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

TORONTO, 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.

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
investorrelations@aclara-re.com

SOURCE: Aclara Resources Inc.