Ucore and US DOD Agree on US$18.4M Initial Construction Funding for Rare Earth Processing in Louisiana Ucore Announces:
Ucore and US DOD Agree on US$18.4M Initial
Construction Funding for Rare Earth Processing
in Louisiana
Ucore Announces:
• A US$18.4 million funding agreement with the US Department of Defense to
launch its RapidSX™ Rare Earth Element Separation Technology toward full-
scale operation, including:
o Expansion of the current $4M US DOD demonstration project
o Commercial-scale RapidSX™ production module construction and
operations
o System engineering technology transfer from Ucore’s Canadian
demonstration facility to its developing United States commercial facility
o Full-scale construction and ‘Early Production’ in Louisiana in H2-2026
Halifax, Nova Scotia ( May 14, 2025 ) – Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX:
UURAF) (“Ucore” or the “Company”) is pleased to announce that the Company has
reached a firm fixed price agreement for a US$18.4 million increase to its current US$4M
Other Transaction Agreementi (“OTA”) with the US Army Contracting Command -Orlando.
The purpose of the additional funding is to facilitate the construction of a production-ready
commercial RapidSX™ machine and supporting infrastructure in Alexandria, Louisiana.
Specifically, this involves the pre-planned expansion of Ucore’s existing Rare Earth Element
(“REE”) Separation Technology Capabilities Prototype Project , soon to conclude at the
RapidSX™ Commercialization and Demonstration Facility (“CDF”) in Kingston, Ontario. The
additional Phase II scope of work will further scale up and commercialize Ucore’s RapidSX™
technology for its developing Louisiana Strategic Metals Complex ( “SMC”) REE refinery in
Alexandria, Louisiana. This will be achieved through the installation of a complete full -scale
RapidSX™ separation machine capable of demonstrating commercial scale production of
Pr, Nd, Sm, Gd, Tb and/or Dy – six of the seven REEs which are listed by the People’s
Republic of China’s (“PRC”) for export licensing restrictions.
Figure 1 - Ucore's Demonstration-Scale Transition to Commercial-Scale US Rare Earth Separation
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The primary objectives of the Phase II project (the “Project”) are:
1. Construct and demonstrate the full-scale RapidSX™ technology modules at the CDF.
2. Conduct a systems engineering approach to facilitate a knowledge transfer of the
innovative RapidSX™ separation technology from the CDF to the SMC.
3. Install production separation capacity at the SMC capable of processing hundreds of
tonnes of heavy and /or light total rare earth oxide (“TREO”) processing utilizing the
same RapidSX™ technology equipment platform.
It is anticipated that upon successful completion of the Project , Ucore will continue to
construct RapidSX™ machines to complete its planned 2,000 tonne per annum TREO Phase
1 construction project. The co ncurrent construction and production efforts are e nabled
through the unique modular and adaptable attributes of the RapidSX ™ technology platform
coordinated with the smart acquisition and deployment of investment capital.
“Ucore’s business model is founded on 1) collaboration with an array of like -minded
upstream and downstream commercial and governmental partners and 2) the
implementation of the next logical leap in commercial critical metals separation
technology resulting from Western innovation,” stated Pat Ryan, Ucore Chairman
and CEO. “Ucore is very appreciative to the US DOD for the opportunity, and potential
future opportunities, which have now resulted in th is dedicated expansion Project to
full scale processing production.
“This US DOD Louisiana SMC funding agree ment is a critical step for Ucore ’s
commercial advancements, but more importantly, for the progression of a Western
rare earth supply chain , and North American critical metals security, which cannot
exist without competitive critical metals processing on the world stage.”
On May 10, 2025, U core executed a conditional advance agreement for pre-modification
Project costs and will formally execute the OTA modification by June 10, 2025.
# # #
About Ucore Rare Metals Inc.
Ucore is focused on rare - and critical -metal resources, extraction, beneficiation, and
separation technologies with the potential for production, growth, and scalability. Ucore ’s
vision and plan is to become a leading advanced technology company, providing best -in-
class metal separation products and services to the mining and mineral extraction industry.
Through strategic partnerships, this plan includes disrupting the People’s Republic of China’s
control of the North American REE supply chain through the near -term development of a
heavy and light rare-earth processing facility in the US State of Louisiana, subsequent SMCs
in Canada and Alaska and the longer-term development of Ucore’s 100% controlled Bokan-
Dotson Ridge Rare Heavy REE Project on Prince of Wales Island in Southeast Alaska, USA.
Ucore is listed on the TSXV under the trading symbol “UCU” and in the United States on the
OTC Markets’ OTCQX® Best Market under the ticker symbol “UURAF.”
For further information, please visit www.ucore.com.
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Forward-Looking Statements
This press release includes certain statements that may be deemed “forward-looking
statements.” All statements in this release (other than statements of historical facts) that
address future business development, technological development and/or acquisition activities
(including any related required financings), timelines, events, or developments th at the
Company is pursuing are forward -looking statements. Although the Company believes the
expectations expressed in such forward -looking statements are based on reasonable
assumptions, such statements are not guarantees of future performance or results, and actual
results or developments may differ materially from those in forward-looking statements.
Regarding the disclosure in the press release above about the OTA and the expected
successful progress of the Project and the resulting milestone payments from the DoD , the
Company has assumed that the Project (including each of its milestones) will be completed
in a satisfactory manner and in a reasonable period of time within approximately the next two
years. For additional risks and uncertainties regarding the Company, the CDF, the Demo
Plant and the Project (generally), see the risk disclosure in the Company’s MD&A for Q1 2025
(filed on SEDAR on May 9, 202 5) ( www.SEDARPLUS.ca) as well as the risks described
below.
Regarding the disclosure above in the “About Ucore Rare Metals Inc.” section, the Company
has assumed that it will be able to procure or retain additional partners and/or suppliers, in
addition to Innovation Metals Corp. (“IMC”), as suppliers for Ucore’s expected future Strategic
Metals Complexes (“SMCs”). Ucore has also assumed that sufficient external funding will be
found to complete the Demo Plant commissioning and demonstration schedule and also later
prepare a new National Instrument 43 -101 (“NI 43-101”) technical report that demonstrates
that the Bokan Mountain Rare Earth Element project (“Bokan”) is feasible and economically
viable for the production of both REE and co -product metals and the then prevailing market
prices based upon assumed customer offtake agreements. Ucore has also assumed that
sufficient external funding will be secured to cont inue the development of the specific
engineering plans for the SMCs and their construction. Factors that could cause actual results
to differ materially from those in forward -looking statements include, without limitation: IMC
failing to protect its intellectual property rights in RapidSX ™; RapidSX ™ failing to
demonstrate commercial viability in large commercial -scale applications; Ucore not being
able to procure additional key partners or suppliers for the SMCs; Ucore not being able to
raise sufficient funds to fund the specific design and construct ion of the SMCs and/or the
continued development of RapidSX ™; adverse capital-market conditions; unexpected due -
diligence findings; the emergence of alternative superior metallurgy a nd metal-separation
technologies; the inability of Ucore and/or IMC to retain its key staff members; a change in
the legislation in Louisiana or Alaska and/or in the support expressed by the Alaska Industrial
Development and Export Authority ( “AIDEA”) regarding the development of Bokan; the
availability and procurement of any required interim and/or long -term financing that may be
required; and general economic, market or business conditions.
Neither the TSXV nor its Regulation Services Provider (as that term is defined by the TSXV)
accept responsibility for the adequacy or accuracy of this release.
CONTACTS
Mr. Michael Schrider, P.E., Ucore Vice President and Chief Operating Officer, is responsible
for the content of this news release and may be contacted at 1.902.482.5214.
For additional information, please contact:
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Mark MacDonald
Vice President, Investor Relations
Ucore Rare Metals Inc.
1.902.482.5214