Prophecy Development Corp.

Canada Rare Earth Corp. Signs Joint Venture LOI to Develop South American REE Project

VANCOUVER, BC--(Marketwired - October 17, 2017) - Canada Rare Earth (TSX VENTURE: LL) is pleased to announce that it has entered into a Letter of Intent ("LOI") to form a joint venture ("JV") with the owners ("JV Partner") of an advanced, prospective rare earth property situated in South America (the "Property") that is owned outright by the JV Partner.

In addition to the JV Partner contributing the property to the JV, initial activities outlined in the LOI include the JV Partner preparing permit applications to allow the mining and processing of ore derived from the Property and the Company selecting, by December 10, 2017, an existing and proven processing technology and system to optimize the processing of material from the Property.

Once the processing system is agreed upon, the parties will finalize a definitive agreement incorporating and expanding on the terms of the LOI. At that point, subject to the completion of a pre-feasibility or feasibility study, the JV will take responsibility for completing the development of the project, including financing, operating the mine, processing material and selling resulting rare earth products.

The JV Partner and Canada Rare Earth will jointly manage the JV. The JV Partner will contribute experience in permitting similar initiatives; and expertise in exploration and mining operations. Canada Rare Earth will contribute access to the various processing systems and undertake commercial activities including marketing and selling the resulting rare earth products.

Tracy A. Moore, Chief Executive Officer of Canada Rare Earth, explained, "this business arrangement is a prime example of the way in which Canada Rare Earth can help commercialize rare earth properties. Typically properties are extensively explored but in order to advance to mine development two key factors must be arranged: (1) a proven ability to process the mine material and (2) the ability to sell the resulting enhanced concentrate and/or oxides in a commercially viable manner. Canada Rare Earth has access to various proven and in-practice processing technologies and approaches and we have direct connections to buyers of concentrates and oxides."

Details of the property and participants will be disclosed in greater detail once the Company identifies the most appropriate technology and system for processing the Property's material and the JV partner has concurred with the selection. The LOI is non-binding on the parties.

ABOUT CANADA RARE EARTH CORP.

Canada Rare Earth is developing an international integrated business within the global rare earth industry. Our immediate 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 organization

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