Ucore Comments on China’s Immediate Restrictions on Rare Earth Exports

Ucore Rare Metals Inc. [TSXV: UCU; OTCQX: UURAF] acknowledges the recent joint announcement by China’s Ministry of Commerce and the General Administration of Customs regarding export restrictions on critical rare earth elements effective April 4, 2025.

As reported by multiple news sources, the export restrictions, applicable to all countries, include seven key medium and heavy rare earth elements, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium.

China’s decision to implement these export controls underscores the critical importance of establishing a secure and independent rare earth supply chain in North America. Ucore remains steadfast in its commitment to mitigating supply chain vulnerabilities through the development and commercialization of its proprietary RapidSX™ rare earth element refining technology.

Ucore’s Strategic Initiatives – U.S. Department of Defense Collaboration: Ucore is currently processing heavy rare earth elements at its RapidSX™ Commercial Demonstration Plant further to its US$4 million contract with the US Department of Defense. The Demonstration Plant was constructed in Kingston, Ontario for the purpose of demonstrating the RapidSX™ technology at commercial scale.

Louisiana Strategic Metals Complex (SMC): Ucore is progressing with the development of the Louisiana SMC in Alexandria, Louisiana. This facility is being designed to process broad both heavy and light mixed rare earth chemical concentrates, thereby reducing North America’s reliance on foreign sources.

Government Support: Ucore has additionally secured a $4.28 million funding agreement from the Government of Canada to demonstrate the commercial efficacy of the RapidSX™ technology. This funding supports the production of high-purity rare earth elements from Canadian and U.S. feedstock sources. In addition to federal government support, the company has executed a non-binding Letter of Intent with the State of Louisiana with respect to State grants, tax incentives, payroll rebates and other incentives with an estimated value of US$15 million.

On March 20, 2025, President Trump invoked wartime powers under the Defense Production Act to address threats to America’s national and economic security as a result of reliance on “hostile foreign powers’ mineral production.”

The Executive Order outlines a number of initiatives to “facilitate domestic mineral production to the maximum extent possible” and is aimed at the production of a number of critical minerals, including rare earth elements. Ucore looks forward to continuing its work the US Department of Defense in developing a North American supply chain for these critical materials.

“China’s recent announcement highlights the urgent need for a robust and independent rare earth supply chain in North America. Ucore’s RapidSX™ technology offers a transformative solution to this challenge, and we are committed to advancing our strategic initiatives to ensure a stable and secure supply of critical rare earth elements.”

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 establishment of a heavy and light rare-earth processing facility in the U.S. State of Louisiana, subsequent Strategic Metal Complexes 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, Southeast Alaska.