Ucore Announces Increase of Shareholder Investment to $7.3 Million and Conversion of Royalty to Shares in Company

HALIFAX, NOVA SCOTIA--(Marketwired - May 30, 2016) - Ucore Rare Metals, Inc. (TSX VENTURE:UCU) (OTCQX:UURAF) ("Ucore" or the "Company") is pleased to announce that it has taken receipt of CAD$7.3 Million and amended the terms of the royalty agreement announced on December 14, 2016 (the "Agreement").

Under the original terms of the Agreement, a foreign investment fund (the "Investor") was to pay USD $5 million in exchange for a royalty or profit share from the production of Ucore's early stage MRT installations (the "Royalty"). Under the revised terms of the Agreement (the "Amended Agreement"), the Investor has now elected to increase its overall investment to USD $6M and to convert the royalty into shares in Ucore.

"We're very pleased to announce this substantially increased investment," said Jim McKenzie, President and CEO of Ucore. "What's more, the conversion of the royalty to shareholder equity represents a significant vote of confidence in the Company's rapidly maturing business plan. Our major investors have consistently elected to retain and progressively expand their ownership positions in Ucore. This is a strategy which gives them broad exposure to all of Ucore's economic opportunities rather than earn payments derived from any individual production stream, and access to shares at what they believe are significantly undervalued current levels."

Background

Under the terms of the original Agreement, the Royalty was to 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. The terms of the original Agreement additionally allowed the Investor to convert the total amount of the Investment (minus any Royalty amounts already then paid by Ucore) into common shares of Ucore, subject to any applicable regulatory, stock exchange or shareholder approvals. If the Investor elected to convert such amount, Ucore's Royalty obligations would then cease and the conversion amount would 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) $0.20 per common share. The conversion right was exercisable until June 15, 2021.