Ucore Rare Metals Inc. (TSX.V: UCU) (OTCQX: UURAF) Expands Strategy for Critical Magnet Materials Supply

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• Recent analysis underscores the vulnerability of specialized rare earth elements samarium and gadolinium.
• This elevated risk profile is largely driven by the dominance of a single country in rare earth production and processing as well as increasing demand for the elements.
• Ucore is working to accelerate the commercial development of its planned processing capabilities for these materials.

Securing reliable supplies of specialized rare earth elements is becoming increasingly important as demand rises across defense, energy and advanced manufacturing sectors. With this in mind, Ucore Rare Metals (TSX.V: UCU) (OTCQX: UURAF) recently announced that it is accelerating commercial planning for the production of samarium and gadolinium, two critical materials used in high-performance magnet applications and other advanced technologies.

The importance of this announcement is closely tied to rising demand and constrained supply for these specific rare earth elements. Samarium is a key component of samarium-cobalt magnets, which are valued for their ability to operate at high temperatures and maintain magnetic strength in demanding environments such as aerospace systems, defense technologies and certain energy applications. 

Gadolinium, meanwhile, is used in nuclear reactors, medical imaging technologies such as MRI contrast agents and emerging clean-energy applications. The U.S. Geological Survey has identified rare earth elements broadly as critical minerals due to their essential role in modern technologies and the high risk of supply disruption tied to concentrated production.

Recent analysis from the U.S. Geological Survey further underscores the vulnerability of these materials. In its 2025 draft critical minerals assessment, samarium ranked as the number one mineral at highest supply disruption risk, while gadolinium was also placed in the high-risk tier, reflecting both supply concentration and growing demand pressures. 

This elevated risk profile is largely driven by the dominance of a single country in rare earth production and processing. China remains the leading global producer and processor of rare earth elements, creating a bottleneck in the supply chain that affects availability of separated oxides required for magnet manufacturing and other advanced uses.

Demand growth is also accelerating. According to the International Energy Agency (“IEA”), demand for rare earth elements used in clean-energy technologies could increase by two to three times by 2040, driven by the expansion of electric vehicles, wind power and other electrification trends. While much of this growth is tied to neodymium-based magnets, samarium-cobalt magnets remain essential for applications where higher thermal stability is required, particularly in defense and aerospace systems. These overlapping demand drivers contribute to a tightening market for both samarium and gadolinium, increasing the need for new sources of supply outside of existing dominant producers.

Against this backdrop, Ucore’s recent announcement focuses on accelerating the commercial development of its planned processing capabilities for these materials. The company stated that it is advancing engineering and planning work to support the production of samarium and gadolinium oxides as part of its broader rare earth separation strategy. This effort is tied to Ucore’s planned facilities in North America, including its Strategic Metals Complex in Louisiana and its activities in Kingston, Ontario, where it has been operating a Commercialization and Demonstration Facility to validate its proprietary RapidSX(TM) technology.

RapidSX is central to Ucore’s approach. The technology is designed to improve upon conventional solvent extraction methods used to separate rare earth elements into individual oxides. According to the company, RapidSX aims to reduce processing time and plant footprint while maintaining or improving separation efficiency, enabling a more flexible and scalable approach to rare earth refining. This capability is particularly important for heavy and mid-range rare earth elements such as samarium and gadolinium, which require precise separation processes to achieve the purity levels needed for downstream applications.

Ucore’s broader strategy involves creating a North American supply chain for rare earth oxides that reduces reliance on overseas processing. The company has been working to align its processing plans with both upstream feedstock sources and downstream magnet manufacturing capacity. Previous announcements include a strategic alliance with Vacuumschmelze and eVAC Magnetics LLC to support the supply of rare earth oxides for permanent magnet production, linking Ucore’s refining capabilities to manufacturing operations in western markets.

In addition, Ucore has received conditional support from the government of Canada for its Canadian processing initiatives, including funding of up to C$36.3 million to advance a facility focused on refining samarium and gadolinium oxides. This support reflects broader policy efforts in North America to strengthen domestic critical mineral supply chains and ensure access to materials that are essential for both economic and national security.

The company’s latest announcement builds on these developments by emphasizing a more targeted focus on samarium and gadolinium as strategic materials within its portfolio. By accelerating commercial planning for these elements, Ucore is positioning itself to address a segment of the rare earth market that combines high demand, limited supply and strong geopolitical relevance. As global supply chains continue to evolve and demand for advanced materials increases, the ability to produce these specific oxides domestically may become an increasingly important differentiator.

For more information, visit www.Ucore.com.

NOTE TO INVESTORS: The latest news and updates relating to UURAF are available in the company’s newsroom at https://nnw.fm/UURAF

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