ARA.TO · 2023-12-12 12:00:00

Aclara announces discovery of 168 Mt ionic clay mineral resource at its Carina Module in Goias, Brazil

Exploration Programs

Aclara announces discovery of 168 Mt ionic clay mineral resource at its

Carina Module in Goias, Brazil

TORONTO, ON, December 12, 2023 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased to

announce the maiden mineral resource estimate (“MRE”) for its regolith-hosted ion adsorption clay project located

in the State of Goias, Brazil, known as the Carina Module (the “Project”).

Highlights

• The initial inferred mineral resource for the Project is estimated at 168 Mt with a grade of 1,510 ppm total rare

earth oxide (“TREO”) and 477 ppm desorbable rare earth oxide (“DREO”1)

• The average net smelter return (“NSR”2) value of the resource is US$32.3/t when using a cut-off value of

US$7.4/t

• The deposit contains significant quantities of dysprosium (Dy), terbium (Tb), neodymium (Nd) and

praseodymium (Pr), which are the rare earth elements critical to the production of permanent magnets used

in electric vehicles and wind turbines

• Recovery of rare earths from the Project is fully compatible with the technology patented and successfully

demonstrated on a pilot scale by Aclara in Chile, designed to minimize both cost and environmental footprint

• The near-surface location of the deposit results in a very low strip ratio (<0.4) providing a positive backdrop

for a low-cost mining operation

• The 168Mt of inferred mineral resources at the Carina Module complements the 27.5 Mt of measured and

indicated mineral resources, and 1.7 Mt of inferred mineral resources at Aclara’s Penco Module in Chile

Next Steps

• Production of samples by processing the Project’s ionic clays at Aclara’s pilot plant in Chile during December

2023 and January 2024

• Completion of a Preliminary Economic Assessment (“PEA”) in January 2024

• Pursuit of additional resources through the completion of a reverse circulation (“RC”) drilling campaign,

which is already underway and scheduled to be completed in Q2 2024

Aclara CEO, Ramon Barua, commented:

“The combination of its large size and attractive grade s makes the Carina Module an outstanding deposit of ionic

clays and significantly increases Aclara’s total resource base. The fact that we can apply our patented metallurgical

1 DREO: Desorbable Rare Earth Oxide is the recoverable fraction of the total contained rare earths (TREO) using the Penco Module´s ammonium

sulfate based metallurgical process.

2 NSR Cut-off: The NSR Cut-off used is based on the marginal costs of the Project. Using a marginal cut-off to discriminate between waste

and plant feed (ore) ensures that the net revenue value of the rare earth concentrate produced is equal to the cost of producing it. Since this

strategy is applied only to material contained by the "optimal" pit, which contains material that must be mined out, it will maximize cash flow

over the life of the operation.

recovery process, which combines competitive cost s with superior environmental qualities, provides a promising

backdrop for the upcoming Preliminary Economic Assessment. We are excited by the possibility of becoming a

significantly larger supplier of magnetic rare earths, especially dysprosium, given how critical these elements are in

our planet’s fight against climate change.”

Mineral Resource Statement

The mineral resource has been estimated using the results obtained from 201 auger drill holes (1,630 m) and

1,418 samples. At a 7.4 US$/t NSR cut-off the mineral resource stands at 168 million tonnes (“Mt") in the inferred

mineral resources category, @ 1,510 ppm TREO containing an average Dy and Tb grade of 42.1 ppm and 6.9 ppm,

respectively. The mineral resource is reported in accordance with the requirements of National Instrument 43-101

- Standards of Disclosure for Mineral Projects (“NI 43-101”).

Table 1. Carina Module Inferred Mineral Resource Estimate (Effective November 3, 2023) *

Geological Domain Mass

(t)

Total Grade (ppm) Oxides Content (t) Oxides

TREO NdPr Dy Tb TREO NdPr Dy Tb

Upper Pedolith 10.8 900 121.5 12.0 1.9 9,693 1,309 129 21

Lower Pedolith 28.0 1,274 193.1 22.3 3.6 35,683 5,410 624 100

Upper Saprolite 122.5 1,669 347.0 49.9 8.2 204,462 42,515 6,113 1,011

Lower Saprolite 6.0 597 89.9 31.3 4.7 3,565 537 187 28

Sap Rock 0.8 557 76.3 29.5 4.8 450 62 24 4

Total 168.1 1,510 296.5 42.1 6.9 253,853 49,832 7,077 1,163

*Notes:

1. CIM (2014) definitions were followed for mineral resources

2. Mineral resources are estimated above a net smelter return (NSR) value of 7.4 US$/t

3. Mineral resources are estimated using average long term metal prices and metallurgical recoveries as outlined in the paragraph

discussing Cut-off Determination and Selection

4. Mineral resources are not mineral reserves and do not have demonstrated economic viability

5. Totals may not add or multiply accurately due to rounding

Cut-off Determination & Selection

The MRE is pit-constrained using GEOVIA Whittle 2022 software, with an overall slope angle of 25° and a mining

cost of US$2.13/t. The MRE is reported at an NSR marginal cut-off cost of US$7.4/t based on processing costs,

plus royalties and general and administrative cost estimates. The NSR calculation uses recoveries that are based

on preliminary metallurgical test work performed by the AGS Laboratory in La Serena, Chile3.

• Selling prices for rare earth oxides: The price estimates in US$/kg used for pit optimization are La2O3 =

0.68, CeO2 = 0.69, Pr6O11 = 144.18, Nd2O3 = 150.75, Sm2O3 = 2.39, Eu2O3 = 27.45, Gd2O3 = 71.55, Tb4O7 =

1,789.25, Dy2O3 = 477.25, Ho2O3 = 137.25, Er2O3 = 59.10, Tm2O3= 0.0, Yb2O3 = 19.85, Lu2O3 =834.75, Y2O3

= 2.86.

• Metallurgical recoveries: Obtained from the 1,432 drilling sample analyses performed by AGS Laboratory

3 NSR values were estimated based on metallurgical tests using the process parameters developed for the Penco Module in Chile (see news

release dated 9 November 2022 titled “Aclara Confirms Successful Completion Of Its Process Flowsheet At Lab Scale”. No QA/QC program

was applied to this initial metallurgical test campaign and, as such, the results should be considered speculative in nature, and have not

been reported in the mineral resources.

in La Serena, Chile, tested under conditions that carry out desorption at a pH of 4.0, plus a synthetic

lixiviant solution designed to emulate the predicted concentrations of recycled salts generated in the

closed-circuit process.

• Plant efficiency: Variable by element, ranging from 90.5 to 99.1% with an approximate average of 94%.

• Carbonate transportation and selling cost= US$0.032/kg of carbonates.

• Carbonate purity= 92.7%

Table 2 below shows the recoveries associated with the four magnetic rare earth elements (NdPr, Dy and Tb)

and TREO together with the associated net smelter return per lithology. Chart 1 shows the NSR Cut-off (US$/t)

against tonnage (Mt) and DREO grade (ppm).

Table 2: Carina Module - Mineral Resource Estimate (Effective November 3, 2023) – Including Recoveries and

NSR Values by Lithology

Geological Domain Mass

(t)

Total Grade (ppm) Oxides Content (t) Oxides Recoveries (%)

NSR

($/t)

TREO NdPr Dy Tb TREO NdPr Dy Tb TREO

- Ce NdPr Dy Tb

Upper Pedolith 10.8 900 121.5 12.0 1.9 9,693 1,309 129 21 62% 73% 45% 54% 15.7

Lower Pedolith 28.0 1,274 193.1 22.3 3.6 35,683 5,410 624 100 60% 64% 44% 51% 23.8

Upper Saprolite 122.5 1,669 347.0 49.9 8.2 204,462 42,515 6,113 1,011 54% 39% 47% 49% 36.6

Lower Saprolite 6.0 597 89.9 31.3 4.7 3,565 537 187 28 45% 36% 49% 54% 17.1

Sap Rock 0.8 557 76.3 29.5 4.8 450 62 24 4 42% 29% 50% 51% 14.8

Total 168.1 1,510 296.5 42.1 6.9 253,853 49,832 7,077 1,163 43% 43% 47% 49% 32.3

183

172 168 162

146

120

443 467 477 488 519

575

628

673

720

769

100

200

300

400

500

600

700

800

900

1,000

100

120

140

160

180

200

0.0 5.0 7.4 10.0 15.0 20.0 25.0 30.0 35.0 40.0

DREO (ppm)

Tonnes (Mt)

NSR Cut-off (US$/t)

NSR Cut-off vs. Tonnage Curve & DREO grade

Tonnes (Mt) DREO (ppm)

Chart 1: Carina Module grade tonnage curve

All technical and economic parameters will be subject to further consideration during the preparation of the

PEA, which is expected to be issued in January 2024.

Aclara's Projects Resources

Table 3: Carina Module - Mineral Resource Estimate (Effective November 3, 2023) & Penco Module Mineral

Resource Estimate (Effective October 13, 2022)

Geological

Domain

Mass

(t)

Total Grade (ppm) Oxides Content (t) Oxides Recoveries (%) Desorbable Grade (ppm)

Oxides

TREO NdPr Dy Tb TREO NdPr Dy Tb TREO

- Ce NdPr Dy Tb DREO NdPr Dy Tb

Carina Module

Inferred

Resources 168.1 1,510 296.5 42.1 6.9 253,853 49,832 7,077 1,163 43% 43% 47% 49% 477 127.1 19.6 3.4

Penco Module*

Measured and

Indicated

Resources

27.5 2,292 446.5 66.6 9.4 63,030 12,278 1,831 258 31% 17% 41% 37% 496 77.0 27.1 3.7

Inferred

Resources 1.7 1,999 350.0 71.6 10.0 3,385 593 122 17 29% 15% 34% 34% 419 53.3 24.7 3.4

*Note: For additional information about the Penco Module mineral resource estimate please refer to the news release issued on December 1,

2022 named “Aclara Provides an Update on the Mineral Resource Estimate at the Penco Module Project”.

Aclara's Low Cost and Environmentally Friendly Production Process

Aclara's extraction process presents several attributes that are favourable from a cost and environmental

perspective. Notably, this process refrains from employing energy intensive techniques such as blasting, crushing,

or milling. REE rich clays will be extracted using mechanical excavation as opposed to explosives and will benefit

from an average strip ratio of less than 0.4. Further more, it obviates the generation of tailings, thereby negating

the need for a tailings storage facility. The patented extraction process maximizes the recirculation of water within

the process. The ionic clay feedstock demonstrates susceptibility to leaching via a common fertilizer (ammonium

sulphate), and concurrently, it does not engender the concentration of radionuclides. All these attributes result in

a low cost, low carbon footprint mining operation that is positioned very favourably when compared to other rare

earths producers.

Auger Drilling Campaign Summary

A total of 201 auger holes over a combined length of 1,630 metres were drilled between February and August

2023 and form the basis of the initial MRE covering approximately 1,400 hectares within the Project area. The

average drill hole spacing across the mineralized area was 200 metres, with an area in the north east of the

resource drilled to 100 metre centres for the purposes of confirming variogram parameters in this area.

Figure 1: Plan view showing the lithology and current drill collar locations. The green trace lines indicate the

location of the cross-sections A-A’ and B-B’ displayed in Figures 2 and 3, respectively. The blue contour indicates

the boundary of the mineralized area representing the inferred resource.

Figure 2 below shows the cross-section A-A' indicated in Figure 1, which exhibits the association between the

regolith and select auger drill holes displaying DREO in ppm. The image shows that the mineralized horizons (LP

and US) found at the Project are controlled by the development and conservation of favourable regolith horizons

at certain topographic levels where continuity is exhibited. The Upper Saprolite is the principal mineralized

geological domain and hosts 73% of the declared resource.

Figure 2. Regolith profile interpretation in cross-section A-A’ cutting across the north-eastern portion of the

mineralised zone as shown in Figure 1.

Reverse Circulation Drilling Campaign

The average drill depth of the MRE is 8.1 metres, which did not consistently reach the bottom limits of the lower

Pedolith and Saprolite. Over 70% of the auger drillholes indicated a high anomalous exchangeable fraction in the

last interval, which suggested that the deposit remained open at depth. As a result, a 9,090 -metre RC drilling

campaign has been planned, which will reach the bottom limit of the saprolite zone and may result in the discovery

of additional inferred mineral resources at depth of the deposit.

The Company is currently executing the initial phase of the RC drilling campaign, which includes 1,500 -metres

within 56 drill holes. As of the date of this news release, 47 holes had been completed measuring a total of 1,275

metres.

The remaining 7,590 metres of the RC campaign will commence at end of Q1 2024 after receiving the suppression

permits necessary to enter the remaining areas of the Project. The complete set of results of the RC drilling

campaign are expected by the end of Q2 2024.

Figure 3 below shows the cross-section B-B' as indicated in Figure 1, which presents preliminary evidence of the

extension of saprolite development at depth from the current RC drilling campaign. The interval of saprolite

interceptions of the RCCAR23013 and RCCAR23013 holes highlight new areas that were not previously reached

by the auger drill holes.

Figure 3. Regolith profile interpretation in cross-section B-B’ cutting across the southern portion of the mineralized

zone as shown in Figure 1.

Geology & Geological Interpretation

The dominant lithologies of the Project are pink porphyritic biotite granite composed of quartz, oligoclase,

microcline, and annite as essential minerals. Leucogranite is the secondary lithology, characterized by quartz,

albite, and microcline. The contact of the biotite granite and leucogranite is given by faults trending from NE to

SW. This fault event created a fracture zone where hydrothermal alteration is exhibited, giving rise to greisenized

granites and gresisens. According to alteration and stratigraphic position, the regolith column in the Project area

was subdivided into upper Pedolith (UP), lower Pedolith (LP), upper Saprolite (US), lower Saprolite (LS) and

Saprock (SapRock), as graphically depicted in Figure 4 below.

Figure 4: Idealized regolith profile showing the geological domains recognized in the Project area and forming the

basis for the present resource estimate.

Sampling, Assay & QA/QC Protocols

The 201 auger drill holes were sampled at intervals of 0.5 metres to 2 metres, for a total of 1,418 samples. The

analytical batches included 233 QA/QC samples. All samples were sent for total REE analysis (REY T)4 to the ALS

Laboratory in Lima, Peru, and desorption (REY D)5 analysis to AGS Laboratory in La Serena, Chile. The

methodology for collecting the auger drill samples was designed following recommendations by expert mining

industry groups GeoAnsata and GE21.

The quality of the assay data for the rare earth elements dysprosium (Dy), neodymium (Nd), praseodymium (Pr)

and terbium (Tb) was statistically evaluated by GE21 based on QA/QC samples (analysis of certified reference

materials, field duplicates and sample split duplicates, fine and coarse blanks) and via the execution of twin holes.

GE21 is a Brazilian based engineering consultancy with considerable experience in resource modelling and

estimation. They consider the assay results to be of sufficient precision and accuracy to support the estimation

of the mineral resources.

Estimation Methodology & Reporting of Mineral Resources

High-grade capping supported by statistical analysis was completed on 2 metre composites and applied to the

Project resource estimate.

4 The total REE analysis (REY T) is determined through a lithium metaborates digestion of the whole ore sample and ICP/MS readings.

5 The desorption analysis (REY D) is based on the metallurgical test protocol developed by Aclara where whole ore leaching takes place in an

ammonium sulfate environment at a pH of 3, where the ionic exchange occurs.

Regolith ProfileVisual textures

Upper Pedolith

Lateritic duricrust

Protolith texture is

not preserved

Lower Pedolith

Upper Saprolite

Protolith texture is

slightly preserved

Lower Saprolite

Boulder SapRock

Fresh Rock

SapRock

Geological

Domains

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