Aclara Resources Inc. press release

ACLARA UPDATES PENCO MODULE PRELIMINARY ECONOMIC ASSESSMENT

2026-10-19

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_After-tax NPV__8__of US$344 Million based on Mineral Resources_

TORONTO, Oct. 19, 2026/CNW/ -- Aclara Resources Inc. ("Aclara" or the "Company") (TSX: ARA) is pleased to announce the results of the updated preliminary economic assessment for its ion adsorption clay project located in the Biobío region, Chile, known as the Penco Module ("Penco" or the "Project"). The Project is being developed in partnership with CAP S.A. ("Grupo CAP"), a leading Chilean mining and industrial group holding a 20% ownership interest in the Project.

The technical report titled "NI 43-101 Technical Report & Preliminary Economic Assessment on the Penco Module, Biobío, Chile" (the "PEA"), with an effective date of September 18, 2026 was prepared in accordance with National Instrument 43-101 _– Standards of Disclosure for Mineral Projects_("NI 43-101") for Aclara with contributions from L&M Geociencias SpA, Promet 101 Consulting Pty Ltd, Abelco Consulting SpA, LOM Consultoria em Mineração Ltda, ERM Consultants Canada Ltd, Argus Media Ltd ("Argus Media") and William van Breugel as independent mining consultant.

The PEA has been filed and can be found under the Company's profile on SEDAR+ (www.sedarplus.ca) and on Aclara's website (www.aclara-re.com).

Highlights

Strong Production of Heavy Rare Earth Elements within a Super Pure Rare Earth Carbonate ("SPREC") for a 17-year Life of Mine ("LOM")

Average annual production1of 732 tonnes of rare earth oxides ("REO") contained in SPREC, with a particularly high concentration of heavy rare earths ("HREE"), including Dysprosium ("Dy") at 6.0%, Terbium ("Tb") at 0.8%, Yttrium ("Y") at 54.5%, Gadolinium ("Gd") at 4.2% and Samarium ("Sm") at 2.6%. The SPREC also contains important concentrations of Neodymium and Praseodymium ("NdPr") at 17.6%. Average annual production1of HREE and light rare earths ("LREE") contained in SPREC: Dy: 44 tonnes Tb: 6 tonnes Y: 400 tonnes Gd: 31 tonnes Sm: 19 tonnes NdPr: 128 tonnes Other strategic HREE: 10 tonnes of Holmium ("Ho"), 30 tonnes of Erbium ("Er"), 4 tonnes of Thulium ("Tm"), 25 tonnes of Ytterbium ("Yb") and 4 tonnes of Lutetium ("Lu").

| | | | 1 | Annual averages do not consider the first year of ramp-up and the last year of ramp-down. |

Robust Economics

After-tax Net Present Value ("NPV") of approximately US$344 million, at an 8.0% discount rate, based on Argus Media price forecasts, except for Y and Gd, for which more conservative flat prices of US$250/kg and US$350/kg, respectively, were applied over the LOM. This represents a significant increase from the US$178 million NPV, calculated at a 5.0% discount rate, reported in the Company's Preliminary Economic Assessment for the Penco Module dated September 15, 2021 (the "2021 PEA"). The improvement is primarily driven by an increase in total Mineral Resources processed from 19.9 Mt to 30.8 Mt and higher forecast prices. After-tax Internal Rate of Return ("IRR") of 26.1%, with a payback period of 3.2 years, compared to a reported IRR of 23.0% and a payback period of 4.7 years in the 2021 PEA.

After-tax NPV based on uncapped Argus Media price forecasts of approximately US$1.1 billion, at an 8.0% discount rate. After-tax IRR of 63.0%,with a payback period of 1.7 years based on uncapped Argus Media price forecasts

AACE Class 5 construction capital expenditure ("Capex") estimated at US$204 million, plus a contingency of US$39 million, for a total of approximately US$244 million. This represents an increase of US$115 million compared to the construction Capex reported in the 2021 PEA. The increase primarily reflects enhancements to the process flowsheet, updated equipment quotations obtained in connection with the Carina Project Feasibility Study, additional capital requirements associated with environmental improvements and measures to minimize project impacts, and general cost escalation. Operating costs are estimated at US$28.9 per tonne of Mineral Resources processed, compared to US$13.6 per tonne reported in the 2021 PEA. The increase primarily reflects the advancement from a conceptual flowsheet to a more detailed process design, supported by three pilot plant campaigns conducted since the 2021 PEA and incorporating higher environmental standards; higher mining and deposition costs associated with a more developed mine plan; and general cost escalation since 2021. Average1annual separation, commercial discount and transportation costs of US$72 million — equivalent to 32% of the annual gross revenue — have been applied to account for refining costs of the Penco Module's SPREC. Aclara intends to process the SPREC at its planned separation facility in Louisiana with the separation charge to be assumed on arm's-length commercial terms. The NPV associated with Aclara's future separation facility in Louisiana is not included in this PEA. High average Net Smelter Return ("NSR") of US$80 per tonne processed, over the LOM, against an average production cost of US$28.9 per tonne processed. Average1annual net revenue of US$155 million and average¹ annual earnings before interest, taxes, depreciation, and amortization ("EBITDA") of approximately US$101 million. The price forecast scenario developed by Argus Media is based on the European price index (excluding China) and has been calculated in real terms.

High Confidence in the Production Forecast

High geological confidence supported by 17,397 meters of drilling across 618 drillholes and 9,229 chemical assays for total rare earths and desorbable rare earths. Successful completion of the Project's representative pilot campaign at its semi-industrial scale facility in Concepción, Chile in 2023. Measured and Indicated Mineral Resources totaling 35.8 million tonnes, with 74% classified as Measured Resources, the highest-confidence Mineral Resource category under the CIM Definition Standards, and the remaining 26% as Indicated Resources, plus an additional 2.2 million tonnes of Inferred Mineral Resources.

Very High-Quality SPREC

Increased quality of Penco's mixed rare earth carbonate ("MREC") from 91.9% to SPREC of 98.9% purity supported by samples produced at a pilot scale plant. Penco SPREC is expected to qualify as non-regulated, non-radioactive material for transportation and processing across all jurisdictions in which Aclara operates.

First Stage Environmental Approval Secured, with Low-Impact Project Design

Environmental Impact Assessment ("EIA") for the first stage of the Project approved in June 2026, following unanimous endorsement by the Biobío Regional Environmental Evaluation Commission. The first-stage EIA covers the Victoria Norte, Luna and Maite extraction zones, the Neptuno deposition zone and the processing plant, which together support approximately the first 5.5 years of operations under the PEA mine plan. The remaining extraction and deposition zones are expected to be permitted through a separate second-stage EIA. Patented Circular Mineral Harvesting process designed to minimize environmental impact: it does not use explosives; there is no crushing nor milling; approximately 97.0% of fresh water used is recirculated; the main reagent is a common fertilizer and is recirculated with 99.0% efficiency; and there is no requirement for a tailings dam. 100% recycled industrial water sourced from the existing Essbio Biobío Wastewater Treatment Plant is expected to meet the facility's industrial water requirements. Water will be transported by tanker trucks to dedicated storage tanks and distributed throughout the facility through a closed-loop system. Restoration through revegetation of extraction and deposition areas using native species considered within the mine closure plan.

Vertical Integration with Aclara's Processing Hub in Louisiana ("Project Dynamo")

Penco SPREC has been designed to facilitate further processing at Project Dynamo, where it will be separated into high-purity individual rare earth oxides and further converted into metals and alloys under the specifications of magnet manufacturers. Project Dynamo's proprietary processing technologies are advancing through validation across two fronts: The rare earth separation demonstration plant at Virginia Tech is fully operational, having successfully produced NdPr to target specifications, and remains on track to achieve first production of separated Dy and Tb in Q4 2026, Y in Q1 2027, and Gd and Sm in Q2 2027. Through Aclara Metals SpA, its 50/50 joint venture with Grupo CAP, Aclara is operating a demonstration plant for the production of NdPr metal using molten salt electrolysis technology.

Strong Financial Backing

Two of Aclara's key shareholders Hochschild Mining PLC and Grupo CAP, provide significant operational experience and financial support to continue advancing the Project. Grupo CAP holds an option to increase its ownership interest in REE Uno SpA, the company that owns the Penco Module project, from 20% to 40%. The exercise of this option is subject to the satisfaction of the conditions agreed upon by the parties.

Accelerated Development Pathway Targeting Construction Completion in H2 2028

Aclara expects to complete the Penco Module Feasibility Study in accordance with NI 43-101 in Q1 2027, positioning the Penco Module for the immediate commencement of construction thereafter. Subject to securing the required financing, Aclara is targeting an accelerated construction schedule, with completion anticipated in H2 2028.

Aclara COO, Hugh Broadhurst, commented:

"The Penco Module stands out for its significant heavy rare earth content, particularly dysprosium, terbium and yttrium, and its strategic location in one of Chile's leading industrial regions. The Project benefits from a well-developed infrastructure network, with energy and recycled industrial water available nearby, direct access to major highways, and convenient connections to ports and an international airport. Its proximity to Concepción also provides access to a substantial pool of skilled workers while eliminating the need for a dedicated mining camp. These competitive advantages, combined with the support of Grupo CAP, our strategic partner in Chile, provide a strong foundation to accelerate the Project toward construction and production. Looking ahead, the potential integration of Penco with our separation and metals and alloys facilities in Louisiana offers a compelling opportunity to capture synergies across the value chain and strengthen Aclara's position as a vertically integrated supplier of critical rare earth materials to global markets."

Key Project Parameters

Table 2 and Table 3 summarize the relevant parameters associated with the PEA operating and financial metrics:

The PEA is based on Mineral Resources. The after-tax NPV is estimated at US$344 million, using an 8.0% discount rate. The rare earth element ("REE") price forecast provided by Argus Media based on European prices (excluding China) aligns well with the market environment of export restrictions from China on HREE and future supply/demand dynamics. Table 1 summarizes the price evolution considered:

Table 1: Forecasted average price (US$/kg)

| | Forecasted average price (US$/kg) | | | | 2030 | 2035 | 2040 | | | Yttrium oxide | 250 | 250 | 250 | | Dysprosium oxide | 1,849 | 1,478 | 1,045 | | Terbium oxide | 4,484 | 3,584 | 2,535 | | Neodymium oxide | 152 | 176 | 223 | | Praseodymium oxide | 155 | 180 | 244 |

Table 2: Key Project Operating Parameters

| | | PEA | | | | Unit | Total | Annual Average1 | | Mining and Processing | | | | | Life of Mine | Years | 17 | - | | Total Process Plant Feed | million tonnes (dry) | 30.8 | 1.9 | | Total Waste Mined | million tonnes (dry) | 11.7 | 0.7 | | Strip Ratio | - | 0.4 | 0.4 | | Production | | | | | Total Rare Earth Oxides | Tonnes | 11,693 | 732 | | Dy | Tonnes | 708 | 44 | | Tb | Tonnes | 96 | 6 | | Y | Tonnes | 6,375 | 400 | | Gd | Tonnes | 496 | 31 | | Sm | Tonnes | 309 | 19 | | NdPr | Tonnes | 2,053 | 128 |

| Note: | | 1Annual average does not include the first year of ramp-up and the last year of ramp-down |

Table 3: Key Project Financial Parameters

| | | PEA | | | | Unit | Total | Annual Average1 | | Financials | | | | | Net Revenue | US$ million | 2,471 | 155 | | NSR | US$/t | 80.1 | - | | Basket Price (LOM) | US$/kg | 309.0 | - | | Production Cost | US$ million | 893 | 54 | | Unit Cost per tonne of clay processed | US$/t processed | 28.9 | - | | Unit Cost per kg of REO produced | US$/kg REO | 76.3 | - | | EBITDA | US$ million | 1,578 | 101 | | EBITDA Margin | % | 63.9 % | - | | Income Tax | US$ million | 378 | 25 | | Effective Tax Rate | % | 24.5 % | - | | Construction Capex | US$ million | 204.4 | - | | Construction Capex Contingency | US$ million | 39.1 | | | Total Construction Capex | US$ million | 243.5 | - | | Sustaining Capex | US$ million | 62.3 | - | | Financial Returns | | | | | Pre-Tax NPV (8.0%) | US$ million | 533.6 | - | | Pre-Tax IRR | % | 33.0 % | - | | Pre-Tax Payback | Years | 2.8 | - | | Post-Tax NPV (8.0%) | US$ million | 343.9 | - | | Post-Tax IRR | % | 26.1 % | - | | Post-Tax Payback Period | years | 3.2 | - |

| Notes: | | 1Annual average does not include the first year of ramp-up and the last year of ramp-down |

Post-Tax Free Cash Flow

Figure 1 demonstrates the yearly and cumulative post-tax free cash flow generated through the LOM.

Figure 1: Projected LOM, post-tax, unleveraged free cash flow.Source: Aclara Resources Inc. (2026)

Sensitivity Analysis

A sensitivity analysis was undertaken to evaluate the impact on post-tax NPV, considering a variation of ±30.0% for five key input variables: SPREC sale price, Separation Cost, Desorption Efficiency, OPEX and CAPEX (Figure 2).

Figure 2: Sensitivity analysis testing the impact on NPV.Source: Aclara Resources Inc. (2026)

The economic analysis of the estimated cashflows for the Project indicates the potential for an economic project across a broad range of input assumptions. The NPV calculated at an 8.0% discount rate is positive, and the IRR calculated for the Project is within a favourable range.

The primary commercial risks include:

The applied REE price forecast could be significantly different than from those modeled. The applied European price forecast developed by Argus Media assumes an independent supply chain outside of China. The supply chain outside of China is not yet fully developed and China could influence the market through government intervention which could significantly lower prices relative to those applied in the economic analysis.

The preliminary economic assessment is preliminary in nature. It includes Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that the preliminary economic assessment will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Mineral Resource Estimate

The updated Mineral Resource Estimate ("MRE"), effective September 18, 2026, was prepared in accordance with NI 43-101 and the CIM Definition Standards. It is supported by 618 sonic drill holes totaling 17,397 meters and a composited estimation dataset of 7,981 nominal 2-m intervals.

At an NSR cut-off of US$14.62/t, Measured and Indicated Mineral Resources total 35.8 Mt grading 2,095 ppm total rare earth oxides ("TREO"), comprising 26.4 Mt Measured and 9.4 Mt Indicated. An additional 2.2 Mt are classified as Inferred, grading 1,768 ppm TREO. Nearly 74% of the Measured and Indicated tonnage is classified as Measured, the highest-confidence Mineral Resource category.

The updated classification applies a refined Three-Hole Rule methodology to the previously estimated geological blocks, producing more spatially coherent resource categories. The underlying drill database and estimated block grades remain unchanged relative to the 2022 MRE; the study should not be described as a new drilling-led resource discovery.

Table 4: Mineral Resource Estimate – Oxide Grades (ppm)

| Category | Mass (Mt) | TREO | NdPr | Dy | Tb | Y | Gd | Sm | | Measured | 26.4 | 2,174 | 426 | 62.2 | 9.2 | 388 | 53.1 | 55.5 | | Indicated | 9.4 | 1,872 | 372 | 51.8 | 7.8 | 323 | 46.0 | 48.7 | | Measured + Indicated | 35.8 | 2,095 | 412 | 59.5 | 8.9 | 371 | 51.2 | 53.7 | | Inferred | 2.2 | 1,768 | 357 | 44.5 | 6.9 | 276 | 42.2 | 45.8 |

Table 5: Mineral Resource Estimate – Contained Oxides (tonnes)

| Category | TREO | NdPr | Dy | Tb | Y | Gd | Sm | | Measured | 57,369 | 11,243 | 1,641 | 244 | 10,247 | 1,401 | 1,466 | | Indicated | 17,656 | 3,506 | 489 | 73.8 | 3,042 | 434 | 459 | | Measured + Indicated | 75,025 | 14,749 | 2,130 | 318 | 13,289 | 1,835 | 1,925 | | Inferred | 3,848 | 776 | 96.8 | 15.1 | 600 | 91.8 | 99.7 |

| Notes to Table 4 and Table 5: | | 1. Mass is expressed in million tonnes (dry, metric). | | 2. Dry bulk density values were applied to estimate tonnages. Density assignments were based on laboratory measurements and/or representative values by regolith domain. | | 3. Total REO means total rare earth oxides (La2O3, Ce2O3, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, and Y2O3). | | 4. NdPr means neodymium and praseodymium oxides (Nd2O3and Pr6O11). | | 5. Dy means dysprosium oxide (Dy2O3), Gd means gadolinium oxide (Gd2O3), Sm means samarium oxide (Sm2O3), and Tb means terbium oxide (Tb4O7). | | 6. Mineral Resources were reported at a net smelter return cut-off of US$14.62/t, constrained within a conceptual pit shell using average long-term metal prices and metallurgical recoveries, both outlined in Chapter 14 of the PEA. | | 7. Totals may not be balanced due to rounding of figures. | | 8. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources are reported inclusive of Mineral Reserves. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues. | | 9. The 2026 MRE was prepared by Andres Beluzan, Member of the Chilean Mining Commission, an independent Qualified Person as defined by NI 43-101. |

Geology & Geological Interpretation

The Project is hosted within a geological environment comprising intrusive granitoid units and metamorphic country rocks that control the distribution of REE mineralization (Figure 1-3). Geological investigations have defined the lithological, structural, and weathering characteristics that govern REE enrichment and support the current geological and mineral resource models.

_Figure 3: Regional geology of the Penco area, Biobío Region, Chile.__Source: Aclara Resources Inc. (2026)_

The Project is located within the Chilean Coastal Range and is characterized by the Eastern Series Metamorphic Complex, the Carboniferous Coastal Batholith, and the Penco granitoid complex ("PGC"). These units define the regional geological framework and geological evolution of the Project area, with the PGC hosting the majority of the REE mineralization.

The area is dominated by granitoid units affected by weathering processes that generated clay-rich regolith profiles hosting exchangeable REEs. Mineralization is primarily associated with monazite-bearing granitoids and is concentrated within the completely and semi-weathered horizons. Although the host rocks exhibit propylitic alteration, REE enrichment is mainly controlled by weathering, regolith development, and local structural conditions that influence profile preservation.

The Project hosts several REE-bearing deposits, referred to as Victoria (Victoria Norte and Victoria Sur), Maite, Luna, and Alexandra. Mineralization is associated with weathered granitoid units and concentrated within regolith horizons enriched in exchangeable REEs.

Sampling, Assay & QA/QC Protocols

Samples collected during the Project drilling campaigns were prepared, handled, and analyzed following established industry protocols, including chain-of-custody procedures, laboratory sample preparation, and geochemical analyses for REEs and bulk chemistry. The analytical database incorporates data from the 2021 PEA and subsequent drilling campaigns completed across the Project deposits.