Aclara Provides Results for the Third Quarter of 2022

TORONTO, November 2, 2022 - Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce its financial results for the nine months ended September 30, 2022. Details of the Company's financial results are contained in the unaudited interim consolidated financial statements and management's discussion and analysis, which will be available under the Company's corporate profile on SEDAR at www.sedar.com and on the Company's website at www.aclara-re.com. All amounts are expressed in United States dollars unless otherwise stated.

Q3 Highlights

• Strong cash position of $73.042 million as at September 30, 2022
• Revised environmental impact assessment application (the "Revised EIA") in respect of the Penco Module (the "Project") projected to be filed in the second quarter of 2023
  • Autumn and winter seasonal baseline studies successfully completed with the spring seasonal baseline studies in progress
  • Main engineering modifications aimed at enhancing the Revised EIA finalized
• Strong local communication campaign in progress seeking to capitalize on the alignment between the Company and the Chilean government's position on sustainable mining projects in Chile
• Technical validation of the Project's process flowsheet achieved, including:
  • Improved dysprosium and terbium metallurgical recoveries and confirmed recovery estimates for other rare earth elements presented in the Amended and Restated NI 43-101 Technical Report - Preliminary Economic Assessment for Penco Module Project dated effective September 15, 2021
  • Chemical stability of processed clays
  • No liquid residues discharge and no tailings dam required, ensuring water recirculation rates of up to 95% and primary reagent (ammonium sulphate) recirculation of up to 99%
  • No radioactivity in the process or in the product
  • Two intellectual property patents in place aimed at protecting the innovative aspects of the Project's process flowsheet. The first patent has been granted in Chile, Brazil, US, and China. The second patent was recently filed and is in the process of being reviewed, pending final approval and grant
  • Receipt of the "Sustainable Initiative of the Year" award by the Business Intelligence Group in recognition of the Project's process flowsheet environmentally friendly design
• Pilot plant to up-size flowsheet parameters on a semi-industrial scale advancing according to schedule
  • Pilot plant to be located in an industrial warehouse in Concepcion
  • Purchase orders for all of the major equipment required for the pilot plant in place
  • Completed an aggregate of 56 holes and 1,269 meters bringing the total number of holes and meters drilled in this district in 2022 to 112 and 2,580, respectively
  • Preliminary results indicate the presence of ionic clay mineralization between 2 and 10 meters below surface with a drill hole spacing of between 35 and 300 meters
  • Exploration results expected to be finalized in the first quarter of 2023
• Aggregate investment for the Project in evaluation and exploration assets ("E&E") and property plant and equipment ("PP&E") for the nine months ended September 30, 2022 totaled $11.092 million and 0.272 million, respectively
• Greenfield drilling campaign in Veronica well advanced

Outlook for Q4, 2022

The Company's focus in the fourth quarter of 2022 includes, principally:

• Advancing the Revised EIA application by both continuing to develop requisite baseline studies (spring season in progress) and including pending modifications relating to mining design, which are contingent on the results of the updated mineral resources statement to be released in the fourth quarter of 2022, and those relating to the inclusion of a new source of recycled water for the Project's plant process. The Revised EIA is expected to be filed by the second quarter of 2023
• Working on social contributions that both benefit and are desired by the local community, as well as strengthening relationships with local stakeholders
• Continuing with the communication activities to highlight the attributes of the Project to both international and local stakeholders
• Continuing greenfield exploration drilling campaign in Veronica and preparing exploration results, which are contemplated to be issued in the first quarter of 2023
• Preparing an updated mineral resource statement of the Project
• Completing the engineering and design for the Project's pilot plant to start construction in the first quarter of 2023. Operation is scheduled to run continuously for 3 months during the second and third quarter of 2023

Income Statement

During the nine months ended September 30, 2022, the Company incurred higher net losses from continuing operations compared to the same period from the year before, as a result of increased greenfield exploration activities and the Company's going public transaction and demerger from Hochschild Mining plc, which led to increased expenses related to the management and standalone operations of the Company, as well as to comply with its obligations as a Canadian reporting issuer and TSX-listed company.

Evaluation and Exploration Assets

In accordance with accounting principles under IFRS of the capitalization of E&E assets, costs of mineral properties are capitalized as E&E assets on a project-by-project basis. As at September 30, 2022, the Company's principal business included the development of the Project. The Company capitalizes expenses related to brownfield exploration and infill drilling, metallurgical testing and process design, engineering of the mine, processing plant and project infrastructure, permitting and administration activities and services.

Liquidity and Capital Resources

As at September 30, 2022, the Company had a total cash balance of $73.042 million, with working capital needs of $1.9 million. The Company's working capital requirements will be largely covered by current cash and cash equivalent position of $73.042 million.

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 "Project"), which covers a surface area of approximately 600 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 Project 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 corporate strategy; expectations as to activities conducted in connection with the Project, timelines for completion and the success, effect or outcomes resulting therefrom; and plans as to expenditures, investments, and use of capital and financial resources in the near and long term. 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 otherwise, except as expressly required under applicable securities laws.

For furtherinformation, please contact:

Ramon Barua
Chief Executive Officer
investorrelations@aclara-re.com

SOURCE: Aclara Resources Inc.