Mr. Michael Schrider reports

UCORE LAUNCHES US DEPARTMENT OF DEFENSE FUNDED $18.4 MILLION COMMERCIAL RARE EARTH REFINING PROJECT

Ucore Rare Metals Inc. and representatives of the United States Department of Defense have completed their formal project kick off meeting with respect to the company's previously announced $18.4-million (U.S.) phase 2 award. The award facilitates the construction of the company's first commercial-scale RapidSX machine at its proposed Louisiana rare-earth refining facility, which is focused on heavy rare-earth elements (HREEs).

Ucore announces:

• Initiation of the $18.4-million (U.S.) 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 (HREEs) -- further to its United States DoD phase 1 project, resulting in a payment in the amount of $1.1-million (U.S.);
• An appreciation for recent DoD actions to diversify and secure domestic production, especially HREEs, which are tightly controlled by China.

The phase 2 award is in addition to the previously announced award in the amount of $4-million (U.S.). 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 United States 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 defence, 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 United States technological leadership in geopolitically tense times.

Phase 2 award update -- commercial scale-up

During the kickoff 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, Ont. (the CDF);
• Facility engineering field work for the SMC in Alexandria, L.

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."

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 $1,057,412 (U.S.) further to phase 1 of the company's DoD award. These invoices bring total payments received with respect to the phase 1 award to $3,352,884 (U.S.).

A total of $647,116 (U.S.) 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 U.S. state of Louisiana, subsequent SMCs in Canada and Alaska and the longer-term development of Ucore's 100-per-cent-controlled Bokan-Dotson Ridge rare heavy REE project on Prince of Wales Island in southeast Alaska, United States (Bokan).

We seek Safe Harbor.