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Aclara Confirms Successful Completion of Its Process Flowsheet at LAB Scale

Metallurgy & Processing

ACLARA CONFIRMS SUCCESSFUL COMPLETION OF ITS PROCESS FLOWSHEET AT LAB SCALE

TORONTO, ON, November 09, 2022 – Aclara Resources Inc. (“ Aclara” or the “Company”) (TSX:ARA) is

pleased to announce the successful completion of a laboratory testing phase undertaken to optimize the

metallurgical process and ensure that liquid residues not are generated. This test work forms part of the

development program for the extraction of Rare Earth Elements (“REE”) from Aclara’s ionic clay resource in

the Penco Module (“Project”) located in the Bio Bio Region, in the south of Chile.

This represents an important milestone in the development of the proposed Aclara REE extraction process ,

now known as “Circular Mineral Harvesting”, as it demonstrates a unique process that not only results in

attractive recoveries of REE but also minimizes the associated environmental footprint. The results show that

95% of the fresh water utilized by the process plant is retained within the circuit, that 99% of the main reagent

(ammonium sulphate) is recirculated, and that no liquid residues will be produced thus negating the need for

a tailings facility. In addition, the mining activities do not require the use of explosives nor subsequent crushing

and milling, resulting in a very low carbon footprint operation. The successful completion of this test work

materially de-risks the metallurgical attributes of the Project.

Although further optimization opportunities continue to be evaluated by the Aclara team, this achievement

allows us to:

• Ensure a stable, closed-circuit process

• Validates the results presented in the PEA with further representative samples

• Improve Dy and Tb recoveries

• Move towards a semi-industrial piloting stage

• Generate intellectual property protected by international patents

The goal of Aclara is to produce a High Purity H eavy Rare Earths (“ HREE") concentrate while ensuring a

minimal environmental footprint. The Penco Module will not use explosives, nor will there be crushing nor

milling circuits in the process flowsheet , which will minimize the use of energy and Green House Gas

emissions. In addition, the high percentage of water and reagent recirculation, and the avoidance of the need

for a tailings facility, and the production of a final product which is free of deleterious radioactive elements are

all key attributes of the novel Aclara process. Finally, Aclara aims to reclaim its production site by growing a

native forest on the impacted areas.

Process Flowsheet Introduction

Before delving into the detail of the metallurgical testing program, a brief description of the process named

Circular Mineral Harvesting is presented to provide context to the importance of the overall program. REE

from the Penco mineral deposit are present in two different mineral forms: as REE elements adsorbed onto

the surface of the clays and as REE contained within the mineralized ores, mainly in the form of Monazite.

The extraction process is focused on recovering only the REE associated with the clays, as these are known

to be soluble in certain acidic solutions with a pH of between 3.0 and 4.0. The process of extracting REE from

clays is commonly called “Desorption” or “Leaching”, and typically occurs in mildly acidic solutions specifically

controlled to maximize the recovery of the REE elements yet minimize the complete dissolution of the host

minerals and thereby avoid concentrating unwanted elements. Optimizing the process conditions is key to

maximizing the project economics with regards to operational costs, capital costs, environmental footprint and

the generation of a final clay material that is safe to return to the mining areas for future revegetation.

The following figure (Figure 1) summarizes the integrated process: mine extraction, desorption, impurities

removal and REE carbonation precipitation as final product. It also includes the washing of the processed

clays prior to being returned to the depleted mine areas for native reforestation.

Figure 1 – Circular Mineral Harvesting Process flowsheet schematic

Figure 2 highlights the positive attributes associated with the Aclara Circular Mineral Harvesting.

Figure 2 – Aclara Circular Mineral Harvesting Attributes

Background of the Process Flowsheet

The extraction process developed prior to 2021 by Aclara with the support of the University of Toronto

consisted of a two-step counter-current desorption process using ammonium sulphate as the main lixiviant

followed by a selective precipitation process using ammonium bicarbonate. The pH used in the desorption

process was 4.0. The precipitated solid was subsequently washed to recover any remaining ammonium

sulphate. The results of this program (“Condition A”) were compiled and served as a base case against which

to compare the performance of the future metallurgical programs.

Metallurgical Recovery Validation Programme

For the 2021/22 metallurgical program, the first step was to validate the initial results obtained at the University

of Toronto using the Condition A process conditions, by testing new, representative samples from the entire

Penco deposit and the introduction of a new variant of the lixiviant solution.

Selection of samples

The selection of representative samples for the metallurgical test program was key to ensuring the test results

accurately represent the minable mineral resources . It is also important for subsequent testing and process

improvements. The metallurgical performance of samples from each mine zone and within each zone may be

variable, and such variability plays a part in the selection of samples. To achieve representativeness, the

sample selection program considered, amongst others, parameters such as f eed grade variations,

mineralogy, and physical location. The sample selection process used Cancha© software to both visually and

statistically analyze the block models to select a total of 119 samples that were used for this program.

Figure 3- Typical Cancha model used for sample selection

Preparation and management of scope of laboratory testing

The 2021/22 laboratory test program was performed by SGS Lakefield in Canada. The first stage was to

replicate t he Condition A process conditions using the new ly acquired samples and then introduce two

additional process conditions (Conditions B & C) to determine their effectiveness . Test Condition B builds

upon the known effect of increasing REE recoveries by using a more acidic solution with a pH of 3.0 instead

of 4.0, and introducing a synthetic lixiviant, which emulates the salts generated in the recycling process, while

controlling the dissolution of unwanted elements and impurities. Condition C included the same new lixiviant

solution as used in Condition B, but at a slightly less acidic pH of 4.0.

In all three cases the main reagent used was ammonium sulphate to remain consistent with the reagent

referenced in the environmental permit application. Although the Company withdrew its environmental permit

application in March 2022 and will refile a new application in the second quarter of 2023, the environmental

regulators are familiar with the proposed use of ammonium sulphate as a reagent, so the Company preferred

to continue using this reagent in order to remain consistent with the environmental permit application. Further

upside exists in the future to evaluate the performance of other reagents.

In summary:

• Condition A – Repeat University of Toronto base line testing but on new samples at a pH of 4.0

• Condition B – Carry out desorption at a reduced pH of 3.0, plus the introduction of a synthetic lixiviant

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

circuit process

• Condition C - Evaluate the impact of the synthetic lixiviant solution used in Condition B but at a pH of

4.0

Analysis of 2021/22 metallurgical results in comparison to the previous programs

The results of the 2021/22 metallurgical program indicate the following:

• Condition A testing on new samples resulted in a validation of recoveries from the initial program at

University of Toronto and therefore confirmed the results presented on the Amended and Restated

NI 43-101 Technical Report – Preliminary Economic Assessment for the Penco Module Project dated

September 15, 2021 (“PEA Technical Report”).

• Condition B test results indicated a marginal increase in recoveries over that of Condition A

• Condition C test results showed a small improvement over condition A but not as much as Condition

B

Figure 4 shows the results of Condition B and Condition C compared to Condition A as included in the

PEA Technical Report:

Figure 4 – Results of REE Extractions Conditions A, B and C

Even though Condition B showed the highest recoveries in terms of NdPr and DyTb, it also resulted in slightly

higher quantities of impurities such as aluminum in the final Mixed HREE concentrate. Condition C showed

stable recoveries for NdPr and Tb whil e notably improving the recoveries of Dy, which is the element that

drives the most value in our product. Currently laboratory test work is being carried out, where the process

conditions will be defined for further demonstration in the pilot plant campaign.

The fact that all recycled salts were used in Condition C has allowed a full understand the parameters needed

to design a water treatment plant that ensures that water is fully recycled with an efficiency of 95%, that the

ammonium sulphate is recycled with 99% efficiency and that no impurities accumulate in the system with th e

risk of saturating the process.

Impurities and Water Management in the Process Flowsheet

An extensive testing program was carried out with BQE Water during 2021 and 2022 to validate water

treatment requirements for the Penco Module flowsheet, with th e objective of maximizing recycling . During

this program a process was identified which allows the recycling of water in a closed circuit to meet the goal

of zero liquid discharge. The validation of performance at a laboratory scale was completed satisfactorily.

Handling of the impurities in the circuit was also successful, resulting in 90% efficiency in the removal of

Manganese (Mn) without major REE losses. Precipitated impurities are mixed with the processed clays ( the

only output of the plant besides the final product) which fully comply with maximum regulat ory levels and

thereby allowing the placement of the washed clays back into the field without the need for further treatment.

Trials with the processed clays are already underway to demonstrate the amenability of revegetation of the

reclaimed site with native species.

Pilot Plant

Semi-industrial Scalability of the Process Flowsheet

Based on the laboratory results which confirm a metallurgical process with zero liquid discharge, the next step

is the execution of a semi-industrial scale pilot test. In that regard, Aclara has begun to build a pilot plant

operation with multiple objectives as described below:

• Validate the closed-circuit flowsheet to produce a High Purity HREE concentrate at a semi-industrial

scale

• Generate processed clays to demonstrate the chemical stability and amenability for revegetation of

the reclaimed site with native species

• Fine-tune the processing parameters for use in the full-scale plant design

• Demonstrate the process flow sheet for use in the Feasibility Study Report

• Generate approximately 50kg of the Mixed REE concentrate for separation trials in support of future

offtake agreements

• Demonstrate the simplicity and environmental sustainability of the process to relevant stakeholders

The Company has acquired an industrial warehouse in Concepcion which will house the pilot plant and has

put in place the purchase orders for all of the major equipment required for the plant. The plant is scheduled

to run continuously for 2 months during the second and third quarter of 2023.

Pilot Plant Design Parameters

• Design throughput is 90 kg/hr. running on a continual 24/7 basis per campaign

• Two campaigns representing 2 of the 5 mining zones covering the initial payback period of the

project

• Each campaign is expected to run for 1 month

• A High Purity Mixed REE concentrate will be produced for each campaign

• Final Report is expected by end Q3 2023 for inclusion into Feasibility Study Report

Figure 5 – Pilot Plant Schematic

IP Rights

The proposed process flowsheet has two patents in place that protect th is innovation. The first has already

been granted in all the countries that were requested: Chile, Brazil, US, and China , and t he second patent

has recently been filed and is pending to be granted.

Figure 6 – Patent that was awarded in Chile, Brazil, USA and China

Qualified Person

The technical information in this press release relating to the processing facility and metallurgical test work

has been reviewed and approved by Stuart Saich, an independent process engineering consultant with 35

years’ relevant experience. Mr. Saich is a Fellow member of the Australian Institute of Mining and Metallurgy

(FAUSIMM) and therefore an independent Qualified Person (QP) as defined by the National Instrument 43 -

101, standards of disclosure for minerals projects. The QP confirms that he visited the project site in October

2022 and has been supported by the Head of Processing for Aclara Resources, Ricardo Sepulveda.

Ricardo Sepulveda is a chemical engineer with 18 years of experience in chemical, hydrometallurgical and

pyrometallurgical processing related to Copper, Lithium, Rare Earths, Molybdenum, Arsenic, Rhenium,

Antimony, among other elements. He has participated as process leader and project manager in PFS, FS

and detailed engineering for projects with world class companies. At Aclara, Ricardo is the head of process

engineering and leads the metallurgical department including all R&D activities.

About Aclara

Aclara is a development-stage rare earth mineral resources company located in Chile. Aclara is initiating the

development of its resources through a project called the Penco Module (the “Penco Module”), which covers

a surface area of approximately 6 00 hectares and which has ionic clays that are rich in rare earth elements.

Aclara is currently focused on the development and on the future construction and operation of the Penco

Module, which will aim to produce a rare earth concentrate through a processing plant that will be fed by clays

from nearby deposits. Aclara’s unique extraction process offers several advantages such as: no blasting,

crushing or milling required ; no tailings dam ; minimal water consumption due to a high level of water

recirculation; amenable leaching with a fertilizer; and no radioactivity.

Forward-Looking Statements

This news release contains “forward -looking information” within the meaning of applicable securities

legislation, which reflects the Company’s current expectations regarding future events, including statements

with regard to the Company’s development program of the extraction of REEs and expectations as to activities

conducted and the outcomes resulting therefrom; expectations as to the optimization of the Project’s process

flowsheet and the Company’s success in realizing such optimization opportunities; ra tes of recovery,

efficiencies, and composition of precipitates pursuant to the Company’s process flowsheet and any

expectations as to results being scaled at a semi-industrial level; construction and operation of the Company’s

pilot plant; expectations as to activities conducted in connection with the Project, timelines for completion and

the success, effect or outcomes resulting therefrom; and the Company’s operational goals in the near term

and long term and the ability to achieve such goals . Forward -looking information is based on a number of

assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company’s

control. Such risks and uncertainties include, but are not limited to, the factors discussed under “Risk Factors”

in the Company’s annual information form dated as of March 30, 2022 filed on the Company’s SEDAR profile.

Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the

context otherwise indicates, the forward-looking information contained in this news release is provided as of

the date of this news release and the Company does not undertake any obligation to update such forward -

looking information, whether as a result of new information, future events or o therwise, except as expressly

required under applicable securities laws.

For further information, please contact:

Ramon Barua

Chief Executive Officer

[email protected]