Aclara Selected by the U.S. Department of Energy for Federal Funding to Advance AI-Driven Heavy Rare Earth Processing

Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that its U.S. subsidiary, Aclara Technologies Inc., has been selected by the U.S. Department of Energy ("DOE") to receive federal funding, terms and timing subject to award negotiations, under the DOE's Genesis Mission: Transforming Science and Energy with AI initiative.

Aclara's Phase I project, titled "AI-Enabled Process Optimization for Multi-Feed Rare Earth Separation," was selected under Challenge Area - Securing America's Critical Minerals Supply through Extraction and Processing Technologies. The project aims to apply artificial intelligence to optimize the multi-feed separation of rare earth elements, improving process efficiency, product quality and operational stability while accelerating the commercialization of domestic rare earth processing technologies.

"This selection by the U.S. Department of Energy is an important milestone for Aclara and validates our vision of combining advanced process engineering with artificial intelligence to strengthen the critical minerals supply chain," said Ramón Barúa, Chief Executive Officer of Aclara. "The project will help accelerate the development of next-generation operating tools for heavy rare earth separation while reinforcing our broader strategy of building a secure, resilient and technologically advanced rare earth supply chain across the Americas."

Aclara's project will develop and validate an AI-assisted digital twin capable of optimizing complex rare earth solvent extraction circuits under dynamic operating conditions. The project will leverage operational data generated at Aclara's rare earth separation pilot plant at Virginia Tech and combine it with advanced process simulation capabilities developed by Argonne National Laboratory. The resulting platform is expected to improve process stability, increase recovery and product purity, reduce operator intervention and accelerate the scale-up of domestic rare earth separation technologies.

The project will be executed through a collaboration between Aclara Technologies Inc., Argonne National Laboratory and Virginia Tech, combining industrial expertise, national laboratory capabilities and academic research to demonstrate the application of artificial intelligence in commercial-scale rare earth processing.

The Genesis Mission is a historic national initiative led by the U.S. Department of Energy that is building the world's most powerful integrated science discovery platform. By bringing together government, industry and academia, the initiative seeks to accelerate breakthroughs in energy, scientific discovery and national security through the integration of artificial intelligence, supercomputing, quantum systems and advanced scientific instruments. Phase I projects are intended to demonstrate transformative AI-enabled scientific workflows, with successful projects having the opportunity to advance to Phase II for additional federal funding.

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