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Press Release

Ucore Comments On Alaska FY2013 Budget And Rare Earth Resource Development Initiatives

January 25, 2012 – Halifax, Nova Scotia – Ucore Rare Metals Inc. (TSX-V: UCU | OTCQX: UURAF; “Ucore” or the “Company”) is pleased to comment on the proposed Alaska State Budget for FY2013. The budget includes a number of items of general importance to resource development, and specific importance to rare earth and strategic mineral development within the state. The proposed budget, presented by Governor Parnell in December 2011, is scheduled for review and prospective approval by the Alaska State Legislature during H1 2012, to take effect on July 1, 2012 (the commencement date of FY 2013).

The FY2013 Budget includes $2.7 million as part of a 3-year project (comprising $8.1 million in total) to obtain critical information in further researching and assessing Alaska’s rare earth element (REE) and strategic minerals potential. The funds will be utilized in better understanding the mineralized area at Bokan Mountain, SE Alaska, in addition to numerous known REE and strategic mineral occurrences throughout the state.
The FY2013 Budget also includes $3.3 million for further streamlining of permitting processes associated with resource development. The allocation is intended to integrate with the state’s already well regarded large mine permitting process, unique among mining states in America. The allocated funds will be utilized to further integrate state permitting with federal processes, and other means of permitting reform.

“This budget is aimed at streamlining the state’s permitting processes”, said Governor Parnell; “… we intend to provide more timely decision making for mining, timber, public access, land sales and transfers, and other resource development applications. We’ll obtain more critical data about Alaska’s Rare Earth Elements and Strategic Minerals beneath Alaska lands …”

A complete transcript of Governor Parnell’s Alaska State Budget Rollout Speech can be accessed at the following link: http://gov.alaska.gov/parnell/press-room/full-press-release.html?pr=5990

“The State of Alaska continues to take an active role in the development of its enormous rare earth and critical minerals potential,” said Jim McKenzie, President and CEO of Ucore. “The allocation of substantial funding specifically targeting rare earth and strategic resource development at Bokan Mountain and across the state is a tremendous advantage for a very young industry with immense upside potential for employing Alaskans and adding to the state’s export revenue. We applaud Governor Parnell’s initiatives and look forward to working with the state to advance its critical metals revenue base.”

On January 17, 2012, Governor Parnell announced that Alaska exports have exceeded the $5 billion mark for the first time in the state’s history. The news reflects goods exported from January through November 2011, according to the U.S. Census Bureau. China emerged as the top market for Alaska’s 2011 exports through November, the first time that the East Asian country has held that position. Alaska remains ranked among the leading locations in the world for resource development, according to the Fraser Institute.

Background

Ucore Rare Metals Inc. is a well-funded junior exploration company focused on establishing REE, uranium and other rare metal resources through exploration and property acquisition. With multiple projects across North America, Ucore’s primary focus is the 100% owned Bokan – Dotson ridge REE property in Alaska. The Bokan – Dotson ridge REE project is located 60 km southwest of Ketchikan, Alaska and 140 km northwest of Prince Rupert, British Columbia and has direct ocean access to the western seaboard and the Pacific Rim, a significant advantage in expediting mine production and limiting the capital costs associated with mine construction.

The Bokan properties are located in an area reserved for sustainable resource development with an existing road network providing access to the main target areas. REE mineralization at the Bokan-Dotson ridge project occurs in a well-demarcated vein system related to a Mesozoic Bokan peralkaline granitic complex. However, a number of other occurrences of REE mineralization are also located within, or at the margins of the complex. Viewed in a geological and geophysical context, the Bokan complex is a distinctive circular structure and is highly prospective for rare earth deposits.

For further information, please contact Mr. Jim McKenzie, President and Chief Executive Officer of Ucore Rare Metals Inc. at: (902) 482-5214 or visit www.ucore.com

This press release includes certain statements that may be deemed “forward-looking statements”. All statements in this release, other than statements of historical facts, that address future exploration drilling, exploration activities and events or developments that the Company expects, are forward looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include exploitation and exploration successes, continued availability of financing, and general economic, market or business conditions.