$150 Million Pre-Money Valuation Secured Through U.S.-Focused Private Capital Investment Round for ReElement Technologies

Additional Commercial-Scale Equipment Procured for Noblesville, IN and Marion, IN Facilities

Immediate Export Restrictions on Critical Minerals by China Accelerate Commercial Tailwinds and Growth Opportunities for heavy rare earth and defense minerals

FISHERS, IN / ACCESS Newswire / April 14, 2025 / American Resources Corporation (NASDAQ:AREC) ("American Resources") through its holding in ReElement Technologies Corporation ("ReElement" or the "Company"), a leading provider of high-performance refining capacity for rare earth, critical defense and battery elements, today announced the successful closing of additional patriotic capital in its private fundraising round. The funds will support the procurement and commissioning of new commercial-scale equipment. In light of China's recent export restrictions on critical rare earth elements, the Company also reaffirms readiness to supply domestically produced, ultra-pure critical mineral refined products to meet national and international demand.

Mark Jensen, CEO of American Resources Corporation and ReElement Technologies Corporation commented, "The proven capabilities and scalability of ReElement's proprietary, innovative multi-mineral refining platform have accelerated additional capital closings in this fundraising round, as we remain focused exclusively on domestic, patriotic-based funding sources for this round of capital. We've been laser-focused on securing expansion capital from strategic partners who understand the critical importance of building a resilient, U.S.-based supply chain for essential minerals tied to national security. This capital, along with the equipment being procured, will also help reduce the cost of capital associated with our ongoing bond financings for the ReElement Indiana facilities. In addition, we've recently engaged a top-tier investment bank to support our next capital raise, which, depending on valuation, may involve American Resources monetizing a portion of its remaining stake in ReElement. This would allow us to accelerate revenue and profit growth at American Resources without resorting to dilutive capital."

Key Terms of ReElement Private Capital Raise:

Structured as a $20 million Convertible Note, with flexibility to adjust the amount slightly to facilitate a timely close

Approximately 60% has been committed or funded to date, with the goal of completing the round within the next thirty days or sooner

Pre-money valuation of ReElement set at $150 million
Significant management, board members, and strategic investor participation
Proceeds allocated for procurement of commercial-scale equipment at Indiana facilities, continued new product development and ramp up of production of rare earth oxides and antimony trisulfide / oxide

Commercial-Scale Equipment Commissioning

ReElement currently operates three distinct chromatography equipment lines at its Commercial Qualification Facility in Noblesville, Indiana excluding its lab equipment. The versatility of these systems enables both dedicated customer production and the execution of high-profile R&D initiatives.

Among the recently commissioned commercial equipment includes a third chromatography unit that operates in continuous format that enables the scale up of production as well as expedited development of additional product flow sheets within its Noblesville, IN facility. The second key component was the commissioning of its Bipolar Electrodialysis Unit (BPED) that is particularly critical for optimizing process scalability, recycling of chemicals from the process for reuse, and further reducing operating costs and enhancing overall system efficiency.

Key Attributes of the Bipolar Electrodialysis (BPED) Unit:

Supplier: Provided by the U.S. division of a European company, enabling seamless onsite commissioning and performance optimization
Primary Functions:
1. Efficient production of lithium hydroxide and lithium carbonate
2. Reduction of sodium sulfate and chloride waste streams from both lithium and rare earth element (REE) operations, while reclaiming valuable chemicals for reuse
Development Role: Serves as a pilot-scale testing platform to optimize the process flowsheet prior to full-scale implementation at the Marion facility
Sustainability Impact: Reduces overall water consumption by reclaiming water as part of the reagent recovery process

Trade Restriction Tailwinds

As reported by multiple sources, on April 3, 2025, the People's Republic of China (PRC) imposed new export restrictions on several additional critical rare earth minerals, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related materials. Over the past 24 months, China has placed export controls on more than 16 critical minerals, along with several key downstream processing technologies.

Previously, in December 2024, the PRC banned the export of gallium, germanium, and antimony, creating new commercial opportunities for domestic suppliers and processors.

Mark Jensen, CEO of ReElement Technologies continued, "China's decision to implement additional export controls underscores the critical importance of establishing a secure and independent rare earth supply chain in America. ReElement is positioned as the only company in the U.S. currently separating and purifying heavy rare earth elements including multiple minerals under Chinese export control. ReElement is at the forefront of addressing the largest bottleneck in the global critical mineral supply chain - cost-competitive and sustainable midstream processing and refining. Not only can ReElement produce ultra-pure rare earth oxides and other critical defense minerals, but it does so today at a cost, and with the ability to scale and compete head-to-head against the current monopoly in the critical mineral supply chain. Its innovative multi-mineral refining platform technology is designed to compete on both quality and cost. If China drop prices to pressure domestic production, ReElement is positioned to respond accordingly."

Learn more about ReElement Technologies' process and technology here - Video.

About ReElement Technologies Corporation

ReElement Technologies Corporation, a wholly owned subsidiary of American Resources Corporation (NASDAQ:AREC), is a leading provider of high-performance refining capacity for rare earth and critical battery elements. Its multi-mineral, multi-feedstock platform technology focuses on the refining of recycled material from rare earth permanent magnets and lithium-ion batteries, concentrated ores and brines, as well as coal-based waste streams and byproducts to create a cost effective and environmentally-safe, circular supply chain. ReElement has developed its innovative and scalable "Powered by ReElement" process which collaboratively utilizes its exclusively licensed intellectual property within its partners' material processing flow sheets to more efficiently support the global supply chain's growing demand for magnet and battery-grade products. For more information visit reelementtech.com or connect with the Company on Facebook, Twitter, and LinkedIn.

About American Resources Corporation

American Resources Corporation is a leader in the critical mineral supply chain, developing innovative solutions both upstream and downstream of the refining process. The company and its affiliates focus on the extraction and processing of metallurgical carbon and iron ore, essential ingredients in steelmaking, as well as critical and rare earth minerals for the electrification market and recycled metals.

Leveraging its affiliation and former parent status of ReElement Technologies Corporation, a leading provider of high-performance refining capacity for rare earth and critical battery elements, American Resources is investing in and developing efficient upstream and downstream critical mineral operations. These operations include mining interests in conventional and unconventional sources, recycling, and manufacturing.

American Resources has established a nimble, low-cost business model centered on growth, which provides a significant opportunity to scale its portfolio of assets to meet the growing global infrastructure and electrification markets while also continuing to acquire operations and significantly reduce their legacy industry risks. Its streamlined and efficient operations are able to maximize margins while reducing costs. For more information visit americanresourcescorp.com or connect with the Company on Facebook, Twitter, and LinkedIn.

Special Note Regarding Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks, uncertainties, and other important factors that could cause the Company's actual results, performance, or achievements or industry results to differ materially from any future results, performance, or achievements expressed or implied by these forward-looking statements. These statements are subject to a number of risks and uncertainties, many of which are beyond American Resources Corporation's control. The words "believes", "may", "will", "should", "would", "could", "continue", "seeks", "anticipates", "plans", "expects", "intends", "estimates", or similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such identifying words. Any forward-looking statements included in this press release are made only as of the date of this release. The Company does not undertake any obligation to update or supplement any forward-looking statements to reflect subsequent events or circumstances. The Company cannot assure you that the projected results or events will be achieved.

Investor Contact:

JTC Team, LLC
Jenene Thomas
908-824-0775
AREC@jtcir.com

Media Inquiries:

Marjorie Weisskohl
703-587-1532
mweisskohl@allseasonspr.com

Company Contact:

Mark LaVerghetta
317-855-9926 ext. 0
investor@americanresourcescorp.com

SOURCE: American Resources Corporation

View the original press release on ACCESS Newswire

ReElement Technologies Announces Progress on Private Patriotic Capital Financing, Commercial Equipment Expansion, and Strategic Outlook Amid China's Critical Mineral Export Restrictions