Chilean Cobalt advances integrated development strategy at NeoRe Rare Earth Project, Chile

Chilean Cobalt Corp. [OTCQB: COBA] provided an update on continued progress at the NeoRe Rare Earth Project in southern Chile, where exploration, engineering, and permitting activities are now developing into a clearly-defined development pathway for the project’s first Modular Extraction Plant (MEP-1).

Chilean Cobalt, through project operator NeoRe Spa, is executing an integrated development program designed to transition NeoRe from district-scale exploration into structured, modular development, with a focus on resource definition, process engineering, and regulatory readiness.

Drilling continues at Target 7 and the recently accessed Las Corrientes property, which is now a key area for planned MEP-1 development. Recent work at Las Corrientes has been underway for the past three weeks to help define the initial resource base for first modular development. At Target 7, drilling has confirmed continued rare earth mineralization within the developing MEP-1 horizon, with intercepts returning up to 322 ppm TREO. Approximately 622 metres have been drilled across 90 holes year-to-date.

Conceptual engineering for MEP-1 has now been completed, resulting in a defined modular plant configuration designed for phased development and scalability across the district. Engineering has advanced into detailed technical studies, including topography, hydrology, hydrogeology, and geotechnical work, while supplier engagement has begun for key processing equipment. Preliminary OPEX estimates have also been completed at a conceptual level, supporting ongoing flowsheet and economic evaluation. In parallel, NeoRe has initiated the patenting process for its proprietary rare earth processing technology focused on ionic clay beneficiation.

Permitting activities are also advancing, with a pre-feasibility environmental study and pertinence consultation awarded, and a framework agreement approved to support the exploitation permit submission to Sernageomin. These steps are intended to streamline the regulatory pathway for MEP-1 in line with Chilean requirements and international ESG best practices and standards.

NeoRe’s broader land position across the Bio Bio and Ñuble regions has been refined into a focused development framework, with priority given to confirmed tenements and additional targets in the southern zone of the district. The portfolio now comprises 6 confirmed mining tenements (~1,800 hectares), 12 tenements requiring further work (~3,600 ha), 42 tenements planned for near-term exploration (~12,500 ha), and 6 discarded tenements (~1,800 ha), reflecting a structured approach to district-scale development.

In parallel with technical and regulatory progress, Chilean Cobalt and NeoRe are actively engaging with potential processing partners, offtake counterparties, and end-market users as part of a broader strategy to support downstream integration and strengthen alignment with global REE supply chain requirements, as well as to position the Project for strategic financing. These discussions are focused on supporting commercial pathways for future production from MEP-1 and subsequent modular expansion across the district.

Building on this progress, Chilean Cobalt and NeoRe are executing an accelerated development strategy for MEP-1, with NeoRe targeting first production in the first half of 2027, subject to ongoing technical, permitting, construction, and financing milestones. This timeline is supported by parallel execution across drilling, engineering, regulatory, and procurement workstreams, as well as the staged development of modular production units across the district.

“We are seeing NeoRe transition into a clearly defined development program,” said Duncan T. Blount, Chairman and CEO of Chilean Cobalt. “With engineering advancing for MEP-1, drilling expanding across key areas, and permitting frameworks advancing, NeoRe is increasingly defined by execution and development readiness. We also believe NeoRe’s focus on heavy REEs position the Project strategically within emerging U.S. and allied supply chains, strategic for defense and advanced technologies.”

Arturo Albornoz, NeoRe CEO, added, “The integration of drilling, engineering, and permitting is enabling a clear pathway towards development. Combined with our modular approach and technology development, NeoRe’s focus on heavy REEs supports a differentiated strategic position within global rare earth supply chains and our accelerated path towards first production in 2027.”

Chilean Cobalt is a US-based critical minerals exploration and development company focused on the La Cobaltera and El Cofre cobalt-copper projects in northern Chile’s historic San Juan district, one of the world’s few primary cobalt districts.