Aclara Resources Inc. announced that it has started the continuous operation of its newly constructed pilot plant for the Penco Module near Concepcion, Chile. The Company produced the first sample of high purity Heavy Rare Earth Elements (HREE) concentrate after a successful commissioning period where all the equipment was tested with clays from the Penco Module. Pilot Plant Operation.

Demonstrating the flowsheet and process design through a pilot plant facility meets the following objectives: Validating the closed-circuit flowsheet by producing a HREE concentrate at a semi-industrial scale, Generating processed clays to confirm that they are chemically stable when returned to the field; Confirming the amenability of the clays to support theregetation of the reclaimed site through the reintroduction of native plant species; Confirming the processing parameters and process flowsheet design for use in the upcoming Feasibility Study, and ultimately the full-scale plant design; Generating a high purity HREE concentrate for separation trials in support of future off-take agreements, and Demonstrating to relevant stakeholders the environmental sustainability of the process design. Campaign parameters. Design throughput of 90 kg/hr, operating on a continuous, 24/7 basis per campaign; Two campaigns, each expected to run for 1 month and representing 2 of the 5 mining zones which will be mining during the initial payback period of the Project; A HREE concentrate will be produced from each campaign.

A final report detailing the full piloting methodology and associated results is expected to be completed by the end of Third Quarter 2023 for inclusion in the upcoming Feasibility study Report to support the subsequent NI 43-101 Technical Report relating to the Penco Module Project.