Canada Rare Earth Receives a US$500,000 Fee for Optioning Certain of its Rights to Acquire a Completed Refinery

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VANCOUVER, British Columbia, March 13, 2018 (GLOBE NEWSWIRE) -- Canada Rare Earth Corp. (“Canada Rare Earth” or the “Company”) (TSX.V:LL) is pleased to announce entering into an agreement with an arm’s length party interested in acquiring a 50% equity position in a completed rare earth refinery and in other refineries that may become available to the Company (the “Rights Agreement”).

Canada Rare Earth has the option to acquire and become the legal, registered and beneficial owner, directly or indirectly, of a 60% undivided interest in a substantially completed rare earth refinery (the Refinery) situated in Southeast Asia as most recently disclosed in the news release dated September 6, 2017 (the “CREC Option”). Canada Rare Earth has been working to obtain final permits allowing the Refinery to commence operations. If and when the permits are issued Canada Rare Earth will have six months to exercise the CREC Option. Such permits have as yet not been issued.

Pursuant to the Rights Agreement, the third party paid a non-refundable fee of US$500,000 for the right to purchase a 50% interest in the Refinery subject to the Company exercising the CREC Option. The price and terms would cover all of Canada Rare Earth’s financial requirements to exercise the CREC Option including the exercise price and the pro rata contribution to working capital. The end result would be Canada Rare Earth positioned, for no participation cost, with a 10% carried interest in a world-class, fully permitted rare earth refinery built by a proven and capable owner/operator.

Canada Rare Earth will retain the rights to provide concentrate to the Refinery to the full extent of the Refinery’s requirements and to sell products produced by the Refinery to the full extent of production. At this time, the Company has focused on permitting the Refinery and has not entered into agreements to supply concentrate to the refinery or sell products produced by the Refinery.

Canada Rare Earth, the third party and the current owner of the Refinery will immediately proceed to prepare a definitive agreement and a shareholders’ agreement covering their respective rights and obligations as co-owners of the Refinery and shall use their best efforts to finalize such agreement within 60 days of receipt of the operating permits. In the interim, the third party will continue with its due diligence procedures.

In the event the third party successfully exercises its right to acquire a 50% interest in the Refinery the third party will be granted a similar exclusive right for the next refinery available to CREC and if that right is successfully exercised then a similar follow on option would also be granted for subsequent refineries. There is no assurance that other refineries will become available to the Company.

In the event the Refinery is not permitted by August 31, 2018 then CREC shall grant the third party a similar option for the next available refinery optioned to CREC.

All costs and expenses (including, without limitation, the fees and disbursements of legal counsel, technical experts and due diligence) incurred in connection with this Agreement herein contemplated shall be paid and borne by the party incurring such costs and expenses.

On behalf of the Board

Tracy A. Moore, CEO and Peter Shearing, COO

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


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Globe Newswire: 17:00 GMT Tuesday 13th March 2018

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