Mr. Peter Shearing reports

CANADA RARE EARTH ANNOUNCES THE RIGHT TO ACQUIRE A RARE EARTH AND ESSENTIAL MINERALS PROJECT

Canada Rare Earth Corp. as of Jan. 15, 2024, has secured the right to acquire a majority interest in a private company (Privco), which owns and operates a mining quarry with accessible material containing attractive grades of rare earth and essential minerals for an initial cost of $400,000 (U.S.).

"This acquisition is a very significant step in executing our renewed strategy to develop additional proprietary sources of rare earths and essential minerals," stated Peter Shearing, chief executive officer and president of Canada Rare Earth. "This property will have a near-term impact on our revenues and margins and will allow for a long-term source supporting our business as a rare earth and essential minerals supplier."

Canada Rare Earth will, through its interest in Privco, own the mineral rights and mining permits for the mineral concession on which the quarry operates. The quarry is presently being mined for aggregates and offers excellent logistics and transportation routes, facilitating efficient and economic transportation of bulk and container shipments. The presence of surface-level friable material with sufficiently high grades of rare earths and essential minerals makes it suitable for direct shipping to a concentrator customer. Bulk samples have been shipped and preliminary negotiations are continuing for long-term off-take agreements.

Canada Rare Earth has secured the rights to purchase a majority of the shares of Privco. The total acquisition cost (inclusive of share purchases and potential Privco liabilities) is expected to amount to no more than $1.3-million (U.S.) over 18 months. The closing of the acquisition is targeted for March, 2024, with operations planned to commence shortly thereafter. Privco's operations will be managed by a locally based, highly experienced and successful CEO who will be able to take advantage of the existing work force for the combined operations.

Development of rare earth mineral operations will occur in two phases: The initial phase will include the extraction and direct shipping of the unconcentrated material; the second phase will include the construction of facilities to concentrate the material to produce higher value mineral products with increased margins.

The company has completed initial internal testing and evaluation, confirming the presence of attractive levels of rare earth and essential minerals and is currently conducting comprehensive bulk sample testing to ensure efficient mineral recovery. The closing of the acquisition remains subject to completion of satisfactory due diligence and financing.

CEO Shearing expressed enthusiasm about the company's strategic direction, stating: "Our commitment to near-term cash-flow opportunities, proprietary project development and strategic decision-making positions us well for near-term growth within the global essential minerals market. We are dedicated to meeting the demands of our customers, expanding our market presence and ensuring sustained profitability."

About Canada Rare Earth Corp.

Canada Rare Earth operates a rapidly growing global essential minerals business built from over a decade of success in rare earth minerals and products. Its strategy leverages near-term positive cash flow opportunities supporting business growth, including acquiring and developing proprietary projects, resources, and processing capabilities and facilities.

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