Ucore Email this morning !! (( ((( (((
CEO Message
October 2025
Fellow shareholders,
The rare earths landscape has shifted again—this time in ways that validate exactly why Ucore was built the way it was.
The macro backdrop is tilting in our favor.
The threat of additional 100% tariffs on Chinese imports in the face of additional Chinese rare earth minerals restrictions underscores the need to move quickly to develop localized supply chain solutions. It is almost certain that President Trump will find a path forward amongst the geotensions, but Ucore realizes that ultimately being laser focused on restoring crucial rare earth refining for the Western World will be a conclusive solution.
As Presidents Trump and Xi are set to address the matter once again at the ASEAN summit it is with a backdrop that on October 9–10, China broadened its rare earth regime to add additional elements and, crucially, to place tighter export controls on processing technologies and equipment—moves that extend Beijing’s reach well beyond its borders. Multiple reports note the addition of five rare earths and expanded licensing requirements that can touch foreign-made products if they rely on Chinese-origin materials or technologies
Where Ucore stands—built for this moment.
From day one, we designed our U.S. heavy rare earth separation operations so they do not rely on Chinasourced equipment or technology. Our Louisiana Strategic Metals Complex (“LASMC”) and RapidSX™ platform are engineered around North American and allied suppliers—and that strategy stands up even under the latest Chinese controls.
To reduce schedule risk on longlead items, our program carries a U.S. Defense Priorities & Allocations System (DPAS) rating. Practically, that means rated purchase orders for critical equipment get priority treatment from suppliers because our project supports national security and emergency preparedness. This is especially helpful for long lead items like breakers, switch gear and tunnel kilns.
Beyond design and sourcing, we are performing to our plan;
• U.S. DoW funding mobilized. We executed the US$18.4 million Phase 2 award (US$22.4 million total under our OTA), which funds the first commercialscaleRapidSX™ machine and supporting infrastructure at the LASMC—includingdesign, construction, commissioning and achieving “Early Production” readiness for saleable REE products in H22026.
• US-friendly feedstock tested. Our commercial demo plant has processed numerous feedstocks that can support our SMC launch. Our team has travelled to Brazil, Australia and Southeast Asia to ensure best-in-class projects to support our light and heavy rare earth product profile.
• Site and schedule momentum. We held the LASMC groundbreaking at England Airpark (Alexandria, Louisiana), an 80,800sqft brownfield facility within a Foreign Trade Zone—an advantage that can mitigate tariff impacts on imported feedstock and exported products. We have had numerous DoW meetings since then to ensure our schedules are being supported at all levels.
• Commercial scale plan. Our staged plan targets ~2,500 tpa TREO separation capacity in Stage 1 at LASMC, then scaling to ~5,000± tpa (Stage 2) and ~10,000± tpa (Stage 3) as the market and feedstock portfolio mature. The scalable and modular nature of our RapidSX technology enables a smart deployment of our capital with one stage being operational and tested before we execute subsequent stages.
• Capital strength. We closed a C$15.5 million brokered offering in June to advance feedstock/offtake finalization, commercialscale column confirmation, and SMC engineering; and in September our remaining 2020 debentures (about $1.1 million) automatically converted to equity, simplifying the balance sheet.
• Technology collaboration (Metallium): Strategic partnership to integrate their Flash Joule Heating (FJH) process—which upgrades a wide range of concentrates and endoflife materials into mixed REE chlorides—with our downstream RapidSX™ separation. This expands viable feedstock beyond conventional concentrates (including magnet scrap and lighting waste).
Commercialization engine: Kingston to Louisiana.
Our 52stage RapidSX™ Commercialization & Demonstration Facility (CDF) in Kingston is running thousands of hours of campaigns (target ~120 operating hours/week), integrating ancillary systems (cerium depletion, direct leach, chloride distillation/recycle, etc.) derisking the “copyandpaste” to LASMC. The DoW has validated our technology every step of the way and as such we have conducted over 10,000 measurements for purity of product and recovery, all of them matching what is accomplished with conventional solvent extraction (CSX). The fundamental difference is we reach equilibrium much quicker than CSX and the throughput is 70% greater in 60% less floor space.
Our thesis, restated.
China’s expanded controls raise the bar for anyone trying to bring new supply to market—especially if they depend on Chinaorigin equipment, technology, or precursor materials. Ucore’s exChina equipment plan, DPAS status, and modular RapidSX™ deployment are built to sidestep those chokepoints. As the geopolitical situation evolves, first movers in allied refining become strategic infrastructure—not just companies.
We appreciate your continued support as we move from demonstration to production. The team is focused, financed for the next leg of execution, and aligned with customers and policymakers who want the same thing we do: a secure Western supply of the rare earth oxides that power the modern economy.
On behalf of everyone at Ucore—thank you.
jmho
CEO Message
October 2025
Fellow shareholders,
The rare earths landscape has shifted again—this time in ways that validate exactly why Ucore was built the way it was.
The macro backdrop is tilting in our favor.
The threat of additional 100% tariffs on Chinese imports in the face of additional Chinese rare earth minerals restrictions underscores the need to move quickly to develop localized supply chain solutions. It is almost certain that President Trump will find a path forward amongst the geotensions, but Ucore realizes that ultimately being laser focused on restoring crucial rare earth refining for the Western World will be a conclusive solution.
As Presidents Trump and Xi are set to address the matter once again at the ASEAN summit it is with a backdrop that on October 9–10, China broadened its rare earth regime to add additional elements and, crucially, to place tighter export controls on processing technologies and equipment—moves that extend Beijing’s reach well beyond its borders. Multiple reports note the addition of five rare earths and expanded licensing requirements that can touch foreign-made products if they rely on Chinese-origin materials or technologies
Where Ucore stands—built for this moment.
From day one, we designed our U.S. heavy rare earth separation operations so they do not rely on Chinasourced equipment or technology. Our Louisiana Strategic Metals Complex (“LASMC”) and RapidSX™ platform are engineered around North American and allied suppliers—and that strategy stands up even under the latest Chinese controls.
To reduce schedule risk on longlead items, our program carries a U.S. Defense Priorities & Allocations System (DPAS) rating. Practically, that means rated purchase orders for critical equipment get priority treatment from suppliers because our project supports national security and emergency preparedness. This is especially helpful for long lead items like breakers, switch gear and tunnel kilns.
Beyond design and sourcing, we are performing to our plan;
• U.S. DoW funding mobilized. We executed the US$18.4 million Phase 2 award (US$22.4 million total under our OTA), which funds the first commercialscaleRapidSX™ machine and supporting infrastructure at the LASMC—includingdesign, construction, commissioning and achieving “Early Production” readiness for saleable REE products in H22026.
• US-friendly feedstock tested. Our commercial demo plant has processed numerous feedstocks that can support our SMC launch. Our team has travelled to Brazil, Australia and Southeast Asia to ensure best-in-class projects to support our light and heavy rare earth product profile.
• Site and schedule momentum. We held the LASMC groundbreaking at England Airpark (Alexandria, Louisiana), an 80,800sqft brownfield facility within a Foreign Trade Zone—an advantage that can mitigate tariff impacts on imported feedstock and exported products. We have had numerous DoW meetings since then to ensure our schedules are being supported at all levels.
• Commercial scale plan. Our staged plan targets ~2,500 tpa TREO separation capacity in Stage 1 at LASMC, then scaling to ~5,000± tpa (Stage 2) and ~10,000± tpa (Stage 3) as the market and feedstock portfolio mature. The scalable and modular nature of our RapidSX technology enables a smart deployment of our capital with one stage being operational and tested before we execute subsequent stages.
• Capital strength. We closed a C$15.5 million brokered offering in June to advance feedstock/offtake finalization, commercialscale column confirmation, and SMC engineering; and in September our remaining 2020 debentures (about $1.1 million) automatically converted to equity, simplifying the balance sheet.
• Technology collaboration (Metallium): Strategic partnership to integrate their Flash Joule Heating (FJH) process—which upgrades a wide range of concentrates and endoflife materials into mixed REE chlorides—with our downstream RapidSX™ separation. This expands viable feedstock beyond conventional concentrates (including magnet scrap and lighting waste).
Commercialization engine: Kingston to Louisiana.
Our 52stage RapidSX™ Commercialization & Demonstration Facility (CDF) in Kingston is running thousands of hours of campaigns (target ~120 operating hours/week), integrating ancillary systems (cerium depletion, direct leach, chloride distillation/recycle, etc.) derisking the “copyandpaste” to LASMC. The DoW has validated our technology every step of the way and as such we have conducted over 10,000 measurements for purity of product and recovery, all of them matching what is accomplished with conventional solvent extraction (CSX). The fundamental difference is we reach equilibrium much quicker than CSX and the throughput is 70% greater in 60% less floor space.
Our thesis, restated.
China’s expanded controls raise the bar for anyone trying to bring new supply to market—especially if they depend on Chinaorigin equipment, technology, or precursor materials. Ucore’s exChina equipment plan, DPAS status, and modular RapidSX™ deployment are built to sidestep those chokepoints. As the geopolitical situation evolves, first movers in allied refining become strategic infrastructure—not just companies.
We appreciate your continued support as we move from demonstration to production. The team is focused, financed for the next leg of execution, and aligned with customers and policymakers who want the same thing we do: a secure Western supply of the rare earth oxides that power the modern economy.
On behalf of everyone at Ucore—thank you.
jmho
