Ucore Rare Metals Inc (UURAF)

[Middleborder]

Ucore Provides Update on Agreement Between Innovation Metals Corp. and Hexagon

https://www.newsfilecorp.com/release/65399

Halifax, Nova Scotia--(Newsfile Corp. - October 7, 2020) - Ucore Rare Metals Inc. (TSXV: UCU) (OTCQX: UURAF) ("Ucore" or the "Company") today announces that the Investment Agreement announced on October 10, 2019 between Ucore's wholly owned subsidiary, Innovation Metals Corp. ('IMC"), and Hexagon Energy Materials Limited ("Hexagon") has been terminated.

The Investment Agreement provided Hexagon with a 12-month option ("Option") to acquire 49% of American Innovation Metals LLC, a prospective joint-venture company that on exercise of the Option, would have had the exclusive rights to commercialize IMC's RapidSX™ technology for rare-earth elements ("REEs") separation. The Investment Agreement required Hexagon to make an initial payment to IMC of US$2 million ("Initial Funds") on or before October 10, 2020, plus an additional US$4 million in deferred consideration. As Hexagon was not able to secure an investor to provide the Initial Funds to enable Hexagon to exercise the Option, Hexagon provided notice to IMC that it had withdrawn from the Investment Agreement on October 6, 2020.

In recent months, as travel restrictions hampered travel to and from Australia, the uncertainty regarding Hexagon's ability to exercise the option, per the terms of the Investment Agreement, became challenging for IMC and, ultimately, Ucore. With the Investment Agreement now terminated, IMC can proceed with the commercialization of RapidSX and both IMC and Ucore can now advance with various end-user candidates and counterparties with clarity, conviction and certainty.

IMC's proprietary RapidSX technology is in the process of being developed for commercialization for the cost-effective bulk separation and purification of REEs - including both heavy REE ("HREEs") and light REEs ("LREEs") - for the production of REE oxides ("REOs"), in addition to other critical metals, such as lithium ("Li"), nickel ("Ni"), and cobalt ("Co") for lithium-ion ("Li-ion") battery materials.

A copy of the Investment Agreement between IMC and Hexagon was filed on SEDAR by Ucore on June 9, 2020. Ucore wishes Hexagon well with its future endeavors.