HUDSON RESOURCES AND NEO PERFORMANCE MATERIALS SIGN AGREEMENT ON THE SARFARTOQ RARE EARTH ELEMENT PROJECT IN GREENLAND The Project is expected to have a very small environmental footprint, is located close to excellent infrastructure, and features a highly enriched rare earth mineraliza;on in elemen

FOR IMMEDIATE RELEASE: August 22, 2022 TSX: NEO.TO

TSX-V: HUD

OTC: HUDRF

NR2022-02

HUDSON RESOURCES AND NEO PERFORMANCE MATERIALS SIGN

AGREEMENT ON THE SARFARTOQ RARE EARTH ELEMENT PROJECT

IN GREENLAND

The Project is expected to have a very small environmental footprint, is located close to

excellent infrastructure, and features a highly enriched rare earth mineraliza;on in elements

required for permanent magnets

Investment represents a key step in Neo’s Magnets-to-Mine ver;cal integra;on strategy and

its plans to expand into rare earth permanent magnet manufacturing in Europe

Vancouver, BC / Toronto, ON (Aug. 22, 2022) – HUDSON RESOURCES INC. (“Hudson” or the “Company”) (TSX

Venture Exchange “HUD”; OTC “HUDRF”) and NEO PERFORMANCE MATERIALS INC. (“Neo”, TSX: NEO.TO) are

pleased to announce that the parRes have executed a binding agreement (“Agreement”) whereby Neo will

acquire from Hudson an exploraRon license (“License”) covering the Sarfartoq CarbonaRte Complex in

southwest Greenland (the “Project”). The Project hosts a mineral deposit that is enriched in neodymium and

praseodymium, two essenRal elements for rare earth permanent magnets used in electric vehicles, wind

turbines, and high-efficiency electric motors and pumps that help reduce greenhouse gas emissions.

Located just 60 kilometers from the internaRonal airport in Kangerlussuaq, the Project is close to Rdewater

and a major port facility and is directly adjacent to some of the best hydroelectric potenRal in Greenland.

Neo, through a special purpose enRty (“SPE”), plans to explore and develop the Sarfartoq Project to further

diversify its global sourcing of rare earth ore and to expand the rare earth supply chains that feed Neo’s rare

earth separaRon facility in Estonia. That facility was recently awarded a Gold Medal for its sustainable

pracRces by EcoVadis, the well-respected global sustainability auditor .

Neo is also pursuing plans to break ground on a greenfield rare earth permanent magnet manufacturing plant

in Estonia that is intended to provide European manufacturers with the permanent magnets needed for

electric and hybrid vehicles, wind turbines, and energy-saving electric motors and pumps. The Sarfartoq

Project also is a key element of Neo’s “Magnets-to-Mine” verRcal integraRon strategy.

CompleRon of the sale of the license (the "TransacRon”) is subject to various condiRons, including approval

from the Government of Greenland for the transfer of the License, expected to take approximately six

months, and approval of the TSX Venture Exchange (the “TSXV”) on the part of Hudson.

Neo intends to assign its rights under the Agreement to an SPE controlled by Neo that would hold the License

and conRnue exploraRon and ulRmately extracRon of the rare earth elements on the Project.

1

The key terms of the Agreement are as follows:

•Hudson receives a nonrefundable iniRal cash payment of US$250,000 upon signing of the Agreement.

•Upon receipt of approval from the Greenland government, Hudson will transfer the License to Neo or

the SPE.

•Hudson will receive an addiRonal US$3,250,000 upon closing of the transacRon.

•If within five years from the date of closing of the transacRon (1) the SPE transfers the License, or

there is a change in control of the SPE pursuant to an acquisiRon or merger, then Hudson will receive

5% of the total consideraRon received by the SPE in connecRon with such transfer, or (2) the SPE

conducts an iniRal public offering on a stock exchange (“IPO”), then Hudson will receive 5% of the

fully diluted equity interests in the SPE immediately prior to the IPO.

The License covers the large Sarfartoq carbonaRte complex that hosts Hudson’s ST1 REE project and the

Nukiiooq Niobium-Tantalum project. The REEs on the Property have a high raRo of neodymium and

praseodymium at 25%-40% of Total Rare Earth Oxides. Hudson completed a Preliminary Economic

Assessment on the ST1 project in November 2011 (see NR2011-15) that outlined a NaRonal Instrument

43-101 compliant resource containing 27 million kilograms of neodymium oxide and 8 million kilograms of

praseodymium oxide.

Three kilometers east of the ST1 Zone is another high-grade zone (ST40) that hosts one of the rare earth

industry’s highest-known raRos of neodymium oxide to Total Rare Earth Oxide (TREO) -- 45% -- as shown by

Hudson’s original mineralogical work (see NR2011-02).

Neo and the SPE expect to conduct addiRonal exploratory drilling and other work to move the Project forward

to eventual commercial operaRon. Neo also intends to enter into an ooake agreement with the SPE with

rights to purchase 60% of the ore or mineral concentrate produced from the Project.

Jim Cambon, Hudson’s President commented: “We are very pleased to have signed this agreement with a

global leader in the produc;on of advanced materials. As the world faces cri;cal shortages of rare earth

elements outside of China, we are pleased to help bring the Sarfartoq project a step closer to commercial

reality. This deal provides a significant cash injec;on to the company and importantly, also gives Hudson

shareholders poten;al significant upside in the future value of the Sarfartoq projects through equity or

addi;onal considera;on.”

ConstanRne Karayannopoulos, Neo’s President and Chief ExecuRve Officer, commented: “Neo con;nuously

pursues supply chain op;onality in order to ensure that our customers have a dependable supply of engineered

rare earth products. Once in produc;on, this project will significantly increase the diversity of global rare earth

supply for our processing facili;es around the world. It also is another step in our Magnets-to-Mine ver;cal

integra;on strategy. Based on our significant experience in assessing strategic mineral resources around the

world, we believe the Sarfartoq resource in Greenland is a strategic asset that uniquely complements Neo’s

European rare earth magnet growth strategy. This resource would supplement our current supply of rare earth

concentrate from Energy Fuels in the United States. We are very confident and suppor;ve of the Greenlandic

Government’s vision for sustainable-focused mining as the driver of their economic development, job crea;on,

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.”

Closing of the transacRon is subject to customary regulatory approvals by the TSX-V and the Greenland

government.

QUALIFIED PERSONS

The scienRfic and technical informaRon in this news release has been reviewed and approved for disclosure

by Dr . Michael Druecker, a “Qualified Person” of Hudson within the meaning of NI 43-101.

ON BEHALF OF THE BOARD OF DIRECTORS OF HUDSON RESOURCES

“Jim Cambon”

President and Director

ON BEHALF OF THE BOARD OF DIRECTORS OF NEO PERFORMANCE MATERIALS

“ConstanLne Karayannopoulos”

President and Chief ExecuRve Officer

# # #

For More InformaLon:

HUDSON RESOURCES:

Jim Cambon

President

604-628-5002 

Email: [email protected]

NEO PERFORMANCE MATERIALS:

Ali Mahdavi

SVP , Corporate Development & Capital Markets

416-962-3300

Email: [email protected]

Jim Sims

Director, Corporate CommunicaRons

303-503-6203

Email: [email protected]

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

Neither the TSX Venture Exchange nor its Regula;on Services Provider (as that term is defined in the policies of the

TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This news release contains "forward-looking informa;on" within the meaning of applicable Canadian securi;es legisla;on.

Generally, but not always, forward-looking informa;on and statements can be iden;fied by the use of words such as

"plans", "expects", "is expected", "budget", "scheduled", "es;mates", "forecasts", "intends", "an;cipates", or "believes" or

the nega;ve connota;on thereof or varia;ons of such words and phrases or state that certain ac;ons, events or results

"may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the nega;ve connota;on thereof. In

par;cular, this news release contains forward-looking informa;on pertaining to the following: the likelihood of comple;on

of the Transac;on, the ability to obtain the necessary regulatory authority and government approvals in connec;on with

the transfer of the License, the an;cipated ;ming of the transfer of the License, Neo’s an;cipated plans to develop the

Project to diversify its global sourcing of rare earth ore and expand its supply chain; Neo’s an;cipated plans to break

ground on a greenfield rare earth permanent magnet manufacturing plant in Estonia; Neo’s ability to transfer the License

to the SPE; and Neo’s ability to enter into an o]ake agreement in connec;on with the SPE.

In making the forward-looking informa;on in this release, each of Hudson and Neo has applied certain factors and

assump;ons that are based on the par;es’ current beliefs as well as assump;ons made by and informa;on currently

available to Hudson and Neo, as applicable. Although each party considers these assump;ons to be reasonable based on

informa;on currently available to it, they may prove to be incorrect, and the forward-looking informa;on in this release

are subject to numerous risks, uncertain;es and other factors that may cause future results to differ materially from those

expressed or implied in such forward-looking informa;on. Such factors include, among others: the inability to obtain the

necessary regulatory and governmental approvals in connec;on with the transfer of the License in accordance with the

terms or ;meline announced or at all; the occurrence of a material adverse change, disaster, change of law or other failure

to sa;sfy the condi;ons to closing of the Transac;on; the inability of the Neo to transfer the License to the SPE or enter

into an o]ake agreement with the SPE; the ability of Neo and Hudson, as applicable, to achieve its corporate objec;ves or

otherwise advance the progress of the Project; the ability of Neo to achieve its an;cipated business plans, including

diversifying its global sourcing of rare earth ore and expanding its supply chain; uncertain;es rela;ng to the availability

and costs of financing needed in the future; delays in the development of projects, capital and opera;ng costs varying

significantly from es;mates and the other risks involved in the mineral explora;on and development industry; risks related

to the interna;onal opera;ons; the ;ming and content of work programs; results of explora;on ac;vi;es of mineral

proper;es; the interpreta;on of drilling results and other geological data; failure to convert es;mated mineral resources

to reserves; the inability to complete a feasibility study which recommends a produc;on decision; the preliminary nature

of metallurgical test results; the par;es’ inability to obtain any necessary permits, consents or authoriza;ons required for

its ac;vi;es; inability to fulfill the duty to accommodate indigenous peoples; an inability to predict and counteract the

effects of COVID-19 on the business of the par;es, including but not limited to the effects of COVID-19 on the price of

commodi;es, capital market condi;ons, restric;on on labour and interna;onal travel and supply chains; general market

and industry condi;ons; and those risks set out in the public documents of Neo and Hudson filed on SEDAR.

Readers are cau;oned not to place undue reliance on forward-looking informa;on. Each of Hudson and Neo does not

intend, and expressly disclaims any inten;on or obliga;on to, update or revise any forward-looking informa;on whether

as a result of new informa;on, future events or otherwise, except as required by law.