Ucore Announces Technical Services Agreement With Innovation Metals Corp. For RapidSX Rare Earth Element Separation Technology Testing

Ucore Rare Metals Inc. (“Ucore” or the “Company”) is pleased to provide the following progress update with respect to the roll-out of its MINE to METAL to MARKET plan of strategic actions (the “M³ Plan“) for its Bokan-Dotson Ridge Rare Earth Project (the “Bokan Project” or “Bokan“); further to the Company’s press release of September 10, 2019.

Alaska SMC Separation Technology Testing with RapidSX

Pursuant to the Metal component of the M³ Plan, the Company is pleased to announce the execution of a binding Technical Services Agreement (“TSA“) with Innovation Metals Corp. (“IMC“) to commence a testing program (the “Study“) for the processing of mixed rare-earth element (“REE“) concentrates into separated REE oxides (“REO“) utilizing IMC’s proprietary RapidSX REE separation technology. Developed and successfully piloted by IMC, RapidSX is an accelerated solvent-extraction-based REE separation technology for both heavy REE (“HREE“) and light REE (“LREE“) feedstocks with expected significant technical and economic efficiencies for producing commercial-grade REO. Developed by IMC with USD$1.8 million in assistance from the U.S. Department of Defense’s (“DOD“) U.S. Army Research Laboratory (“ARL“), RapidSX combines the time-proven chemistry of solvent extraction (“SX“), the international REE industry’s standard commercial separation technology, with a new column-based platform, which significantly reduces time to process completion and plant footprint.

Under the terms of the TSA, IMC’s bench-scale test work will be based on a mixed REE concentrate produced from Ucore’s 100%-owned flagship Bokan Project, located at Bokan Mountain in Alaska, USA and/or other commercially available, U.S. allied-sourced, mixed REE concentrate feedstock sources currently under nearer-term consideration by Ucore. The Study will assess yield potential for targeted REE compounds and will include preliminary technical and economic estimates of the separation and purification process, including capital and operating costs. Based on IMC’s prior test programs and subject to the specific results of this Study, the RapidSX REE separation technology, a derivative of SX technology, may offer a more efficient technological pathway for utilization in the Company’s planned Alaska Strategic Metals Complex (the “Alaska SMC“) in Southeast Alaska, USA. In this case, upon the conclusion of this preliminary Study, the Company may elect to incorporate this technology into its plans for the Alaska SMC and to conduct a more robust technical and economic evaluation of RapidSX™ for incorporation into the expected first phase of the Bokan Project Feasibility Study during 2020/21.

The RapidSX REE Separation Competitive Advantages
(Based on previous pilot-scale test work done by IMC):

• CAPEX: Based on previous piloting work undertaken by IMC, IMC estimates a considerably reduced number of separation stages per SX circuit and the resultant smaller physical plant footprint with RapidSX compared to conventional SX facilities, which could potentially result in start-up capital cost savings. These expectations are contingent on the specific feedstock utilized and resulting REE products and purities desired.
• Rapid Equilibrium: As a result of the significantly increased kinetics of the RapidSX technology, the time to achieve equilibrium and separation is dramatically accelerated – from weeks (as is typical in the case with conventional SX) to hours/days with RapidSX
• OPEX: Based on previous piloting work undertaken by IMC, IMC estimates that the significantly reduced RapidSX separation times, reduced reagent and power consumption, reduced manpower requirements, and reduced in-process metal inventories, compared to utilization of conventional SX, could potentially result in reduced operating costs, depending on the feedstock and resulting REE products.
• Feedstock Agnostic: Due to its modular configuration and reduced number of stages, RapidSX is capable of readily reconfiguring for separating LREE-rich, HREE-rich and/or even blends of mixed REE feedstocks.
• Commercially Available: All construction materials for the RapidSX technology – all associated equipment and chemical reagents – are readily commercially available.
• Scalable and Modular: The RapidSX technology’s process lines are modular and scalable, providing future expected licensees with the opportunity to scale commercial production capacity.

The development of an individual REE separation and purification plant, the Alaska SMC, remains Ucore’s targeted first commercial development component of the Bokan Project. In order to meet this critical objective in the shortest timeframe possible, the prospective Alaska SMC will be designed to have the ability to produce REO from other commercially available, U.S. allied-sourced, REE feedstocks. It is planned that the Alaska SMC will be operating at a commercial scale while the Bokan HREE mineral project is still being developed. As such, IMC will also be evaluating other commercial REE feedstock(s) under consideration by Ucore as a part of the TSA.

Ucore Chairman, Pat Ryan commented, “We are very excited to be working with IMC and its RapidSX technology and believe there is considerable merit in an evolution of the well-proven conventional SX process, with specific interest in the reduction of CAPEX and required plant footprint, as we simultaneously seek various funding opportunities for our planned Alaska SMC. In early November 2019, Ucore visited the RapidSX pilot plant and laboratory in Mississauga, Ontario.

“During this visit, Ucore COO Mike Schrider, Ucore Director Geoff Clarke and I met extensively with IMC Chairman and CEO Dr. Gareth Hatch, Hexagon Energy Materials Limited (ASX:HXG) Chairman Charles Whitfield, and CEO of Hexagon’s US subsidiary, Energy Materials of America, Ty Dinwoodie. Over the following weeks, Ucore, IMC and Hexagon worked collaboratively in developing this opportunity, culminating in this initial agreement. This TSA with IMC further highlights my sentiments that ‘our time is now’ as Ucore looks forward to the future and strategically advances its M³ Plan of Action with strength and ingenuity.”

Chairman and CEO of IMC and co-inventor of RapidSX, Dr. Gareth Hatch stated, “The lack of US-based operational REE separation capacity presents a serious vulnerability to U.S. national and economic security and the security of its allies, as REEs are critical for defense technologies, electric vehicles, and U.S. economic growth plans. Without the downstream capacity to separate and purify REEs, the U.S.A. and its allies are vulnerable to potential supply disruptions, price spikes and trade disagreements related to REEs. It is our intention to remedy this situation with the successful commercialization of the RapidSX approach to processing and purifying REEs and IMC is very pleased to work with Ucore in its efforts to establish commercial REE separation capabilities on U.S. soil.”

Ucore COO, Mike Schrider, commented, “The successful development of the Alaska SMC involves assuring all stakeholders that the project is founded upon an efficient, yet relatively low risk, REE separation technology. The opportunity to test IMC’s RapidSX technology, a technology which shares the same chemistry and unit operations as traditional SX, on feedstocks we are considering for the Alaska SMC is a key step in establishing this assurance. This work is also expected to provide useful inputs into IMC’s planned development of its RapidSX Commercial Demonstration Plant, which will help to refine IMC’s economic analyses and demonstrate the commercial merit of IMC’s REE technologies.”