Mr. Pat Ryan reports

UTAH COURT DENIES IBC'S ATTEMPT TO VOID THE OPTION TO PURCHASE AGREEMENT WITH UCORE

Ucore Rare Metals Inc. has provided an update on the lawsuit that was initiated on Feb. 19, 2019 (the second Utah complaint), by IBC Advanced Technologies Inc. and Steven R. Izatt (collectively the plaintiffs) against Ucore and certain executives of the company.

Under the second Utah complaint, on March 6, 2020, IBC filed a motion for partial summary judgment (MPSJ) seeking an outright judgment by the U.S. District Court, District of Utah (the federal court), declaring: (1) the option to purchase agreement (OTP) void for vagueness; (2) the OTP terminated due to Ucore's default and failure to rectify; (3) that Ucore breached either the OTP or the research agreement, or both, by violating its confidentiality provision and exclusivity provision; and (4) that attorney's fees were properly incurred due to Ucore's breaches.

During a hearing on Aug. 5, 2020, when oral arguments were presented, the federal court orally denied IBC's motion for partial summary judgment in its entirety. Other significant decisions by the federal court during this hearing were:

1. IBC's objection to the magistrate judge's order denying IBC's motion for leave to file amended complaint (regarding the second Utah complaint) was denied;
   • Therefore, IBC's motion for preliminary injunction against Ucore, regarding the proposed amended claims, was also denied;
2. The granting of a motion put forth by IBC to consolidate the three active federal court cases (the second, third, and fourth Utah complaints -- as defined herein) and was consented to by Ucore and Michael Schrider (Ucore's vice-president and chief operating officer).

"Although our court schedules in both Utah and Nova Scotia have been impacted by the COVID-19 pandemic, Ucore is very pleased with the outcomes to date within the courts," stated Pat Ryan, PEng, Ucore's chairman and interim chief executive officer. "We understand that further delays may occur given these uncertain times. However, with every court appearance, we take one more step to resolving this dispute with IBC and to ultimately capturing the value of our significant investment in their technology for rare earth elements -- once legally liberated. A technology that we believe ideally complements our current pathway of developing a near-term U.S. commercial rare earth separation facility."

Ucore offers the following updates regarding all active legal actions stemming from the proposed acquisition of IBC.

Ucore versus IBC (filed by Ucore on Dec. 11, 2018, amended on April 2, 2019)

Court:   the Supreme Court of Nova Scotia (NSSC)

On July 20, 2020, Ucore filed a notice of motion for contempt order against IBC. Ucore alleges that IBC's MPSJ in the Utah court (seeking to nullify the OTP) violates the NSSC's Dec. 4, 2019, interlocutory injunction preserving the OTP pending trial in Nova Scotia. At the same time, Ucore also filed a motion to permit further amendments to the pleadings for the purpose of adding the IBC shareholders who are also signatories to the OTP to this complaint, further to IBC's requests to the court that they be added.

IBC has opposed both motions and a hearing is scheduled on Aug. 19 and Aug. 21, 2020, before the NSSC. Otherwise, this case is in the disclosure process.

IBC versus Ucore et al. (filed by IBC on Jan. 4, 2019, dismissed on Sept. 19, 2019) (first Utah complaint)

Court:  Third District Court, Salt Lake Division, Salt Lake County, State of Utah

This case was formally dismissed by the court for lack of jurisdiction on Sept. 19, 2019. IBC submitted a notice of appeal on Oct. 18, 2019. Further submissions by IBC and Ucore to the Utah Court of Appeals are pending. After the briefs are complete, the Court of Appeals will schedule an oral argument. After the oral argument, the Court of Appeals will issue a written opinion. If Ucore prevails on appeal, this case is over. If IBC prevails on appeal, the case will be remanded back to the court and will start over from the beginning of the case.

IBC versus Ucore et al. (filed by IBC on Feb. 19, 2019) (second Utah complaint)

Court:   U.S. District Court, District of Utah

Due to the Aug. 5, 2020, hearing decision to deny IBC leave to amend this complaint, Ucore now has 10 days to answer the original complaint and assert its counterclaims.

The disclosure and discovery process will begin after Ucore answers the complaint.

IBC versus Schrider (filed by IBC on Oct. 18, 2019, amended on Nov. 18, 2019) (third Utah complaint)

Court:  U.S. District Court, District of Utah

The pleadings are closed and the disclosure and discovery process is under way.

Paul J. Talbot, Dr. Reed M. Izatt, Liisa Marianne Silander-Izatt, Dr. Jerald S. Bradshaw, Jerald S. Bradshaw Trust (also known as JKB Trust), Reed M. and Helen F. Izatt Foundation, Dr. Ronald L. Bruening, and Reed M. Izatt Trust versus Ucore (filed on Jan. 6, 2020, and purportedly served on April 21, 2020) (fourth Utah complaint)

Court:  U.S. District Court, District of Utah

The named plaintiffs (the selling shareholders) are all IBC shareholders and signatories to the OTP. They consist of all of the shareholders who signed the OTP, except for Steven R. Izatt. The selling shareholders filed a complaint against the company, seeking, among other things, a declaration that the OTP is null and void; compensatory and consequential damages; exemplary and punitive damages; and reasonable attorney fees and costs.

In addition to declaratory judgment, the complaint alleges breach of contract; breach of implied covenant of good faith and fair dealing; and fraudulent inducement. On April 21, 2020, per the Utah federal court order, Ucore was purported to be served with the complaint through e-mail; Ucore disputes that e-mail service was valid. On May 12, 2020, Ucore filed a motion to dismiss the complaint, which the selling shareholders have opposed. The motion is fully briefed and awaiting a decision by the federal court; this is the only outstanding decision in the federal court.

Decisions of the NSSC may be accessed from its websites as they are posted. More information on the Nova Scotia proceedings can be obtained in person at the Law Courts, 1815 Upper Water St., Halifax, N.S. More information on the Nova Scotia and other proceedings, generally, can be obtained under the company's profile on SEDAR or by contacting Mark MacDonald, vice-president of investor relations, at 902-482-5214 or info@ucore.com.

About Ucore Rare Metals Inc.

Ucore is focused on rare metal and critical metal resources, extraction, beneficiation and separation technologies with potential for production, growth and scalability. The company has a 100-per-cent ownership stake in the Bokan-Dotson Ridge rare earth project.

We seek Safe Harbor.