Mr. Jim Cambon of Hudson Resources reports

NEO PERFORMANCE MATERIALS AND HUDSON RESOURCES ADVANCE THE GREENLAND SARFARTOQ RARE EARTH PROJECT AFTER RECEIVING GOVERNMENT APPROVAL FOR LICENSE TRANSFER

Hudson Resources Inc. and Neo Performance Materials Inc. have received approval from the government of Greenland for transfer of an exploration licence covering a portion of the Sarfartoq carbonatite complex in southwest Greenland. Accordingly, Neo has completed the purchase of the licence from Hudson for the agreed-upon compensation of $3.5-million. Hudson may, under certain conditions, receive additional compensation in the form of equity interests or a share of future sale proceeds.

The licence will be transferred to Neo North Star Resources Inc. (NNSR), a special purpose entity established to finance exploration of the project. NNSR is majority-owned by Neo with significant investment from Weston Energy III LLC, a portfolio company of Yorktown Partners LLC. NNSR has initiated exploration activities and intends to raise additional capital as necessary to complete its initial exploration program for the project.

NNSR has also entered into an offtake agreement with Neo's affiliate, NPM Silmet OU that gives Silmet rights to purchase up to 60 per cent of the ore or mineral concentrate produced from the project once it is in operation. The offtake enables Neo to secure access to a long-term supply of rare earth materials and to further diversify its global rare earth supply chain. The materials procured under the offtake will be used as feedstock for Silmet's rare earth separation facility in Sillamae, Estonia, which is the only industrial-scale, commercially operating rare earth separation facility in the Western hemisphere.

Silmet intends to produce magnetic rare earth oxides to supply raw materials for a new sintered rare earth permanent magnet manufacturing plant that Neo plans to build and operate in nearby Narva, Estonia. Accordingly, the project and the offtake are key elements of Neo's magnets-to-mine vertical integration strategy.

The project hosts a mineral deposit enriched in neodymium and praseodymium -- two essential elements for rare earth permanent magnets. The project is well situated for future development in that it is located just 60 kilometres from the international airport in Kangerlussuaq, is close to tidewater and a major port facility, and is adjacent to a potential source of hydroelectric power.

The licence covers a portion of the large Sarfartoq carbonatite complex that also hosts Hudson's ST1 rare earth elements project and the Nukittooq niobium-tantalum project.

Pursuant to the terms of the transaction, if, within five years from the date of closing of the transaction, (1) NNSR transfers the licence, or there is a change in control of NNSR pursuant to an acquisition or merger, then Hudson will receive 5 per cent of the total consideration received by NNSR in connection with such transfer, or (2) NNSR conducts an initial public offering on a stock exchange (IPO), then Hudson will receive 5 per cent of the fully diluted equity interests in NNSR immediately prior to the IPO.

Jim Cambon, Hudson's president, commented: "We are very pleased to complete this transaction with a global leader in the production of advanced materials like Neo. As the world faces critical shortages of rare earth elements outside of China, we are pleased to help bring the Sarfartoq project a step closer to commercial reality and provide almost two decades of operating experience in Greenland to the Neo team. This deal provides a significant cash injection to the company and, importantly, also gives Hudson shareholders upside in the future value of the Sarfartoq projects through equity or additional consideration without having to contribute capital."

Constantine Karayannopoulos, chief executive officer and a director of Neo, commented: "Neo continuously pursues supply chain optionality in order to ensure that our customers have a dependable supply of engineered rare earth products. Once in production, this project will significantly increase the diversity of global rare earth supply for our processing facilities around the world. It also is another step in our magnets-to-mine vertical integration strategy. Based on our significant experience in assessing strategic mineral resources around the world, we believe the Sarfartoq project in Greenland is a strategic asset that uniquely complements Neo's European rare earth magnet growth strategy. This project is also expected to supplement our current supply of rare earth concentrate coming from Energy Fuels in the United States. We are very confident and supportive of the Greenlandic government's vision for sustainable-focused mining as the driver of their economic development, job creation and growth. We are looking forward to working with Greenland to responsibly develop this resource into a producing mine, of which Neo would be the primary customer."

About Neo Performance Materials Inc.

Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials -- magnetic powders and magnets, specialty chemicals, metals and alloys -- are critical to the performance of many everyday products and emerging technologies. Neo's products help to deliver the technologies of tomorrow to consumers today. The business of Neo is organized along three segments: Magnequench, chemicals and oxides, and rare metals. Neo is headquartered in Toronto, Ont., Canada, with corporate offices in Greenwood Village, Colo., United States, Singapore, and Beijing, China. Neo has a global platform that includes nine manufacturing facilities located in China, the United States, Germany, Canada, Estonia and Thailand, as well as one dedicated research and development centre in Singapore.

About Hudson Resources Inc.

Hudson is an exploration and development company focused on critical metal projects in Greenland. The company has been actively exploring and developing projects in Greenland for almost two decades. Hudson owns 100 per cent of the Gronne Bjerg anorthosite project which is located on tidewater near the capital of Nuuk. Hudson also has a 31-per-cent interest in the operating White Mountain anorthosite mine in Greenland. Hudson was responsible for the permitting, construction and commissioning of the White Mountain mine. Hudson is potentially entitled to additional compensation pursuant to the terms of a licence purchase agreement entered into with Neo North Star Resources Inc.

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