Tactical Resources Reflects on Transformative Year, Advances U.S. Rare Earth Elements Supply Chain Vision

Tactical Resources Corp. (TSXV: RARE) (OTC: USREF), a mineral exploration and development company focused on rare earth elements (REEs), has had a transformative year in 2024. The company's strategic alignment with U.S. defense objectives, advancements in its Phase 1 technical work program, and the proposed business combination with Plum Acquisition Corp. III have positioned Tactical Resources as a key player in the U.S. REE supply chain. This article explores these developments and their implications for the company's growth and the broader REE market.

Strategic Alignment with U.S. Defense Objectives

Tactical Resources' commitment to supporting U.S. national security objectives has enhanced its competitive edge in the global REE market. By aligning with the Department of Defense's (DoD) initiative to create a robust mine-to-magnet supply chain for rare earth materials, the company has positioned itself as a trusted partner in bolstering national security. This alignment is crucial for several reasons:

1. Critical role in defense applications: REEs are vital for manufacturing permanent magnets used in key U.S. military systems, such as the F-35 Lightning II and U.S. Navy destroyers. By focusing on REE production, Tactical Resources supports the defense sector's need for these critical materials.
2. Mitigating supply chain risks: The U.S. faces significant risks in the event of geopolitical tensions or supply disruptions due to its dependence on foreign REE supplies, notably from China. By establishing a secure, U.S.-based supply chain for REEs, Tactical Resources helps mitigate these risks and reduces the country's reliance on foreign sources.
3. Growing demand for REEs: The increasing demand for REEs in various industries, including defense, electric vehicles, and advanced robotics, creates a strong market for Tactical Resources' products. By aligning with U.S. defense objectives, the company can tap into this growing demand and secure a stable customer base.



Advancements in Phase 1 Technical Work Program

In 2024, Tactical Resources achieved key milestones in its Phase 1 technical work program at the Peak Project, which contribute to expediting its path to production and positioning it as a critical contributor to the U.S. REEs supply chain. These milestones include:

1. Bench-scale and vat-leach testing: The Company completed bench-scale and vat-leach testing, which provided valuable insights into leach performance and recovery potential. This testing is crucial for understanding the efficiency of the extraction process and optimizing the production timeline.
2. Permeability testing: Tactical Resources conducted permeability testing, which is essential for determining the ease of material flow through the mining and processing operations. This information is vital for designing efficient mining and processing infrastructure, thereby streamlining the production timeline.
3. Development of a GeoMetallurgical database: The Company developed a GeoMetallurgical database, which serves as a foundation for future production scenario planning. This database enables Tactical Resources to make informed decisions about resource allocation, process optimization, and production scheduling, ultimately contributing to a more efficient production timeline.



Proposed Business Combination with Plum Acquisition Corp. III

The proposed business combination with Plum Acquisition Corp. III supports Tactical Resources' growth strategy and access to capital in several ways:

1. Nasdaq Listing and Growth Capital: The proposed business combination sets the stage for a Nasdaq listing, which would provide Tactical Resources with access to significant growth capital. This capital would be used to support the Company's operations plan at the Peak Project and the progression of its future production activities.
2. Accelerated Production Timelines: The proceeds from the proposed business combination would enable Tactical Resources to accelerate its production timelines and scale operations at the Peak Project. This would help the Company advance its role in the U.S. REE supply chain more quickly.
3. Strategic Partnerships and Alliances: The business combination with Plum is expected to enhance Tactical Resources' ability to form strategic alliances and partnerships. These alliances could further support the Company's growth strategy by providing additional resources and expertise.
4. Alignment with U.S. National Security Objectives: The proposed business combination aligns with the U.S. Department of Defense's (DoD) initiative to create a robust mine-to-magnet supply chain for rare earth materials. By supporting this initiative, Tactical Resources can enhance its position as a trusted partner in bolstering national security, which may lead to growth and value creation for its stakeholders.

In conclusion, Tactical Resources' strategic alignment with U.S. defense objectives, advancements in its Phase 1 technical work program, and the proposed business combination with Plum Acquisition Corp. III have positioned the company as a key player in the U.S. REE supply chain. By supporting national security objectives, advancing its production timeline, and securing access to capital, Tactical Resources is well-positioned to capitalize on the growing demand for REEs and contribute to the development of a robust, domestic supply chain.