Aclara Resources Inc. — Investor Presentation 2021

Nov 18, 2021

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Heavy Rare Earths, Finally Here

November 2021 All figures in C$, unless otherwise noted

A preliminary prospectus and an amended and restated preliminary prospectus containing important information relating to securities described in this presentation has been filed with the securities regulatory authorities in each of the provinces and territories of Canada (other than Québec). A copy of the amended and restated preliminary prospectus, and any amendment, is required to be delivered with this presentation. The amended and restated preliminary prospectus has not yet become final for the purposes of the sale of securities and is still subject to completion. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the amended and restated preliminary prospectus, the final prospectus and any amendment for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

This presentation is dated November 18, 2021.

Disclaimer

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Prospective investors should rely only on information contained in the amended and restated preliminary prospectus dated November 17, 2021 (the “prospectus”). This presentation is qualified in its entirety by reference to, and must be read in conjunction with, the information contained in the prospectus. Capitalized terms used herein that are not otherwise defined have the meanings ascribed to such terms in the prospectus. A prospective investor is not entitled to rely on parts of the information contained in this presentation to the exclusion of others. Aclara Resources Inc. (the “Company”, “Aclara”, “us” or “we”) and the Underwriters have not authorized anyone to provide prospective investors with additional or different information from the information contained in the prospectus. Prospective investors should not assume that the information contained in this presentation is accurate as of any date other than the date of the prospectus, or where information is stated to be as of a date other than the date of the prospectus, such other applicable date. An investment in the securities of the Company described herein is speculative and involves a high degree of risk.

No securities regulatory authority has expressed an opinion about the securities of the Company and it is an offence to claim otherwise. The prospectus constitutes a public offering of securities of the Company only in those jurisdictions where they may be lawfully offered for sale and therein only by persons permitted to sell such securities. The securities of the Company have not been, and will not be, registered under the United States Act of 1933, as amended (the “U.S. Securities Act”) or the securities laws of any state of the United States (as such term is defined in Regulation S under the U.S. Securities Act) and may not be offered, sold or delivered, directly or indirectly, in the United States, except pursuant to an exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

There is currently no market through which the Offered Shares may be sold and purchasers may not be able to resell the Offered Shares purchased under the prospectus. This may affect the pricing of the Offered Shares in the secondary market, the transparency and availability of trading prices, the liquidity of the Offered Shares, and the extent of issuer regulation. An investment in the Offered Shares is subject to a number of risks that should be considered by a prospective purchaser. Prospective purchasers should carefully consider the risk factors described under “Risk Factors” in the prospectus before purchasing the Offered Shares.

Forward-Looking Information

This presentation contains “forward-looking information” within the meaning of applicable securities legislation. Forward-looking information may relate to the Company’s future financial outlook and anticipated events or results and may include information regarding our business, financial position, business strategy, growth plans and strategies, budgets, operations, financial results, taxes, dividend policy, plans and objectives. Particularly, information regarding our expectations of future results, performance, achievements, prospects or opportunities or the markets in which the Company operates is forwardlooking information. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “targets”, “expects” or “does not expect”, “is expected”, “an opportunity exists”, “budget”, “scheduled”, “estimates”, “outlook”, “forecasts”, “projection”, “prospects”, “strategy”, “intends”, “anticipates”, “does not anticipate”, “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might”, “will”, “will be taken”, “occur” or “be achieved”. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management’s expectations, estimates and projections regarding future events or circumstances.

The forward-looking information, opinions and projects contained in this presentation have been prepared on the basis of the management’s opinions, estimates and assumptions in light of management’s experience and perception of historical trends, current conditions and expected future developments, as well as other factors that management currently believes are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Material factors underlying forward-looking information and management’s expectations include certain assumptions in respect of: the Company’s ability to build market share; the Company’s ability to retain key personnel; future prices of REE; favourability of operating conditions, including the ability to operate in a safe, efficient and effective manner; the receipt of governmental and other third party approvals, licences and permits on favourable terms; obtaining required renewals for existing approvals, licences and permits and obtaining all other required approvals, licences and permits on favourable terms; sustained labour stability; stability in financial and capital goods markets; availability of equipment and the condition of existing equipment being as described in the Technical Report (as defined below); the Company’s ability to continue investing in infrastructure to support its growth; the Company’s ability to obtain and maintain existing financing on acceptable terms; currency exchange and interest rates; the impact of competition; the changes and trends in the mining industry and the global economy; and changes in laws, rules, regulations, and global standards.

There are several factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are changes in global, political, economic, business, commodity, competitive, market and regulatory forces, future exchange and interest rates, changes in tax rates, technological developments, and future business combinations or dispositions. Prospective investors should carefully consider the risk factors described under “Risk Factors” in the prospectus.

Forward-looking statements speak only as of the date on which they are made. The recipient should not place undue reliance on forward-looking statements. Neither the Company nor its affiliates undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Past performance of the Company or its shares cannot be relied on as a guide to future performance. Nothing in this presentation is to be construed as a profit forecast.

Comparables

Certain information presented herein compares the Company to other issuers and such data sets are considered to be “comparables”. Comparable information about other issuers contained in this presentation was obtained from public sources and has not been independently verified by the Company. The comparables are considered to be an appropriate basis for comparison with the Company based on their industry, commodity mix, jurisdiction, size, operating scale and other additional criteria. The comparable issuers may face different risks from those applicable to the Company. Prospective investors are cautioned that there are risks inherent in making an investment decision based on the comparables and that the performance of the Company may be materially different from the comparable issuers. If the comparables contain a misrepresentation, investors do not have a remedy under securities legislation in any province of Canada. Prospective investors are cautioned to not put undue reliance on the comparables in making an investment decision.

Market and Industry Data

Market and industry data and forecasts contained in this presentation have been obtained from third-party sources, industry publications and reports, websites and other publicly available information. The Company believes that the market and economic data presented throughout this presentation is accurate but the Company cannot offer any assurance as to the accuracy or completeness thereof. The accuracy and completeness of the market and economic data presented throughout this presentation are not guaranteed and neither the Company nor any of the Underwriters makes any representation as to the accuracy of such data. Actual outcomes may vary materially from those forecast in such reports or publications, and the prospect for material variation can be expected to increase as the length of the forecast period increases. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this presentation, or analyzed or verified the underlying market, economic and other assumptions relied upon by such sources. Market and industry data are subject to variations and cannot be verified due to limits on the availability and reliability of data inputs, the voluntary nature of the data gathering process and other limitations and uncertainties inherent in any statistical survey.

Scientific and Technical Information

Scientific and technical information (including financial forecasts and valuation calculations) relating to the Penco Module contained in this presentation has been derived from, and in some instances extracted from a technical report prepared in accordance with National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) entitled “NI 43-101 Technical Report – Preliminary Economic Assessment for Penco Module Project” with an effective date of September 15, 2021 (“Technical Report” or “Aclara PEA”) prepared by Ausenco Engineering Chile Limitada and authored by Francisco Castillo, Alejandro Solar, Manuel Hernandez, Luis Oviedo, Scott Weston, Scott Elfen, and Gavin Beer, each of whom approved the scientific and technical information contained in this presentation that was derived from or extracted from the portion of the Technical Report that such person authored, and is a “qualified person” and “independent” within the meanings of NI 43-101.

Portions of the scientific and technical information relating to the Penco Module contained in this presentation are based on assumptions, qualifications and procedures which are not fully described herein but are set out in the Technical Report. Reference should be made to the full text of the Technical Report which has been filed with the Canadian securities regulatory authorities in each of the provinces and territories of Canada (other than Québec) pursuant to NI 43-101 and is available for review on the Company’s SEDAR profile at www.sedar.com. The mineral resource and mineral reserve estimates referred to in this presentation have been calculated using the Canadian Institute of Mining, Metallurgy and Petroleum “Standards on Mineral Resources and Reserves, Definitions and Guidelines” dated May 10, 2014 prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM.

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Aclara’s Management Team

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Ramon Barua (CEO and Director)

Rodrigo Ceballos (President & General Manager)

Francois Motte (CFO)

Barry Murphy (COO)

• 10+ years serving as CFO of Hochschild Mining

• Previously CEO of Fosfatos del Pacifico S.A., General Manager of Hochschild’s Mexican operations and Deputy CEO and CFO of Cementos Pacasmayo

• 20+ years of experience in molybdenum, rhenium and rare earths markets, in companies such as Molibdenos y Metales S.A (Molymet) and Mathiesen Corporation

• Was a member of the Minor Metals and Molybdenum Committees of the London Metals Exchange

• 10+ years of experience in various financial positions such as corporate finance, financial planning, management and control, business development and investor relations at Hochschild Mining

• 30+ years of experience in the mining sector

• Prior senior positions with Torex Gold Resources, Inc., Yamana Gold Inc. and Anglo American and has led technical services and project development teams in Chile, Peru, Argentina, Mexico and South Africa

Specialized Consultants

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Why Aclara?

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1 Heavy Rare Earths are Critical for the Electric Revolution 2 Ionic Clays Offer a Competitive Advantage Advantage

Ionic Clays Offer a Competitive Advantage Advantage 3 Exponential Demand and Limited Supply for Heavy Rare Earths 4 Scalable and Sustainable Heavy Rare Earths Project Simple Strategy: Prove Product, Optimize, Grow and Integrate

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Fully aligned with the urgent need to decarbonize the planet

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1 Heavy Rare Earths are Critical for the Electric Revolution

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Permanent Magnet Power

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Nd Pr Dy Tb
Neodymium Praseodymium Dysprosium Terbium
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Higher Temperature Magnets (up to 240⁰C) for EV’s, Wind Turbines & Other HighPerformance Applications[(1)]

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Low Temperature Magnets for Simple Applications

Rare Earths Oxide Prices US$/kg	Rare Earths Oxide Prices US$/kg	Rare Earths Oxide Prices US$/kg
Terbium	HREE	1,800
Lutetium	HREE	831
Dysprosium	HREE	472
Holmium	HREE	179
Praseodymium	LREE	129
Neodymium	LREE	128
Gadolinium	HREE	63
Erbium	HREE	51
Europium	HREE	33
Ytterbium	HREE	17
Yttrium	HREE	9
Samarium	LREE	2
Lanthanum	LREE	1
Cerium	LREE	1
Thulium	HREE	0

Source: Asian Metals Nov. 15, 2021

HREEs have high value and growth fundamentals to support a profitable business case

(1) Source: Adamas Intelligence

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1 Rare Earths Critical for Multiple High Value Products

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 Rare Earths are essential to obtain high-performance with the lowest amount of energy

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Primary Uses
EVs WIND TURBINES
 Increased range autonomy  More energy generated with
less wind
 Better use of space and  Lower maintenance cost
lower weight
 Lower battery costs: Reduces
lithium, cobalt & nickel
content
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• Other Uses

• AEROSPACE ROBOTICS DRONES

• MEDICAL EQUIPMENT AIR CONDITIONERS

•  Viability of new technology Increased mechanical response

• Reduced energy input  Smaller size

Permanent Magnet Rotor

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NdFeB magnet
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The electric revolution requires efficiency in order to reduce energy consumption

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2 Ionic Clays Offer a Competitive Advantage

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China currently dominates the global supply of Light and Heavy Rare Earth Elements

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China LREE Production [(1)]
ROW
70% of
Global
NdPr
Supply
China
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China HREE Production [(1)]
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ROW
90% of
Global
DyTb
Supply
China
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The ionic clay advantage:

In 2012, 91% of REE production was sourced from China[(2)]

 Low cost and capex due to very simple metallurgy  High value from HREE content  Negligible radioactivity

China’s HREE dominance stems from its ionic clay deposits

Source: Ministry of Land Resources (MLR) of China (1) As of 2020; Includes Myanmar (2) Per United States Geological Survey

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2 Ionic Clays are Extremely Rare Outside of China

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Hard Rock Operations & Projects

Ionic Clay Projects

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LREEs Primary REOs: Nd Pr Average Basket Price: Radioactivity: Commercial Discounts:

HREEs Primary REOs: Dy Average Basket Price: Radioactivity: Commercial Discounts:

Ionic clays are the best alternative to compete with China in the HREE market

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3

Exponential Demand Expected from Electric Vehicles

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Forecasted Demand for EVs (mm units)

Committed to the Electric Revolution**

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50
1.4m EV targeted production capacity by 2022
8
40 Targets ~50% battery-electric vehicles by 2030
11 In the US, targets 70% sales from EVs by 2030
31% CAGR
(2020 – 2030)
30 Aims to become all-electric by 2030
Targets 40% global sales from EVs by 2030
20 In North America, targets 40% sales from EVs by
2
2030, 80% by 2035 and ICE [(4)] eliminated by 2040
6 30 Targets 20% sales from battery/plug-in hybrids by
2023
10
Targets 100% sales from EVs by 2030
12
0.2
Targets 100% EVs by 2030
1
- 2 2035 Goal: Sell exclusively eco-friendly
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 focused new-energy and hybrid vehicles
(1) (2) (3) 2035 Goal: Prohibit the sale of non-electric
Passenger BEV Passenger PHEV Commercial EV
vehicles
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Exponential annual growth in EV sales to drive strong demand for REEs

Source: () International Energy Agency Sustainable Development Scenario, (*) Press releases (1) Battery Electric Vehicles, (2) Plug-in hybrid electric vehicle, (3) Heavy, medium and light EVs (Trucks, buses, vans) (4) Internal Combustion Engines

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3 Strong Expected Demand from Wind Power Growth

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Demand for REEs is further corroborated by the global transition of power grids to green energy

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50
2050
Historical Projections
Peak additions of 45 GW / yr
Early 2030’s
Replacements of end of life time
40 existing capacities to begin
2030
Additions of 28
30
GW / yr
20
10
2018
Almost 4.5 GW / yr added
2001
Almost 0.07 GW / yr added
0
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Annual deployments (GW/YR)
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12% CAGR in offshore wind capacity additions from 2020 through 2030

Source: IRENA: Future of Wind (2019)

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3 Limited Global Supply

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China has been depleting its REE resources since the 1970’s

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4,000
3,500
Environmental restrictions to control illegal mining (from 40% to 15%) – Argus Media
3,000
2,500
2,000
1,500
1,000
500
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
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Global 2020 DyTb Production* (t)

• ChinaChina – 1,353 China UnlicensedChina Unlicensed – 623 ** MyanmarMyanmar – 1,144 OtherOther – 282

	China China Unlicensed Myanmar Other China – 1,353 China Unlicensed – 623 Myanmar – 1,144 Other – 282 **	China China Unlicensed Myanmar Other China – 1,353 China Unlicensed – 623 Myanmar – 1,144 Other – 282 **	China China Unlicensed Myanmar Other China – 1,353 China Unlicensed – 623 Myanmar – 1,144 Other – 282 **	China China Unlicensed Myanmar Other China – 1,353 China Unlicensed – 623 Myanmar – 1,144 Other – 282 **	China China Unlicensed Myanmar Other China – 1,353 China Unlicensed – 623 Myanmar – 1,144 Other – 282 **
China’s REE Quotas(1)	Chi’ REE t(1)
Production Quotas		LREE (Tonnes)		HREE (Tonnes)	Total (Tonnes)
2013		75,950		17,850	93,800
2014		87,150		17,850	105,000
2015		87,150		17,850	105,000
2016			87,150	17,850	105,000
2017			87,150	17,850	105,000
2018		1	00,850	19,150	120,000
2019		1	12,850	19,150	132,000
2020		1	20,850	19,150	140,000
2021		1	48,850	19,150	168,000
CAGR			8.8%	0.9%	7.6%

Higher production costs expected in China attributable to environmental regulatory improvements

Source: () REO production based on USGS and DyTb distribution based on papers and press releases: DyTb Production is estimated and does not correspond to official numbers, (*) Argus Media: % of unlicensed production (1) Ministry of Land and Resources and Ministry of Industry and Information Technology

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3 Recent Demand Shift Driving Material Price Increases
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Start of the electric revolution
$2,000
$1,750
$1,500
$1,250
$1,000
$750
Market was oversupplied by China whilst demand was still low
$500
$250
Current Prices (US$ / kg)
$0 Terbium - $1,800 ` (+482%)
2016 2017 2018 2019 2020 2021
Dysprosium - $472 (+232%)
Secular demand supports long-term price increases
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Source: Asian Metals

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3 Global Awareness of Supply Imbalance

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US Department of Energy Classification

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Dysprosium
Neodymium
4
(high)
Lithium
Tellurium Europium Terbium
Yttrium
3
Cerium Lanthanum
Nickel
Cobalt Manganese
2 Gallium Praseodymium
Indium
Samarium
1
(low)
1 (low) 2 3 4 (high)
Supply risk
Critical Near-Critical Not Critical
Importance to clean energy
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Company	Project	Country	Major Shareholder	Chinese Capital(1)	Offtake
MP Materials	Mountain Pass	USA
Serra Verde	Serra Verde	Brazil		n/a
Northern Minerals	Browns Range	Australia				(2)
Greenland Minerals	Kvanefjeld	Greenland
Arafura Resources	Nolans	Australia		-
Hastings Technology	Yangibana	Australia		-		(2)
Ionic Rare Earths	Makuutu	Uganda	-	-

US, EU and Russia have identified REEs as critical minerals where diversified supply is required

(2) Thyssen Krupp trading service; product ends in China for separation

Source: US Department of Energy and company disclosure (1) Based on Marketscreener companies shareholding overview

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4 Compelling Deposit Characteristics

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Scalable Development Plan Simple extraction and metallurgy
Penco < 0.1% of Land Package Sustainable and environmentally friendly
High Quality Prime Location
Resource Close proximity to mission-
Peer Leading Basket Price critical infrastructure
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4

Peer Leading Basket Price Driven by HREE-Rich Concentrate

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Basket Price US$/kg REO (Prices - Asian Metals Nov. 15, 2021)

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HREE Projects LREE Projects & Operations
$91
$76
$75
Only 2 in Production
$66
$61
$43
$39 $38
$35
$30
$24
Browns Range Makuutu Penco Serra Verde Yangibana Nechalacho Nolans Bore Longonjo Mt Weld Ngualla Mountain Pass
Offtake:
(Size) (Full) (Full) (Full) (Partial) (Partial) (Full)
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Peer leading basket price amongst global REE projects outside China

Source: Northern Minerals 2015 Browns Range DFS, Arafura Resources company announcement March 16[th] 2020, Hastings Tech. Metals investor presentation February 2021, Australian Strategic Materials Dubbo media release June 4[th] 2018, Pensana Rare Earths company report April 21[st] 2021, Peak Resources 2017 FS, Texas Mineral Resources 2019 PEA, Ionic Rare Earths Scoping Study April 29[th] 2021, Serra Verde Proposed Senior Secured Bond Issue 2021 15

4

Large Land Package to Support Scalable Development Plan

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– In accordance with Section 13.7(4) of National Instrument 41-101 General Prospectus Requirements, all of the information relating to the Company’s comparables and any disclosure relating to the comparables, which is contained in the presentation to be provided to potential investors, has been removed from this template version for purposes of its filing on the System for Electronic Document Analysis and Retrieval (SEDAR).

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4 Sustainable and Environmentally Friendly Process
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No Use of Explosives: Simple extraction method requires only
loading and hauling
No Crushing: Minerals are easily liberated with minimal
energy requirements
No Milling: Dramatically reduces emissions
No Tailings Dam: Washed clays disposed of
locally and revegetated with native trees
Water Recycling: Minimal water consumption due to a
high level of water recirculation
Negligible Radioactivity: Negligible radioactivity in end product
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Commitment to environmental stewardship by re-vegetating reclaimed lands with native plant species

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4 Sustainable and Environmentally Friendly Process (Cont’d)

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Aclara's Operations

China's Unlicensed Mining

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Aclara adheres to top mining standards with a strong focus on minimizing its environmental footprint

Source: Aclara Management

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4 Extensive Infrastructure in Place to Support Operations

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Tomé
< 6 km from the Port
< 8 km from the Airport
Talcahuano
Penco < 15 km from Concepción City
Santiago
< 2 km from fresh water
Hualpén
< 1 km from energy infrastructure
CONCEPCIÓN
Concepción
Next to 1st class motorways
Chiguayante
Top professional workforce
Hualqui
Chile Credit Rating: A- / A1 / A [(1)]
Chile is a world-class mining jurisdiction with an investment grade rating
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(1) S&P, Fitch, and Moody’s credit ratings

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5 Simple Strategy: Prove Product, Optimize, Grow and Integrate
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Staged approach allowing for project de-risking and growth

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I Minimum Viable Product Produce
II Optimization Improve
III Organic Growth Expand
IV Vertical Integration Value Added
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5 I

Produce

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Module 1: Penco

Mine Life

REE Product

Mixed HREE-rich 12 years With potential for Carbonates extensions

Initial Capex

Unoptimized NPV5% Avg. Annual EBITDA US$178M US$47M US$129M[(1)] (23% IRR)[(2)] ~67% annual EBITDA Low project capital Upside from optimizations margin

Project Timeline

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2021 2022 2023 2024+
Milestone H2 H1 H2 H1 H2 H1 H2
Module 1: Penco
Permitting: Environmental & Other
Optimization & Feasibility Study
Plant Construction
Operation
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Strong un-optimized project NPV with low capital requirement

Source: Financial numbers from Aclara PEA

(1) Includes US$10M site costs; capital expenditures to be incurred between 2023-2026 (2) Shown on an after-tax basis

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I

5

Produce

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REE prices have increased much faster than predicted by 3[rd] party forecasts

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Module One: Basket Price Forecast (US$/kg) Module one:
Un-optimized After-Tax Project
$225 NPV @ 5% (US$M) $354
$200
$178
$175
$87
$150
Assumes 10 new REE projects come
$125
onstream plus 7% production CAGR Low Base High
from China & Myanmar
$100 Module one:
Current
Basket Price Avg. Annual EBITDA (US$M)
$75
$79
+66%
$50
$47
Basket Price at
$25
December 31, 2020
$30
--
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Base Case Low High Historical
Source: Aclara PEA Low Base High
USD/Kg REO Eq
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Aclara offers compelling leverage to rising HREE prices

Source: Dy price forecast from CRU, La, Ce, Pr, Nd, Sm, Eu, Gd, Tb, Y price forecast from Argus Media. Prices projected to remain constant post 2030 Note: Historical basket price assumes LOM average basket composition

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5 II Improve
Geology Engineering
 
Brownfield exploration continues Evaluate alternatives to reduce transportation costs
 
Pit subject to modification as prices improve Recycle water from industrial sources
Metallurgy Other Upside

Current model applies single formula to all pits 
Clays can be used as addition to cement

Short term: Pilot testing expected to improve recoveries 
Superficial land close to urban areas expected to
 increase value
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• Medium term: Experiment other reagents and conditions

Lessons From Penco module expected to improve future module economics

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III

5

Expand

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Verónica Exploration Project

Catalina Exploration Project

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Priority Target Areas
Surface sampling identified REE-
bearing ionic clays
1
2
3
Penco
600Ha
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1
2
Penco
600Ha
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Prospective Ionic clays areas: ~12,100 Ha

Prospective Ionic clays areas: ~3,800 Ha

Potential for additional deposits identified at several high-priority target areas

24

5

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IV
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Value Added

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Separation Alternatives

Multiple OEMs Targeted For Long-term Traceable HREE Supply

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China Existing Plants
 Current overcapacity  : Sillmet, Estonia
 Most competitive separators in
terms of cost  : India
New Plants Build & Operate
 : expected in 2023  Technology available
  Under evaluation
 Other alternatives including solvent
extraction and new technologies
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Aiming to supply clients who value a geopolitically independent, high quality and sustainable product

25

Strong and Experienced Board of Directors

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Eduardo Hochschild

Paul Adams

Karen Poniachik

Ignacio Bustamante

Sanjay Sarma

Catharine Farrow

Ramon Barua

Chairman

Director

Director

Director

Director

Director

CEO & Director

• 30+ years of experience in the extractive industries sector

• 30+ years of experience in aerospace engineering and engine

• Current Chairman of Hochschild Mining, manufacturing, Cementos including COO and Pacasmayo and President of Pratt & Non-Executive Whitney and COO at Chairman at nonPrecision Castparts profit educational  Non-executive organizations UTEC director of Rolls and TECSUP

• Non-executive director of Rolls Royce and a board member of Oerlikon Corporation, Pfaffikon and Aerion Corp.

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• Current CEO of Hochschild Mining and previously CFO of Cementos Pacasmayo

• Served as Chile’s Current CEO of  Professor of  Registered  10+ years serving as Minister of Mining Hochschild Mining Mechanical Professional CFO of Hochschild and previous Chair and previously CFO Engineering at Geoscientist (PGO) Mining of Codelco, Enap of Cementos Massachusetts with 25+ years of  Previously CEO of and Enami Pacasmayo Institute of mining industry Fosfatos del Pacifico

• Member of the board  Non-Executive Technology (MIT) experience S.A., General of directors of Director of Profuturo and VP for Open  Former Founding Manager of Jetsmart Airlines, AFP (Peru-based Learning at MIT CEO, Director and Hochschild’s Interchile ISA and pension fund) and  Current board Co-Founder of Mexican operations Lundin Mining Scotiabank Peru member of Top TMAC Resources and Deputy CEO S.A.A. Flight Technologies, and is currently a and CFO of G1S US, and edX; Director of FrancoCementos former director of Nevada, Centamin Pacasmayo Hochschild Mining and Eldorado Gold

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26

Investment Summary

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 Heavy Rare Earths are Crucial for the Electric Revolution
 Ionic Clays Offer a Competitive Advantage
 Exponential Demand and Limited Supply for Heavy Rare Earths
 Scalable and Sustainable Heavy Rare Earths Project
 Simple Strategy: Prove Product, Optimize, Grow and Integrate
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27

Summary of IPO Terms

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Issuer:	Aclara Resources Inc. (“Aclara” or the “Company”)
Offering:  32.2 million Common Shares, based on the midpoint of the estimated price range (37.0 million Offered Shares if the Over-Allotment Option is exercised in full)
Offering Price:  $1.70 - $2.00 per Common Share
Offering Size:  $59.5 million ($68.4 million if Over-Allotment Option is exercised in full)
Over-Allotment Option:  Up to 15% of the aggregate number of Common Shares sold in the Offering  Exercisable in whole or in part, at any time for a period of 30 days after the Closing Date
Use of Proceeds:  Advance the exploration and development of the Penco Module  Exploration of potential new modules  Working capital and general corporate purposes
Concurrent Private Placement:  Each of the Principal Shareholders (approximately in proportion to their respective existing ownership in the Company) and certain individuals, including directors, officers, employees and other purchasers, have severally agreed to purchase from the Company an aggregate of 35.5 million Common Shares at the Offering Price, for aggregate gross proceeds to the Company of $65.7 million  If the Over-Allotment Option is exercised, each of the Principal Shareholders will have the right, but not the obligation, to subscribe for an additional 5.0 million Common Shares in the aggregate (based on the midpoint of the estimated price range)  Closing of the Concurrent Private Placement is scheduled to occur concurrently with the Closing, and the closing of the Concurrent Private Placement to the Principal Shareholders and the Closing are conditional on each other. The Placement Common Shares will be subject to a statutory hold period
Principal Shareholders:  Upon completion of the Demerger Transactions, the Concurrent Private Placement and the Offering, assuming no exercise of the Over-Allotment Option, Hochschild Mining PLC and Pelham Investment Corporation, the Principal Shareholders, will, directly or indirectly, own or control approximately 20.0% and 30.7%, respectively, of the issued and outstanding Common Shares, and collectively own or control approximately 50.7% of the issued and outstanding Common Shares based on the midpoint of the estimated price range (approximately 19.4% and 29.7%, respectively, and collectively 49.1% if the Over- Allotment Option is exercised in full and approximately 20.0% and 30.7%, respectively, and collectively 50.7% if the Over-Allotment Option and the Private Placement Option are exercised in full)
Lock-up Arrangements:  Each of the directors, officers, alongside the Principal Shareholders, agree not to sell any Common Shares held by them on Closing and closing of the Concurrent Private Placement, for a period of 180 days months after the Closing Date in the case of directors and officers and 12 months after the Closing Date in the case of the Principal Shareholders
Listing Exchange:  TSX, subject to listing approval(1)
Joint Bookrunners:  RBC Capital Markets and Canaccord Genuity (together with a syndicate of underwriters)
Pricing Date:  Week of November 29th

(1) Aclara has applied to list the Offered Shares on the TSX. Listing is subject to the approval of the TSX in accordance with its original listing requirements. The TSX has not conditionally approved the listing application and there is no assurance that it will do so.

28

Initial Public Offering and Anticipated Use of Proceeds

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Sources (C$M) Uses (C$M)

• $125M gross proceeds from offering and concurrent private placement  Prior to 15% over-allotment option

• Following completion of the IPO, the Company is well-funded to cover:

• Activities in connection with the Penco Module:  Feasibility study  Brownfield exploration  Permitting activities  Surface land purchase  Construction capital expenditures

• Exploration, permitting processes and engineering activities in connection with potential new modules

• Working capital and general corporate purposes  Fees and expenses in connection with the IPO and Private Placement

$125	$125
	4 3 ~~1~~	Surface land purchase Permitting activities Brownfield exploration
	10	IPO related fees and expenses
	12	Exploration, permitting and engineering
	15	Working capital and general corporate
		purposes
	17	Feasibility study
125
	64	Construction capital expenditures

29

Note: figures prior to exercise of over-allotment option

Capital Structure and Ownership

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Capitalization Summary

Post-IPO Share Ownership[(1)(4)]

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(1)
Capital Structure Pre-Money Post-Money
Shares Outstanding (M) 88.3 161.9 - 150.8
- -
Options (M)
RSUs (M) 4.9 - 4.5 4.9 - 4.5
Fully Diluted Share Capital (M) 93.1 - 92.8 166.8 - 155.4
Share Price (C$) $1.70 - $2.00 $1.70 - $2.00
Fully Diluted Equity Value (C$M)(2) $158 - $186 $283 - $311
Fully Diluted Equity Value (US$M)(2) US$126 - US$148 US$226 - US$248
Cash (C$M / US$M)(3) $1.9 / US$1.5 $117.5 / US$93.8
Debt (C$M / US$M)(3) Nil Nil
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IPO Offered Hochschild
Shares Mining plc
20.6% 20.0%
Hochschild Eduardo
Shareholders (excl. Hochschild
Eduardo Hochschild) 30.7%
27.9%
Aclara Friends & Family
0.8%
 Hochschild Mining plc (“Hochschild”) expected to spin-out 80% of
the Aclara to existing Hochschild shareholders
 Hochschild and Eduardo Hochschild to maintain their respective pro
rata interests in Aclara by participating in private placements
concurrent to the IPO
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• Eduardo Hochschild’s participation is capped due to UK related-party rules

• Hochschild and Eduardo Hochschild have agreed to a 1-year lockup, demonstrating commitment to Aclara

(1) Prior to exercise of the over-allotment option, (2) Equity value shown at the low and high ends of the IPO marketing range of $1.70 and $2.00, respectively, (3) Adjusted figures as at September 30, 2021 and net of fees, (4) Assumes mid-point of offering range

Note: USD:CAD exchange rate of 1.2517 as of November 15, 2021. Figures may not add-up due to rounding.

30

A Scalable Company at the Centre of the Electric Revolution Appendix

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Valuation Benchmarking

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EV / 2022E EBITDA (Run-Rate for Aclara’s Module 1)

– In accordance with Section 13.7(4) of National Instrument 41-101 General Prospectus Requirements, all of the information relating to the Company’s comparables and any disclosure relating to the comparables, which is contained in the presentation to be provided to potential investors, has been removed from this template version for purposes of its filing on the System for Electronic Document Analysis and Retrieval (SEDAR).

32

I

Produce

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Annual EBITDA (US$m) and EBITDA Margin (%)

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US$539m
Cumulative LOM EBITDA 90%
77% 75% 80%
73%
69% 69%
65% $80 65% 70%
61%
59%
$71 56% 60%
52% $65
44% $56 $56 50%
40%
$45
$42
$36
30%
$33
$26
20%
$15 $15
10%
0%
2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
EBITDA (US$m) EBITDA Margin (%)
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Attractive EBITDA and EBITDA margin at base case prices

Source: Aclara PEA at Base Case prices

33

I

Produce

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Simple process flowsheet results in 92.6% purity REE carbonate

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Source: Aclara PEA

34

While Supply is Limited …

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– In accordance with Section 13.7(4) of National Instrument 41-101 General Prospectus Requirements, all of the information relating to the Company’s comparables and any disclosure relating to the comparables, which is contained in the presentation to be provided to potential investors, has been removed from this template version for purposes of its filing on the System for Electronic Document Analysis and Retrieval (SEDAR).

35

Dysprosium: Forecasted Demand vs. Supply

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7,000
Certain applications not considered in demand
forecast due to early stage of adoption :
6,000 e-bikes, e-planes, e-trains, e-ships, defense and
commercial drones
5,000
912
866
845
880
4,000 281
281
660 284 284
445
377 284
3,000 205 284 1,594 1,594
27 121 354 1,594 1,594
146 184 184 1,275 1,275 1,275
2,000 956
956
956
1,000 1,223 1,335 1,451 1,567 1,684 1,800 1,916 2,033 2,149 2,265
0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Demand not considered in price forecast Demand China Myanmar Other * New Projects
Tonnes
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Big Assumptions: (a) Current operations Lynas/MP expand; (b) Top 11 projects start production in next 6 yrs[(1)] ; (c) ≈7% CAGR from China & Myanmar production

Large and increasing supply deficits forecasted over the medium and long-term

Source: CRU

(1) Top 11 projects are Vital Metals (Nechalacho), Hastings (Yangibana), Arafura (Nolans Bore), Penana (Longonjo), Australian Stratigic (Dubbo), Peak (Ngualla), Northern Minerals (Browns Range), Aclara (Penco), Serra Verde (Serra Verde), Ionic (Makuutu), and Energy Fuels

36

Scalable and Sustainable Heavy Rare Earths Project

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Basket composition weighted heavily to high value heavy rare earths (Dy+Tb) and we believe our HREE-rich concentrate will be attractive to many potential buyers

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Product Distribution – REO (%) Basket Value Composition (%) [(1)]
Ytterbium 3.1%
100%
Erbium 4.0% Thulium Lutacio 0.5%
0.5% Other
Holmium 1.3%
17%
Dysprosium 5.5% Purity = 92.6%
Lu 3%
80%
Terbium 0.7% Pr 4%
Gadolinium 3.1%
Nd 22%
Europium 0.2%
Samarium 2.6% 60%
Yttrium 47.4%
Tb 22% 80% Magnetic
40%
Elements
Neodymium 12.5%
20%
Praseodymium 2.9%
Dy 32%
Lanthanum
Cerium 4.0%
11.6%
0%
1
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Basket composition offers a premium solution to demanding clients

Source: Aclara PEA

(1) Estimate of revenue share (%) per element from the Penco Module, calculated by multiplying estimated concentrate production in the PEA Report by long-term REE price estimates prepared for the Company by Argus and Adamas

37

Mineral Resources

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Resource Statement	Unit	Penco (Module 1)	Victoria South	Victoria North	Maite	Luna	Alexandra
Measured & Indicated Resources	t	20,681,044	2,060,034	6,001,802	7,195,658	1,813,114	3,610,437
Grades (REO)	ppm	2,426	2,016	2,820	2,422	1,539	2,459
Contained TREO(1)	t	50,178	4,154	16,924	17,431	2,791	8,878
Inferred Resources	t	2,083,200	369,265	177,568	475,684	311,517	749,167
Grades (REO)	ppm	2,299	2,397	2,803	2,482	1,321	2,420

Source: Aclara PEA Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability. See “Disclaimer” above. (1) Total Rare Earths Oxides (TREO) include: La2O3, Ce2O3, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3

38

Mineral Resources (Cont’d)

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Site	Category	Tonnage (t)	Grade (REO)	Y2O3 La2O3 Ce2O3 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3	(1) TREO Content (t)(1)
			ppm	ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Penco Module	Measured Indicated	15,357,416 5,323,628	2,467 2,309	456 406 816 91 380 62 3 60 11 72 15 44 6 40 6 443 371 749 88 350 58 3 57 10 70 15 43 6 39 6	37,887 12,292
	M&I	20,681,044	2,426	452 397 798 90 372 61 3 59 10 71 15 44 6 40 6	50,178
	Inferred	2,083,200	2,299	447 367 740 89 346 58 3 57 10 70 15 44 6 40 6	4,788
Sector	Category	Tonnage (t)	Grade (REO)	Y2O3 La2O3 Ce2O3 Pr6O11 Nd2O3 Sm2O3 Eu2O3 Gd2O3 Tb4O7 Dy2O3 Ho2O3 Er2O3 Tm2O3 Yb2O3 Lu2O3	(1) TREO Content (t)(1)
			ppm	ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm ppm
Victoria North	Measured Indicated	5,210,244 791,558	2,837 2,706	487 493 973 91 448 71 3 66 11 74 16 47 7 43 6 427 475 963 91 434 69 3 62 10 67 14 42 6 38 5	14,782 2,142
	M&I	6,001,802	2,820	479 491 971 91 446 71 3 65 11 73 16 47 7 43 6	16,924
	Inferred	177,568	2,803	436 481 1,014 99 449 70 3 62 10 69 15 43 6 40 6	498
Victoria South	Measured Indicated	1,496,982 563,052	1,943 2,211	354 313 641 72 303 54 3 53 9 61 12 32 5 28 4 401 361 733 82 342 58 3 57 10 66 13 39 6 35 5	2,909 1,245
	M&I	2,060,034	2,016	367 326 666 74 313 55 3 54 10 62 12 34 5 30 4	4,154
	Inferred	369,265	2,397	442 389 798 90 364 60 3 60 11 71 15 43 6 39 6	885
Luna	Measured Indicated	1,104,992 708,122	1,617 1,418	482 202 390 51 200 35 3 48 10 75 16 48 7 43 6 440 175 325 45 175 31 3 43 9 65 15 43 6 38 5	1,787 1,004
	M&I	1,813,113	1,539	466 192 364 49 190 34 3 46 9 71 16 46 6 41 6	2,791
	Inferred	311,517	1,321	389 171 320 43 164 29 4 39 8 59 13 38 5 34 5	411
Alexandra	Measured Indicated	2,160,105 1,450,332	2,473 2,439	500 387 775 98 369 62 3 62 11 78 17 50 7 45 7 500 379 761 96 361 62 3 62 11 78 17 49 7 45 6	5,341 3,537
	M&I	3,610,437	2,459	500 384 769 97 366 62 3 62 11 78 17 50 7 45 6	8,878
	Inferred	749,167	2,420	484 384 755 98 364 62 3 62 11 76 17 48 7 43 6	1,813
Maite	Measured Indicated	5,385,093 1,810,565	2,427 2,410	430 396 816 100 377 62 3 58 10 69 14 42 6 38 5 420 398 817 100 375 61 3 57 10 67 14 41 6 37 5	13,067 4,364
	M&I	7,195,658	2,422	427 396 816 100 376 62 3 58 10 69 14 42 6 38 5	17,431
	Inferred	475,684	2,482	436 408 841 103 385 63 3 59 10 69 14 42 6 38 5	1,181

Source: Aclara PEA

39

Note: Mineral resources are not mineral reserves and do not have demonstrated economic viability. See “Disclaimer” above. (1) Total Rare Earths Oxides (TREO) include: La2O3, Ce2O3, Pr6O11, Nd2O3, Sm2O3, Eu2O3, Gd2O3, Tb4O7, Dy2O3, Ho2O3, Er2O3, Tm2O3, Yb2O3, Lu2O3, Y2O3