Name of the Project
Penco Module rare earths project.

Location
Biobío region of Chile.

Project Owner/s
Aclara Resources (80%) and CAP (20%), through REE Uno. CAP holds an option to acquire a further 20% interest in REE Uno.

Project Description
The Penco Module is an ionic-clay heavy rare earths project covering about 600 ha.

The project comprises three clay extraction areas, a processing plant, storage facilities, supporting infrastructure and internal access roads.

The processing plant is designed to treat up to 320 t/h of clay to produce a superpure rare-earth carbonate. Aclara currently indicates average production of about 811 t/y of total rare-earth oxides (TREOs).

The project has measured and indicated mineral resources of 27.5-million tonnes grading 2 275 parts per million (ppm) TREOs and 491 ppm desorbable rare-earth oxides.

Aclara plans to use its proprietary circular mineral harvesting process, which does not require blasting, crushing or grinding, and is designed to avoid the generation and storage of tailings.

The project will use 100% recycled water, supplied by Concepción water utility Essbio, and will progressively rehabilitate and revegetate mined areas using native species. More than 100 ha will be protected for ecosystem conservation, restoration and enhancement.

Potential Job Creation
The project is expected to create about 700 jobs during peak construction and about 400 jobs during operations, supporting an estimated 2 200 direct and indirect employment opportunities across the Biobío region.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Not stated. Updated capital requirements are expected to be determined when the feasibility study is released.

Planned Start/End Date
Aclara expects to complete the feasibility study in the fourth quarter of 2026. During 2027, the company plans to advance detailed engineering, procurement, early works and the start of construction. Commissioning is targeted to start by mid-2028, subject to the completion of the required development milestones and sectoral permits.

Latest Developments
On June 8, 2026, the Environmental Assessment Commission of the Biobío region unanimously approved the project's environmental-impact assessment and authorised the issuance of the corresponding Environmental Qualification Resolution, or RCA.

Key Contracts, Suppliers and Consultants
None confirmed.

Contact Details for Project Information
Aclara Resources, tel +56 2 2565 1033 or email investorrelations@aclara-re.com.