Aclara Resources Inc. provided an update on its Chilean Penco Module permitting and development strategy following the previously announced receipt of notice from the Environmental Service Assessment ("SEA") of its decision to terminate the review of the Company's application for an environmental impact assessment ("EIA") of the Project based on the identification of six previously undisclosed "naranjillo" trees, considered "v vulnerable species", within the Project area. Five of these naranjillo trees were found near an existing access road that would require modification and one naranjillo tree was found in a local "native forest" within the deposition zone known as Jupiter. Aclara has revised its permitting strategy with the primary aim of addressing concerns associated with native forests whilst expecting to minimize any substantial impact on the Project's development timeline.

The second EIA ("EIA 2") will be prepared when the Company is ready to expand its production at the Project to zones not covered by EIA 1 (namely, Victoria Sur, Alexandra Oriente, and Alexandra Poniente) based on the availability of new deposition zones. The Company will present a permit application to reactivate the Jupiter deposition zone as well as evaluate new deposition zones. Furthermore, EIA 2 will consider an increase to the production plant's throughput capacity.

Such an increase will be studied at a conceptual level during 2024. In light of the revised permitting strategy, the Company has decided to delay the completion of its Feasibility Study and use the additional time to further refine the engineering aspects of the Project by incorporating enhancements that are expected to result in reduced capital and operating costs and improved operational efficiency. These enhancements are the direct result of insights gained from recent piloting work and ongoing research and development initiatives.

Aclara's CEO, Ramon Barua, commented: "Our revised strategy for the Project reflects commitment to address the concerns raised by the Chilean environmental evaluation services, even if it would result in a staged approach to the development of the Project. Given the limitations imposed by the naranjillo tree found in the Jupiter deposition zone, the Company will explore alternatives in order to find the best solution for deposition zones. Optimistic about the potential of achieving success in terms of one or more of such alternatives in order to minimize the environmental impact while maximizing the value of the Project".