Mineral Resource

Product

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 2024, Aclara re-applied for the Penco Module’s environmental permit with a revised strategy, presenting a smaller project that eliminates natural water use and prioritizes reforestation. The improved technical design addresses environmental and social requirements, integrating feedback from public services and local communities. Optimized through a review by CAP S.A., Aclara’s strategic partner in Chile, the Company will leverage CAP’s expertise throughout the permitting process. The Technical ICSARA, received from the SEA on September 12, 2024, included 394 technical observations on EIA 1. Additionally, the Citizen ICSARA, received on December 12, 2024, comprised 1,331 observations gathered by the SEA during the citizen participation process.

In March 2025 Aclara submitted a comprehensive report as part of the Penco Module Environmental Impact Assessment to the Environmental Service Assessment Authority (the “SEA”). The Addendum addressed all the technical observations raised by the SEA and various other government agencies that review the EIA 1 (the “Technical ICSARA”), as well as comments received from local stakeholders (the “Citizen ICSARA”), in respect of EIA 1. Aclara remains committed to working closely with the SEA throughout the environmental evaluation process.

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.
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