Mineral Resource

Annual production

Pilot plant

Aclara’s pilot plant run in Chile in 2023 and it successfully met the following objectives:

• Validating the closed-circuit flowsheet with a continuous operation at a semi-industrial scale

• Confirming the processing parameters and process flowsheet design for a future full-scale plant design

• Enhancing certain parameters and design of the process flowsheet to achieve higher efficiency and lower costs

• Generating a high purity HREE concentrate for separation trials in support of future off-take agreements

• Generating processed clays to confirm that they are chemically stable when returned to the field

Permits

In June 2024, Aclara submitted a revised Environmental Impact Assessment (EIA) for the Penco Module to Chile's Environmental Assessment Service (SEA). The application was accepted for evaluation, initiating the environmental review and public participation process. Throughout 2024, Aclara conducted extensive community engagement, including consultations with more than 1,000 residents and hundreds of pilot plant visits. During 2025, the Company responded to technical and citizen observations through multiple submissions, culminating in Addendum 2 in October 2025, which addressed all remaining technical comments with updated engineering and environmental studies.

In March 2026 Aclara submitted a final exceptional addendum responding to the latest SEA information requests. The Environmental Evaluation Commission is now voting on the Project’s EIA in their next meeting, which has been scheduled on June 8, 2026. If approved, the environmental licensing process concludes with the issuance of the Environmental Qualification Resolution, the administrative act that formally grants the environmental authorization required for the Project’s development.

EIA Highlights:‍

• Aclara secured a 100% recycled water source to further enhance the project's sustainability measures. The recycled water will be provided by Essbio, the water utility company of Concepción, which collects and treats water from the city before its environmental discharge. This collaborative effort between Aclara and Essbio marks the first fully recycled water supply project in the Biobío region, reinforcing Aclara’s commitment to preserving local water resources.

• The new EIA also prioritizes reforestation, committing to revegetate over 100 hectares with native species.

• The project components have been modified to avoid the areas where any naranjillo trees are present.

‍“Early Citizen Participation” Process:

• Engaged with over 1,000 residents, leaders, and opinion leaders of Penco.

• Received a record 303 recommendations and comments from the community.

• Conducted over 400 guided tours of the Company’s pilot plant for residents and academic researchers.

• Established Casa Aclara near Penco’s main square for ongoing community dialogue, with around 100 visitors weekly.

Government recognition

In September 2024, the Chilean government introduced a comprehensive "Industrial Strengthening Plan" for the Biobío region, led by the Minister of Economy. This plan highlights the Penco Module as one of the key projects selected to bolster the region's future economic growth. The Industrial Strengthening Plan aims to revitalize the Biobío economic landscape, which has faced challenges due to slow economic activity and lack of consistent new investments over the past two decades. Aclara's Penco Module is among 25 large-scale projects featured, with the potential to significantly advance regional development.
‍