Ucore Secures Additional US$4.6 Million from U.S. Department of War to Advance Samarium and Gadolinium Refining

Ucore Rare Metals Inc. (UCU) secured an additional US$4.6 million from the U.S. Department of War (DoW) through an Other Transaction Agreement (OTA) modification. This latest injection brings the total OTA grant funding to US$27.0 million, which supports the expansion of the RapidSX™ rare earth separation program. The funding specifically targets samarium (Sm) and gadolinium (Gd) process development and the deployment of "Enhanced Machine A" at the Louisiana Strategic Metals Complex (SMC).

The company highlighted heightened U.S. government interest in critical defense supply chains, noting that Sm and Gd are high-risk commodities per the USGS, with new DFARS restrictions taking effect in 2027. Recent operational milestones include shipping NdPr oxide qualification samples in June 2026, producing 99.9% dysprosium oxide in July 2026, and completing RapidSX™ contactor scale-up in August 2026. Additionally, the company closed a C$69 million public offering in August 2026 to fund SMC development and working capital.

Ucore Rare Metals Inc. (UCU) received a US$4.6 million award from the Department of Energy (DoW), validating the Sm/Gd pathway. This funding is incremental to the previously announced US$22.4 million DoW agreement and C$36.3 million in Canadian government funding. The award confirms the strategic priority of samarium and gadolinium for defense applications, though it does not represent a new, unexpected market-moving event, as the market has already priced in the strategic importance of Western rare earth element supply chains and government support.

The company’s financial position is significantly strengthened by a recent C$69 million equity raise and the full repayment of Orca debt, totaling US$8.7 million, on September 9, 2026, leaving the balance sheet debt-free. This news aligns with previous expectations regarding government support and technology commercialization, serving as a routine positive follow-up that de-risks the next phase of engineering and deployment.

Ucore Rare Metals Inc. is a pre-revenue company focused on commercializing its proprietary RapidSX™ solvent extraction technology for rare earth elements. The company’s flagship project is the Louisiana Strategic Metals Complex (SMC) in Alexandria, LA, which is designed to process approximately 9,600 tonnes per annum (tpa) of total rare earth oxides (TREO). Additionally, Ucore operates a Commercialization and Demonstration Facility (CDF) in Kingston, ON, that has accumulated over 7,400 hours of simulated commercial runtime.

The company also holds a long-term asset in the 100% controlled Bokan-Dotson Ridge Rare Heavy REE Project in Alaska. Its RapidSX™ technology offers faster throughput, a smaller physical footprint, and lower CAPEX compared to conventional solvent extraction, with validation from over 10,000 test results.