Germany

Press Release

Ucore XRT Testing Shows Prospective Doubling of Mill Feed Grade

October 31, 2011 – Ucore Rare Metals Inc. (TSX-V:UCU/OTCQX:UURAF ; “Ucore” or the “Company”) is pleased to report on innovative testing of ore sorting technology for rare earth pre-concentration. The advanced technology, known as X-Ray Transmission (“XRT”), has not been widely applied within the rare earth sector, and Ucore believes it is among the first to investigate this methodology although similar systems are used successfully in diamond and tungsten mining applications.

Ore-sorting test work on composite samples obtained from Ucore’s Bokan Mountain property has been completed under the guidance of Hazen Research of Boulder CO. and Collison Minecon of Vancouver, BC.  Commodas Ultrasort applied a variety of sorting metrics to specimens comprised of high grade, medium grade, low grade, and barren rock.  As a result of the testing the various metrics, XRT scanning technology rendered the highest recovery of rare earths plus Yttrium with the greatest reduction in ore mass.  A summary of the recoveries at various mass pulls is included in the following table:

XRT Testing

Mass Pull to
Concentrate
Recovery % – Rare
Earths + Y
25% 80%
34% 90%
46% 97%
75% 99%

The XRT process is an unconventional means of pre-concentration which can effectively upgrade the mill feed prior to more conventional physical upgrading and acid leaching. The equipment requires a relatively small footprint and will treat crushed ore prior to the process plant. As a result, the technology has the potential to remove large quantities of gangue material, substantially increasing the run of mine (ROM) ore grade before any conventional processing takes place.

“This is a remarkable development for Ucore, using a unique and innovative model for rare earth ore processing,” said Jim McKenzie, President & CEO of Ucore.  “The ability to capture 97% of the rare earth elements while eliminating 54% of the original ore mass prior to processing is a significant competitive advantage for us. The implication is a prospective doubling of the .75% TREO average ore grade of Bokan material straight out of the mine, to an effective grade approximating 1.5% TREO, and all at very little incremental expense. What’s more, the doubling of the ROM grade takes place before any of the other standard rare earth upgrading techniques are utilized, and can save markedly on grinding, treatment and reagent consumption costs further downstream. This also has the potential to significantly reduce the capital cost of our processing facility. The net effect places Bokan among the highest point-of-origin heavy rare earth grades in the world. A special word of thanks to Collison Minecon for conceiving and initiating this pioneering use of a unique mining technology.”

Ucore’s XRT test work is proprietary in nature, and the Company has commenced preliminary work on a process patent application for the pre concentration of rare earth ROM material utilizing a XRT platform. A larger bulk sample is currently being prepared for the further testing of the XRT methodology on a pilot-plant scale. As a follow up to this, Ucore is additionally testing more conventional methods of rare earth physical pre-concentration on Bokan composite samples at Hazen Research in Golden Colorado (Hazen). Those conventional methods will include hydro metallurgy, flotation, gravity and magnetic separation, and the Company anticipates releasing pertinent results in the near term.

On October 3, 2011, Ucore reported successful testing of conventional acid leach methods applied to whole ore samples from Bokan. The results indicated recoveries ranging to 90% of the rare earth elements plus Yttrium. The net effect is that, beyond the initial pre-concentration methods reported in this press release, Bokan ore is also highly amenable to further process upgrading via leach recovery, as anticipated by prior testing at the USBM laboratories in Salt Lake City (US Bureau of Mines; Green & Harbuck; 1996).

Ken Collison of Collison Minecon is the Qualified Person with respect to this press release and has approved the disclosure of the technical information contained herein.

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 earths 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.