Ucore Announces Increase of Shareholder Investment to $7.3 Million and Conversion of Royalty to Shares in Company - Seite 2

Under the terms of the Amended Agreement, the Gross Royalty and the NSR are reduced from 5% to 2%, and the Conversion Rate has been increased to the greater of: (i) the market price of Ucore's common shares on the day immediately prior to the conversion date, less a 20% discount; or (ii) $0.29 per common share. The Amended Agreement additionally allows the Royalty to be converted to Units at the aforementioned Conversion Rate. Units consist of one common share of the Company plus a common share purchase warrant. Each common share purchase warrant shall entitle the Investor to acquire 1 new Common Share from Ucore at a price of CAD$0.38 per Common Share for a period of 3 years from the issuance date of the warrant.

In accordance with the conversion terms of the Amended Agreement, the Investor has elected to convert a total of CAD$7.35 million of its Royalty to Units. As a result, a total of 25,344,821 Units have been issued. Additionally, under the terms of the original Agreement, the Investor had the option to increase the amount of the Investment by up to USD$1 Million, in exchange for a larger Royalty, provided that written notice of such exercise is provided prior to August 31, 2016. The Investor has now exercised that option, and the Investment has accordingly been increased by the USD$1 Million.

The Company has agreed to settle payables in the amount of USD $195,000 through the issuance of 600,000 shares at a deemed value of $0.325 per share. The proposed debt settlement involves amounts owed to arm's length parties and is subject to approval by the TSX Venture Exchange. The shares issued will be subject to a four month hold period.

Company Information

Ucore Rare Metals is a development-phase company focused on rare metals resources, extraction and beneficiation technologies with near term potential for production, growth and scalability. On March 3, 2015, Ucore announced the right to acquire a controlling ownership interest in the exclusive rights to IBC SuperLig® technology for rare earths and multi-metallic tailings processing applications in North America and associated world markets. The Company has a 100% ownership stake in the Bokan project. On March 31, 2014, Ucore announced the unanimous support of the Alaska State Legislature for the investment of up to USD $145 Million in the Bokan project at the discretion of the Alaska Import Development and Export Agency ("AIDEA").