Mr. Anthony Wong reports

CANADA RARE EARTH GENERATED NET INCOME IN FISCAL YEAR 2023

Canada Rare Earth Corp. has revenues of $5,375,513 and net income of $171,267 during the year ended March 31, 2023. Audited financial statements and the management's discussion and analysis have been filed on SEDAR.

Anthony Wong, chief financial officer of the company, highlighted: "Revenues increased substantially this year (more than 10 times the 2022 revenues) as we were able to deliver more product volume to our customer base, which remains committed to buy from us on a long-term basis. From a cost perspective, we were able to improve our sales/cost margins from the prior fiscal year while holding our personnel, consulting, and office and administration costs to an increase of 28 per cent. Non-cash costs of share-based compensation and depreciation decreased by 12 per cent or $49,236 to $332,074 for the year. As a result, we generated $394,482 of income from operations after adding back interest expenses and the non-cash expenses, compared with a loss of $668,665 in the prior year calculated on a similar basis."

Additionally, Mr. Wong continued: "We earned $235,575 of other income comprised of a gain from the sale of a property, consulting services fees, foreign exchange gains and expense reimbursement, offset by $23,474, being our share of the costs of development in Brazil, resulting in a net other income of $212,099 for the year. In the prior year, we earned other income of $71,231, comprised of expense recovery and foreign exchange gains, offset by $4,516 being our share of the costs of development in Brazil, and an impairment loss of plant and equipment of $15,336, resulting in a net other income of $51,379."

The net working capital position improved by nearly $500,000 to a deficiency of $406,354 at March 31, 2023, compared with a deficiency of $899,895 at the prior year-end. Excluding amounts owing to related parties, the company's net working capital would have been a surplus of $182,273 as of March 31, 2023. Its cash position at March 31, 2023, was $220,630, compared with $76,982 at March 31, 2022, and its total assets were $2,274,797, an increase of 90 per cent over last fiscal year.

About Canada Rare Earth Corp.

Canada Rare is developing an international integrated business focusing on essential and critical minerals, including rare earths. The company's strategy is to generate revenues and positive cash flow as it acquires and develops its own properties and establishes value-add processing capabilities.