Mr. Christopher Huggins reports

AUTOMATA RARE EARTH CORP. ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UP TO $2.5 MILLION

Automata Rare Earth Corp. has arranged a non-brokered private placement to raise gross proceeds of up to $2.5-million. The offering is intended to finance exploration and advancement of the company's Canadian critical minerals portfolio, including the Oculus rare earth project in Labrador and the Burnt Pond VMS (volcanogenic massive sulphide) project in Newfoundland, as well as provide additional working capital for general corporate purposes.

The offering will consist of: (i) up to 4,545,455 non-flow-through units at a price of 33 cents per unit for gross proceeds of up to $1.5-million; and (ii) a minimum of 2,222,223 and up to 3,333,333 flow-through (FT) units at a price of 45 cents per FT unit for gross proceeds of between $1.0-million and $1.5-million, for aggregate gross proceeds of up to $2.5-million.

Each unit will consist of one common share of the company and one common share purchase warrant. Each warrant will entitle the holder to purchase one additional common share at an exercise price of 47.5 cents for a period of 24 months from the date of issuance.

Each FT unit will consist of one flow-through common share of the company and one-half of one common share purchase warrant. Each whole warrant will be exercisable to acquire one common share at 47.5 cents for a period of 24 months following closing.

The company will have the right to accelerate the expiry of the warrants should the company's common shares trade above 55 cents on the Canadian Securities Exchange for 10 consecutive trading days following the expiry of the statutory hold period, in accordance with the warrant terms.

The gross proceeds from the sale of the FT units will be used to incur eligible Canadian exploration expenses that qualify as flow-through critical mineral mining expenditures under the Income Tax Act (Canada). Proceeds from the sale of the units will be used to advance the company's exploration activities, to evaluate additional strategic opportunities and for general corporate purposes.

Christopher Huggins, chief executive officer of Automata Rare Earth, commented:

"This financing provides the company with the capital necessary to continue advancing our Canadian critical mineral projects at a time when demand for secure domestic supplies of rare earth elements and strategic metals continues to accelerate. We appreciate the support from both existing and new shareholders and look forward to executing on our exploration objectives."

In connection with the offering, the company has entered into a finder's fee agreement with Research Capital Corp., pursuant to which Research Capital will act as exclusive finder in connection with the offering. Subject to applicable securities laws and the policies of the Canadian Securities Exchange, the company has agreed to pay Research Capital a cash commission equal to 8.0 per cent of the gross proceeds raised from subscribers introduced by Research Capital, and issue non-transferable finder's warrants equal to 8.0 per cent of the aggregate number of units and FT units sold to such subscribers. Each finder's warrant will entitle the holder to acquire one common share of the company at the applicable unit issue price for a period of 24 months from the closing date.

The offering is expected to close in one or more tranches, subject to customary closing conditions, including approval of the Canadian Securities Exchange. All securities issued pursuant to the offering will be subject to a statutory hold period of four months and one day from the date of issuance in accordance with applicable securities laws.

About Automata Rare Earth Corp.

Automata Rare Earth is a Canadian critical minerals exploration company advancing projects that support the growing demand for rare earth elements essential to advanced defence technologies, autonomous systems, artificial intelligence infrastructure and next-generation robotics. The company holds option agreements to acquire up to a 100-per-cent interest in the Oculus rare earth element (REE) project in Labrador and the Burnt Pond VMS project in Newfoundland, both strategically located within prospective mineral districts.

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