Ucore Closes $6.9 Million Royalty Financing with Option to Increase to $8.2 Million

HALIFAX, NOVA SCOTIA--(Marketwired - Dec. 14, 2015) - Ucore Rare Metals Inc. (TSX VENTURE:UCU) (OTCQX:UURAF) ("Ucore" or the "Company") is pleased to announce that the Company has entered into an agreement (the "Agreement") with a foreign investment fund (the "Investor") through which the Investor will pay USD $5.0 million (approximately CAD $6.9 Million) to Ucore in consideration for a royalty or profit share 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 $5 Million payment to Ucore, with USD$2.5 Million due immediately on execution of the agreement and the balance payable by April 30, 2016 (collectively, the "Investment").

In consideration of the foregoing, the Investor will receive a profit share or 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 Profits Royalty ("NSR") equal to 5% of Ucore's net profits from the installation. Net profit figures are to be calculated by Ucore on an annual basis during the production term, in accordance with IFRS accounting procedures.

"We're pleased to announce the agreement for yet another significant royalty financing", said Jim McKenzie, President & CEO of Ucore. "The obtainment of repeated financings during this challenging time in the resource sector is an exceptional achievement. We believe this shows the potential for MRT as a revenue maker in both procyclical and countercyclical environments. Remarkably, this form of financing is prospectively non-dilutive, a substantial plus for new and existing Ucore shareholders. The Company is excited to be pushing forward with the development of this promising MRT platform. This funding will contribute toward the completion of our MRT pilot plant, which we anticipate during Q1 of 2016."