Texas Mineral Resources Corp. announced that USA Rare Earth and TMRC have agreed to modify the existing Round Top Mountain Development operating agreement to allow, at TMRC's option, the right to meet potential future cash calls by reducing its Round Top project equity according to a preset formula. TMRC will have the sole right, but not the obligation, to allow USA Rare Earth to fund its cash call and then reduce its Round Top project equity by a percentage, according to the following formula: TMRC's cash call that is funded by USA Rare Earth divided by TMRC's market capitalization at the time of the cash call multiplied by TMRC's Round Top then current equity interest.

For example, a $1 million TMRC cash call funded by USA Rare Earth (assuming today's $70mm market cap) would result in a reduction in the TMRC Round Top 20% membership interest to approximately 19.71% (1mm /70mm equals 1.428%, multiplied by the current membership interest of 20%, to result in adjusted ownership of 19.71%). Benefits to TMRC include: Avoids the need to raise capital to fund capital calls through the issuance of its equity securities; and Allows for any potential future financing to occur on an orderly basis.