ACLARA ANNOUNCES FILING AND RESULTS OF FEASIBILITY STUDY FOR ITS FLAGSHIP CARINA PROJECT After-tax NPV8 of US$1.7 Billion based on Mineral Reserves
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ACLARA ANNOUNCES FILING AND RESULTS OF FEASIBILITY STUDY
FOR ITS FLAGSHIP CARINA PROJECT
After-tax NPV8 of US$1.7 Billion based on Mineral Reserves
TORONTO, ON, April 13 , 2026 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased to
announce the filing and results of the feasibility study (the “FS”) of the Company ’s flagship asset, the Carina
Project (“Carina” or the “Project”) based on Mineral Reserves.
The FS, titled “NI 43-101 Technical Report & Feasibility Study on the Carina Project, Goiás, Brazil” with an effective
date of March 20, 2026, was prepared in accordance with National Instrument 43-101 – Standards of Disclosure
for Mineral Projects (“NI 43-101”) by Hatch Consultoria em Projetos Ltda. (“Hatch”) with contributions from L&M
Geociencias SpA, Promet 101 Consulting Pty Ltd, Abelco Consulting SpA, LOM Consultoria em Mineração Ltda
(“LOMC”), ERM Consultants Canada Ltd and Argus Media Ltd (“Argus Media”).
The terms “Mineral Resource,” “Inferred Mineral Resource,” “Indicated Mineral Resource,” “Measured Mineral
Resource,” “Mineral Reserve,” “Probable Mineral Reserve,” and “Proven Mineral Reserve” referenced in this news
release, have the meanings given to th em in NI 43 -101 by reference to the “Definition Standards for Mineral
Resources and Mineral Reserves” (2019) of the Canadian Institute of Mining and Metallurgy.
The FS has been filed and can be found under the Company’s profile on SEDAR+ ( www.sedarplus.ca) and on
Aclara’s website (www.aclara-re.com).
Aclara’s COO, Hugh Broadhurst, commented:
"Completing a Feasibility Study only six months after our Pre-Feasibility Study is a significant achievement, and I want
to recognize the dedicated effort of our team and technical partners who made it possible. The level of engineering
detail we are presenting today is substantial — and it reflects the considerable work that has gone into the Carina
Project from the very beginning. We remain the only company in the world to report heavy rare earth Mineral Reserves
from ionic clays in accordance with NI 43 -101. We have demonstrated our metallurgical process via a continuously
operated pilot plant. This FS bu ilds on such foundation with a level of rigor appropriate to the significance of the
Project. Our path to market via our 100% owned separation facility that is planned to be built in Louisiana, USA, further
derisks the Carina Project and supports our strategy to sell reliable and traceable rare earths to high -end
customers. This firmly establishes our initial supply chain entirely in the American continent. Our high-purity product,
sustainable process design, and integrated mine -to-magnet strategy are now underpinned by engineering from one
of the world’s leading firms. We will continue to work to improve our technology, which, in the medium term, we also
plan to apply in Brazil and other countries where we operate. The world needs a concrete, independent, and resilient
supply of heavy rare earths — and Aclara is built to deliver exactly that.”
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Highlights
Significant Production of Heavy Rare Earths (HREEs) and Light Rare Earths (LREEs) for an 18-year Life of Mine
(“LOM”)
• Average annual production1 of 4,378 tonnes rare earth oxides (REO) contained in a mixed rare earth
concentrate (“MREC”) product with very high content of Dysprosium and Terbium (DyTb) and Neodymium
and Praseodymium (NdPr) of 4.2% and 27.2%, respectively.
• Average annual production1 of magnetic elements as well as other strategic HREEs contained in the MREC
product:
o 156 tonnes Dysprosium (Dy) and 27 tonnes of Terbium (Tb);
o 1,191 tonnes NdPr; and
o Other strategic HREE: 173 tonnes of Samarium (Sm), 176 tonnes of Gadolinium (Gd), 10 tonnes
of Lutetium (Lu) and 1,160 tonnes of Yttrium (Y).
• Carina’s future production of DyTb is equivalent to approximately 11.8% of China’s 2024 estimated DyTb
production2.
Strong Economics
• After-tax Net Present Value (“NPV”) of approximately US$1.7 billion, at an 8.0% discount rate, based on Argus
Media price forecasts.
• After-tax Internal Rate of Return (“IRR”) of 26.9%, with a payback period of 2.9 years.
• Initial capital cost (“Construction Capex”) of US$678.2 million, plus a US$102.7 million contingency, for an
aggregate of US$780.9 million. This figure is US$100.4 million higher than the Company’s previously reported
Construction Capex in its Pre-Feasibility Study which is primarily due to foreign exchange (“FX”), inflation, and
higher engineering accuracy.
• An average annual commercial1 discount of US$314.4 million — equivalent to 34% of the annual gross revenue
— has been applied to account for the full separation of the Carina Project’s MREC. Aclara’s plans consist of
paying this separation fee to its separation project in Louisiana. The NPV associated with Aclara’s future
separation facility in Louisiana is not included in the FS.
• Average annual net revenue1 of US$599 million and average annual earnings before interest, taxes,
depreciation, and amortization (“EBITDA”)1 of approximately US$460 million.
• High average Net Smelter Return (“NSR”) of US$61.8 per tonne processed, against a low average production
cost of US$13.1 per tonne processed.
• The price forecast scenario developed by Argus Media is based on the European price index (excluding China)
and has been calculated on real terms.
High Confidence in the Production Forecast, the Process Flowsheet and the Product Quality
• High geological confidence supported by 30,384 m of drilling across 1,990 drillholes, representing a 24.0%
increase in drilling compared to the previously reported Mineral Resource Statement on October 1, 2025 and
a 640.0% increase in drilling compared to the Inferred Mineral Resource Statement on August 6, 2024. Carina
has become the first ionic clay project to declare Mineral Reserves in accordance with NI 43-101.
• Successful completion of the Project’s representative pilot campaign at its semi-industrial scale facility in
Goiânia, Brazil. This marks the third pilot campaign conducted by Aclara over the past three years, focused
on optimizing OPEX and CAPEX, and validating the process parameters and robustness of its proprietary
Circular Mineral Harvesting process.
1 Annual averages do not consider the first year of ramp-up and the last year of ramp-down.
2 Estimate of China’s official production of Dy and Tb in 2024 is based on quotas published that year by the Ministry of Industry and
Information Technology of the People’s Republic of China
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• Increased quality of Carina’s MREC from 91.9% to over 95.0% purity (97.7% according to the design mass
balance)3 supported by samples produced at semi-industrial scale plant.
• Circular Mineral Harvesting process designed to minimize environmental impact: it does not use explosives;
there is no crushing nor milling; approximately 93.0% of the water used is recirculated; the main reagent is a
common fertilizer and is recirculated with 99.0% efficiency; and no requirement for a tailings dam.
• Minimal carbon footprint supported by a combination of low energy consumption, elimination of explosives,
crushing, grinding and milling and a high percentage of renewable energy within the Brazilian power grid.
Expedited Path to Early Production
• The Company plans to start early works on site by Q3 2026 as part of the Construction Capex. These include
camp construction, road improvements and certain ancillary infrastructure to prepare the site for full fast-
track construction in 2027.
• The FS incorporates a modularization strategy that enables parallel fabrication and site preparation, reducing
dependence on local labor availability and weather, improving construction quality control, and compressing
the overall Project schedule.
• Commissioning is estimated to commence in H1 2028, with initial production in H2 2028 and ramp-up through
2029.
Vertical Integration: Strong Bedrock for Integration with Aclara’s Processing Hub in Louisiana (“Project Dynamo”)
• The Project’s high-purity MREC has been designed to facilitate further processing at Project Dynamo, where
it will be separated into high-purity individual rare earth oxides and converted into metals and alloys under the
specifications of magnet manufacturers.
• Project Dynamo's proprietary processing technologies are advancing through validation across two fronts:
o The rare earth separation pilot plant at Virginia Tech is fully operational and on track to produce first
separated NdPr, Dy and Tb using MREC from the Project.
o Through Aclara Metals, a 50/50 joint venture with CAP S.A. (“CAP”), a demonstration plant is
underway to produce rare earth metals and alloys using molten salt electrolysis technology.
• Downstream processing is complemented by a strategic alliance with permanent magnet manufacturer
aimed at developing a complete mine to magnet solution.
Strong Financial Backing
• Two of Aclara’s key shareholders Hochschild Mining PLC and CAP, provide significant operational experience
and financial support to continue advancing the Project.
• The U.S. International Development Finance Corporation has committed up to US$5 million in project
development funding for the Project’s feasibility study and has a preferential option to further invest in the
Project when the Company seeks to raise additional financing of more than US$50 million in a single
transaction, or US$75 million or more in multiple financing events within a period of twelve months.
Key Project Parameters
Table 1 and Table 2 summarize the relevant parameters associated with the FS operating and financial metrics:
• The FS is based on Mineral Reserves.
• The after-tax NPV is estimated at US$1.7 billion, using an 8.0% discount rate.
• The REE price forecast provided by Argus Media based on European prices (excluding China) aligns well with
market environment of export restrictions from China on HREEs4 and future supply/demand dynamics.
3 Purity is expressed as REO equivalent.
4 China has reached an agreement with the United States to remove export restriction on all REE for one year until November 2026.
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o LOM average realized prices were assumed at US$3,609/kg for Tb, US$1,640/kg for Dy, US$251/kg
for Y, US$338/kg for Gd, and US$157/kg for NdPr and an overall REO basket price of US$209/kg.
Table 1: Key Project Operating Parameters
FS
Unit Total Annual
Average*
Mining and Processing
Life of Mine Years 18 -
Total Process Plant Feed million tonnes (dry) 170.8 9.7
Total Waste Mined million tonnes (dry) 38.4 2.0
Strip Ratio - 0.2 0.2
Production
Total Rare Earth Oxides Tonnes 76,437 4,378
Neodymium & Praseodymium (NdPr) Tonnes 20,736 1,191
Dysprosium (Dy) Tonnes 2,726 156
Terbium (Tb) Tonnes 468 27
*Note: Annual average does not include the first year of ramp-up and the last year of ramp-down
Table 2: Key Project Financial Parameters
FS
Unit Total Annual
Average*
Financials
Net Revenue US$ million 10,478 599
NSR US$/t 61.8 -
Basket Price (2029-2033) US$/kg 171.0 -
Basket Price (LOM) US$/kg 209.0 -
Production Cost US$ million 2,234 127
Unit Cost per tonne of clay processed US$/t processed 13.1 -
Unit Cost per kg of REO produced US$/kg REO 29.2 -
Unit Cost per kg of Dy_Eq produced US$/kg Dy_Eq** 303.8 -
EBITDA US$ million 8,027 461
EBITDA Margin % 76.6% -
Income Tax US$ million 2,435 143
Effective Tax Rate % 34% -
Construction Capex US$ million 678.2 -
Construction Capex Contingency US$ million 102.7
Total Construction Capex US$ million 780.9 -
Royalty Purchase Cost US$ million 6.5 -
Sustaining Capex US$ million 56.7 -
Financial Returns
Pre-Tax NPV (8.0%) US$ million 2,663 -
Pre-Tax IRR % 33.6% -
Pre-Tax Payback Years 2.7 -
Post-Tax NPV (8.0%) US$ million 1,661 -
Post-Tax IRR % 26.9% -
Post- Tax Payback Period years 2.9 -
Notes:
* Annual average does not include the first year of ramp-up and the last year of ramp-down
** DyEq US$/kg unit cost calculated only using credits of the net revenue of NdPr and Tb applied to the total costs
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Post-Tax Free Cash Flow
Figure 1 demonstrates the yearly and cumulative post-tax free cash flow generated through the LOM.
Figure 1: Projected life of mine, post-tax, unleveraged free cash flow
Sensitivity Analysis
A sensitivity analysis was undertaken to evaluate the impact on post-tax NPV, considering a variation of ±30.0%
for five key input variables: MREC sale price, Separation Cost, Desorption Efficiency, OPEX and CAPEX (Figure 2).
Figure 2: Sensitivity analysis testing the impact on NPV
-2,500
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2027
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Cumulative Free Cash Flow (US$ M)
Free Cash Flow (US$ M)
Post-Tax Free Cash Flow (US$ M) Post-Tax Cumulative Free Cash Flow (US$ M)
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Post-Tax NPV (US$ million)
Parameter Variation (%)
MREC Price OPEX CAPEX Desorption Efficiency Separation Cost
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The economic analysis of the estimated cashflows for the Project indicates the potential for an economic project
across a broad range of input assumptions. The NPV calculated at an 8.0% discount rate is positive, and the IRR
calculated for the project is within a favourable range.
The primary commercial risks include:
• The applied REE price forecast could be significantly different than modeled. The applied European price
forecast developed by Argus Media assumes an independent supply chain outside of China. The supply chain
outside of China is not yet fully developed and China could influence the market through government
intervention which could significantly lower prices relative to those applied in the economic analysis.
• The applied separation cost is based on an incentive price estimate for Aclara’s separation project in the
United States, calculated based on FEL1-level engineering capital and operation costs. There is a risk that
these capital and operating costs will increase as the separation project is completed, which will increase the
separation cost charged to the Project.
Mineral Resource Statement
The Project’s Mineral Resources have been estimated using the results obtained from 30,384 m of drilling across
1,990 drillholes and 16,196 samples. The Mineral Resource Estimate is reported in accordance with the
requirements of NI 43-101.
Table 3. Carina Project Mineral Resource Estimate (Effective January 2026)
Mineral Resources
Classification
Mass
(Mt)
Total Oxide Grade (ppm) Oxide Content (t)
TREO NdPr Dy Tb TREO NdPr Dy Tb
Measured 27.0 1,822 355 59 9.6 49,182 9,597 1,602 260.4
Indicated 233.8 1,585 295 43 6.9 370,649 69,067 10,089 1,622.5
Measured & Indicated 260.8 1,610 302 45 7.2 419,832 78,664 11,691 1,882.9
Inferred 41.3 1,318 244 42 6.7 54,433 10,068 1,754 276.9
Notes:
1. Mass is expressed in million tonnes (dry, metric).
2. TREO means total rare earth oxides (La2O3, CeO2, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3,
Yb2O3, Lu2O3, and Y2O3).
3. NdPr means neodymium and praseodymium (Nd2O3 and Pr6O11).
4. Dy means dysprosium (Dy2O3) and Tb means terbium (Tb4O7).
5. Mineral Resources were reported at a NSR cut-off of US$10.42/t, constrained within a conceptual pit shell using average long
term metal prices and metallurgical recoveries, both outlined in Chapter 14 of the FS.
6. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are reported
inclusive of Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing or other relevant issues.
7. The FS Mineral Resource estimate was prepared by Andres Beluzan, Member of Chilean Mining Commission, an independent
Qualified Person (“QP”) as defined by NI 43-101.
8. Totals may not be balanced due to rounding of figures.
Mineral Reserves Statement
Mineral Reserves, which include the identified economic portion of the Measured and Indicated Mineral
Resources, were estimated by LOMC for the Project as part of the FS.
To convert Mineral Resources to Mineral Reserves, consideration was given to forecasts and estimates of REE
prices, metallurgical recovery, mining dilution and ore loss factors, royalties and costs associated with mining,
processing, overheads, and logistics. These parameters were used to derive economi c cut -offs and create a
feasible pit design based on geotechnical assumptions, a production schedule and a financial model. It is LOMC’s
opinion that the Mineral Reserve estimation is compliant with NI 43-101.
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Table 4: Carina Project Mineral Reserve Estimate (Effective March 20th, 2026)
Mineral Reserves
Classification
Mass
(Mt)
Total Oxide Grade (ppm) Desorbable Oxide Grade (ppm)
TREO NdPr Dy Tb TREO NdPr Dy Tb
Proven 22.2 1,856 375 60 9.9 514 137 20 3.6
Probable 148.6 1,728 337 47 7.6 458 125 16 2.8
Proven & Probable 170.8 1,745 342 49 7.9 465 127 17 2.9
Notes:
1. The REE prices assumed are: US$93.88/kg Pr oxide, US$93.88/kg Nd oxide, US$3,568.94/kg Tb oxide, US$1,178.78/kg Dy oxide.
2. An exchange rate of R$5.50 to US$1.00 is assumed.
3. The economic cut-off was calculated cell-by-cell as ore/waste mining costs vary with haul distances. For equal haul distance, the
economic NSR cut-off is US$9.89/t (diluted).
4. 2.0% dilution and 98.0% mining recovery factors were applied to grades and tonnages, respectively.
5. The Mineral Reserve is included in the Mineral Resource.
6. Totals may not be balanced due to rounding of figures.
A separate economic model was run using more conservative metal price assumptions for pit optimization,
assigning no value to rare earths other than NdPr, Dy, and Tb. Under these conditions, the Project generates a
positive NPV, confirming the economic viability of the Mineral Reserves.
Project Description
The Project is based on standard open pit extraction techniques using 95-tonne hydraulic excavators and 75-
tonne payload haulage trucks to extract and deliver the ore to the process plant. The process ing plant has been
located close to the centre of mass of the mining operation to minimise the total haulage distance over the LOM.
Given the friable nature of the clays and the shallow depth of the extraction zones, no aggressive nor energy-
intensive techniques such as drilling and blasting are required to extract the clays from the pits.
Once the clay is delivered to the process plant, it will be washed using an ammonium sul fate solution to extract
the REEs from the clay surfaces. No crushing, grinding nor milling is needed to free the REEs from the clays as
they are extracted through a non -invasive ion-exchange process whereby ammonium ions replace REE ions on
the surface of the clay thereby liberating the REEs into solution. The REEs in solution are then isolated through a
pH-adjusted precipitation process and then passed through a high-pressure filter to remove any remaining liquids.
This results in the production of a high -purity REE carbonate ready for shipment to the Company ’s separation
facility in Louisiana. The process plant will have an average MREC production rate5 of 4,378 t/year of REO at 90.0%
availability.
Any unwanted impurities such as aluminium and calcium extracted from the clays during the ion exchange
process are removed through a selective precipitation process and subsequently recombined with the washed
clays before transportation to the deposition zone which is a filter-stack storage facility.
An integrated water recovery system purifies and regenerates the remaining process liquors s o they can be
reintroduced into the feed . The treated water is recycled in a closed circuit to reduce water consumption. This
allows the process ing plant to operate with minimum make-up water and for the main reagents to be re cycled
and reused within the processing plant.
Prior to the clays exiting the processing plant, they are washed with clean water within standard plate-and-frame
membrane filter presses . Th e wash removes any residual ammonium sul fate from the clays before they are
returned to the deposition zone or potentially used to back-fill the extraction zones for revegetation. Table 5 lists
the key process design criteria used in the mass balance calculations.
5 Annual average does not consider the first year of ramp-up and the last year of ramp-down.
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Table 5: Parameters used in mass balance calculations (Source: Aclara, 2025)
Description Unit Value
Feed
Processed wet mineral t/h 1,400
Dry mineral t/h 1,232
Dry Filtered Product
Wet MREC (t/year) t/year by element
MREC carbonate grade % >95 (98.2)*
Purity (REO equivalent %) >95 (97.7)*
Metallurgical performance
Desorption % 26.5
Desorption (excluding Ce) % 37.7
Plant recovery % 96.1
Overall performance % 25.4
Fresh water consumption m3/h 214
* Mass Balance-Based Estimation
The Project includes the necessary infrastructure to provide make -up water for the process plant, supply power
to the site, and provides a road network to service the operation, amongst others.
Electrical power for the processing plant, truck shop, administration offices, and other facilities will be supplied
by a dedicated transmission line designed to ensure stable and efficient energy delivery. This line operates at a
nominal voltage of 230 kV and is fed from a sub-station located approximately 100 km from the Project site.
Work on environmental and social studies will continue to assist in further defining mitigations which will be
integrated into the Project engineering design and throughout life of mine. The studies underway are consistent
with Brazilian regulations and International leading sustainability principles. Engagement with local communities
and residents in the vicinity of the Project is underway to establish working relationships and to collaboratively
understand local conditions which will inform the development and implementation of programs and mitigations.
REE Market Outlook and Pricing (Source: Argus Media)
Based on the work of Argus Media6, vehicle electrification and the transition to renewable energy will continue to
drive the REE market in terms of volume and (especially) value. Demand will increase for the REEs used in
permanent magnets (REE PMs): neodymium (Nd), praseodymium (Pr), Dy, and Tb oxi des. When growth in the
electric vehicle and renewable energy industries begins to plateau, the industrial and humanoid robotics sector
and drone technology are likely to continue boosting REE PM demand in the long term.
The supply of the LREE s, Nd (primarily) and Pr (to a lesser extent), from existing producers and new projects
appears to be sufficient to satisfy demand until at least the end of the decade. However, the supply of the HREEs
Dy and Tb, as well as the HREEs samarium (Sm), gadolinium (Gd) and yttrium (Y), is more problematic as far fewer
projects target HREE deposits. The market will likely have to rely on China and Myanmar/Laos in the short to
medium term for supply of HREE feedstocks, although production of ion -adsorption REE ores in southern China
is declining.
In early April, 2025, China extended its export control scheme to include Dy, Tb, Gd, Y, lutetium (Lu), Sm, and
scandium (Sc), likely in retaliation against the reciprocal tariffs announced by the President of the United States
on April 2, 2025. The effect on European REE prices was immediate: Argus Medias’ European assessments for
Dy, Tb, and Y prices rose to nearly 3, 2.5, and 7 times higher than Chinese prices, respectively. At the end of March
2026, Dy prices had reached US$ 1,000-1,200/kg (compared to US$2 00/kg in China), and Tb prices were
US$3,800–4,200/kg (compared to US$ 1,145/kg in China). Y prices soared to US$ 800-975/kg, nearly 100 times
higher than domestic Chinese prices.
6 Argus Media is an independent price reporting agency and market intelligence provider specializing in energy and critical minerals. With
over 15 years of rare earths market coverage, Argus Media delivers transparent benchmark pricing, supply–demand analysis, and long-term
forecasts. Argus Media’ independent data and expertise support accurate market assessments for project evaluations.