Ucore announces:

• Initiation of the USD$18.4 million DOD Phase 2 award for the scale-up of its Louisiana commercial rare earth refining complex.
• Successful separation of terbium and dysprosium – critical heavy rare earth elements – further to its US DoD Phase 1 project, resulting in a payment in the amount of USD $1.1 million.
• An appreciation for recent DoD actions to diversify and secure domestic production, especially HREEs, which are tightly controlled by China.

Ucore Rare Metals Inc. (TSX-V: UCU) (OTCQX: UURAF) is pleased to announce that the Company and representatives of the US Department of Defense have completed their formal project kick off meeting with respect to the Company’s previously announced USD$18.4 million Phase 2 Award. The Award facilitates the construction of the Company’s first commercial scale RapidSX^TM machine at its proposed Louisiana rare earth refining facility, which is focused on heavy rare earth elements (HREEs).

The Phase 2 Award is in addition to the previously announced award in the amount of USD$4 million. The Phase 1 Award is a demonstration program to show the efficacy of the company’s RapidSX™ proprietary processing in unlocking four primary rare earths required to produce rare earth permanent magnets – including highly sought after dysprosium. The Phase 2 Award is being administered as an increase to the Company’s existing Phase 1 Agreement.

HREEs are crucial to US national security due to their vital role in advanced military technologies. Essential components utilizing these materials include power precision-guided missiles, radar systems, and F-35 jet engines. Beyond defense, HREEs are critical for advanced technologies like electric vehicles, renewable energy, robotics, artificial intelligence and semiconductors. Ucore’s strategic partnership with the DOD, in particular as it relates to HREEs, is designed to address potential vulnerabilities as China continues to restrict exports, and thus help ensure US technological leadership in geopolitically tense times.

Phase 2 Award Update – Commercial Scale-Up

During the kick-off meeting, the Project Team confirmed near-term milestones and deliverables which are currently under way, including:

• detailed design and engineering of commercial-scale RapidSX™ columns at the Company’s Commercialization and Demonstration Facility in Kingston, Ontario (the “CDF“);
• Facility Engineering field work for the SMC in Alexandria, Louisiana.

Work under the Award will culminate with the construction of one commercial-scale RapidSX™ machine within the SMC in Louisiana, including commissioning, demonstration, and achieving ‘Early Production’ readiness of salable individual rare-earth element (“REE“) products. For further information with respect to the Phase 2 Award, please see Ucore press releases dated May 14, 2025 and June 2, 2025.

“With Phase 2 of the Award fully mobilized we are now moving RapidSX^™ from Commercial Demonstration scale toward Full Scale Production“, said Mike Schrider, Chief Operating Officer of Ucore. “The DoD’s continued support of our project and the rare earth sector at large will accelerate this process and help secure a North American rare earth supply chain.”

Figure 1: Borehole drilling being undertaken in Alexandria, LA, further to environmental, geometric, geotechnical, topographical, and utility assessments.

Phase 1 Award Update – Commercial Demonstration

The Company has completed the next significant DOD milestone by successfully separating terbium from dysprosium, the two critical HREEs used in permanent magnets. As such the company further reports that it has received payment from the DoD in the amount of USD$1,057,412 further to Phase 1 of the Company’s DoD Award. These invoices bring total payments received with respect to the Phase 1 Award to USD$3,352,884.

A total of USD$647,116 remains to be invoiced further to the Phase 1 Award. The Company expects to submit these invoices in the coming months following the completion of the associated milestones and reporting. The Phase 1 Award is being completed on a parallel path to the initiation of the Phase 2 Award.

Lastly, Ucore acknowledges and supports the U.S. Department of Defense’s broader strategic initiatives to strengthen the domestic rare earth element (REE) supply chain. Recent policy considerations, including pricing floors and offtake commitments represent critical mechanisms to enhance industry stability and investment confidence. These efforts, alongside direct project funding such as the Phase 2 Award, are instrumental in advancing a robust, North American-centric REE supply chain independent of Chinese control.

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.