Mr. Ramon Barua Costa reports

ACLARA AND ARGONNE NATIONAL LABORATORY PARTNER TO DEVELOP AI-ENABLED DIGITAL TWIN FOR HEAVY RARE EARTH SEPARATION

Aclara Resources Inc.'s United States-based subsidiary, Aclara Technologies Inc., has entered into a co-operative research and development agreement (CRADA) with Argonne National Laboratory (ANL), a U.S. Department of Energy national laboratory, to develop an artificial intelligence-enabled digital twin for Aclara's heavy rare-earth separation process.

Under the agreement, Aclara and Argonne will leverage Argonne's SolventX modelling platform, along with Argonne's leadership in advanced computing, process modelling and artificial intelligence, and incorporate Aclara's proprietary pilot-scale data to develop a high-fidelity digital representation of Aclara's separation process. The resulting digital twin will enable advanced simulation, optimization and predictive control of heavy rare-earth solvent extraction operations.

Hugh Broadhurst, Aclara's chief operating officer, commented: "This collaboration with Argonne represents a significant step forward in our strategy to deploy a world-class, digitally enabled rare-earth separation platform in the United States. By combining our proprietary separation process and pilot-scale data with Argonne's world-class capabilities in advanced computing and artificial intelligence, we expect to accelerate industrial ramp-up, improve efficiency and further derisk execution."

Seth Darling, chief science and technology officer of Argonne's advanced energy technologies, commented: "This partnership exemplifies how combining the complementary strengths of industry, academia and national laboratories can accelerate the development and deployment of advanced technologies. It also reflects Argonne's role in translating foundational research and unique user facilities into tangible capabilities that support U.S. industrial competitiveness and strengthen domestic supply chains for critical materials."

This collaboration builds on Aclara's continuing development of a rare-earth separation pilot plant in partnership with Virginia Tech, which is expected to be inaugurated in March, 2026. Together, these initiatives are designed to accelerate the transition from pilot-scale validation to industrial deployment of Aclara's U.S. rare-earth separation platform.

Driving efficiency, resilience and faster industrial ramp-up

Aclara is advancing a modular and interoperable digital architecture to optimize its rare-earth value chain. As a central component of this strategy, the digital twin will allow Aclara to model, analyze and optimize the separation process across a wide range of operating conditions, improving performance while reducing scale-up risk.

By integrating artificial intelligence and data-driven techniques, the collaboration aims to:

• Improve operational efficiency and recovery rates through advanced model-based control;
• Accelerate ramp-up timelines by reducing uncertainty during the transition from pilot to industrial scale;
• Increase process resilience by enabling rapid adaptation to variations in feed composition and operating conditions.

The digital twin will be continuously refined using data generated from pilot campaigns, including those conducted at Aclara's Virginia Tech pilot facility, enabling continuing performance improvement as operations advance toward commercialization.

About Aclara Resources Inc.

Aclara Resources, a Toronto Stock Exchange-listed company, is focused on building a vertically integrated supply chain for rare-earths alloys used in permanent magnets. This strategy is supported by Aclara's development of rare-earth mineral resources hosted in ionic clay deposits, which contain high concentrations of the scarce heavy rare earths, providing the company with a long-term, reliable source of these critical materials. The company's rare-earth mineral resource development projects include the Carina project in the state of Goias, Brazil, as its flagship project and the Penco module in the Biobio region of Chile. Both projects feature Aclara's patented technology named circular mineral harvesting, which offers a sustainable and energy-efficient extraction process for rare earths from ionic clay deposits. The circular mineral harvesting process has been designed to minimize the water consumption and overall environmental impact through recycling and circular economy principles. Through its wholly owned subsidiary, Aclara Technologies Inc., the company is further enhancing its product value by developing a rare-earths separation plant in the United States. This facility will process mixed rare-earth carbonates sourced from Aclara's mineral resource projects, separating them into pure individual rare-earth oxides. Additionally, Aclara through a joint venture with CAP, is advancing its alloy-making capabilities to convert these refined oxides into the alloys needed for fabricating permanent magnets. This joint venture leverages CAP's extensive expertise in metal refining and special ferro-alloyed steels. Beyond the Carina project and the Penco module, Aclara is committed to expanding its mineral resource portfolio by exploring greenfield opportunities and further developing projects within its existing concessions in Brazil, Chile and Peru, aiming to increase future production of heavy rare earths.

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