ACLARA ANNOUNCES FILING AND RESULTS OF PRE-FEASIBILITY STUDY FOR ITS FLAGSHIP CARINA PROJECT After-tax NPV8 of US$1.1B based on Mineral Reserves
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ACLARA ANNOUNCES FILING AND RESULTS OF PRE-FEASIBILITY STUDY
FOR ITS FLAGSHIP CARINA PROJECT
After-tax NPV8 of US$1.1B based on Mineral Reserves
TORONTO, ON, November 6, 2025 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased to
announce the filing and results of the pre-feasibility study (the “PFS”) of the Company’s flagship asset, the Carina
Project (“Carina” or the “Project”) based on Mineral Reserves. The PFS, titled “NI 43-101 Technical Report & Pre-
feasiblity Study on the Carina Project, Goiás, Brazil” with an effective date of October 22, 2025, was prepared and
consolidated in accordance with National Instrument 43 -101 – Standards of Disclosure for Mineral Projects (“NI
43-101”) by by Hatch Consultoria em Projetos Ltda. (“Hatch”). Other engineering companies that participated in
the preparation of the PFS include L&M Geociencias SpA, Promet 101 Consulting Pty Ltd, Abelco Consulting SpA,
LOM Consultoria em Mineração Ltda, F&Z Consultoria e Projetos, ERM Consultants Canada Ltd and Argus Media
Ltd (“Argus Media”).
There are no differences between the mineral resources described in the PFS and those previously disclosed in
the Mineral Resource Statement press release issued by the Company on October 1, 2025. 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 them in NI 43-101 by reference to the “Definition Standards for Mineral Resources and Mineral
Reserves” (2014) of the Canadian Institute of Mining and Metallurgy.
The PFS 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:
“The results of this Pre-Feasibility Study mark a defining milestone for Aclara, we are the first company in the world
to publish heavy rare earth Mineral Reserves from ionic clays in accordance with NI 43-101. The depth of data, quality
of engineering, and validation through pilot-scale operations give us strong confidence as we move into the feasibility
stage and prepare for early works in H1 2026 . Carina’s proven process, high -purity product, and sustainable design
position us to deliver one of the most responsible and competitive sources of heavy rare earths globally, supporting
Aclara’s integrated mine-to-magnet proposal.”
Highlights
Strong Economics
• After-tax Net Present Value (“NPV”) of approximately US$1.1 billion, using an 8% discount rate and price
forecasts provided by Argus Media.
• Internal Rate of Return (“IRR”) of 22% over an 18-year Life of Mine (“LOM”), with a payback period of 4.5 years.
• Initial capital cost (“Construction Capex”) of US$548.3 million, plus a US$132.2 million contingency, for an
aggregate of US$680.5 million. This figure includes US$64.3 million in local taxes and generates US$51.2
million in tax credits, which are fully recovered in the first year of operation.
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• An average annual commercial1 discount of US$196 million — equivalent to 29% of the annual gross revenue
— has been applied to account for the full separation of the Carina Project’s mixed rare earth carbonate
(“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 PFS.
• Average annual net revenue1 of US$487 million and average annual earnings before interest, depreciation,
and amortization (“EBITDA”)1 of approximately US$352 million.
• High average Net Smelter Return (NSR) of US$49.5 per tonne processed, against a low average production
cost of US$13.0 per tonne processed.
• The price forecast scenario developed by Argus Media is based on the European price index (excluding China).
Significant Production of HREEs and Light Rare Earths (LREEs)
• Average annual production1 of 4,265 tonnes rare earth oxides (“REO”) contained in an MREC product with very
high content of DyTb and NdPr of 4.1% and 27.5%, respectively.
• Average annual production1 of magnetic elements as well as other strategic HREEs contained in the MREC
product:
o 149 tonnes Dysprosium (Dy) and 25 tonnes of Terbium (Tb);
o 1,170 tonnes Neodymium and Praseodymium (NdPr); and
o Other strategic HREE: 170 tonnes of Samarium (Sm), 171 tonnes of Gadolinium (Gd), 10 tonnes
of Lutetium (Lu) and 1,098 tonnes of Yttrium (Y).
• Carina’s future production of DyTb will represent 11% of China’s 2024 official DyTb production2.
High Confidence in the Production Forecast, the Process Flowsheet and the Product Quality
• High geological confidence supported by 24,564 meters (m) of drilling across 1,682 drillholes, representing
approximately a 500% increase in drilling compared to the previously reported 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.
• Increased the 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 95% of the water used is recirculated; the main reagent is a
common fertilizer and is recirculated with 99% efficiency; and no requirement for a tailings dam.
• Minimal carbon footprint is 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
• A Memorandum of Understanding dated August 19, 2024 has been signed with the State of Goiás and Nova
Roma Municipality in Brazil to accelerate the implementation of the Project.
• The Project’s environmental license (or Previous License, as it is known in Brazil) was submitted in May and
is currently under evaluation by the State of Goiás.
1 Annual average does 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 based on quotas published that year by the Ministry of Industry and
Information Technology of the People’s Republic of China
3 Purity is expressed as REO equivalent.
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• The Company plans to start early works on site by mid-2026 as part of the Construction Capex. These include
camp construction, roads improvements and certain ancillary infrastructure to prepare the site for full fast-
track construction in 2027.
• Commissioning is estimated to commence in H2 2028 with initial production and ramp-up through 2029. The
Company is evaluating the possibility of expediting the schedule to begin initial production by mid -2028
depending on offtake agreements and access to financing.
Mine to Magnet Solution: Strong Bedrock for Integration with Aclara’s Processing Hub in Louisiana
• The Project’s high-purity MREC has been designed to facilitate further processing into individual rare earth
oxides at Aclara’s future separation facility in Louisiana.
• Aclara, through Aclara Metals’ (a subsidiary of the Company) 50/50% joint venture with CAP S.A. (“CAP”),
plans to convert the resulting Dy, Tb and NdPr high-purity oxides to metals and alloys under the specifications
of magnet manufacturers.
• Downstream processing is complemented by a strategic alliance with permanent magnet manufacturer
Vacuumschmelze (“VAC”) aimed at developing a complete mine to magnet solution.
Strong Financial Backing
• Key shareholders Hochschild Group and CAP provide significant operational experience and financial support
to continue advancing the Project.
• U.S. International Development Finance Corporation (“DFC”) 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 (12) months.
Key Project Parameters
Table 1 and Table 2 summarize the relevant parameters associated with the PFS operating and financial metrics:
• The PFS is based on Mineral Reserves.
• The after-tax NPV is estimated at US$1.1 billion, using an 8% 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.
o LOM average realized prices were assumed at US$3,941/kg for Tb, US$2,054/kg for Dy, and
US$118.7/kg for NdPr.
Table 1: Key Project Operating Parameters
PFS
Unit Total Annual
Average*
Mining and Processing
Life of Mine Years 18 -
Total Process Plant Feed million tonnes (dry) 165.4 9.7
Total Waste Mined million tonnes (dry) 42.3 2.3
Strip Ratio - 0.3 0.3
Production
Total Rare Earth Oxides Tonnes 72,877 4,265
Neodymium & Praseodymium (NdPr) Tonnes 20,034 1,170
Dysprosium (Dy) Tonnes 2,536 149
Terbium (Tb) Tonnes 436 26
*Note: Annual average does not include the first year of ramp-up and the last year of ramp-down
4 China has reached to an agreement with the United States to remove export restriction on all REE for one year until November 2026.
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Table 2: Key Project Financial Parameters
PFS
Unit Total Annual
Average*
Financials
Net Revenue US$ million 8,196 487
Net Smelter Return US$/t 49.5 -
Basket Price (2029-2034) US$/kg 115.7 -
Basket Price (LOM) US$/kg 158.4 -
Production Cost US$ million 2,156 126
Unit Cost per tonne of clay processed US$/t processed 13.0 -
Unit Cost per kg of REO produced US$/kg REO 29.6 -
Unit Cost per kg of Dy_Eq produced US$/kg Dy_Eq** 284 -
EBITDA US$ million 5,869 352
EBITDA Margin % 72 -
Income Tax US$ million 1,7454 107
Effective Tax Rate % 23.3 -
Initial Capital US$ million 548.3 -
Initial Capital Contingency US$ million 132.2
Total Initial Capital US$ million 680.5 -
Royalty Purchase Cost US$ million 6.5 -
Sustaining Capital US$ million 48.6 -
Financial Returns
Pre-Tax Net Present Value (8%) US$ million 1,726.0 -
Pre-Tax Internal Rate of Return (IRR) % 26.4 -
Post-Tax Net Present Value (8%) US$ million 1,066.5 -
Post-Tax Internal Rate of Return (IRR) % 21.8 -
Payback Period years 4.5 -
Notes:
* Annual average does not include the first year of ramp-up and the last year of ramp-down
** Dy_Eq US$/kg unit cost calculated only using credits of the net revenue of NdPr and Tb applied to the total costs
Post-Tax Free Cash Flow
Figure 1 demonstrates the yearly and cumulative post-tax free cash flow generated through the LOM.
Figure 1: Projected life of mine, post-tax, unleveraged free cash flow
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1,100
2027
2028
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2035
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2038
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2041
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2044
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Cumulative Free Cash Flow (US$ M)
Free Cash Flow (US$ M)
Years
Post-Tax Free Cash Flow (US$ M) Post-Tax Cummulative Free Cash Flow (US$ M)Post-Tax Cumulative
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Sensitivity Analysis
A sensitivity analysis was undertaken to evaluate the impact on after-tax NPV, considering a variation of ±30% 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
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% discount rate is positive, and
the Internal Rate of Return 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.
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500
1,000
1,500
2,000
2,500
3,000
3,500
-30% -20% -10% 0% 10% 20% 30%
Post-Tax NPV (US$ million)
Parameter Variation (%)
MREC Price OPEX CAPEX Desorption Efficiency Separation Cost
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Mineral Resource Statement
The Project’s Mineral Resources have been estimated using the results obtained from 24,564 meters (m) of
drilling across 1,682 drillholes and 14,001 samples. The MRE is reported in accordance with the requirements of
NI 43-101.
Table 3. Carina Project Mineral Resource Estimate (Effective July 29, 2025)
Mineral Resources
Classification
Mass
(Mt)
Total Oxide Grade (ppm) Oxide Content (t)
TREO NdPr Dy Tb TREO NdPr Dy Tb
Indicated 236 1,572 293 43 6.8 371,492 69,150 10,099 1,614
Inferred 48 1,288 236 41 6.4 61,675 11,316 1,949 307
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 Net Smelter Return (NSR) cut-off of 10.0 US$/t, constrained within a conceptual pit shell
using average long term metal prices and metallurgical recoveries, both outlined in Chapter 14.
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 PFS Mineral Resource estimate was prepared by Andres Beluzan, Member of Chilean Mining Commission, an independent
Qualified Person 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 Indicated Mineral Resources, were
estimated by LOM Consultoria em Mineração Ltda (“LOMC”) for the Project as part of the PFS. At this stage,
Measured Mineral Resources are not classified in the resource model.
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.
Table 4: Carina Project Mineral Reserve Estimate (Effective September 30, 2025)
Mineral Reserves
Classification
Mass
(Mt)
Total Oxide Grade (ppm) Desorbable Oxide Grade (ppm)
TREO NdPr Dy Tb TREO NdPr Dy Tb
Proven - - - - - - - - -
Probable 165.4 1,723 336 47 7.5 459 126 16 2.8
Notes:
1. The REE prices assumed are: US$96.00/kg Pr oxide, US$96.00/kg Nd oxide, US$3,056.00/kg Tb oxide, US$829.00/kg Dy oxide.
2. An exchange rate of R$5.75 to US$1.00 is assumed.
3. Mineral Reserves are based on Indicated Mineral Resources only. At this stage, Measured Mineral Resources are not classified in
the model.
4. 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$9.27/t.
5. 2% dilution and 98% mining recovery factors were applied to grades and tonnages, respectively.
6. The mineral Reserve is included in the mineral Resource.
The economic model demonstrates that, under the metal prices assumed for the pit optimization, the Project
provides a positive NPV which confirms the economic viability of the Mineral Reserves.
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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 clays to the process plant. The process 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 sulfate 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 our
separation facility in Louisiana. The process plant will have an average production rate 5 of 4,265 t/year of REO
within the MREC at 90% availability.
Any unwanted impurities such as aluminium and calcium extracted from the clays during the ion exchange
process are removed through a precipitation process and subsequently recombined with the washed clays before
being transported to a deposition zone which is a filter-stack storage facility.
An integrated water recovery system cleans 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 plant to operate with minimum make-up water and for the main reagents to be regenerated
and reused within the process plant.
Before t he clays exit the process 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 used to back -fill the extraction zones for revegetation. Table 5 lists the key
process design criteria used in the mass balance calculations.
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 141.0
* 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 provide 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.
5 Annual average does not consider the first year of ramp-up and the last year of ramp-down.
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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), dysprosium (Dy), and terbium (Tb) oxides.
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 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, China extended its export control scheme to include Dy, Tb, Gd, Y, lutetium (Lu), samarium (Sm), and
scandium (Sc), likely in retaliation against the reciprocal tariffs announced by the United States president on April
2, 2025. The effect on European REE prices was immediate: Argus Media’s 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 July 2025, Dy
prices had reached US$750 -860/kg (compared to US$225/kg in China), and Tb prices were US$2,800 –3,500/kg
(compared to US$985/kg in China). Y prices soared to US$60/kg —nearly 9 times higher than domestic Chinese
prices.
Nd prices in Europe have continued to track the Chinese free on board (FOB7) prices because Nd was not a product
subject to export controls. However, the 10-year Nd floor price of US$110/kg agreed between the United States
Department of War (DOW; formerly the Department of Defense) and the American REE producer MP Materials is
likely to raise European Nd prices to these levels as the European Union Critical Rare Materials Act begins to take
effect towards the end of the decade. REE prices in Europe are likely to remain high, at least in the short term,
given the uncertainty surrounding Chinese exports.
Argus Media has assessed European prices for Nd and Ce oxides and metals since 2012 and Dy, Tb, and Er oxides
since 2015. In July 2025, it introduced prices for Pr and NdPr oxides to complete the suite of REE PM materials.
Historically, European prices have tracked C hinese FOB prices (with the addition of shipping to reflect the CIF 8
Rotterdam assessment) because most of the material traded in Europe would be of Chinese origin. In the future,
it is likely that European prices will decouple from Chinese prices as the supply chains not reliant on China are
created and are based on the c osts curve for non -Chinese production of REEs. Figure 3 shows the comparison
between Chinese FOB prices and European CIF prices for Dy and Tb.
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, 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.
7 Free on board (FOB) prices are associated with a seller who is responsible for the goods until they are loaded onto the ship or other
transport vehicle at a specific location.
8 Cost, Insurance, Freight (CIF): Under CIF terms, the seller arranges and pays for the cost of transporting the goods to the named port of
destination, including insurance and freight charges. However, the risk of loss or damage to the goods transfers from the seller to the buyer
once the goods are loaded onto the vessel at the port of shipment.