Aclara Selected by the U.S. Department of Energy for Federal Funding to Advance AI-Driven Heavy Rare Earth Processing

Company selected under DOE's Genesis Mission initiative to develop artificial intelligence technologies that will optimize domestic rare earth separation. Successful Phase I projects have the opportunity to advance to Phase II for additional federal funding.

TORONTO, ON / ACCESS Newswire / July 23, 2026 / Aclara Resources Inc. ("Aclara" or the "Company") (TSX:ARA) is pleased to announce that its U.S. subsidiary, Aclara Technologies Inc., has been selected by the U.S. Department of Energy ("DOE") to receive federal funding, terms and timing subject to award negotiations, under the DOE's Genesis Mission: Transforming Science and Energy with AI initiative.

Aclara's Phase I project, titled "AI-Enabled Process Optimization for Multi-Feed Rare Earth Separation," was selected under Challenge Area - Securing America's Critical Minerals Supply through Extraction and Processing Technologies. The project aims to apply artificial intelligence to optimize the multi-feed separation of rare earth elements, improving process efficiency, product quality and operational stability while accelerating the commercialization of domestic rare earth processing technologies.

"This selection by the U.S. Department of Energy is an important milestone for Aclara and validates our vision of combining advanced process engineering with artificial intelligence to strengthen the critical minerals supply chain," said Ramón Barúa, Chief Executive Officer of Aclara. "The project will help accelerate the development of next-generation operating tools for heavy rare earth separation while reinforcing our broader strategy of building a secure, resilient and technologically advanced rare earth supply chain across the Americas."

Aclara's project will develop and validate an AI-assisted digital twin capable of optimizing complex rare earth solvent extraction circuits under dynamic operating conditions. The project will leverage operational data generated at Aclara's rare earth separation pilot plant at Virginia Tech and combine it with advanced process simulation capabilities developed by Argonne National Laboratory. The resulting platform is expected to improve process stability, increase recovery and product purity, reduce operator intervention and accelerate the scale-up of domestic rare earth separation technologies.

The project will be executed through a collaboration between Aclara Technologies Inc., Argonne National Laboratory and Virginia Tech, combining industrial expertise, national laboratory capabilities and academic research to demonstrate the application of artificial intelligence in commercial-scale rare earth processing.

The Genesis Mission is a historic national initiative led by the U.S. Department of Energy that is building the world's most powerful integrated science discovery platform. By bringing together government, industry and academia, the initiative seeks to accelerate breakthroughs in energy, scientific discovery and national security through the integration of artificial intelligence, supercomputing, quantum systems and advanced scientific instruments. Phase I projects are intended to demonstrate transformative AI-enabled scientific workflows, with successful projects having the opportunity to advance to Phase II for additional federal funding.

About Aclara

Aclara Resources Inc. (TSX:ARA), a Toronto Stock Exchange listed company, is focused on building a vertically integrated supply chain for rare earths alloys used in permanent magnets. This strategy is supported by Aclara's development of rare earth mineral resources hosted in ionic clay deposits, which contain high concentrations of the scarce heavy rare earths, providing the Company with a long-term, reliable source of these critical materials. The Company's rare earth mineral resource development projects include the Carina Project in the State of Goiás, Brazil as its flagship project and the Penco Module in the Biobío Region of Chile. Both projects feature Aclara's patented technology named Circular Mineral Harvesting, which offers a sustainable and energy-efficient extraction process for rare earths from ionic clay deposits. The Circular Mineral Harvesting process has been designed to minimize the water consumption and overall environmental impact through recycling and circular economy principles. Through its wholly-owned subsidiary, Aclara Technologies Inc., the Company is further enhancing its product value by developing a rare earths separation plant in the United States. This facility will process mixed rare earth carbonates sourced from Aclara's mineral resource projects, separating them into pure individual rare earth oxides. Additionally, Aclara through a joint venture with CAP, is advancing its alloy-making capabilities to convert these refined oxides into the alloys needed for fabricating permanent magnets. This joint venture leverages CAP's extensive expertise in metal refining and special ferro-alloyed steels. Beyond the Carina Project and the Penco Module, Aclara is committed to expanding its mineral resource portfolio by exploring greenfield opportunities and further developing projects within its existing concessions in Brazil, Chile, and Peru, aiming to increase future production of heavy rare earths.

Forward-Looking Statements

This news release contains "forward-looking information" within the meaning of applicable securities legislation, which reflects the Company's current expectations regarding future events, including statements with regard the anticipated benefits and outcomes of the collaboration between Aclara, Argonne National Laboratory and Virginia Tech; the anticipated terms, timing and amount of any funding award under the DOE's Genesis Mission initiative and whether Aclara's Phase I project will be selected to advance to Phase II; the development, capabilities, accuracy, and performance of the artificial intelligence-enabled digital twin; the effectiveness of advanced process control, simulation, optimization, and predictive modeling tools; the application of artificial intelligence and data-driven techniques to Aclara's separation process; the operation, timing, and results of pilot plant activities, including the expected inauguration of the Virginia Tech pilot facility; the transition from pilot-scale validation to industrial deployment; anticipated improvements in efficiency, recovery rates, resilience, and ramp-up timelines; and Aclara's strategy to develop and deploy a rare earth separation platform in the United States. Forward looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Company's control. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risk Factors" in the Company's annual information form dated as of March 18, 2026, filed on the Company's SEDAR+ profile. Actual results and timing could differ materially from those projected herein. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained in this news release is provided as of the date of this news release and the Company does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required under applicable securities laws.

For further information, please contact:
Ramón Barúa Costa
Chief Executive Officer
investorrelations@aclara-re.com

Media Contact:
Nancy Thompson
nancyt@vorticom.com

SOURCE: Aclara Resources Inc.

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