Mr. Ramon Barua reports

ACLARA RECEIVES APPROVAL OF ENVIRONMENTAL IMPACT ASSESSMENT IN CHILE

The Environmental Assessment Commission of the Biobio Region has unanimously approved the environmental impact assessment for Aclara Resources Inc.'s Penco Module ionic clay project, which Aclara is developing in partnership with Grupo CAP. The approval includes the issuance of the corresponding environmental qualification resolution.

Jose Augusto Palma, Aclara's executive vice-president, commented: "This approval marks a transformative milestone for the Penco Module and for Aclara's vision of developing a sustainable source of heavy rare earths outside China. It is the result of years of rigorous technical work, constructive engagement with local communities and stakeholders, and a thorough environmental review process carried out by the Chilean authorities. We sincerely appreciate the participation and contributions of public agencies, local authorities, community members, social organizations, academia and all those involved throughout the evaluation process, which helped strengthen the project and its environmental and social commitments.

"This milestone reinforces the strategic importance of the Biobio region and Chile in building resilient critical mineral supply chains for the future. We are now entering a new stage, working together with local authorities, communities, universities and productive stakeholders to responsibly implement the Penco Module project and fulfill the commitments assumed throughout the evaluation process."

Nicolas Burr, chief executive officer of CAP Group, commented: "This approval marks an important milestone for the project and reinforces a long-term vision shared by Aclara and CAP: the development of an integrated critical minerals value chain. We believe Chile has a unique opportunity to become an important contributor to the supply of critical minerals essential for the energy transition, and that the Biobio region is well positioned to play a leading role in that effort."

Favourable environmental qualification resolution

The issuance of the RCA marks the successful completion of the project's EIA approval process, and authorizes the development and operation of the Penco Module in accordance with the conditions and commitments established throughout the environmental evaluation process.

The approval follows an extensive environmental evaluation process that commenced with the submission of the EIA in June, 2024, and included detailed technical reviews by government agencies, citizen participation activities and an indigenous consultation process. Throughout the evaluation, Aclara submitted three addenda responding to more than 700 technical observations and considered over 1,000 citizen observations submitted by 255 participants as part of the public participation process. During the review period, Aclara maintained continuing engagement with authorities, local communities and other stakeholders to further enhance the project's environmental and social design. This process resulted in the incorporation of additional measures focused on the protection of biodiversity, water resources and neighbouring communities.

Following the unanimous approval by the Environmental Assessment Commission, the SEA is expected to finalize the administrative processing of the RCA and publish the official resolution through the SEIA electronic platform. The publication of the RCA will formalize the environmental approval granted to the project and make the final administrative decision publicly available.

Next steps

Aclara Resources continues to advance the project's feasibility study, which is expected to be completed during the fourth quarter of 2026. During 2027, the company intends to focus on project execution readiness, including detailed engineering, procurement, early works and the commencement of construction activities. Subject to the achievement of these milestones, Aclara expects to begin commissioning activities by mid-2028, supporting the development of a new sustainable source of heavy rare earths for global markets.

About the Penco Module

The Penco Module is an ionic clay heavy rare earth mining project located primarily in the municipality of Penco in the Biobio region of Chile. The project includes three clay extraction areas, a processing plant, storage facilities, supporting infrastructure and internal access roads, with a designed processing capacity of up to 320 tonnes of clay per hour to produce a superpure rare earth carbonate.

The Penco Module is a heavy rare earth project based on ionic clay mineralization, a deposit type that offers significant environmental advantages compared with conventional hardrock mining operations. The project will utilize Aclara's proprietary circular mineral harvesting process, a patented technology designed to operate without blasting, crushing and grinding activities, as well as the elimination of tailings generation and storage. The project sources 100 per cent recycled water and incorporates progressive rehabilitation and revegetation using native species throughout the operation. In addition, the project includes the long-term protection of more than 100 hectares dedicated to ecosystem conservation, restoration and enhancement.

The project also benefits from its strategic location within the Biobio region, one of Chile's principal industrial and logistics hubs, with access to established infrastructure including highways, ports, power supply, water infrastructure and nearby industrial service providers. The region also offers access to a highly skilled work force with extensive experience in mining, industrial operations, forestry, chemical processing and large-scale infrastructure projects, supporting the efficient development and operation of the Penco Module.

During peak construction and operations, the project is expected to generate approximately 700 and 400 jobs, respectively, supporting an estimated 2,200 direct and indirect employment opportunities across the Biobio region. Aclara has committed to prioritizing local hiring, with particular focus on the municipality of Penco.

Since 2022, Aclara has maintained an active presence in the local community through continuing engagement with neighbourhood associations, social organizations, local businesses and other stakeholders. These efforts have included direct outreach to more than 10,000 households, guided site visits, community workshops and local development initiatives aimed at fostering transparency, participation and long-term community relationships.

About Aclara Resources Inc.

Aclara, a Toronto Stock Exchange-listed company, is focused on building a vertically integrated supply chain for rare earth 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 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 earth 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.

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