Ucore Comments on Escalating HREE Supply Concerns in US Capitol

HALIFAX, NOVA SCOTIA--(Marketwired - Jan. 13, 2013) - Ucore Rare Metals Inc (TSX VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or "the Company") is pleased to comment on multiple recent initiatives in Washington to address the increasing lack of availability of rare earth products and magnet-making materials for domestic military and defense applications.

Concerns regarding the withdrawal of ongoing supplies of Critical Rare Earth Oxides (CREO's) produced almost exclusively in China and consumed by US military contractors, has attracted a number of current legislative initiatives.

The National Defense Authorization Act is currently on the Senate Legislative Calendar for FY 2014. The Act proposes to authorize the National Defense Stockpile Manager to acquire several materials determined to be "strategic and critical materials required to meet the defense, industrial and essential civilian needs of the United States." Dysprosium and yttrium, metals included in the production plan at Ucore's Bokan facility in South East Alaska, are among the materials to be acquired under the new Act, using up to US$41 million of the National Stockpile Transaction Fund.

In January 2014, it was disclosed that the Pentagon had temporarily waived laws banning the use of Chinese-built components in U.S. weaponry in 2012 and 2013. The waiver, which has attracted significant media attention, was for the purpose of keeping the US$392 Billion F-35 Fighter Program on schedule. Specifically, Chinese built magnets were used during the last 24 months in violation of the import restrictions, in order to avoid further delays with the delivery of the jets. An investigation has now been ordered into three instances involving the use of prohibited Chinese components in the F-35 program. The investigation, authorized by US lawmakers, is being undertaken by the Government Accountability Office (GAO), and is expected to be completed by March 1, 2014.

The Critical Minerals Policy Act, submitted by Senators Lisa Murkowski (R - AK), Ron Wyden (D - Ore), Mark Udall (D - Col.), Dean Heller (R - Nev.) and 13 others, was introduced in late 2013. The Act intends to prevent further supply shocks of critical materials and reduce US dependence on foreign sources through the revitalization of a domestic supply chain, including domestic production from near term facilities such as the Bokan facility in Alaska. The bipartisan bill outlines mineral-specific actions for several elements, including yttrium and scandium, materials scheduled to commence production at the Bokan project by as early as 2017.