Ucore Rare Metals Enters Into Second Royalty Agreement to Raise USD$1.0 Million

HALIFAX, NOVA SCOTIA--(Marketwired - Aug. 17, 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$1.0 million (approximately CAD$1.3 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$1 Million payment to Ucore, within 15 days of the Effective Date of the Agreement, being August 6, 2015.

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 initial Investment; and thereafter (ii) a Net Smelter Royalty ("NSR") equal to 0.5% 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.

Pursuant to the Agreement and subject to any required regulatory, stock exchange or shareholder approvals, the Investor has the right to convert the total amount of the Investment (minus any Royalty amounts already then paid by Ucore) into common shares of Ucore. If the Investor elects to convert such amount, then Ucore's Royalty obligations shall cease and the conversion amount shall be converted into common shares at the greater of: (i) the 30 day volume weighted average share price of Ucore's common shares, less a 20% discount; or (ii) the market price of Ucore's common shares on the day immediately prior to the conversion date, less a 20% discount; or (iii) $0.25 per common share.