Aclara Announces Filing and Results of Pre-Feasibility Study for Its Flagship Carina Project

On November 6, 2025, Aclara Resources announced the results of a Pre-Feasibility Study (PFS) for its flagship Carina Rare Earth Element (REE) Project in Goiás, Brazil. The study highlights robust project economics, including: - An after-tax Net Present Value (NPV) of US$1.1 billion at an 8% discount rate. - An after-tax Internal Rate of Return (IRR) of 22%. - An initial capital cost (CAPEX) of US$680.5 million with a payback period of 4.5 years. - Average annual production of 4,265 tonnes of Rare Earth Oxides (REO) over an 18-year mine life. - This includes key magnetic REEs: 149 tonnes/year of Dysprosium, 25 tonnes/year of Terbium, and 1,170 tonnes/year of Neodymium-Praseodymium. The company noted that this is the first time a company has published heavy rare earth Mineral Reserves from ionic clays in accordance with NI 43-101 standards, providing strong confidence as they advance to the feasibility stage.

The release of a positive PFS is a major de-risking milestone for Aclara and is materially positive. It confirms the economic viability of the Carina Project and establishes its first-ever Mineral Reserve, transitioning it from an exploration asset to a development-stage project. The headline after-tax NPV of US$1.1 billion is very significant compared to the company's current market capitalization of approximately CAD$609 million (~US$450 million), suggesting a substantial valuation gap.

However, a critical review against prior company disclosures reveals some concerning trends: - Increased CAPEX: The initial capital cost of US$680.5M is approximately 13.5% higher than the US$599M estimate provided in a January 6, 2025, news release. Capital cost inflation is a significant risk for all development projects. - Reduced Mine Life: The PFS outlines an 18-year mine life, a notable reduction from the 22-year mine life mentioned in the same January 2025 update. - Lower Production: The PFS projects average annual production of 174 tonnes of Dysprosium/Terbium and 1,170 tonnes of Neodymium-Praseodymium. This is lower than the 191 tonnes and 1,350 tonnes, respectively, guided in January 2025. - Timeline: The PFS was guided for Q3 2025 in a December 2024 release but was delivered in early Q4 2025. While only a slight delay, it met the revised 45-day timeline set in the October 1 MRE update.

While the market will likely focus on the strong headline NPV, these negative revisions on key operational and financial metrics temper the overall positivity. The most significant takeaway is the confirmation of the project's economic potential, but the massive US$680.5M financing requirement now becomes the central and most critical challenge for the company. The stock's significant run-up prior to this news suggests much of this positive outcome was already anticipated by the market.

Aclara Resources Inc. is a development-stage company focused on producing heavy rare earth elements (HREEs), which are critical for permanent magnets used in electric vehicles, wind turbines, and other advanced technologies. The company is pursuing a vertically integrated "mine-to-magnet" strategy. - Flagship Project: The Carina Project, located in Goiás, Brazil, is an ionic clay-hosted REE deposit. The November 2025 PFS confirms its potential to be a large-scale, long-life, and economically robust source of HREEs. - Other Projects: Aclara is also advancing the Penco Module ionic clay project in Chile (final permitting stages) and a planned HREE separation facility in Louisiana, USA, to process its mixed rare earth carbonates into separated high-purity oxides.