Aclara Resources Inc. provided an update on its exploration activities in Brazil by announcing its new Heavy Rare Earth Element ("HREE") ionic clays project, "Carina Module" (the "Project") located in the State of Goias, Brazil. The results of its initial auger drilling campaign[1], which was comprised of 1,693 meters of drilling within 236 drill holes, demonstrate the discovery of a new HREE deposit hosted in ionic clays. While the initial auger drilling campaign was shallow, with an average depth of 7.2 meters, it has unveiled a potential for expansion, both laterally and at depth, accompanied by the prospect of enhancing HREE grades.

Highlights: Size Potential: The mineralized area of the Carina Module spans approximately 1,400 hectares, with potential for lateral expansion. In contrast, the mineralized area of the Company's Penco Module in Chile covers approximately 140 hectares. Prospective Grades: The drilling results shows the potential for high Total Rare Earth Oxides ("TREO") with average grades at 1,229 ppm.

From an average drilling depth of 7.2 meters, 71.2% of the drillholes include 5.7 meters with TREO average grades at 1,367 ppm and Desorbable Rare Earth Oxides ("DREO") at 449 ppm. A selection of high-grade drill hole results are shown in Table 1 below, with the full set of results at the end of the document. Rich in HREE and LREE: The desorbable results demonstrate an outstanding distribution of HREE and Light Rare Earth Elements ("LREE").

In particular, 71.2% of drillholes reveal desorbable dysprosium ("Dy2O3 D") and terbium ("Tb4O7 D") grades at 18.1 ppm (?4.1% of the rare earths basket distribution) and 3.1 ppm (?0.7% within the rare earths basket distribution), respectively. In addition, desorbable neodymium oxide ("Nd2O3 D") and praseodymium oxide ("Pr2O3 D") grades show a summed value of 123 ppm (?27.5% of the rare earths basket distribution). Metallurgical Compatibility: The metallurgy of the Penco Module, which utilizes an ammonium sulfate leaching solution, is well-suited for the Carina Module's ionic clays.

71.2% of drillholes show an average exchangeable fraction[4] for TREO of 36.6%, with the highest value recorded at 78%; total dysprosium oxide ("Dy2O3 T") exhibits an average exchangeable fraction of 46%, with the highest value at 78%, and Terbium oxide ("Tb4O7 D") exhibits an average exchangeable fraction of 52%, with a peak at 91%. Depth Potential: The average drill depth of the auger drilling campaign was 7.2 meters, which did not allows to consistently reach the bottom limits of the lower Pedolith and Saprolite. However, over 70% of drillholes indicate a high anomalous exchangeable fraction in the last interval, suggesting that the deposit remains open at depth.

Initial Auger Drilling Campaign Summary: A total of 1,731 meters of drilling within 238 auger drill holes was carried out from February to August 2023 as part of a scouting drilling campaign covering approximately 1,400 hectares within the area defined as the Carina Module. The primary objectives of the drilling initiative were to: contribute to the definition of a maiden resource estimate of a size necessary to support a new production module; provide guidance for future reverse circulation drilling campaigns, needed to fully assess the asset's potential both laterally and at depth; and establish the metallurgical compatibility of the ionic clays found in the Carina Module with the metallurgical process developed for the Penco Module. The drilling campaign used manually operated augers ideally suited for a scouting campaign requiring shallow drill depths and easy and quick access to drill sites and varying terrains.

Next Steps: The results from the initial auger campaign have provided the Company with a basis to further pursue the Project, which is expected to include the following activities: the issuance of a maiden mineral resource estimate during fourth quarter of 2023; the issuance of a NI 43-101 Preliminary Economic Assessment during the first quarter of 2024; the execution of a 1,500-meters reverse circulation drill campaign to confirm the mineralized potential at depth. The campaign is expected to start at the end of October 2023 and is the initial phase of a reverse circulation campaign of 7,590 meters within 253 drillholes to convert the full potential of the deposit to an inferred mineral resource category; and the execution of a pilot test campaign during First Quarter 2024 in fully owned pilot plant in Chile, utilizing a 25-ton sample of clay extracted from the Project area. This campaign will aim to demonstrate on a semi-industrial scale the feasibility of processing the ionic clays extracted from the Carina Module.

Additionally, it will serve the purpose of producing commercial samples and further enhancing the value chain development efforts that were initiated with the Penco Module samples. Geological Overview: The dominant lithologies of the Project are pink porphyritic monzogranite composed of quartz, oligoclase, microcline, and annite as essential minerals. Leucosienogranite is the secondary lithology, characterized by quartz, albite, and microcline.

Using the historical and present auger drilling results, a thick regolith development has been interpreted ranging from 45 to 60 meters in thickness. This hypothesis will be tested with the execution of the upcoming reverse circulation drill campaign. All the lithologies recognized in the Project have shown evidence of thick regolith profiles, secondary minerals such as the ionic clays, and the release of interesting REE fractions such Nd, Pr, Dy, and Tb.

As part of the initial auger drilling campaign, the bottom limits of the lower Pedolith and Saprolite were not reached; however, the last intervals of the drill holes show exchangeable REE fractions open to depth. Sampling and Assay Protocols: The 238 auger drill holes were sampled at intervals of 0.5 meters to 2 meters, for a total of 1,344 samples, which were sent for total REE analysis (REY T) to the ALS laboratory in Lima, Peru, and desorption (REY D) analysis to AGS laboratory in La Serena, Chile. The same sampling and analytical protocols were followed as indicated in the Company's Amended and Restated NI 43-101 Technical Report, Preliminary Economic Assessment for Penco Module Project, prepared by Ausenco Engineering Chile Limitada with an effective date of September 15, 2021.

The QA/QC program indicates high levels of accuracy for Dy, Tb, Nd, Pr and Lu. Overall, the database for total grades similarly shows high accuracy. The Company contracted the services of GeoAnsata to review the data quality and QA/QC protocols.