Aclara Submits EIA and Provides Update for Its Carina Project in Brazil

TORONTO, May 29, 2025 - Aclara Resources Inc. ("Aclara" or "Company") (TSX:ARA) is pleased to announce that it has submitted an application for the Environmental Impact Assessment (the "EIA" or "Previous License", as it is commonly known in Brazil) for its Carina Project with the Secretariat of the Environment and Sustainable Development ("SEMAD") in the State of Goiás, Brazil. The submission, consistent with the Carina Project's schedule and prior announcements, marks a key step towards the Company achieving commercial production of rare earths in 2028.

We understand that Aclara's EIA represents the first "Category Six" (highest complexity) application submitted by a company under SEMAD's new and innovative environmental licensing system, known as the IPE system. The EIA currently meets all established requirements of the IPE system, however, as the IPE system continues to evolve, additional submissions may be required from the Company to align with future procedural and formatting updates to be implemented by SEMAD. The Company expects that any such additional submission(s) will not be substantive in nature, nor should such submission(s) impact the Company's target of receiving approval for the EIA during Q4 2025.

As previously disclosed in the Company's technical report titled "Preliminary Economic Assessment Update - Carina Rare Earth Element Project - Nova Roma, Goiás, Brazil" dated September 5, 2024, the Carina Project is projected to attain an average annual production of 191 tonnes of Dysprosium (Dy) and Terbium (Tb), representing approximately 13% of China's 2023 official Dy and Tb production, which could address approximately 50% of the U.S. automotive industry demand by 2030. In addition, the Carina Project is expected to have an average annual production of 1,350 tonnes of Neodymium and Praseodymium, as well as other rare earths, including Samarium, Gadolinium, Lutetium and Yttrium, among others. The projected life-of-mine for the Carina Project is 22 years.

Aclara's recently inaugurated semi-industrial pilot plant in Aparecida de Goiania in the State of Goiás continues to operate and receive visits by various Brazilian and foreign stakeholders. The new pilot plant showcases Aclara's proprietary Circular Mineral Harvesting technology, an innovative and sustainable production process that will be implemented in the Carina Project. The pilot plant also incorporates several process optimizations designed to enhance efficiency, lower operating costs, and improve the purity of the final product.

In parallel, Aclara continues to advance and is on track to complete its Pre-Feasibility Study and Feasibility Study for the Carina Project in Q3 2025 and Q1 2026, respectively.

Jose Augusto Palma, Aclara's Executive Vice President, commented: "The submission of the Carina Project EIA application constitutes a significant milestone for Aclara, which culminates months of hard work by our team in Brazil to fast track the Carina Project, in line with the shared commitment, expressed in the Memorandum of Understanding signed with the State of Goiás in August 2024, to accelerate the permitting process and implementation of the Carina Project. We take great pride in the work accomplished to date and we very much look forward to continuing to work with the Municipality of Nova Roma and the State of Goiás to make the Carina Project a catalyst of socio-economic development for the region. Our goal is to have the Carina Project operational by the end of 2028 to produce, with the highest environmental and social standards, the critical minerals required for the world's energy transition, robotics and other high-tech applications. We extend our gratitude to our team in Brazil, the municipal authorities of Nova Roma, state authorities, and the Governor of Goiás for their continuous support."

About Aclara's Circular Mineral Harvesting Process
Aclara's patented rare earth extraction process - Circular Mineral Harvesting - offers several environmentally attractive features. It does not involve the use of explosives and does not require crushing or milling (thus minimizing the use of energy as well as its carbon emissions and footprint). The close-circuit process developed by the Company works to minimize water consumption through high levels of water recirculation and does not generate liquid residues, therefore avoiding the need for a tailings dam. The ionic clay feedstock is amenable to an ion-absorption process, which uses a common fertilizer, ammonium sulfate, as its main reagent. Finally, our intention is to fully revegetate the areas impacted by our extraction process.

Qualified Person
The technical information in this press release has been reviewed and approved by Mr. Jorge Frutuoso, Fellow of the Australian Institute of Geoscientists (FAIG #8100), Geology Manager of Aclara, who is a Qualified Person as defined under National Instrument 43-101 Standards of Disclosure for Mineral Projects.

About Aclara
Aclara Resources Inc. (TSX:ARA), a Toronto Stock Exchange listed company, is focused on building a vertically integrated supply chain for rare earths alloys used in permanent magnets. This strategy is supported by Aclara's development of rare earth mineral resources hosted in ionic clay deposits, which contain high concentrations of the scarce heavy rare earths, providing the Company with a long-term, reliable source of these critical materials. The Company's rare earth mineral resource development projects include the Carina Project in the State of Goiás, Brazil as its flagship project and the Penco Module in the Biobío Region of Chile. Both projects feature Aclara's patented technology named Circular Mineral Harvesting, which offers a sustainable and energy-efficient extraction process for rare earths from ionic clay deposits. The Circular Mineral Harvesting process has been designed to minimize the water consumption and overall environmental impact through recycling and circular economy principles. Through its wholly owned subsidiary, Aclara Technologies Inc., the Company is further enhancing its product value by developing a rare earths separation plant in the United States. This facility will process mixed rare earth carbonates sourced from Aclara's mineral resource projects, separating them into pure individual rare earth oxides. Additionally, Aclara, through a joint venture with CAP S.A, is advancing its alloy-making capabilities to convert these refined oxides into the alloys needed for fabricating permanent magnets. This joint venture leverages CAP S.A.'s extensive expertise in metal refining and special ferro-alloyed steels. Beyond the Carina Project and the Penco Module, Aclara is committed to expanding its mineral resource portfolio by exploring greenfield opportunities and further developing projects within its existing concessions in Brazil, Chile, and other jurisdictions, aiming to increase future production of heavy rare earths.

Forward-Looking Statements
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: mineral continuity, grade, methodology, development timeline, production timing and upside at the Carina Project and the permitting process of the Carina Project, including the expected timing of approval of the EIA, Pre-Feasibility Study and Feasibility Study. 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 risks related to operating in a foreign jurisdiction, including political and economic risks in Chile and Brazil; risks related to changes to mining laws and regulations and the termination or non-renewal of mining rights by governmental authorities; risks related to failure to comply with the law or obtain necessary permits and licenses or renew them; cost of compliance with applicable environmental regulations; actual production, capital and operating costs may be different than those anticipated; the Company may be not able to successfully complete the development, construction and startup of mines and new development projects; risks related to fluctuation in commodity prices; risks related to mining operations; and dependence on the Carina Project and/or the Penco Module. Aclara cautions that the foregoing list of factors is not exhaustive. For a detailed discussion of the foregoing factors, among others, please refer to the risk factors discussed under "Risk Factors" in the Company's annual information form dated as of March 20, 2025, 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 press release is provided as of the date of this press 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:
Ramón Barúa Costa
Chief Executive Officer
investorrelations@aclara-re.com

SOURCE: Aclara Resources Inc.