Canada Rare Earth Corp. — Capital/Financing Update 2021

Dec 11, 2021

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HEAD OFFICE Suite 2110 - 650 West Georgia St. Vancouver, BC V6B 4N8 Tel +1 604 638 8886 www.canadarareearth.com TSX.V: LL

Canada Rare Earth Appointed as Operating Manager of Bom Futuro Property in South America Stockpile Commercialization

December 9, 2021

VANCOUVER, BRITISH COLUMBIA - Canada Rare Earth Corp. (" Canada Rare Earth " or the " Company ") (TSX.V: LL) and its co-investors in the jointly held property in the Bom Futuro area of Brazil (the “Property”), have agreed to appoint the Company as Operating Manager. The Company will have full management control over the project to lead, develop, finance, and operate the 9,960 hectares that is proven to contain cassiterite and known to contain additional valuable minerals including rare earths, zircon, ilmenite, tungsten, and iron.

The Property contains many of the mineral commodities included in the US Geological Survey’s recently proposed updated list of critical minerals ( https://www.federalregister.gov/documents/2021/11/09/2021-24488/2021-draftlist-of-critical-minerals ). Minerals that are vital to national economics and the US national security interest remain in short supply and vulnerable to supply disruptions. See our news release of November 22, 2021.

Canada Rare Earth and co-investors (the “Shareholders”) entered into a multi-faceted agreement in December 2019 with respect to the Property with salient terms set out in our news releases dated February 12, August 1, October 28, December 19, 2019, and January 22, 2020. ( http://www.canadarareearth.com/2021-news )

Tracy A. Moore, Chief Executive Officer, explained, “The Covid-19 pandemic put the Project on hold for nearly one year, however, we are now moving forward in a determined and aggressive manner. The Shareholders unanimously agreed that Canada Rare Earth will take management control and lead the development, financing and eventually the operation of the Property. Important factors leading to the decision include Canada Rare Earth’s historical and current business activities in-country, and its network of experienced and capable team members, consultants and contacts.”

“There are three key aspects to the Property”, Mr. Moore continued. “First, the massive stockpile of tailings, accumulated from 30 years of mining covering 590 hectares at surface; second, is our right of first refusal to the mineral rights of the undisturbed ground underlying the tailings stockpile and in the contiguous 9,370 hectares; and third, our authorization to utilize existing permits and licenses necessary to process the tailings, carry on mining operations and conduct further exploration. These three aspects are why we are so excited and confident that the project will be a significant commercial success.”

Peter Shearing, Chief Operating Officer of Canada Rare Earth, emphasized, “We view these tailings as an integral component to our proprietary sources of minerals for our integrated supply chain of rare earth and critical mineral products. We believe the capital cost of the contemplated operations will be less than conventional hard rock mining as the contents of the stockpile is in a friable, granular form and our team has the experience and ability to process the stockpile through cost effective operations and to deliver desired product streams to our continually expanding customer base.”

“It is our strong intention to maintain direct control in the development, funding and operations of the Property and we are open to considering a variety of financing and operating structures including project financing, joint ventures and operating partnerships,” Mr. Shearing continued.

Canada Rare Earth’s confidence in the potential of the Property is underpinned by a previously published report (NI 43-101 Technical Report, Preliminary Economic Assessment, Bom Futuro Tin Project, Rondonia, NW Brazil – dated 7 December 2017). The report pertained to the overall Bom Futuro area which included the Property and was prepared

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HEAD OFFICE Suite 2110 - 650 West Georgia St. Vancouver, BC V6B 4N8 Tel +1 604 638 8886 www.canadarareearth.com

TSX.V: LL

by qualified, independent persons. Although the report is historical and the scope was limited to only studying the cassiterite content of the stockpile, it concluded that there were significant Indicated and Inferred amounts of Tin (SnO2). The price of tin has doubled since the report was written. The Company’s decision on proceeding with the project is subject to several factors including the decision to operate and/or explore and the ability to raise finances on acceptable terms.

ABOUT CANADA RARE EARTH CORP.

Canada Rare Earth Corp. is developing an international vertically integrated business within the global rare earth industry. Our key focus is to generate revenues and positive cash flow from a variety of profit centres in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms. We are in the process of establishing our own mining, concentrating and refinery capabilities in addition to working with affiliated and third party organizations.

ON BEHALF OF THE BOARD OF DIRECTORS OF CANADA RARE EARTH CORP:

Tracy A. Moore, CEO Peter Shearing , COO

"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release." The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements." Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements. These forward looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances. Actual events or results could differ materially from the Company's expectations or projections

For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.

FOR FURTHER INFORMATION PLEASE CONTACT:

Contact Information:

Tracy A. Moore Peter Shearing CEO COO tmoore@canadarareearth.com pshearing@canadarareearth.com

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