Mr. Pat Ryan reports

UCORE RECEIVES CONDITIONAL APPROVAL FROM THE GOVERNMENT OF CANADA FOR UP TO $36.3M FOR CANADIAN RARE EARTH PROCESSING

Ucore Rare Metals Inc. has been conditionally approved for a government of Canada contribution of up to $36.3-million for its Pathway to Samarium and Gadolinium Security project. This includes the conditional approval of a non-repayable contribution of up to $26.3-million from NRCan, through its Global Partnerships Initiative (GPI) program and up to $10-million from FedDev Ontario, to demonstrate and scale up a first-of-its-kind commercial processing facility in Kingston, Ont., dedicated to the refining of the critical rare-earth elements samarium and gadolinium. Once approved, this funding will address a critical gap in the North American defence and technology supply chains.

Ucore announces:

• Conditional approval for up to $36.3-million from the government of Canada, through Natural Resources Canada (NRCan) and the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) to scale up a first-of-its-kind commercial processing facility in Kingston, Ont., dedicated to the refining of the critical rare-earth elements samarium and gadolinium.
• The first dedicated samarium and gadolinium oxide production facility in North America to support samarium cobalt magnet production.
• Based on Ucore's advanced RapidSX separation technology.

Samarium and gadolinium are among the rare earths added by China to its Export Control List earlier this year. These export controls are part of China's strategy to prevent the supply of rare-earth materials for military applications and reflect the continuing shift in China's export policy, moving toward stricter regulation and control. These elements are vital to next-generation technologies, including high-performance samarium-cobalt (SmCo) permanent magnets for defense systems including advanced radar, sonar and guidance systems, compact powerful micro-motors, advanced medical imaging, and nuclear reactors.

"Canada is proud to support Ucore in advancing critical mineral development that aligns with our national priorities and international commitments," said Tim Hodgson, Minister of Energy and Natural Resources. "Through the Critical Minerals Production Alliance, we are working with trusted partners to deploy sovereign tools, mobilize investments and financing, and secure offtake arrangements to accelerate the development of secure, resilient critical minerals supply chains. These minerals will power the clean energy transition, strengthen our defence and manufacturing capabilities, and position Canada as a trusted supplier to our allies."

"This contribution from NRCan is a powerful endorsement of our strategy to target specific and critical supply chain vulnerabilities with precision," said Pat Ryan, chairman and chief executive officer of Ucore. "It complements our Louisiana processing plans that will focus on heavy rare-earth oxides also on China's export restriction list. The heavies are vital to iron boron permanent magnets and samarium and gadolinium are essential for the high-temperature stability and SmCo magnet performance required in defence and medical applications. This support accelerates our path to becoming the first North American producer of these critical materials."

Dr. Ahmad Hussein, Ucore's director of government relations, added: "These contributions are the result of a shared vision between Ucore and the federal government for a secure and sovereign critical minerals ecosystem. The GPI and FedDev programs are precisely the type of strategic partnership needed to derisk this foundational project. It enables us to move forward with confidence, creating a strategic asset that will serve both national and economic security interests for decades to come."

"Canada's support for Ucore reflects Canada's commitment to responsible resource development and international collaboration. By advancing projects that align with the goals of the Critical Minerals Production Alliance, we are helping to build resilient supply chains, drive innovation and bolster Canada's position as a trusted global partner in the continued development of more clean energy and advanced manufacturing," added Claude Guay, Parliamentary Secretary to the Minister of Energy and Natural Resources.

"Critical minerals power the technologies that define our digital and clean-energy future -- from AI and advanced computing to electric vehicles and defence systems. This investment in Ucore will anchor these important activities in Kingston, Ont., strengthening our local supply chains across Southern Ontario and turning our natural advantage into strategic strength -- building the trusted, technology-driven economy of the future," noted Evan Solomon, Minister of Artificial Intelligence and Digital Innovation, and Minister responsible for the Federal Economic Development Agency of Southern Ontario.

The establishment of this dedicated processing stream is a direct response to supply chain vulnerabilities identified by the Canadian government. By focusing on these two critical metals, Ucore provides a secure, domestic source for sectors where reliability is non-negotiable.

The funding is subject to meeting all program conditions, due diligence and other requirements, and the parties successfully negotiating and executing a contribution agreement.

About Ucore Rare Metals Inc.

Ucore is advancing North American rare-earth separation and refining through its Louisiana strategic metals complex and commercialization of RapidSX separation technology. In 2025, Ucore received an $18.4-million (U.S.) follow-on award from the U.S. Department of Defense, bringing total funding under its current OT agreement to $22.4-million (U.S.).

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