Canada Rare Earth Corporation

Canada Rare Earth Announces the Right to Acquire a Rare Earth and Essential Minerals Project

Vancouver, BC, January 15, 2024 - Canada Rare Earth Corp. ("Canada Rare Earth" or the "Company") (TSX.V: LL) is pleased to announce that as of 15 January 2024, it has secured the right to acquire a majority interest in a private company (“Privco”), which owns and operates a mining quarry (the “Quarry”) with accessible material containing attractive grades of rare earth and essential minerals for an initial cost of US$400,000.

“This acquisition is a very significant step in executing our renewed strategy to develop additional proprietary sources of rare earths and essential minerals”  stated Peter Shearing, CEO and President of Canada Rare Earth. “This property will have a near term impact on our revenues and margins and will allow for a long term source supporting our business as a rare earth and essential minerals supplier.”

Canada Rare Earth will, through its interest in Privco, own the mineral rights and mining permits for the mineral concession on which the Quarry operates. The Quarry is presently being mined for aggregates and offers excellent logistics and transportation routes, facilitating efficient and economic  transportation of bulk and container shipments. The presence of surface-level friable material with sufficiently high grades of rare earths and essential minerals makes it suitable for direct shipping to a concentrator customer. Bulk samples have been shipped and preliminary negotiations are ongoing for long term off-take agreements. 

Canada Rare Earth has secured the rights to purchase a majority of the shares of Privco. The total acquisition cost (inclusive of share purchases and potential Privco liabilities) is expected to amount to no more than US$1,300,000 over 18 months. The closing of the acquisition is targeted for March 2024 with operations planned to commence shortly thereafter. Privco’s operations will be managed by a locally based, highly experienced, and successful CEO who will be able to take advantage of the existing workforce for the combined operations.

Development of rare earth mineral operations will occur in two phases: The initial phase will include the extraction and direct shipping of the unconcentrated  material; the second phase will include the construction of facilities to concentrate the material to produce higher value mineral products with increased margins.

The Company has completed initial internal testing and evaluation, confirming the presence of attractive levels of rare earth and essential minerals and is currently conducting comprehensive bulk sample testing to ensure efficient mineral recovery. The closing of the acquisition remains subject to completion of satisfactory due diligence and financing.

Peter Shearing, the CEO of Canada Rare Earth, expressed enthusiasm about the Company’s strategic direction, stating, “Our commitment to near-term cash flow opportunities, proprietary project development, and strategic decision-making positions us well for near term growth within the global essential minerals market. We are dedicated to meeting the demands of our customers, expanding our market presence, and ensuring sustained profitability.”

About Canada Rare Earth Corp.

Canada Rare Earth Corp. operates a rapidly growing global essential minerals business built from over a decade of success in rare earth minerals and products. Our strategy leverages near-term positive cash flow opportunities supporting our business growth, including acquiring and developing proprietary projects, resources and processing capabilities and facilities.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the ‘safe harbour’ provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.

For more information on the Company, interested parties should review the Company's filings that are available at www.sedarplus.ca.   

FOR FURTHER INFORMATION, PLEASE CONTACT: