Canada Rare Earth Corp. (RAREF)

[AISI304]

CRE Corporate Update released on September 4, 2018

http://www.canadarareearth.com/article/corporate-update%C2%A0--august-31-2018-384.asp

Important achievements over the most recent two months include:

Strategic Relationship with Talaxis Limited

Our strategic and financing relationship with Talaxis Limited (“Talaxis”), a wholly owned subsidiary of the large Asian-based commodity trading company, Noble Group, continues to gain momentum on a number of fronts including:

building supply volumes from existing and prospective sources in Asia, Southeast Asia, North and South America, and Africa;leveraging the Noble Group’s global network of commodity providers; completing our first purchase from Talaxis
and simultaneously closing on the hedged sale to a major customer (scheduled for the week of September 3, 2018); and Talaxis acquiring an initial 3.4% equity position in the Company through the conversion of $300,000 of its debt into
shares and warrants.

Rare Earth Supply Chain

We currently have over 400 metric tons of inventory in our supply lines and a further 150 metric tons of raw materials about to enter the supply chain.

We recently completed the sale of a test order with a major North American based organization. We understand the results are favourable and are expected to lead to larger orders in the near future.

Rare Earth Production – Enhancement and Separation

We have two key initiatives underway for establishing proprietary enhancement and separation facilities:

Laos – we co-facilitated several tours by government officials and bureaucrats to a similar, existing refinery and continued to exert pressure on the approval process for the Laos refinery; and a new opportunity has been presented to us that
is similar to but larger than the Laos refinery and is scheduled for completion and commencement of operations in mid- 2019. We have commenced discussions. We are also in early stage discussions for two other proposed refinery projects.

Financing for Capital Projects and Working Capital

We continue to engage with and be pursued by prospective financiers in support of our capital projects and business initiatives. Financings would be completed at the project level.