Non-binding term sheet sets out the principal terms for a potential long-term Enhanced Use Lease of up to 75 years to develop domestic dysprosium and terbium processing on a U.S. defense installation

EUCLID, Ohio, Nov. 03, 2026 (GLOBE NEWSWIRE) -- REalloys Inc. (NASDAQ: ALOY) ("REalloys" or the "Company"), a U.S.-based rare earth minerals and materials company building a vertically integrated North American “mine-to-magnet” supply chain, today announced that a subsidiary of REalloys and the U.S. Department of the Army ("Army") have executed a non-binding term sheet setting out the principal commercial terms for a potential Enhanced Use Lease ("EUL") to develop a heavy rare earth processing facility at Tooele Army Depot in Utah. Other than certain customary provisions, the term sheet is non-binding, and there can be no assurance that a definitive EUL will be executed.

The term sheet follows the Army's June 25, 2026 selection of REalloys as the solicitation awardee enabling exclusive negotiations under its Strategic Capital Initiatives. It contemplates development of the facility on approximately 200 acres at Tooele Army Depot. The facility would process and refine target critical minerals, including dysprosium ("Dy") and terbium ("Tb"), the heavy rare earth elements used in, among other things, high-temperature permanent magnets for precision-guided munitions, electric motors, sonar, radar and other defense systems.

Under the proposed framework, REalloys would develop, finance, build, operate and ultimately decommission the facility while the United States would retain title to the land.

HIGHLIGHTS

  • Long-Term Site Tenure: Initial 50-year lease term with one 25-year renewal option, subject to specified conditions, including Army consent, providing the potential for up to 75 years of operating tenure.
  • Army Right of First Offer: The Army would have a right of first offer to purchase product from the facility, subject to applicable federal law and procurement requirements. The Army is not obligated to purchase any product.
  • Strategic U.S. Defense Installation: The proposed facility would be developed on approximately 200 acres at Tooele Army Depot, establishing domestic heavy rare earth processing within an existing
  • U.S. defense installation.
  • Defense-Critical Scope: The facility would process and refine target critical minerals, including Dy and Tb. Additional rare earth elements may be processed at the site in the future as mutually agreed in writing.
  • Project Consideration: Project consideration would consist of annual base rent at fair market value beginning at lease commencement, plus participation rent beginning upon commercial operations, with terms to be agreed in the EUL.

Leonard Sternheim, Chief Executive Officer of REalloys, commented:
"Agreeing to this term sheet with the U.S. Army is an important step for our Tooele project as we work toward a long-term lease. Dysprosium and terbium are essential to the magnets in America's most advanced defense systems, and almost all of that processing still happens overseas. We believe this framework would provide long-duration site access on a U.S. defense installation and a structure to facilitate continued cooperation between REalloys and the Army. We look forward to working with the Army toward a definitive lease."

General Jack Keane (U.S. Army, Ret.), Director of REalloys, commented:
"For too long, the United States has depended on adversaries and others for the materials inside its most advanced defense technology and China has made clear it is prepared to use that dependence as leverage. Dysprosium and terbium sit at the center of that vulnerability. Our ability to deter conflict, and to prevail if deterrence fails, depends on producing munitions and weapons systems at scale, and that requires supply chains we control. This term sheet is an important step toward bringing heavy rare earth processing onto a U.S. defense installation. “

Dr. Jeff Waksman, Principal Deputy Assistant Secretary of the Army for Installations, Energy and Environment, commented:
“Rare earth processing is a known national security vulnerability, with China specifically holding a near 100% global monopoly on dysprosium and terbium. Leveraging our legal authorities and land, the U.S. Army is able to help nurture and expedite the growth of critical minerals industrial base which equips and sustains America’s Soldiers without putting any taxpayer dollars at risk.”

NEXT STEPS
REalloys and the Army will now work to complete the remaining project-development conditions and negotiate the definitive EUL.

Execution of the EUL remains subject to conditions, including agreement on the fair market value of base rent and the participation rent methodology, Army acceptance of REalloys' development plan, completion of environmental reviews and permitting activities, satisfactory completion of a foreign ownership, control or influence review, securing project financing and REalloys Board approval, as well as applicable Army determinations and Congressional notifications. If the conditions are not satisfied or waived within 18 months, either party may terminate the term sheet.

REalloys continues to advance its broader mine-to-magnet platform in parallel, including its strategic relationship with the Saskatchewan Research Council and its rare earth metallization development activities.

About REalloys Inc.
REalloys Inc. (NASDAQ: ALOY) is a U.S.-based rare earth materials company executing a mine-to-magnet strategy across upstream feedstock, midstream separation and metallization, and downstream magnet manufacturing. REalloys is focused on delivering qualified, allied-nation rare earth metals and alloys including dysprosium, terbium, praseodymium and neodymium to the U.S. Department of War, the U.S. Department of Energy, NASA, the U.S. Defense Industrial Base, and the broader U.S. Organic Industrial Base.
For more information, please visit www.REalloys.com or email InvestInAmerica@REalloys.com.

About the U.S. Army Strategic Capital Initiatives (SCI)
The Army's Strategic Capital Initiatives partner with the private sector to accelerate enterprise-wide modernization, including using Enhanced Use Leases to establish domestic critical-mineral processing on Army installations. For more information, visit www.army.mil/sci.

Safe Harbor Statement and Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding the proposed EUL at Tooele Army Depot and the terms set out in the term sheet; the anticipated negotiation, timing and execution of a definitive EUL; the satisfaction of conditions precedent to execution of the EUL, including agreement on fair market value base rent and participation rent, Army acceptance of REalloys’ development plan, completion of environmental reviews (including under the National Environmental Policy Act), permitting, foreign ownership, control or influence review, project financing, REalloys Board approval, and applicable Army determinations and Congressional notifications; the anticipated lease term and any renewal; the Army’s right of first offer; the anticipated development, financing, construction, operation and decommissioning of the proposed facility; the processing of dysprosium, terbium and other rare earth elements at the facility; and REalloys’ broader mine-to-magnet strategy. These forward-looking statements are based on current expectations, estimates, projections, and assumptions that involve significant risks and uncertainties.

Actual results may differ materially from those expressed or implied by these forward-looking statements due to a variety of factors, including, but not limited to: the non-binding nature of the term sheet (other than certain customary provisions); the possibility that the parties will be unable to agree on the terms of a definitive EUL, including base rent and participation rent, on acceptable terms or at all; the failure to satisfy, or delays in satisfying, the conditions precedent to execution of the EUL, including the right of either party to terminate the term sheet if such conditions are not satisfied or waived within 18 months; the outcome and timing of environmental reviews, permitting and other governmental approvals; the Army’s discretion with respect to approvals, consents and renewal of the EUL; the availability of project financing and other capital on acceptable terms; construction, commissioning and operational risks; the availability, quality and cost of rare earth feedstocks; fluctuations in rare earth prices and customer demand; the fact that the Army’s right of first offer does not obligate the Army to purchase any product; changes in applicable laws, regulations, government policies, appropriations or administration priorities; and other risks described from time to time in REalloys’ filings with the U.S. Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other filings.

There can be no assurance that a definitive EUL will be executed within the anticipated timeframe or at all, that any EUL will be on the terms described in this press release, or that the proposed facility will be developed, financed, constructed or operated as currently contemplated. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Except as required by applicable law, REalloys undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Disclosure Information
REalloys uses and intends to continue using its investor website at www.REalloys.com as a means of disclosing material non-public information and for complying with Regulation FD. Investors should monitor this site, along with the Company's press releases, SEC filings, public conference calls, and webcasts.

Media & Investor Contact
IR and Communications, REalloys
InvestInAmerica@REalloys.com
www.realloys.com