September 2025
To our valued shareholders,
I am pleased to report that in the last week of August, the U.S. released its draft 2025 Critical Minerals List, which is updated every three years. Six new critical minerals were recommended for inclusion, while two were recommended for removal. Also of great significance to Ucore is that the Department of the Interior released a list of critical minerals that it believes pose the highest probabilistic risk of supply chain disruptions to the U.S. economy. In descending order, these are Samarium, Rhodium, Lutetium, Terbium, Dysprosium, Gallium, Germanium, and Gadolinium.
Of these eight metals, four are target products that Ucore is pursuing as it relocates its RapidSX™ technology to central Louisiana for commercial deployment in collaboration with the U.S. Department of Defense (DoD). The export restrictions imposed by China in April 2025 affected heavy rare earths needed for permanent magnet production, Dysprosium and Terbium, as well as Samarium and Gadolinium, which are essential for Samarium-Cobalt magnets, the preferred components for national defense. These, among other products, remain a focus for Ucore.
This partnership, defined by an “Other Transaction Agreement,” enables Ucore and the DoD to first demonstrate the technology’s effectiveness, with nearly 7,000 operating hours now completed at the commercial demonstration plant, and subsequently advance Phase 1 commercial production (2,000–2,500 tpa processed TREO). This funding program is structured as a grant, which is advantageous for Ucore, as legal benefits, clear permits, and the ability to implement have become key investment criteria, given that governments prioritize supply chain security over purely economic considerations.
For the Louisiana facility, the groundwork for civil engineering and environmental protection has now been laid, equipment is being upgraded, long-lead items can be ordered, and full engineering with real-world feedstocks is progressing well. Notably, throughout the month, the team was active in South America to review projects with the potential to supply mixed rare earth carbonates or oxides for Phase 1 in Louisiana, while also working on early-stage agreements with Critical Metals Corp. (NASDAQ: CRML) to eventually receive rare earth concentrate from their Tanbreez project in Southern Greenland.
On behalf of the entire Ucore team, I thank you for your continued trust and support. The progress we are making today lays the groundwork for a more resilient and sustainable rare earth supply chain, and we are proud to lead these efforts on behalf of our shareholders, our partners, and the industries we serve.
Sincerely
Pat Ryan
Chairman and CEO
Ucore Rare Metals Inc.
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