Aclara Announces up to US$80M Strategic Investment by Cap in Its Chilean Subsidiary and an Option for an Equity Investment of up to 19.9%

TORONTO, ON / ACCESSWIRE / March 13, 2024 / Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that it has entered into an investment agreement with CAP S.A. ("CAP"), a publicly listed company on the Chilean Stock Exchange, pursuant to which, amongst other things, CAP will make a US$29 million strategic investment in REE Uno SpA ("REE Uno"), Aclara´s Chilean subsidiary, which owns the Penco Module (the "Investment Agreement"). Under the terms of the Investment Agreement, CAP also has an option to invest an additional US$50 million in REE Uno and a three-year option to subscribe a 19.9% interest in Aclara, and the parties have also agreed to form a joint venture company to develop metals and alloys for the rare earths permanent magnet industry (the "Transaction"). The Transaction reflects the parties' shared view that the future will require innovative mineral extraction methods, a strong focus on environmental and social sustainability, and the understanding that our planet requires cleanly produced rare earths metals in its urgent fight against climate change.

CAP S.A., a company with more than 77 years of history and listed in the Chilean Stock Exchange since 1987, is the parent company of the CAP Group, a Chilean conglomerate operating in various industries including iron ore mining (CMP), with mines and industrial operations in the north of the country, as well as steelmaking operations in Concepcion (Huachipato), very close to the Penco Module. CAP is one of the leading high-grade iron ore producers in the world with four operating mines in Chile. In addition, CAP has several steel product manufacturing plants in Chile, Peru and Argentina. It operates five ports, a seawater desalination plant and has vast industrial infrastructure in the Biobio region. Huachipato has been operating since 1950, and together with SMS Group is developing a project for sustainable steel using green hydrogen for the direct reduction of iron. CAP has a strong connection with the people of the Biobío region, where it has been a major employer for several decades, contributing directly to the development of the south of Chile.