginia Tech, Stanford University and German company VAC, in key stages such as separation, metallization and permanent magnet development, positioning Aclara as an integral player in the global rare earths value chain.

The visit reflected the group's strong interest in establishing strategic partnerships with Chile and the Biobio region for the sustainable production of critical minerals, within the framework of its energy transition and supply security policies.

Claudia Gintersdorfer, European Union ambassador to Chile, noted: "Rare earths are strategic and indispensable for the EU's dual green and digital transition as well as for its security and industrial autonomy. In light of the critical importance of these elements, we are very interested in learning first-hand about Chile's most advanced rare earth project, a country with which we have a strategic partnership on critical raw materials and share values such as sustainable economic development, minimization of socio-environmental impacts and diversification of supply chains. This visit fulfilled the objective of bringing European companies, technology partners and offtakers closer to this highly innovative project."

"We are honoured to have hosted this distinguished European delegation and are grateful for the opportunity to showcase our project and the innovative approach we are taking in Penco," stated Ramon Barua, chief executive officer of Aclara Resources. "This visit underscores the strong alignment between Aclara's commitment to sustainable and responsible mining practices and the European Union's strategic priorities for critical minerals. As Chile and the EU strengthen their strategic partnership on critical raw materials, we are dedicated to building this project with the highest environmental and social standards, and we look forward to becoming a trusted partner in the EU's supply chain for these critical elements that are essential to the global energy transition and decarbonization goals we all share."

About Aclara Resources Inc.

Aclara Resources, a Toronto Stock Exchange-listed company, 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 Inc., 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. Additionally, Aclara, through a joint venture with Cap, is advancing its alloy-making capabilities to convert these refined oxides into the alloys needed for fabricating permanent magnets. This joint venture leverages Cap's extensive expertise in metal refining and special ferro-alloyed steels. Beyond the Carina project and the Penco module, Aclara is committed to expanding its mineral resource portfolio by exploring greenfield opportunities and further developing projects within its existing concessions in Brazil and Chile, aiming to increase future production of heavy rare earths.

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