REalloys (NASDAQ: ALOY) Announces Landmark Partnership Agreement with The United States Army & Army’s Strategic Capital Initiatives to Operate Processing Facilities on The Tooele Army Base in Utah

• Strategic U.S. Army Partnership: REalloys (NASDAQ-ALOY) has been conditionally selected to operate a long-term Enhanced Use Lease to design, finance, build, and operate heavy rare earth processing facilities at the Tooele Army Depot, Utah as part of the first commercial critical-mineral processing award on a Government military installation, by way of a direct execution of Executive Order 14241.
• Expedited 2027 Timeline and Cap-Ex Light Approach: Development targeted as early as 2027, with Initial Operating Capability targeted no later than 2028 to align with the January 1, 2027, US federal procurement ban on Chinese materials in the Defense Industrial Manufacturing Base. The partnership is expected to be delivered through an Enhanced Use Lease that is expected to require no taxpayer subsidies.
• Embedded Long-Term Customer & National Security Defense-Critical Mineral Platform: The planned facilities will refine heavy rare earths, including Dysprosium (“Dy”) & Terbium (“Tb”), which are essential to national security and used in the Defense Industrial Manufacturing Base for high-temperature permanent magnets. These magnets are used in the production of precision-guided munitions, electric motors, sonar and other key systems, solidifying the supply chain partnership between REalloys and the United States Army, Defense Logistics Agency, Department of War, the U.S. Department of Energy, and NASA.
• Please visit the official United States Army websites for additional information:
• https://www.army.mil/sci (Army Strategic Capital Initiatives)
• https://www.tooele.army.mil/ (U.S. Army Tooele Army Depot)
• https://www.army.mil/article/293503
  

EUCLID, Ohio, June 25, 2026 (GLOBE NEWSWIRE) -- REalloys Inc. (NASDAQ: ALOY) (“REalloys” or the “Company”) has been selected by the United States Army to enter into exclusive contract negotiations for a long-term Enhanced Use Lease (“EUL”) to design, finance, build, and operate a critical-mineral processing facilities at the Tooele Army Depot located in Tooele, Utah. Under the contemplated definitive arrangement, REalloys is expected to establish domestic heavy rare earth processing capacity for the heavy rare earth elements that are foundational to the warfighting capability of the U.S. Joint Forces.

The award is enacted through the Army’s Strategic Capital Initiatives (SCI), an effort to partner with the private sector to accelerate enterprise-wide modernization. According to the Army, these awards mark the first time the Army has sited commercial mineral-processing facilities on American military installations pursuant to a direct execution of Executive Order 14241. REalloys was named alongside a small group of U.S.-organized industry partners selected to build out domestic processing for minerals the Army has identified as essential to munitions, missiles, sensors, batteries, and the platforms its soldiers depend on.

Leonard Sternheim, Chief Executive Officer of REalloys, said:

“We believe selection by the U.S. Army for a processing facility on American soil is a powerful validation of REalloys’ mine-to-magnet strategy and of the urgent national need for domestic heavy rare earth capability. Dysprosium and terbium are the heart of the high-temperature magnets that keep our most advanced defense systems running, and today, almost all of that processing happens overseas. We are proud to have the opportunity to help the Army change that, building secure, allied-sourced capacity that supports our Soldiers without putting taxpayer dollars at risk, and doing it ahead of the 2027 deadline our customers are racing to meet.”

Why It Matters: Defense-Grade Dysprosium and Terbium:

At Tooele, REalloys intends to refine dysprosium (Dy) and terbium (Tb) — heavy rare earth elements that are indispensable to precision guidance and defense electronics. These materials are used to manufacture high-performance permanent magnets capable of withstanding extreme operational temperatures, the kind found in precision-guided munitions, electric motors, and sonar and radar networks. Consistent with REalloys’ strategy, the Company intends to draw on secure, allied feedstock — including Canadian heavy rare earth supply — to feed its downstream separation, metallization, and magnet operations. The facility would extend REalloys’ fully integrated mine-to-magnet strategy further into U.S. soil, complementing the Company’s diversified, allied-nation feedstock base and its downstream processing network. The Company believes domestic processing capacity for Dy and Tb is one of the most strategically scarce links in the Western rare earth supply chain — and a capability the U.S. defense industrial base urgently needs as China-content restrictions take effect.

A Proven, Capital-Disciplined Model:

The conditional selection is made possible through an Enhanced Use Lease, a statutory authority under 10 U.S.C. § 2667. An EUL is a real-estate agreement that allows the Army to lease non-excess, underutilized land to private-sector partners. Importantly, an EUL is a leasehold — not a land sale — and the United States retains title to the property at all times. Under this structure, the Army acts purely as a landlord, while the private partner bears the costs to finance, design, build, operate, secure, and decommission the facility, putting no taxpayer dollars at risk. In return for use of the land, the partner pays rent at or above fair market value, which the Army prefers to receive as “in-kind” consideration — funding infrastructure improvements that benefit Soldiers, families, and installation operations. A mandatory decommissioning bond ensures funds are secured in advance to return the land to its original condition at lease end. Eligibility was strictly limited to entities organized under U.S. law with majority domestic ownership and control and a U.S. place of business, and any in-kind improvements will adhere to Davis-Bacon prevailing wages and Buy American Act requirements.

Positioned Ahead of the 2027 Deadline:

Definitive agreements are underway, with development slated to begin as early as 2027 and an Initial Operating Capability targeted no later than 2028. The timing aligns with expanded U.S. federal procurement restrictions on Chinese rare earth content, and reinforces REalloys’ objective of delivering qualified, compliant rare earth metals and alloys to the U.S. Department of Defense, the U.S. Department of Energy, NASA, the U.S. Defense Industrial Base, and the broader U.S. Organic Industrial Base. No construction will begin until rigorous environmental and regulatory reviews — including the National Environmental Policy Act (NEPA), the Clean Air and Water Acts, and all required federal, state, and local permits — are fully complete.

General Jack Keane (Ret.), Board Director of Realloys, Commented:

“This is an important step for American national security and critical mineral sovereignty. The U.S. Army’s decision to leverage its installations to establish domestic rare earth processing capacity, we believe, is strategically sound and operationally necessary. REalloys’ mine-to-magnet approach, anchored in secure allied feedstocks and a zero-adversary-nexus supply chain, we believe, is well aligned with what the Joint Force needs to help ensure uninterrupted access to the heavy rare earth elements that power our country’s most advanced weapons systems.”

Stephen duMont, Chairman of REalloys, Said:

“We believe this important activity with the U.S. Army represents a strategic inflection point for REalloys and for the broader effort to establish a sovereign, resilient, and secure heavy rare earth processing capability in the United States. REalloys was purpose-built to give the U.S. government and defense industrial base an onshore and allied-sourced supply of the critical rare earth materials it needs, designed to remove any adversary nexus. We believe being selected to build that capability in partnership with the Army to help revitalize the Organic Industrial Base reflects our shared commitment to ensuring our warfighters have the capability they need to safely perform their mission.”

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, and neodymium to the U.S. Department of Defense, the U.S. Department of Energy, NASA, the U.S. Defense Industrial Base, and the broader U.S. Organic Industrial Base. The Company is headquartered in Boca Raton, Florida, with operational activities centered in Euclid, Ohio.

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 the use of Enhanced Use Leases to establish domestic critical-mineral processing on Army installations. For more information on the Army’s Strategic Capital Initiatives, visit www.army.mil/sci. REalloys’ inclusion is conditional and remains subject to finalization of definitive agreements and completion of required environmental and regulatory reviews.

Safe Harbor Clause And Forward-Looking Statements

This press release contains forward-looking statements within the meaning of applicable securities laws, including statements relating to REalloys’ conditional selection for potential award under DA RFP No. DACA27-9-26-0038000, anticipated timelines, development plans, and expected capabilities. These statements are based on current expectations and assumptions and are subject to risks and uncertainties, including the failure to reach agreement on a final Milestone Table or execute a Business Terms Agreement within the required 90-day period, the failure to execute a final Enhanced Use Lease, the outcome of required environmental and regulatory reviews, and other risks described in REalloys’ filings with the U.S. Securities and Exchange Commission. The conditional selection does not guarantee execution of a final Enhanced Use Lease agreement. REalloys undertakes no obligation to update any forward-looking statements, except as required by applicable law.

For a discussion of additional risks and uncertainties that could affect REalloys’ business, financial condition, and results of operations, please refer to REalloys’ filings with the U.S. Securities and Exchange Commission, including its Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and other filings available at www.sec.gov.

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.

REalloys Inc.
Sarah Riley
IR and Communications, REalloys
sarah.riley@realloys.com
www.realloys.com

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