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Aclara Produces First Sample of Hight Purity Heavy Rare Earths Concentrate From Its Pilot Plant in Chile

Metallurgy & Processing

Aclara Produces First Sample of

Hight Purity Heavy Rare Earths

Concentrate From Its Pilot Plant

in Chile

TORONTO, ON / ACCESSWIRE / June 6, 2023 / Aclara Resources Inc. ("Aclara" or

the "Company") (TSX:ARA) is pleased to announce that it has started the continuous

operation of its newly constructed pilot plant for the Penco Module near Concepcion,

Chile. The Company produced the first sample of high purity Heavy Rare Earth

Elements (HREE) concentrate after a successful commissioning period where all the

equipment was tested with clays from the Penco Module.

First high purity HREE sample from Aclara's pilot plant

Barry Murphy (Aclara's Chief Operating Officer) commented:

"We are thrilled to officially start the continuous operation of the pilot plant. This an

important milestone for the Company as well as the technical team as it represents the

culmination of more than three years of engineering and metallurgical test work to

develop a process which will satisfy our commitment to innovation and a design process

which meets our exacting environmental objectives. The pilot plant operation is also a

key component of several strategic objectives seeking to unlock value by improving the

metallurgy recovery of the Penco Module ionic clays, generating representative product

samples for commercial negotiations, serving as a showcase to the local communities

and stakeholders, and finally gaining relevant experience for inclusion in the design of

potential new modules in Chile and Brazil."

Pilot Plant Operation

Demonstrating the flowsheet and process design through a pilot plant facility meets the

following objectives:

• Validating the closed-circuit flowsheet by producing a HREE concentrate at a

semi-industrial scale,

• Generating processed clays to confirm that they are chemically stable when

returned to the field,

• Confirming the amenability of the clays to support the revegetation of the

reclaimed site through the reintroduction of native plant species,

• Confirming the processing parameters and process flowsheet design for use in

the upcoming Feasibility Study, and ultimately the full-scale plant design,

• Generating a high purity HREE concentrate for separation trials in support of

future off-take agreements, and

• Demonstrating to relevant stakeholders the environmental sustainability of the

process design.

Campaign Parameters

• Design throughput of 90 kg/hr, operating on a continuous, 24/7 basis per

campaign,

• Two campaigns, each expected to run for 1 month and representing 2 of the 5

mining zones which will be mining during the initial payback period of the

Project,

• A HREE concentrate will be produced from each campaign.

A final report detailing the full piloting methodology and associated results is expected

to be completed by the end of Q3 2023 for inclusion in the upcoming Feasibility Study

Report to support the subsequent NI 43-101 Technical Report relating to the Penco

Module Project.

Figure 1 - Pilot Plant Commissioning Stage

Process Flowsheet Development

The successful completion of the laboratory testing phase (announced on November 09,

2022) gave birth to "Circular Mineral Harvesting", a unique process that not only results

in attractive recoveries of Rare Earths but also minimizes the associated environmental

footprint.

The extensive testing program carried out during 2021 and 2022 validated the water

treatment requirements for the Penco Module flowsheet, thereby satisfying the

objective to minimise the freshwater requirements of the process plant through

maximizing the recycling of the process liquors within the plant. During this program,

an innovative process was conceived which allows the recycling of water in a closed

circuit to meet the goal of zero liquid discharge. As a result, the production flowsheet

shows that 95% of the 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 storage facility.

In addition, the mining activities do not require the use of explosives nor the need to

crush and milling the ionic clay feedstock, resulting in an operation with a very low

carbon footprint.

IP Rights

The proposed process flowsheet has two patents in place that protect this innovation.

The first has been granted in all the countries that were requested viz. Chile, Brazil, US,

and China, while the second patent has recently been filed and is pending approval.

Figure 2 - Patent approved in Chile, Brazil, USA and China

Circular Mineral Harvesting

Figure 3 below summarizes the integrated process of mine extraction, desorption,

impurities removal and the precipitation of a high purity HREE concentrate as a final

product. It also includes the washing of the processed clays prior to their return to the

depleted mine areas for native species reforestation.

Figure 3 - Circular Mineral Harvesting Process Flowsheet Schematic

Figure 4 highlights the positive attributes associated with the Aclara Circular Mineral

Harvesting concept.

Figure 4 - Circular Mineral Harvesting Sustainability Attributes

About Aclara

Aclara Resources Inc. (TSX:ARA) is a development-stage company that focuses on

heavy rare earth mineral resources. Its primary project is located in the BioBio Region

of southern Chile. The company is dedicated to developing its mineral resources

through a project known as the Penco Module. This module encompasses an area of

approximately 600 hectares and contains ionic clays that are rich in heavy rare earth

elements.

Currently, Aclara Resources is primarily focused on the development, construction, and

future operation of the Penco Module. The goal is to establish a processing plant that

will produce a heavy rare earth concentrate. This concentrate will be generated by

processing clays obtained from nearby deposits.

Aclara's extraction process offers several environmentally attractive features. It does

not involve blasting, crushing, or milling. Additionally, it does not generate tailings,

eliminating the need for a tailings storage facility. The company utilizes 100% recycled

water and minimizes water consumption through high levels of water recirculation. The

ionic clay feedstock is amenable to leaching with a fertilizer, and harmful radionuclides

are not produced.

Simultaneously, alongside the development of the Penco Module, the company intends

to identify further opportunities for increasing rare earth element production. This will

involve intensive greenfield exploration programs and the development of additional

project "modules" within the company's concessions.

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 expectations of the

Company's management as to the operation of the pilot plant and expected success

resulting therefrom. 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 28, 2023 filed on the Company's SEDAR profile. Actual results, timing,

performance, achievements or future events or developments could differ materially

from those expressed or implied 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 otherwise, except as expressly required under applicable securities

laws.

For further information, please contact:

Ramon Barua

Chief Executive Officer

[email protected]

SOURCE: Aclara Resources Inc.