Aclara Announces Results from Technical Reports ON Its Integrated Heavy Rare Earths Supply Chain
ACLARA ANNOUNCES RESULTS FROM TECHNICAL REPORTS ON ITS
INTEGRATED HEAVY RARE EARTHS SUPPLY CHAIN
TORONTO, ON, April 13, 202 6 – Aclara Resources Inc. (“Aclara” or the “Company”) (TSX: ARA) is pleased to
announce the results of a series of technical studies supporting its integrated heavy rare earths supply chain,
spanning from mining operations to the production of permanent magnet alloys (“mine-to-alloys” strategy). The
studies include a feasibility study for the Company’s flagship asset, the Carina Project prepared in accordance
with National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”), a scoping study for
the Company’s separation project (“Project Dynamo”), and a Front-end Loaded 2 (FEL 2) Technical Report (pre -
feasibility study level) for its metals and alloys project.
Aclara is advancing two ionic clay deposits in Brazil and Chile capable of producing a mixed rare earth carbonate
(“MREC”) with very high concentrations of heavy rare earth elements (“HREEs”), particularly those restricted under
China’s export controls. To help build a reliable supply chain outside of China, Aclara is also establishing a U.S.-
based processing hub that will separate MREC into individual rare earth oxides and further transform these oxides
into metals and alloys tailored to the needs of permanent magnet manufacturers.
Aclara’s value proposition is anchored in its vertically integrated, mine-to-alloys business model, designed to
maximize commercial viability while reducing execution risk, optimizing costs, and accelerating development
timelines. The Company is establishing a fully traceable heavy rare earth supply chain that meets the highest
environmental and social standards at every stage, while maintaining full control over mining and processing to
ensure consistency, quality, and reliability. Its projects are purpose-built to enhance geopolitical independence
and strengthen supply chain resilience.
Backed by leading industrial shareholders such as the Hochschild Mining PLC (“Hochschild”) and CAP S.A.
(”CAP”), and supported by strategic institutions such as the U.S. International Development Finance Corporation,
which has committed initial funding and retains a pathway for further investment, Aclara has deployed over
US$250 million to date and is well-positioned to fund its integrated growth mine-to-alloys strategy.
Aclara’s CEO, Ramón Barúa, commented:
"At Aclara, our ambition is to become a long -term supplier to high -technology industries that depend on rare earth
elements. Achieving this requires building a supply chain that is reliable, consistent, and sustainable. Today’s
announcement reflects nearly eight years of dedicated work, during which we have developed the mineral reserves,
the technology, and the engineering capabilities to establish ourselves as a leader in the supply of rare earth products.
Our competitive advantage is grounded in three pillars: our ionic clay deposits — the world’s primary source of heavy
rare earths — a portfolio of proprietary technologies that enable us to convert those clays into permanent magnet
alloys, and the backing of strategic partners who contribute not only capital but a lso deep industrial and mining
expertise across the Americas.
The results published today are a testament to the Aclara team’s commitment to delivering, through a fast -track
approach, an initial robust and vertically integrated supply chain for both heavy and light rare earths. These three
studies form the foundation of our core strategy and will soon be complemented by additional growth opportunities,
including Penco, the separation of non -magnetic rare earths, continued mineral exploration, and more. We will also
continue to work towards applying our technology, in the medium term, in Brazil and other countries where we
operate. We remain firmly convinced that the supply -demand imbalance — particularly for heavy rare earths — will
continue to widen, setting the stage for the successful execution of our strategy. "
Highlights
Table 1 summarizes the principal financial and production parameters of Aclara’s integrated value chain. The
figures presented exclude the Penco Module in the Biobío Region of Chile, which is expected to provide substantial
incremental production and value in each step of Aclara’s supply chain.
Table 1: Summary of financial results and production from each step of Aclara´s mine-to-alloys strategy
Unit
Mining
Separation
Alloys
Project Carina Project Project Dynamo Metals and Alloys
Location Goiás,
Brazil
Louisiana, U.S.A. Louisiana, U.S.A.
Technical Report Feasibility Study
(NI 43-101) Scoping Study FEL 2 Technical
Report (PFS level)
Lead Engineering Company Hatch Hatch / L3 Process
Development Huachipato (“HTO”)
Key Financial Results
Project Carina Project Project Dynamo Metals and Alloys Total
Net Present Value (“NPV”) @ 8.0% US$ M 1,661 470 203 2,334
Internal Return Rate (IRR%) % 26.9% 25.2% 25.0% 26%
Payback Period Years 2.9 3.3 3.7 -
Capex US$ M 781 277 149 1,207
Expected Production
Project Carina Project Project Dynamo Metals and Alloys
Type of Product MREC Rare Earth Oxide Metals and Alloys
Rare Earths Oxides Tonnes 4,378 - -
Purity % >95.0% >99.5% >99.5%
Permanent Magnet Rare Earths
Dysprosium (Dy) Tonnes 156 148 -
Ferrodysprosium (80%Dy : 20%Fe) Tonnes - - 154
Terbium (Tb) Tonnes 27 25 19
Neodymium (Nd) Tonnes 933 1,131 811 Praseodymium (Pr) Tonnes 258
Nd-Iron-Boron (NdFeB) Alloy Tonnes - - 2,681
Other Key Rare Earths*
Yttrium (Y) Tonnes 1,160
Phase 2 Phase 2 Gadolinium (Gd) Tonnes 176
Samarium (Sm) Tonnes 173
Lutetium (Lu) Tonnes 10
Phase 3
-
Europium (Eu) Tonnes 8 -
Ytterbium (Yb) Tonnes 73 -
Other Tonnes 1,404 -
Notes:
1. Annual average does not consider the first year of ramp-up and the last year of ramp-down.
2. Didymium (“NdPr”) metal production: NdPr metal production is based on a maximum annual production of 1,000 tonnes of didymium
oxide (“NdPr oxide”), resulting in approximately 131 tonnes of excess NdPr oxide, which may either be sold directly or further processed
into metal.
3. NdFeB Alloy: The nominal capacity of the NdFeB alloy plant is 3,500 tonnes per year; however, production has been capped based on the
maximum output of NdPr metal derived from the Carina Project.
4. Phase 2: Aclara is currently developing separation circuits for yttrium, gadolinium, and samarium. The financial results for Project
Dynamo do not include any contribution from the separation of these elements, which represents potential upside to the project. Similarly,
the Company’s metals and alloys business is evaluating the expansion of its metallization capabilities to include these elements,
leveraging its proprietary technologies to enable their production.
5. Phase 3: To be developed in line with market demand.
Technologies
4
1
2
5
3
Mining - Carina Project, Goiás, Brazil (Upstream)
The Carina Project is an advanced -stage ionic clay-hosted heavy rare earth deposit located in Goiás, Brazil. The
Carina Project is designed to produce a high -purity MREC through a low -impact, technology driven and value -
added extraction process. The operation contemplates conventional open-pit mining but, due to the friable nature
of the clays, does not require blasting, crushing, or milling, thus significantly reducing energy consumption and
carbon emissions. Rare earth elements are recovered using Aclara’s proprietary Circular Mineral Harvesting
process, an ion-exchange technology that uses a recyclable ammonium-based solution to selectively extract rare
earths. The process is designed to minimize environmental impact, with high rates of water and reagent recycling
and no requirement for a tailings storage facility. The resulting high -purity MREC is intended to be further
processed at Aclara’s U.S.-based separation and downstream facilities, forming part of the Company’s vertically
integrated “mine-to-alloys” supply chain.
Carina Project NI 43-101 Feasibility Study Highlights
Strong Economics
• After-tax Net Present Value (“NPV”) of approximately US$1.7 billion (8.0% discount rate).
• 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 US$102.7 million contingency, remaining
within expectations for the current level of engineering, with a high degree of estimate accuracy, including
appropriate owner’s costs and contingency.
• Average annual net revenue1 of US$599 million and EBITDA1 of approximately US$461 million.
• Average annual commercial discount1 of US$314 million (34% of gross revenue) applied to reflect MREC
separation, with fees assumed payable to Aclara’s Louisiana separation project for permanent magnet rare
earths, as well as to third parties for the separation of by-products.
• High average Net Smelter Return (“NSR”) of US$61.8 per tonne processed, compared to low average operating
cost (“Opex”) of US$13.1 per tonne processed, consistent with prior estimates.
• Price assumptions based on Argus Media European indices (excluding China), in real terms and supported by
observable ex-China transactions.
Robust Rare Earth Production (18-Year Mine Life)
• Average annual production of 4,378 tonnes of rare earth oxides in MREC, with high concentrations of DyTb
(4.2%) and NdPr (26.8%).
• Average annual production¹ includes:
o 156 tonnes of Dysprosium (Dy) and 27 tonnes of Terbium (Tb), represents approximately 11.8%
of China’s 2024 estimated output2.
o 1,191 tonnes of Neodymium and Praseodymium (NdPr)
o Additional key HREEs including: 173 tonnes of Samarium (Sm); 177 tonnes of Gadolinium (Gd);
10 tonnes of Lutetium (Lu); and 1,160 tonnes Yttrium (Y).
High Degree of Confidence
• Feasibility Study led by Hatch Consultoria em Projectos Ltda. (“Hatch”).
• All production estimates are based on mineral reserves.
• Extensive pilot plant operations conducted in Goiânia throughout 2025.
• Key equipment and inputs supported by multiple western vendor quotations, enhancing supply chain
resilience and geopolitical diversification.
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 is based on quotas published that year by the Ministry of Industry and
Information Technology of the People’s Republic of China
Premium MREC Product
• High purity of >95.0% (97.7% based on design mass balance), supported by semi-industrial scale production.
• Circular Mineral Harvesting process minimizes environmental impact:
o No explosives, crushing, or milling.
o Approximately 93% water recirculation.
o Main reagent (fertilizer) recycled at an approximate efficiency rate of99.0%.
o No tailings storage facility required.
• Low carbon footprint driven by low energy consumption and full renewable energy share in Goiás’ power grid.
• MREC product designed for downstream processing at Project Dynamo (located in Louisiana, U.S.), where
MREC will be separated into individual oxides and converted into metals and alloys to meet magnet
manufacturer specifications.
Path to Production
• Modular construction strategy enables parallel fabrication and site preparation, an improved schedule, quality
control, and reduced exposure to labor and weather constraints.
• Early works are expected to commence mid-2026 (including construction of camps and roads; ancillary
infrastructure), ahead of full construction targeted for 2027.
• Startup targeted for the second half of 2028, with ramp-up anticipated through 2029.
For additional information, please refer to the Company’s news release dated April 13, 2026 , and titled “Aclara
Announces Filing and Results of Feasibility Study for its Flagship Carina Project” and the Feasibility Study filed on
SEDAR,+ titled “NI 43-101 Technical Report & Feasibility Study on the Carina Project, Goiás, Brazil” .
Separation – Project Dynamo, Louisiana, United States (Midstream)
Aclara’s Project Dynamo has been designed to process high-purity MREC from the Carina Project in Brazil into
individual rare earth oxides, supporting the establishment of a secure and independent heavy rare earth supply
chain in the Western Hemisphere. The facility will focus on the production of high -value magnet rare earths ,
including NdPr oxide, Dy oxide, and Tb oxide. Feedstock is assumed to be sourced exclusively from the Carina
Project, with potential future supply from the Penco Module in Chile and the separation of additional rare earths
(e.g., Y, Gd, Sm) representing a significant upside, which is not reflected in the financial results.
Project Dynamo will be located on an approximately 82-acre Louisiana Economic Development ( “LED”) Certified
Site in the Lake Charles industrial corridor, pursuant to an approximately 80-year lease option. The site benefits
range from established infrastructure, access to skilled labor and key reagents and proximity to transportation
networks, all which will support efficient construction and operations to come.
The process is based on solvent extraction (“SX”), utilizing multiple extraction, scrubbing, and stripping circuits to
produce high-purity individual oxides. The flowsheet includes dedicated circuits for NdPr, Dy, and Tb, which are
currently being validated at Aclara’s pilot plant at Virginia Tech, with results supporting engineering design and
scale-up.
Project Dynamo Scoping Study Highlights
Strong Economics
• After-tax NPV of approximately US$470 million (8.0% discount rate).
• After-tax IRR of 25.2%, with a payback period of 3.3 years.
• Construction Capex of US$277 million, plus US$52 million in working capital to address ramp-up and
equilibrium of the solvent extraction process.
• Average annual net revenue¹ of US$175 million and EBITDA¹ of approximately US$117 million, supported by
a processing fee of US$40 per kilogram of TREO processed, compared to low average Opex of US$12.6 per
kilogram of TREO processed.
• Project Dynamo is being developed in collaboration with the State of Louisiana, United States, which is in turn
supporting the investment through $46.4 million in tax incentives and grants.
• Economic estimates exclude potential future feedstock from the Penco Module and the separation of
additional rare earths (Y, Gd, Sm, etc.), which represents a significant upside not reflected in current financial
results.
Annual Average Production
• Dy oxide (>99.5%): 148 tonnes.
• Tb oxide (>99.5%): 25 tonnes.
• NdPr oxide (>99.5%): 1,131 tonnes.
• By-products
o SEG mixed carbonate, including approximately 173 tonnes of Sm, 8 tonnes of Eu and 177 tonnes of
Gd.
o Super heavy mixed carbonate including approximately 1,160 tonnes of Y, 31 tonnes of Holmium (Ho),
88 tonnes of Erbium (Er), 12 tonnes of Thulium (Tm), 73 tonnes of Ytterbium and 10 tonnes of Lu.
Separation of Additional Key Rare Earths: Yttrium, Gadolinium and Samarium
• Aclara is actively designing the SX circuits for the separation of Y, Gd, and Sm, as part of Phase 2 of Project
Dynamo.
• Evaluations are ongoing to expand Aclara’s pilot facility at Virginia Tech to incorporate Phase 2 separation.
• Additional HREEs, including Ho, Er, Tm, Yb, and Lu, will also be evaluated for separation based on market
demand, as part of Phase 3 of Project Dynamo.
Ongoing Demonstration of Aclara’s Proprietary SX Technology at Virginia Tech
• The pilot plant at the Virginia Tech Corporate Research Center supports the transition of Project Dynamo from
basic engineering to an execution-ready design by providing real operating data:
o Configured to replicate the commercial plant, including sequential separation circuits and internal
recycle streams.
o Integrates continuous SX with batch processes (leaching, precipitation, calcination, and effluent
treatment), bridging process development and engineering design.
o Pilot results refine key basic engineering (FEL-3) assumptions, including operating parameters for
extraction, scrubbing, stripping, reagent use, and product finishing.
• The pilot plant will generate operational data to support the development of an AI-driven digital twin of the SX
process in collaboration with Argonne National Laboratory (“ANL”), enabling optimized ramp-up and operation
of the commercial facility.
• The pilot plant is fully staffed, with L3 Process Development personnel monitoring operations, Aclara
personnel undergoing training and a dedicated team of Virginia Tech PhD researchers supporting process
optimization and advanced technical analysis.
• NdPr oxide samples are expected in May 2026, followed by Dy and Tb oxide samples in August 2026.
Digital Twin Under Development with ANL
• Aclara, in collaboration with ANL, is developing an artificial intelligence–enabled digital twin for its SX process,
leveraging ANL’s SolventX platform, advanced computing capabilities, and process modeling expertise,
combined with Aclara’s proprietary pilot-scale data.
• The digital twin is expected to enable Aclara to model, analyze, and optimize the separation process across
a wide range of operating conditions, enhancing performance while reducing scale-up risk. By integrating AI
and data-driven techniques, it is expected to support:
o Engineering: testing assumptions, refining the process basis, and reducing scale-up risk.
o Commissioning and startup: understanding transient behavior, prioritizing adjustments, and
accelerating ramp-up.
o Operations: maximizing purity and recovery, maintaining process stability, and preserving operational
knowledge.
• The digital twin is also expected to support:
o Simulation of multiple feedstocks beyond the Carina Project, such as the Penco Module MREC,
enabling rapid integration into the production schedule.
o Evaluation of additional rare earth separations such as Y, Gd and Sm, without disrupting core circuits.
o Integration of machine learning to complement first-principles models and enhance operational
decision-making.
Basic Engineering (FEL-3) for the Industrial Facility in Louisiana
• Basic engineering is being developed by Hatch, serving as lead engineering company.
• Key local suppliers and contractors have already been identified for assistance with construction and
operation.
• Project Dynamo is being designed as the foundation of a broader rare earth processing hub, with a forward-
looking site layout that preserves expansion capacity for future downstream development, including
separation of Y, Gd, Sm (and other rare earths), increased production from alternative feedstocks such as
Penco Module MREC and the integration of metals and alloys facility.
• Completion is targeted for the third quarter of 2026.
Louisiana Site and Available Infrastructure
• The proposed separation facility will be located on an 82-acre site in the Lake Charles industrial corridor,
Louisiana, secured under an approximately 80-year lease which will support the full Project life and future
expansions.
• The site is a LED Certified Site, approved for heavy industrial use, meeting key criteria for permitting, zoning,
utilities, and constructability, thereby reducing development risk.
• Electrical power is expected to be supplied by Entergy Louisiana through a 34.5 kV network via a pad-mounted
transformer. Estimated demand is <5 MW, with approximate 6 MW capacity confirmed by Entergy, which is
investing to support power availability at the Port of Vinton and Project Dynamo.
• The location provides access to a well-established industrial ecosystem with proximity to key suppliers and
infrastructure required for chemical processing operations.
• The Lake Charles region offers a skilled workforce with experience in petrochemical and refining industries,
supporting continuous processing operations.
• Strong transportation infrastructure, including highways, and port access, facilitates efficient inbound
logistics of feedstock and outbound shipment of final products.
Environmental and Permitting
• Aclara has completed a comprehensive review of applicable environmental regulations and identified the
relevant federal, state, and local permitting requirements.
• Key permits include air quality, industrial wastewater discharge, and stormwater management, along with
other standard approvals for chemical processing facilities, which are well-established within Louisiana’s
regulatory framework and not expected to represent a material development risk.
• The Company is working closely with local and state regulatory authorities to support an efficient permitting
process, proactive issue resolution and alignment with project timelines.
• Key approvals are targeted by October 2026 to enable groundbreaking currently slated for the end of 2026.
Scoping Study Experts
• Hatch: Responsible for project infrastructure and engineering, including site infrastructure requirements,
layout and overall engineering inputs. Hatch reviewed and approved the capital and operating cost estimates.
• L3 Process Development: Prepared the process design and capital and operating cost estimates based on a
FEL 1.5 scoping study, including flowsheet development and equipment definition.
• Lancon LLC: Prepared the property description, including site characterization, land tenure and location-
specific information.
• Montrose Environmental Group: Led environmental and permitting work, including regulatory identification
and permitting strategy.
• Argus Media: Provided market intelligence supporting marketing and commercial assumptions, including
product placement and contractual structures.
Path to production
• Project execution is structured in a phased development plan aligned with targeted construction and
commissioning through mid-2028:
o Q3 2026: complete basic engineering.
o Q4 2026: award long-lead equipment and initiate site works and foundations.
o Q1 2027- Q1 2028: complete construction.
o Q2 2028: conduct pre-commissioning, commissioning, and ramp-up to stable operations.
Metals and Alloys, Louisiana, United States (Midstream)
In March 2024, CAP and Aclara agreed to form Aclara Metals SpA (“Aclara Metals”), a 50/50 joint venture focused
on the development of rare earth metals and alloys production.
Leveraging CAP’s 75 years of industrial experience , particularly through its wholly owned steel subsidiary,
Compañía Siderúrgica Huachipato (“HTO”), Aclara Metals has since developed technical expertise in metallization
and alloy production processes.
This report has been prepared by the Aclara Metals team and is based primarily on a series of technical studies
developed jointly with HTO, including a Conceptual Flowsheet Development (May 2025), Conceptual Engineering of
a U.S. REE Metals and Alloys Plant (August 2025), Final Report on Emissions Control and Waste Management (March
2026) and a Detailed Engineering of an Electrolysis Cell (February 2026).
The proposed facility is designed to convert rare earth oxides into refined metals and alloys within Aclara’s
vertically integrated platform. The production flowsheet incorporates fluorination to produce NdPr, Dy, and Tb
fluorides; molten salt electrolysis (“electrolysis”) for NdPr and FeDy metal production; vacuum induction melting
(“VIM”) to produce Tb metal; and strip casting to produce NdFeB alloys. Collectively, these integrated processes
enable the conversion of rare earth oxides into magnet-grade materials within a single coordinated system.
The design follows a modular, staged development approach aligned with feedstock supplied from Aclara’s
separation facility, based on annual availability of 150 t/y Dy, 26 t/y Tb, and 1,000 t/y NdPr oxides.
Metals and Alloys Front-end Loaded 2 (FEL 2) Technical Report (Prefeasibility Study Level) Highlights
Strong Economics
• After-tax NPV of approximately US$203 million (8.0% discount rate).
• After-tax IRR of 25.0%, with a payback period of 3.7 years.
• Construction Capex of US$149 million, plus US$11 million in working capital to address the ramp-up stage.
• Average annual net revenue¹ of US$80 million and EBITDA¹ of approximately US$50 million.
• Average Opex of US$17 per kg of NdPr oxide, US$31 per kg of Dy oxide, US$ 92 per kg of Tb oxide and US$ 2
per kg of NdFeB alloy.
• Revenue model based on intercompany tolling, structured to deliver an IRR of approximately 25%, supporting
strong investment returns and enhancing access to capital markets and overall bankability.
• Economic estimates exclude potential future feedstock from the Penco Module and the metal reduction of
additional rare earths such as Y, Gd and Sm, representing a significant upside not reflected in Aclara’s current
financial results.
Annual Average Production
• FeDy metal (composition: 80% Dy and 20% Fe; purity: >99.5%): 154 tonnes.
• Tb metal (>99.5%): 19 tonnes.
• NdPr metal (>99.5%): 811 tonnes.
o NdPr metal production is based on a maximum annual production of 1,000 tonnes of didymium oxide
(“NdPr oxide”), resulting in approximately 1 31 tonnes of excess NdPr oxid e from the Carina Project ,
which may either be sold directly or further processed into metal.
• NdFeB Alloys (>99.5%): 2,681 tonnes.
o The nominal capacity of the NdFeB alloy plant is 3,500 tonnes per year; however, production of 2,681
has been capped based on the maximum output of NdPr metal of 811 tonnes.
• Metal reduction of additional key rare earths such as Y, Gd and Sm.
o Y and Gd are converted into metal via VIM, leveraging the same process used for Tb metal, with only
incremental capacity expansion required for the VIM units.
o Aclara Metals is evaluating the production process to convert S m oxide into metal and further into
samarium-cobalt (SmCo) alloy.
Third-Party Testing
• The FEL 2 Technical Report is supported by a broad technical validation package combining reference plant
visits, operational observations, engineering studies, specialist advisory support, and project-level engineering
and implementation work.
o Fluorination is one of the most advanced process blocks, supported by direct observation of a rare
earth fluorination plant in South Africa using gaseous anhydrous hydrogen fluoride.
o VIM for Tb production is supported by observations from a U.S.-based rare earth and superalloy
facility, providing practical insights for operability and scale-up.
o Strip casting is supported by technical training and evaluation at Fraunhofer IWKS in Frankfurt,
Germany, confirming the importance of chemistry, microstructure, and oxygen control for magnet-
grade products.
Electrolysis Demonstration Facility
• Aclara is advancing a demonstration plant to produce rare earth metals and alloys using electrolysis
technology, with key equipment and consumables already defined and procured .
• The industrial-scale electrolysis cell has been fully designed in-house and represents proprietary technology.
Given the limited availability of established industrial standards outside China, this internally developed know-
how constitutes a high-value technological asset.
• The facility is designed to produce approximately 175 kg/day of NdPr alloy at >99.5% purity, reflecting full
industrial-scale units planned for the commercial plant and significantly reducing scale -up risk.
• The demonstration plant will validate the ability to produce metals and alloys meeting customer
specifications under stable, continuous operation, while building operational expertise and enabling
workforce training.
• Data generated from the demonstration campaigns will provide critical inputs for the Feasibility Study and
support the development of a digital twin to further optimize process performance .