Ucore Secures $4.9 Million Payment for Granting MRT Production Royalty

HALIFAX, NOVA SCOTIA--(Marketwired - May 20, 2015) - Ucore Rare Metals Inc. (TSX VENTURE:UCU)(OTCQX:UURAF) ("Ucore" or the "Company") today announced that the Company has entered into an agreement (the "Agreement") with a high net worth US-based investor (the "Investor") through which the Investor will pay USD$4.0 million (approximately CAD$4.9 Million) to Ucore in consideration for a royalty on the sale of products and services related to the processing of rare earth elements and other specialty metals and critical materials utilizing SuperLig® Molecular Recognition Technology ("MRT").

Under the terms of the Agreement, the Investor will make a USD$4 Million payment to Ucore, with a USD$1Million down payment on or before May 26, 2015, with the balance payable within 120 days thereafter (collectively, the "Investment").

In consideration of the foregoing, the Investor will receive a royalty from the production of Ucore's early stage MRT installations (the "Royalty"). The Royalty will be comprised of two components: (i) a Gross Royalty equal to 5% of gross sales from the Company's first MRT installation or installations, payable until the recapture of the Investment; and (ii) a Net Smelter Royalty ("NSR") equal to 2% of the net sales from the Company's first Tier I production client. A Tier I production client is considered to be one with an estimated gross revenue volume to Ucore exceeding CAD$50 Million per annum, with net sales figures to be calculated by Ucore on an annual basis during the production term, in accordance with IFRS accounting procedures.

"We're excited to announce this royalty financing arrangement," said Jim McKenzie, President & CEO of Ucore. "The investment is favorable for Ucore since there is no debt burden, and is prospectively non-dilutive, given that shares will not be issued by Ucore upon closing. What's more, the transaction is a vote of confidence from a major investor in the remarkable growth potential of MRT, as well as an endorsement and financing milestone for Ucore, as it transitions towards near term revenue status and vertical integration."