Canada Rare Earth Announces Rare Earth Supply Agreement

Rhea-AI Summary

Canada Rare Earth Corp. (TSXV: LL) has announced a new supply agreement with Simba Essential Minerals, a wholly owned subsidiary, and SAKIMA SA, a Congolese state-owned mining company. This agreement enhances the company's supply chain by securing a reliable source of rare earths and other essential minerals from the Democratic Republic of Congo (DRC). The deal builds on the company's earlier announcement on February 26, 2024, regarding its proprietary rare earth supply chain in the DRC. Steve Sadiki, CEO of Simba, highlighted the high mineral grades and anticipated robust margins. Peter Shearing, CEO of Canada Rare Earth, emphasized the strengthened competitive position and future growth potential.

Positive

• Signed a new supply agreement with Simba Essential Minerals and SAKIMA SA.
• Enhances supply chain with reliable sources from the DRC.
• Builds on the February 26, 2024, announcement of a proprietary rare earth supply chain.
• High mineral grades expected to yield robust margins.
• Strengthens competitive position in the global essential minerals market.

Negative

• Potential geopolitical risks associated with sourcing minerals from the Democratic Republic of Congo.
• Dependency on a single region (DRC) for essential mineral supplies may pose future supply chain risks.

Vancouver, British Columbia--(Newsfile Corp. - June 7, 2024) - Canada Rare Earth Corp. (TSXV: LL) ("Canada Rare Earth" or the "Company") is pleased to announce the signing of a supply agreement between Simba Essential Minerals S.A.S ("Simba"), which will be a wholly owned subsidiary of Canada Rare Earth and SAKIMA SA, a Congolese state-owned mining company. This agreement will enhance Canada Rare Earth's supply chain of rare earths and other essential minerals sourced in the Democratic Republic of Congo ("DRC") and will go a long way towards enabling the Company to increase its supply volumes.

This supply agreement builds on the Company's press release of February 26, 2024, which first announced the establishment of its proprietary rare earth supply chain in the DRC.

Steve Sadiki, CEO and President of Simba Essential Minerals, stated: "This supply agreement with SAKIMA is another major milestone in the expansion of the Company's rare earths supply chain in DRC. We continue to be dedicated to extracting these resources responsibly, bringing benefits not only to our shareholders but also to the local communities that are integral to our operation. The concession which the supply agreement provides access to are known to have very high mineral grades and we look forward to the resulting robust margins on our sales."

"We are excited about this agreement, marking a step for the Company in our growth and expansion in the global essential minerals market." said Peter Shearing, CEO of Canada Rare Earth, "By securing a reliable supply of high-quality rare earth minerals from the DRC, we strengthen our supply chain and competitive position, positioning the Company for future success."

About SAKIMA SA:

SAKIMA SA, a state-owned mining entity in the DRC, holds extensive mining rights and operates significant production infrastructure across several provinces. The company is dedicated to responsible mining practices and contributing to the economic development of the region.

About SIMBA ESSENTIAL MINERALS S.A.S.:

SIMBA ESSENTIAL MINERALS S.A.S. is a Congolese company specializing in the procurement and export of essential minerals. With a focus on sustainability and ethical sourcing, Simba is committed to supporting the DRC's mining industry and global supply chains.

About Canada Rare Earth Corp.

Canada Rare Earth operates a rapidly expanding global essential minerals business, built on over a decade of success in the rare earth minerals and products sector. Our strategy focuses on leveraging near-term positive cash flow opportunities to support our growth. This includes acquiring and developing proprietary projects, resources, and processing facilities.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the 'safe harbour' provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.

For more information, interested parties can review the Company's filings available at www.sedarplus.ca.

FOR FURTHER INFORMATION, PLEASE CONTACT:

Peter Shearing
Chief Executive Officer
pshearing@canadarareearth.com

Janet Meiklejohn
Chief Financial Officer
jmeikjlejohn@canadarareearth.com

Telephone: (604) 638-8886
Website: www.canadarareearth.com

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212047

FAQ

What is the new supply agreement announced by Canada Rare Earth?

Canada Rare Earth announced a new supply agreement with Simba Essential Minerals and SAKIMA SA to enhance its rare earth supply chain from the Democratic Republic of Congo.

What is the significance of the supply agreement for Canada Rare Earth?

The supply agreement strengthens Canada Rare Earth's supply chain, secures reliable high-quality minerals from the DRC, and improves its competitive position.

When was the new supply agreement announced?

The new supply agreement was announced on June 7, 2024.

What impact does this supply agreement have on Canada Rare Earth's business?

The agreement is expected to improve supply chain reliability, yield higher margins due to high mineral grades, and bolster the company's competitive position and growth prospects.

What are the potential risks associated with the new supply agreement?

Potential risks include geopolitical instability in the Democratic Republic of Congo and dependency on a single region for essential mineral supplies.