Form 8-K

8-K — USA Rare Earth, Inc.

Accession: 0001213900-26-078760

Filed: 2026-07-16

Period: 2026-07-16

CIK: 0001970622

SIC: 1000 (METAL MINING)

Item: Entry into a Material Definitive Agreement

Item: Other Events

Item: Financial Statements and Exhibits

Documents

8-K — ea0296752-8k_usarare.htm (Primary)

EX-2.1 — AMENDMENT NO. 1, DATED JULY 16, 2026, TO THE MERGER AGREEMENT BY AND AMONG USAR, SVRE, MERGER SUB AND THE SHAREHOLDER REPRESENTATIVE (ea029675201ex2-1.htm)

EX-99.1 — UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS OF USAR AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2026, AND FOR THE YEAR ENDED DECEMBER 31, 2025 (ea029675201ex99-1.htm)

EX-99.2 — OTHER UPDATED DISCLOSURES (ea029675201ex99-2.htm)

GRAPHIC (ea029675201_img1.jpg)

XML — IDEA: XBRL DOCUMENT (R1.htm)

8-K — CURRENT REPORT

8-K (Primary)

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0001970622

2026-07-16

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):

July 16, 2026

USA Rare Earth, Inc.

(Exact Name of Registrant as Specified in its

Charter)

Delaware

001-41711

98-1720278

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(I.R.S. Employer

Identification No.)

100 W. Airport Road, Stillwater, OK 74075

(Address of Principal Executive Offices) (Zip

Code)

(813) 867-6155

(Registrant’s telephone number, including

area code)

Not applicable

(Former Name or Former Address, if Changed Since

Last Report)

Check the appropriate box below if the Form 8-K filing is intended

to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☒

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.0001

USAR

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth

company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange

Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant

has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant

to Section 13(a) of the Exchange Act. ☐

EXPLANATORY NOTE

As previously announced, USA Rare Earth, Inc. (“USAR,”

“we,” “our,” and “us”) entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”),

dated as of April 19, 2026, by and among (i) USAR, (ii) Middlebury Merger Sub Ltd., a business company limited by shares incorporated

under the laws of the British Virgin Islands and an indirect, wholly owned Subsidiary of USAR (“Merger Sub”), (iii) SVRE Holdings

Ltd., a business company limited by shares incorporated under the laws of the British Virgin Islands (“SVRE”), and (iv) Serra

Verde Rare Earths Ltd., a company incorporated and existing under the laws of the British Virgin Islands, solely in its capacity as the

representative of SVRE’s shareholders (the “Shareholder Representative”). The Merger Agreement provides for the merger

of SVRE with and into Merger Sub, with Merger Sub surviving such merger as an indirect, wholly owned subsidiary of USAR (the “Merger”).

USAR is filing this Current Report on Form 8-K in part for the purpose of supplementing disclosures contained in USAR’s filings

with the SEC.

Item 1.01 Entry into a Material Definitive Agreement.

On July 16, 2026, USAR, Merger Sub, SVRE and

the Shareholder Representative entered into Amendment No. 1 to the Merger Agreement (“Amendment No. 1 to the Merger Agreement”),

pursuant to which the satisfaction (and non-waiver) of certain conditions precedent set forth in the offtake agreement entered into on

April 20, 2026 by and between SV Management Switzerland AG (“SV Management Switzerland”), a subsidiary of SVRE, and a special

purpose vehicle capitalized by the U.S. government and private capital sources (the “Counterparty”) (as amended from time

to time, the “Offtake Agreement”) for the long-term supply of rare earth materials produced by SVRE, the lapse of the right

of SV Management Switzerland to terminate the Offtake Agreement, and the Offtake Agreement being in full force and effect as of the closing

of the Merger became conditions to the obligation of USAR and Merger Sub to complete the Merger.

Amendment No. 1 to the Merger Agreement is included

as Exhibit 2.1 and is incorporated herein by reference. The description of Amendment No. 1 to the Merger Agreement above does not purport

to be complete and is qualified in its entirety by reference to the full text of the agreement filed herewith. A copy of Amendment No.

1 to the Merger Agreement has been included to provide USAR stockholders with information regarding its terms and is not intended to provide

any factual information about USAR, SVRE, Merger Sub or their respective affiliates.

Item 8.01 Other Events.

In connection with the transactions contemplated by the Merger Agreement,

on July 16, 2026, USAR filed with the Securities and Exchange Commission (the “SEC”) Amendment No. 2 (“Amendment No.

2”) to the preliminary proxy statement that was filed on Schedule 14A on May 13, 2026 (together with Amendment No. 1, which was

filed on June 12, 2026, and Amendment No. 2, the “Preliminary Proxy Statement”), which included an updated version of USAR’s

unaudited pro forma condensed combined financial statements as of and for the three months ended March 31, 2026 and for the year ended

December 31, 2025, giving effect to the Merger (the “Updated USAR Pro Forma Financial Statements”). USAR is filing this Current

Report on Form 8-K for the purpose of disclosing the Updated USAR Pro Forma Financial Statements and certain other updated disclosures

that were included in Amendment No. 2. The Updated USAR Pro Forma Financial Statements and other updated disclosures are included in Exhibit

99.1 and Exhibit 99.2 hereto.

As a public company, our filings are subject to

review by the SEC, including the Preliminary Proxy Statement filed in connection with the Merger, which includes USAR’s pro forma

financial statements referenced above, which could cause changes or modifications to such information.

Cautionary Note Regarding Forward-Looking Statements

This report, including the exhibits filed hereto,

contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements

include those relating to our financing arrangement with the U.S. Department of Commerce (the “DOC”), the proposed acquisition

of Serra Verde Group (“SVG”), our business plans, strategy, goals and prospects, our plans for and prospects of our other

acquisitions, investments and other business development activities, including the announced Carester SAS (“Carester”) and

Texas Mineral Resources Corp. (“TMRC”) transactions and other statements regarding USAR’s expectations for future development,

operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate

strictly to historical or current facts. Words such as “aim,” “anticipate,” “believe,” “can,”

“continue,” “could,” “estimate,” “expect,” “growth,” “intend,”

“may,” “might,” “plan,” “potential,” “project,” “propose,” “should,”

“target,” “vision,” “will,” “would” and similar expressions may identify forward-looking

statements, but the absence of these words does not mean that a statement is not forward-looking.

Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results

to differ materially from our expectations, including without limitation: risks that the proposed transactions with SVG, Carester and

TMRC may not be consummated on their anticipated timelines or at all; we may not realize the anticipated benefits of our proposed and

prior acquisitions, including expected synergies, financial performance, estimated earnings before interest, taxes, depreciation and amortization

and, in the case of SVG, integration of operations, on the anticipated timeline or at all; the ability of our magnet manufacturing facility

in Stillwater, Oklahoma (the “Stillwater facility”) or other future magnet manufacturing facilities to commence commercial

operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially

extract minerals from the Round Top deposit in Texas on our anticipated timeline or at all; risks that we may experience delays, unforeseen

expenses, increased capital costs, and other complications in operating our business; our ability to raise necessary capital on acceptable

terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock

or equity-linked securities; the volatility of our stock price; our ability to satisfy project milestones and other conditions to disbursement

under our financing arrangement with the DOC on the anticipated timeline or at all; our dependence on continued governmental support for

the DOC financing transactions, which remains subject to changes in laws, regulations, administrations and appropriations; extensive affirmative

and negative covenants, domestic content and national security guardrail provisions and ongoing reporting obligations in the DOC financing

agreements that restrict our operational and financial flexibility; the risk that defaults under the DOC funding agreements could trigger

cross-defaults across our financing arrangements; the impact of the DOC’s equity interest in us on our ability to pursue strategic

transactions and on our relationships with customers, suppliers, partners and other counterparties; the availability of rare earth oxide,

metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop

and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and manufacture

a consistently high quality product; fluctuations in demand for and prices of our products, including without limitation as a result of

dumping, predatory pricing and other tactics by our competitors or state actors or the overall competitive environment; our ability to

achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained

in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers

for the sale of our neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in

the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries

in which we operate or sell products or otherwise; war, terrorism, natural disasters or public health emergencies; our ability to retain

or recruit key personnel; environmental, health and safety regulations; and our ability to comply with requirements for federal, state

and local government incentives and financing.

Additional risks and detailed information regarding

factors that may cause actual results to differ materially has been and will be included in our filings with the SEC.

Any forward-looking statements speak only as of the date of this report (or such other date as is specified in such statements), and USAR

undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments, except

to the extent required by law.

Additional Information and Where to Find It

In connection with the Merger, USAR filed the Preliminary

Proxy Statement and, following SEC review, intends to file a definitive proxy statement (together with any amendments or supplements thereto,

the “Proxy Statement”), to be distributed to USAR’s stockholders in connection with USAR’s solicitation

of proxies for the vote by USAR’s stockholders with respect to the issuance of USAR common stock as merger consideration and other

matters described in the Proxy Statement. SVRE’s shareholders approved the merger by written consent which was delivered concurrently

with the signing of the merger agreement and will not receive a proxy statement or prospectus. USAR also plans to file with or furnish

to the SEC other relevant documents regarding the Merger. After SEC review of the preliminary proxy statement is completed, the definitive

Proxy Statement will be mailed to stockholders of USAR. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS

ARE URGED TO READ THE PROXY STATEMENT AND ALL OTHER RELEVANT DOCUMENTS THAT ARE OR WILL BE FILED WITH OR FURNISHED TO THE SEC, AS WELL

AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR

WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND RELATED MATTERS.

Investors and security holders will be able to

obtain free copies of the Proxy Statement and other documents containing important information about USAR and the Merger, once such documents

are filed with or furnished to the SEC through the website maintained by the SEC at www.sec.gov. Copies of the documents filed with or

furnished to the SEC by USAR will be available free of charge on USAR’s website at investors.usare.com or by contacting USAR’s

Investor Relations department by email at IR@usare.com. The information included on, or accessible through, USAR’s website is not

incorporated by reference into this communication.

Participants in the Solicitation

USAR and certain of its directors and executive

officers and other members of its management and employees may be deemed to be participants in the solicitation of proxies in respect

of the Merger.

Information about the directors and executive officers

of USAR, including a description of their direct or indirect interests, by security holdings or otherwise, is contained in USAR’s

Preliminary Proxy Statement. Any changes in the holdings of USAR’s securities by USAR’s directors or executive officers from

the amounts described in the Preliminary Proxy Statement will be reflected in Statements of Changes in Beneficial Ownership on Form 4

(“Form 4”) or Annual Statements of Changes in Beneficial Ownership of Securities on Form 5 (“Form 5”)

subsequently filed with the SEC and available at the SEC’s website at www.sec.gov. Additional information regarding the interests

of such participants will be contained in the Proxy Statement when available.

No Offer or Solicitation

This communication is for informational purposes

only and is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities,

or a solicitation of any vote or approval on the Merger or otherwise, nor shall there be any sale of securities in any jurisdiction in

which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such

jurisdiction. No offer of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the Securities

Act of 1933, as amended, or pursuant to an applicable exemption therefrom.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

The following exhibits are attached with this current

report on Form 8-K:

Exhibit No.

Description

2.1

Amendment No. 1, dated July 16, 2026, to the Merger Agreement by and among USAR, SVRE, Merger Sub and the Shareholder Representative

99.1

Unaudited pro forma condensed combined financial statements of USAR as of and for the three months ended March 31, 2026, and for the year ended December 31, 2025

99.2

Other Updated Disclosures

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURE

Pursuant to the requirements of the Securities

Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

USA Rare Earth, Inc.

Date: July 16, 2026

By:

/s/ Valerie Ford Jacob

Valerie Ford Jacob

Chief Legal Officer

EX-2.1 — AMENDMENT NO. 1, DATED JULY 16, 2026, TO THE MERGER AGREEMENT BY AND AMONG USAR, SVRE, MERGER SUB AND THE SHAREHOLDER REPRESENTATIVE

EX-2.1

Filename: ea029675201ex2-1.htm · Sequence: 2

Exhibit 2.1

AMENDMENT

NO. 1 TO AGREEMENT AND PLAN OF MERGER

This

Amendment No. 1 to Agreement and Plan of Merger (this “Amendment”), dated as of July 16, 2026, is entered into by

and among (i) USA Rare Earth, Inc., a Delaware corporation (“Parent”), (ii) Middlebury Merger Sub Ltd., a business

company limited by shares incorporated under the laws of the British Virgin Islands and an indirect, wholly owned Subsidiary of Parent

(“Merger Sub”), (iii) SVRE Holdings Ltd., a business company limited by shares incorporated under the laws of the

British Virgin Islands (the “Company”), and (iv) Serra Verde Rare Earths Ltd., a company incorporated and existing

under the laws of the British Virgin Islands, solely in its capacity as the representative of the Company Shareholders (the “Seller

Representative”).

WHEREAS,

the parties hereto are parties to that certain Agreement and Plan of Merger, dated as of April 19, 2026 (as amended, supplemented or

otherwise modified from time to time, the “Merger Agreement”);

WHEREAS,

pursuant to Clause 2.2 of the Offtake Agreement, certain conditions precedent to the Seller’s obligation to sell and deliver and

the Buyer’s obligation to purchase and take Pre-COD Product and the ACQ (all of which capitalized terms are defined in the Offtake

Agreement) are required to be satisfied or waived;

WHEREAS,

pursuant to Section 10.11 of the Merger Agreement, the Merger Agreement may be amended in a written instrument executed by Merger Sub,

Parent, the Company and the Seller Representative; and

WHEREAS,

the parties hereto desire to amend the Merger Agreement in accordance with Section 10.11 of the Merger Agreement to add a new closing

condition for the benefit of Parent and Merger Sub as provided herein.

NOW,

THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound

hereby, the parties hereto agree as follows:

Section

1 Definitions. Capitalized terms used herein without definition shall have the meanings ascribed to such terms in the Merger Agreement

unless otherwise indicated.

Section

2 Amendment to the Merger Agreement. A new Section 6.1(q) is hereby added to the Merger Agreement immediately following Section

6.1(p) to read in its entirety as follows:

“(q)

Offtake Condition. (i) The conditions set forth in Clause 2.2(b) and Clause 2.2(c) of the Offtake Agreement shall each have been

satisfied (and not waived), (ii) the right of SV Management Switzerland AG (the “Offtake Seller”) to terminate the

Offtake Agreement in accordance with Clause 2.4 of the Offtake Agreement shall have lapsed and shall no longer be exercisable by the

Offtake Seller, and (iii) the Offtake Agreement shall be in full force and effect as of the Closing.”

Section

3 No Other Amendments; Ratification. Except as expressly provided in this Amendment, all of the terms and provisions of the Merger

Agreement are and shall remain in full force and effect and are hereby ratified and confirmed by the parties hereto. The amendments contained

herein shall not be construed as an amendment to or waiver of any other provision of the Merger Agreement or as a waiver of or consent

to any further or future action on the part of any party that would require the waiver or consent of any other party.

Section

4 Effect of Amendment. On and after the date of this Amendment, each reference in the Merger Agreement to “this Agreement,”

“hereunder,” “hereof,” “herein” or words of like import referring to the Merger Agreement shall mean

and be a reference to the Merger Agreement as amended by this Amendment. In the event of any inconsistency between the terms of this

Amendment and the terms of the Merger Agreement, the terms of this Amendment shall control.

Section

5 Incorporation by Reference. The provisions of Article X (Miscellaneous) of the Merger Agreement shall, to the extent not already

set forth in this Amendment, apply mutatis mutandis to this Amendment, and to the Merger Agreement as modified by this Amendment,

taken together as a single agreement, reflecting the terms as modified hereby.

Section

6 Counterparts. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original but all

of which together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Amendment

by electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

[Signature

Pages Follow]

WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

PARENT:

USA

RARE EARTH, INC.

By:

/s/

Barbara Humpton

Name:

Barbara

Humpton

Title:

Chief

Executive Officer

MERGER

SUB:

MIDDLEBURY

MERGER SUB LTD.

By:

/s/

David Kronenfeld

Name:

David

Kronenfeld

Title:

Sole

Director

[Signature

Page to Amendment No. 1 to Agreement and Plan of Merger]

WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above written.

THE

COMPANY:

SVRE

HOLDINGS LTD.

By:

/s/

Sir Mick Davis

Name:

Sir

Mick Davis

Title:

Authorized

Person

THE

SELLER REPRESENTATIVE:

SERRA

VERDE RARE EARTHS LTD.,

solely

in its capacity as the Seller

Representative hereunder

By:

/s/

Justin Machin

Name:

Justin

Machin

Title:

Authorized

Person

[Signature

Page to Amendment No. 1 to Agreement and Plan of Merger]

EX-99.1 — UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS OF USAR AS OF AND FOR THE THREE MONTHS ENDED MARCH 31, 2026, AND FOR THE YEAR ENDED DECEMBER 31, 2025

EX-99.1

Filename: ea029675201ex99-1.htm · Sequence: 3

Exhibit 99.1

UNAUDITED

PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Introduction

The

following unaudited pro forma condensed combined financial information is derived from the historical consolidated financial statements

of USA Rare Earth, Inc. (“USAR” or the “Company”), and the historical consolidated financial statements of SVRE

Holdings Ltd. (“SVRE”), and gives effect to (i) the Merger (as defined below), (ii) the Private Placement (as defined

below), (iii) the Retained Finance Agreement (as defined below), (iv) the Offtake Agreement (as defined below), and (v) the issuance

of Earnout Shares (as defined below) (collectively, the “Pro Forma Transactions”).

August 21, 2024, Inflection Point Acquisition Corp. II, a Cayman Islands exempted company (“IPXX”) entered into

a Business Combination Agreement (as amended on November 11, 2024 and January 30, 2025, the “Business Combination Agreement”),

by and among IPXX, USA Rare Earth, LLC, a Delaware limited liability company, and IPXX Merger Sub, LLC, a Delaware limited liability

company and a direct wholly owned subsidiary of IPXX. Pursuant to the Business Combination Agreement, IPXX Merger Sub, LLC

merged with and into USA Rare Earth, LLC, with USA Rare Earth, LLC continuing as the surviving company, and IPXX changed its name to

USA Rare Earth, Inc. On March 13, 2025, USAR consummated the previously announced merger contemplated by the Business Combination

Agreement and USA Rare Earth, LLC became a direct wholly owned subsidiary of USAR. This transaction is already reflected in the

USAR historical audited consolidated balance sheet as of December 31, 2025 and the historical statement of operations of IPXX from

January 1, 2025 to March 12, 2025 is not material to the pro forma presentation of the Merger (as defined below) for the purpose

of unaudited pro forma condensed combined statement of operations.

Merger

April 19, 2026, USAR entered into a Merger Agreement by and among (i) USAR, (ii) Middlebury Merger Sub Ltd. (“Merger

Sub”), (iii) SVRE, and (iv) Serra Verde Rare Earths Ltd. The Merger Agreement provides for the merger of SVRE with and

into Merger Sub, with Merger Sub surviving such merger as an indirect, wholly owned subsidiary of USAR (the “Merger”), subject

to the satisfaction or waiver of the conditions precedent to such closing. In the Merger, USAR will issue 126,849,307 shares of USAR’s

common stock, par value $0.0001 per share (“Common Stock”) and pay an aggregate of $300 million of merger consideration.

Upon

closing, all outstanding warrants of SVRE will be automatically exercised and converted into SVRE ordinary shares immediately prior to

the Merger. All outstanding RSUs and SARs, whether vested or unvested, will accelerate in full and be cancelled in exchange for a pro

rata portion of the merger consideration. Stock options not subject to performance conditions will be similarly cancelled on a cashless

basis for merger consideration, while performance-vesting options held by continuing service providers will be substituted with USAR

RSUs subject to continued service vesting. SVRE’s equity incentive plan will be terminated at closing.

Private

Placement

January 26, 2026, USAR, entered into a securities purchase agreement, for the private placement of 69,767,442 shares of the USAR’s

Common Stock, for aggregate gross proceeds of approximately $1.5 billion, at a price per share of $21.50 (the “Private Placement”).

USAR closed the Private Placement and issued the shares of Common Stock on January 28, 2026.

Parent

Loan Agreement

Concurrently

with the execution of the Direct Funding Agreement and the Loan Guarantee Agreement, USAR entered into a Securities Issuance Agreement

with the DOC and issued to the DOC 16,132,790 shares of Common Stock (“the SIA Shares”) and a warrant to purchase 17,600,584

shares of Common Stock at an exercise price of $17.17 per share (the “DOC Warrant”).

Based

on preliminary conclusions, the SIA Shares were issued in exchange for access to the awards pursuant to the Direct Funding Agreement

and the warrant to purchase 17,600,584 shares of Common Stock was issued in exchange for obtaining the Loan Guarantee Agreement. The

Company has recorded deferred financing and other transaction costs for the issuance of the SIA Shares and warrant.

The

issuance of the SIA Shares has been reflected in the unaudited pro forma condensed combined balance sheet as of March 31, 2026 as an

increase in stockholders’ equity of $451.4 million which represents the fair value of the SIA Shares at the date of issuance,

an increase in other non-current assets of $277.0 million which represents a deferred financing cost related to the maximum award

amount of $277.0 million pursuant to the Direct Funding Agreement, and an increase in accumulated deficit of $174.4 million which

represents the cost of obtaining the Direct Funding Agreement which is equal to the difference between the fair value of the SIA

Shares at issuance and the maximum direct funding award. The deferred financing cost will commence amortization pro ratably upon

recognition of grant income under the Direct Funding Agreement, which is subject to the achievement of various project-specific

milestones, the making of cash equity contributions by USAR to its subsidiaries, the satisfaction of financial ratio and liquidity

thresholds, the receipt of required permits and approvals and other customary conditions, which have not yet been satisfied as of

the date of this filing. As such no amortization of the deferred financing cost has been reflected in the accompanying unaudited pro

forma condensed combined financial information.

The

Company has determined that the warrant issued to the DOC is liability-classified, with an initial fair value of $24.48 per common share,

or approximately $430.9 million in aggregate as of the issuance date of June 3, 2026. The DOC Warrant liability will be remeasured at

fair value at the end of each reporting period, with changes in fair value recognized as a gain or loss within other income (expense),

net in the Company’s condensed consolidated statements of operations and comprehensive income (loss). The DOC Warrant liability

was initially recorded at fair value with an offsetting entry recorded as a deferred loan commitment asset until the debt associated

with the Parent Loan Agreements is drawn. Upon each draw, the deferred loan commitment asset will be derecognized proportionately, and

recorded as a component of the related debt’s amortized cost basis, which will be amortized over the term of the debt using the

effective interest method. As of the date of this filing, no amounts associated with the Parent Loan Agreements had been drawn. Accordingly,

no reclassification of the deferred loan commitment asset to related debt’s amortized cost basis has been reflected on the Company’s

unaudited pro forma condensed combined balance sheet as of March 31, 2026, and no related amortization expense has been reflected in

the Company’s unaudited pro forma condensed combined statements of operations for the three months ended March 31, 2026 and for

the year ended December 31, 2025.

The

Company’s accounting for the Securities Issuance Agreement, including the issuance of the SIA Shares and the DOC Warrant is preliminary.

Accordingly, the treatment depicted in the unaudited pro forma condensed financial information may change as the Company completes its

accounting assessment.

The

Retained Finance Agreement

January 21, 2026, SVRE entered into a Finance Agreement with the United States International Development Finance Corporation

(the “DFC”), which was amended on March 5, 2026 (as further amended from time to time, the “Retained Finance Agreement”).

The Retained Finance Agreement provides SVRE with long-term debt financing to support its rare earth mining and processing operations

in an aggregate committed amount not to exceed $565 million, consisting of (i) an initial loan tranche with a principal amount

not to exceed $465 million (the “Initial Loan”), and (ii) a second loan tranche with a principal amount not to

exceed $100 million (the “Incremental Loan”). As of March 31, 2026, the aggregate outstanding principal amount

of indebtedness of SVRE and its subsidiaries under the Retained Finance Agreement was $325 million.

May 28, 2026, SVRE and the DFC entered into the Second Amendment to the Finance Agreement, which formalized the inclusion of a $100 million

Incremental Loan as a second tranche under the existing $465 million Initial Loan facility. The Second Amendment also extended the loan

term for both tranches from up to 12 years to up to 15 years from the first closing date, upon the execution of the Offtake Agreement

(see discussion below). In connection with the Incremental Loan, DFC was issued two warrants (the “DFC Warrants”) granting

a combined 12% fully diluted equity interest in the Company, which will automatically exercise upon the closing of the Merger, at which

point the Incremental Loan shall be deemed extinguished in full. The Incremental Loan was closed on June 4, 2026.

The

Initial Loan issuance was reflected in the historical unaudited condensed consolidated balance sheet of SVRE as of March 31, 2026, accordingly,

no adjustment has been reflected within the unaudited pro forma condensed combined balance sheet for such amounts. The Incremental Loan

and the DFC Warrants issuance on June 4, 2026, and the DFC Warrants exercise and extinguishment of the Incremental Loan upon the closing

of the Merger, have been included as an other material transaction adjustment within the unaudited pro forma condensed combined balance

sheet as of March 31, 2026. Adjustments for the Initial Loan have been included within the unaudited pro forma condensed combined statement

of operations for the three months ended March 31, 2026 and for the year ended December 31, 2025 assuming the Initial Loan was entered

and drawn down on January 1, 2025.

The

Offtake Agreement

or about the date of the Merger Agreement, SV Management Switzerland AG (“SV Management Switzerland”), a subsidiary of SVRE,

entered into an offtake agreement with a special purpose vehicle capitalized by the U.S. government, as well as private capital sources

(the “Counterparty”) (as amended from time to time, the “Offtake Agreement”) for the long-term supply of rare

earth materials produced by SVRE.

The Offtake Agreement provides for the sale of 100% of the rare earth

products produced from phase one of the Pela Ema project, subject to limited carve-outs. The Incremental Loan was fully disbursed on June

4, 2026, and SVRE’s delivery obligation will be for 100% of phase one production. The agreement remains in effect until the earlier

of specified production-based volume delivery thresholds and the date that is 20 years after the date on which SVRE’s facility

becomes capable of producing the contemplated products (the “Commercial Operations Date”), unless extended with the consent

of the U.S. government. Pricing is based on annually escalated contractual floor prices, with amounts above the applicable floor price,

as well as certain cost savings and yield variances, allocated 70% to SV Management Switzerland and 30% to the Counterparty. Commencement

of deliveries is subject to the satisfaction or waiver of specified conditions precedent by the agreed long-stop date, June 12, 2026,

and either party may terminate the agreement without liability if such conditions are not satisfied or waived by that date. As the Offtake

Agreement has been executed subsequent to March 31, 2026, adjustments related to the Offtake agreement have been included within the unaudited

pro forma condensed combined financial statements. On June 29, 2026, SV Management Switzerland and the Counterparty entered into an amendment,

consent and waiver to the Offtake Agreement that extended the long-stop date from June 12, 2026 to August 14, 2026.

Issuance

of Earnout Shares

connection with the business combination between the Company and USA Rare Earth, LLC, the Company agreed to issue common stock of the

Company (the “earnout shares”) to certain shareholders of USA Rare Earth, LLC in two tranches upon the occurrence of certain

triggering events. On April 15, 2026, the Company achieved the market-price condition for the first tranche of earnout shares, as the

Company’s common stock exceeded $15.00 per share for at least 20 out of 30 consecutive trading days. 5.05 million shares were issued

to USA Rare Earth, LLC shareholders. The second tranche of 5.05 million earnout shares were issued on May 15, 2026 when the Company achieved

the market-price condition for the second tranche, as the Company’s common stock exceeds $20.00 per share for at least 20 out of

30 consecutive trading days.

The

earnout shares were classified as liabilities and remeasured at fair value on a recurring basis prior to conversion. Upon issuance of

the two tranches of the earnout shares, the related earnout liability was reclassified to common stock and additional paid-in capital.

The effect of the conversion has been included within the unaudited pro forma condensed combined balance sheet as of March 31, 2026.

Presentation

Periods

The

unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X

and should be read in conjunction with the accompanying notes.

The

unaudited pro forma condensed combined balance sheet as of March 31, 2026 combines the unaudited condensed consolidated balance

sheet of USAR as of March 31, 2026 with the unaudited condensed consolidated balance sheet of SVRE as of March 31, 2026, giving

effect to the Pro Forma Transactions as if it had been consummated on March 31, 2026.

The

unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2026 combines the unaudited condensed

consolidated statement of operations of USAR for the three months ended March 31, 2026 with the unaudited condensed consolidated statement

of operations of SVRE for the three months ended March 31, 2026, giving effect to the Pro Forma Transactions as if it had been consummated

on January 1, 2025.

The

unaudited pro forma condensed combined statement of operations for the year ended December 31, 2025 combines the audited consolidated

statement of operations of USAR for the year ended December 31, 2025 with the audited consolidated statement of operations of SVRE

for the year ended December 31, 2025, giving effect to the Pro Forma Transactions as if it had been consummated on January 1,

2025.

The

unaudited pro forma condensed combined financial information was derived from, and should be read in conjunction with, the following

historical financial statements and the accompanying notes:

● The

historical audited consolidated financial statements of USAR as of and for the year ended

December 31, 2025, as included in the Company’s Annual Report on Form 10-K filed with

the SEC on March 30, 2026;

● The

historical unaudited condensed consolidated financial statements of USAR as of and for the

three months ended March 31, 2026, as included in the Company’s Quarterly Report on

Form 10-Q filed with the SEC on May 14, 2026;

● The

historical audited financial statements of SVRE as of and for the year ended December 31,

2025, included as Exhibit 99.3 in the Company’s Current Report on Form 8-K filed with

the SEC on May 13, 2026.

The

historical unaudited condensed consolidated balance sheet and statement of operations of SVRE as of and for the three months ended March

31, 2026 are derived from the books and records of SVRE. The unaudited pro forma condensed combined financial information should also

be read together with other financial information included elsewhere or filed with the SEC.

Accounting

for the Merger

The

unaudited pro forma condensed combined financial information has been prepared using the acquisition method of accounting in accordance

with accounting principles generally accepted in the United States (“U.S. GAAP”). USAR has been identified as an

accounting acquirer for accounting purposes, and thus accounts for the Merger as a business combination in accordance with Accounting

Standards Codification Topic 805, Business Combinations (“ASC 805”). Under the acquisition method of accounting,

SVRE’s assets and liabilities will be recorded at their respective fair values. Any difference between the purchase price for SVRE

and the fair value of the identifiable net assets acquired (including intangibles) will be recorded as goodwill. The assets and liabilities

of SVRE have been measured based on various preliminary estimates using assumptions that USAR’s management believes are reasonable

and based on currently available information. Accordingly, the pro forma adjustments are preliminary and have been made solely for the

purpose of providing this unaudited pro forma condensed combined financial information.

Differences

between these preliminary estimates and the final purchase accounting may occur, and the final purchase accounting could be materially

different from the preliminary estimates used to prepare the accompanying unaudited pro forma condensed combined financial information

and could have a material impact on the combined company’s future results of operations and financial position.

Basis

of Pro Forma Presentation

The

unaudited pro forma condensed combined financial information appearing below does not consider any potential effects of changes in market

conditions on revenues or expense efficiencies, among other factors. In addition, as explained in more detail in the accompanying notes,

the preliminary allocation of the pro forma purchase price reflected in the unaudited pro forma condensed combined financial information

is subject to adjustment and may vary significantly from what will be recorded upon completion of the final purchase price allocation.

The

unaudited pro forma condensed combined financial information has been prepared based on the aforementioned historical financial statements

and the assumptions and adjustments as described in the notes to the unaudited pro forma condensed combined financial information. The

pro forma adjustments reflect transaction accounting adjustments related to the Pro Forma Transactions, which are discussed in further

detail below. The unaudited pro forma condensed combined financial information is presented for illustrative purposes only and do not

purport to represent the combined company’s consolidated results of operations or the consolidated financial position that would

actually have occurred had the Pro Forma Transactions been consummated on the dates assumed or to project the combined company’s

consolidated results of operations or consolidated financial position for any future date or period.

The

accounting policies followed in preparing the unaudited pro forma condensed combined financial information are those used by USAR as

set forth in the audited historical financial statements. Based on the Company’s initial review and understanding of SVRE’s

significant accounting policies, there are no material adjustments required at this time to conform SVRE’s historical financial

information to USAR’s significant accounting policies. A more comprehensive comparison and assessment will occur, which may result

in additional differences being identified. Additionally, USAR has included certain preliminary presentation adjustments for consistency

in the financial statement presentation. See Notes 2 and 3 below for more information.

The

unaudited pro forma condensed combined financial information is presented for illustrative purposes only and does not reflect the

costs of any integration activities or cost savings or synergies that may be achieved because of the Merger.

USAR

and SVRE have not had any historical material relationship prior to the Merger. Accordingly, no pro forma adjustments were required to

eliminate activities between the companies.

Unaudited

Pro Forma Condensed Combined Balance Sheet

As of March 31, 2026

(in thousands)

USAR

Historical

SVRE

Historical

Presentation

Adjustments

Transaction

Accounting

Adjustments

Other

Material

Transactions

Pro Forma

Combined

ASSETS

Current assets

Cash and cash equivalents

$ 1,749,644

$ 110,417

$ (300,000 )(B)

$ 99,000 (E)

$ 1,659,061

Accounts receivables

5,691

5,722

Other receivables

—

241

(241 )(A)

—

Inventories

28,430

21,231

49,661

Prepaid expenses and other current assets

6,621

3,760

241 (A)

10,622

Total current assets

1,790,386

135,680

—

(300,000 )

99,000

1,725,066

Property, plant and equipment, net

118,967

611,588

1,000 (A)

2,510,291 (B)

3,227,041

(14,805 )(A)

Mineral interests

17,339

—

14,805 (A)

32,144

Goodwill

134,848

—

1,090,843 (B)

(99,000 )

1,126,691

Other intangible assets, net

67,255

—

246,691 (B)

313,946

Equipment deposits

5,364

—

5,364

Operating lease right-of-use assets

473

—

473

Other non-current assets

207

1,193

(1,000 )(A)

277,000 (F)

708,262

430,862 (G)

Total assets

$ 2,134,839

$ 748,461

$ —

$ 3,547,825

$ 707,862

$ 7,138,987

LIABILITIES, MEZZANINE AND STOCKHOLDER’S EQUITY

Liabilities

Current liabilities

Accounts payable

$ 17,084

$ 15,647

$ (6,702 )(A)

$ 26,029

Accrued liabilities

21,360

—

13,190 (A)

113,000 (C)

147,995

445 (A)

Contract liabilities

10,377

—

10,377

Salaries and social charges

—

6,488

(6,488 )(A)

—

Taxes payable

—

414

Other current liabilities

—

445

(445 )(A)

—

Royalty agreement

—

11,443

DFC Loan

—

2,232

Finance leases, current

286

933

1,219

Operating leases, current

232

—

232

Total current liabilities

49,339

37,602

—

113,000

—

199,941

Royalty agreement

—

65,534

149,881 (B)

215,415

DFC Loan

—

297,009

Please

refer to the notes to the unaudited pro forma condensed combined financial information.

Unaudited

Pro Forma Condensed Combined Balance Sheet

As of March 31, 2026 — (Continued)

(in thousands)

USAR

Historical

SVRE

Historical

Presentation

Adjustments

Transaction

Accounting

Adjustments

Other

Material

Transactions

Pro Forma

Combined

Asset retirement

obligations

—

4,738

Deferred grant income

8,414

—

8,414

Finance leases, non-current

519

180

699

Operating leases,

non-current

244

—

244

Other liabilities

—

1,564

Earnout liability

145,080

—

(145,080 )(D)

—

Warrant liability

26,491

14,841

(14,841 )(B)

430,862 (G)

457,353

Deferred tax liability

16,179

—

886,414 (B)

902,593

Total liabilities

246,266

421,468

—

1,134,454

285,782

2,087,970

Commitments and contingencies

Mezzanine equity

12% Series A Cumulative Convertible Preferred Stock

9,614

—

9,614

Total mezzanine

equity

9,614

—

9,614

Stockholders’ equity

Common stock

—

16 (B)

1 (D)

2 (F)

Accumulated other comprehensive income (loss)

(200 )

(18,126 )

18,126 (B)

(200 )

Additional paid-in capital

2,332,912

615,756

(615,756 )(B)

215,826 (D)

5,853,479

2,853,348 (B)

451,393 (F)

Accumulated deficit

(454,349 )

(270,637 )

270,637 (B)

(70,747 )(D)

(812,491 )

(113,000 )(C)

(174,395 )(F)

Non-controlling interest

574

—

574

Total stockholders’ equity

1,878,959

326,993

—

2,413,371

422,080

5,041,403

Total liabilities, mezzanine equity, and stockholder’s equity

$ 2,134,839

$ 748,461

$ —

$ 3,547,825

$ 707,862

$ 7,138,987

Please

refer to the notes to the unaudited pro forma condensed combined financial information.

Unaudited

Pro Forma Condensed Combined Statement of Operations

For the Three Months Ended March 31, 2026

(in thousands except per share amounts)

USAR

Historical

SVRE

Historical

Presentation

Adjustments

Transaction

Accounting

Adjustments

Other

Material

Transactions

Pro Forma

Combined

Revenue

$ 5,698

$ 588

$ 6,286

Cost of revenue

5,592

5,009

10,601

Gross profit

106

(4,421 )

—

(4,315 )

Operating expenses:

Selling, general and administrative

21,175

8,026

346 (AA)

1,219 (DD)

30,766

Research and

development

14,249

—

14,249

Amortization of intangible assets

1,357

—

1,357

Other expenses, net

—

2,365

Total operating expenses

36,781

10,391

346

1,219

—

48,737

Loss from

operations

(36,675 )

(14,812 )

(346 )

(1,219 )

—

(53,052 )

Other (expense) income,

net:

Interest and dividend income

11,970

175

12,145

Loss on fair market

value of financial

instruments, net

(43,553 )

—

(6,216 )(AA)

6,216 (EE)

(43,553 )

Interest expense and other loss, net

(593 )

(12,218 )

6,562 (AA)

2,276 (FF)

(6,547 )

(4,028 )(GG)

1,454 (HH)

Grant income

206

—

206

Foreign currency exchange, net

—

15,800

Total other expense,

net

(31,970 )

3,757

346

—

5,918

(21,949 )

Loss before taxes

(68,645 )

(11,055 )

—

(1,219 )

5,918

(75,001 )

Benefit from income taxes

(577 )

—

(577 )

Net loss

(68,068 )

(11,055 )

—

(1,219 )

5,918

(74,424 )

Net loss attributable to non-controlling interest

(1,079 )

—

(1,079 )

Net loss attributable to USA Rare Earth, Inc.

$ (66,989 )

$ (11,055 )

$ —

$ (1,219 )

$ 5,918

$ (73,345 )

Net loss per share attributable to USA Rare Earth, Inc.:

Basic and diluted

$ (0.34 )

$ (0.06 )

$ (0.21 )

Number of shares used in per share calculations:

Basic and diluted

196,479

193,429

349,561

Please

refer to the notes to the unaudited pro forma condensed combined financial information.

Unaudited

Pro Forma Condensed Combined Statement of Operations

For the Year Ended December 31, 2025

(in thousands except per share amounts)

USAR

Historical

SVRE

Historical

Presentation

Adjustments

Transaction

Accounting

Adjustments

Other

Material

Transactions

Pro Forma

Combined

Revenue

$ 1,643

$ 2,486

$ 4,129

Cost of revenue

1,448

36,105

37,553

Gross profit

195

(33,619 )

—

(33,424 )

Operating expenses:

Selling, general and administrative

43,135

25,803

278 (AA)

113,000 (CC)

192,609

10,393 (DD)

Research and development

15,885

—

15,885

Amortization of intangible assets

678

—

678

Other expenses, net

—

1,440

Total operating expenses

59,698

27,243

278

123,393

—

210,612

Loss from operations

(59,503 )

(60,862 )

(278 )

(123,393 )

—

(244,036 )

Other (expense) income, net:

Interest and dividend

income

5,446

2,671

8,117

Loss on fair market value of financial instruments, net

(244,488 )

—

(7,652 )(AA)

7,652 (EE)

(244,488 )

Interest expense and other income (loss), net

(139 )

(9,873 )

7,930 (AA)

4,268 (FF)

(23,320 )

(26,206 )(GG)

700 (HH)

Foreign currency exchange, net

—

49,532

Total other expense, net

(239,181 )

42,330

278

—

(13,586 )

(210,159 )

Loss before taxes

(298,684 )

(18,532 )

—

(123,393 )

(13,586 )

(454,195 )

Benefit from income taxes

(160 )

—

(160 )

Net loss

(298,524 )

(18,532 )

—

(123,393 )

(13,586 )

(454,035 )

Net loss attributable to non-controlling interest

(965 )

—

(965 )

Net loss attributable to USA Rare Earth, Inc.

$ (297,559 )

$ (18,532 )

$ —

$ (123,393 )

$ (13,586 )

$ (453,070 )

Net loss per share attributable to USA Rare Earth, Inc.:

Basic and diluted

$ (3.31 )

$ (0.10 )

$ (1.54 )

Number of shares used in per share calculations:

Basic and diluted

98,021

193,429

310,771

Please

refer to the notes to the unaudited pro forma condensed combined financial information.

NOTES

TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Basis of Presentation

The

pro forma adjustments have been prepared as if the Pro Forma Transactions had been consummated on March 31, 2026, in the case of

the unaudited pro forma condensed combined balance sheet, and, in the case of the unaudited pro forma condensed combined statements of

operations, as if the Pro Forma Transactions had been consummated on January 1, 2025, the beginning of the earliest period presented

in the unaudited pro forma condensed combined statements of operations.

The

unaudited pro forma condensed combined financial information has been prepared assuming the acquisition method of accounting in accordance

with U.S. GAAP. Under this method, SVRE’s assets and liabilities will be recorded at their respective fair values. Any

difference between the purchase price for SVRE and the fair value of the identifiable net assets acquired (including intangibles) will

be recorded as goodwill. The assets and liabilities of SVRE have been measured based on various preliminary estimates using assumptions

that USAR’s management believes are reasonable and based on currently available information. Accordingly, the pro forma adjustments

are preliminary and have been made solely for the purpose of providing this unaudited pro forma condensed combined financial information.

The

pro forma adjustments represent management’s estimates based on information available as of the date of the Form 8-K in which these

pro forma financial statements are included and are subject to change as additional information becomes available and additional analyses

are performed.

USAR

has performed a preliminary review to identify any accounting policy differences between the accounting policies used in SVRE’s

financial statements and those of the Company, where the impact was potentially material and could be reasonably estimated, with the

Company identifying no such differences.

Adjustments to the Unaudited Pro Forma Condensed Combined Balance Sheet as of March 31, 2026

The

adjustments included in the unaudited pro forma condensed combined balance sheet as of March 31, 2026 are as follows:

(A) Reflects

reclassification adjustments to conform SVRE’s historical balances to the financial statement presentation of USAR.

(B) Reflects

the purchase price allocation adjustments to record SVRE’s identifiable assets acquired and liabilities assumed at their estimated

fair values as of the acquisition date. The related statement of operations adjustments are reflected at adjustment (BB). This adjustment

reflects the recording of the preliminary estimate of goodwill and the elimination of the historical equity balances of SVRE. Additionally,

the adjustment removes SVRE’s outstanding warrant liability, to reflect the conversion of all warrants into SVRE’s ordinary

shares immediately prior to the Merger.

Pursuant

to ASC 805, the preliminary purchase price was allocated among the identified net assets to be acquired, based on a preliminary

analysis. Goodwill is expected to be recognized as a result of the Merger, which represents the excess fair value of consideration over

the fair value of the underlying net assets of SVRE. The deferred income taxes represent the deferred tax impact associated with

the incremental differences in book and tax basis created from the preliminary purchase price allocation. Deferred taxes associated with

estimated fair value adjustments were calculated using the statutory corporate tax rate in Brazil of 34%. The estimates of fair value

are based upon preliminary valuation assumptions, and are believed to be reasonable, but are inherently uncertain and unpredictable.

As a result, actual results may differ from estimates, and the difference may be material.

The

following is a preliminary estimate of fair value of the assets acquired and the liabilities assumed by USAR in the Merger, reconciled

to the estimated purchase consideration (in thousands):

Net Assets Identified

Preliminary

Estimate of

Fair Value

Cash and cash equivalents

$ 209,417

Accounts receivable

Inventories

21,231

Prepaid expenses and other current assets

4,001

Property, plant and equipment, net (incl. mineral interests)(1)

3,122,879

Other intangible assets, net(2)

246,691

Other non-current assets

193

Accounts payable

(8,945 )

Accrued liabilities

(13,635 )

Tax payable

(414 )

Royalty agreement – current(3)

(11,443 )

DFC loan, current

(2,232 )

Finance lease, current

(933 )

Royalty agreement – noncurrent(3)

(215,415 )

DFC loan, noncurrent

(297,009 )

Asset retirement obligations

(4,738 )

Finance leases, non-current

(180 )

Other liabilities

(1,564 )

Deferred tax liabilities

(886,414 )

Total net assets identified

$ 2,161,521

Goodwill

991,843

Total purchase consideration

$ 3,153,364

Value Conveyed

Cash consideration(4)

$ 300,000

Equity consideration(5)

2,850,304

Pre-combination expense for vested performance stock options(6)

3,060

Total purchase consideration

$ 3,153,364

(1) The

$3.1 billion allocated to property, plant and equipment, net, is related to development stage properties. Upon the closing of the Merger,

the mine will continue to be designated as a development stage property, and related development costs will continue to be capitalized

until the milestones necessary to be considered operational are achieved. An expansion and optimization project is currently being implemented

that is expected to result in higher production capacity, a sustained lower operating cost profile and enhanced product quality. Construction

is expected to be completed, and commercial operations are expected to commence in 2027.

(2) Other

intangible assets is comprised of an Offtake Agreement. The Offtake Agreement asset is expected to be amortized on a systematic basic

using the units of production method. As of the date of the Form 8-K in which these pro forma financial statements are included, delivery

pursuant to the Offtake Agreement has not started. Accordingly, amortization of the Offtake Agreement had not commenced as of the pro

forma transaction date and no related amortization expense has been reflected in the unaudited pro forma condensed combined statement

of operations.

(3) This

reflects an increase in the fair value of the liability for royalty payments due to an increase in estimated future cash payments. The

increase in estimated future cash payments is primarily related to the anticipated impact of the Offtake Agreement.

(4) This

amount represents cash consideration paid to SVRE’s shareholders.

(5) Equity

consideration is provided in the form of Common Stock of USAR and is calculated as 126,849,307 shares of USAR Common Stock to be issued

to SVRE shareholders, multiplied by $22.47, the closing share price of USAR on June 5, 2026.

The

following table shows the effect of changes in USAR’s share price and the resulting impact on the estimated purchase consideration,

and estimated goodwill:

Change in Share Price of USAR

Price

Estimated

Purchase

Consideration

(in thousands)

Estimated

Goodwill

(in thousands)

Increase of 25%

$ 28.09

$ 3,865,939

$ 1,704,419

Decrease of 25%

16.85

2,440,787

279,267

(6) This

reflects the pre-combination expense pertaining to options to purchase SVRE shares subject to performance-vesting conditions (the “Performance-Vesting

Options”) which will be substituted with USAR time-vesting restricted stock units.

the impact of nonrecurring expenses related to estimated transaction costs, primarily comprised of investment banking fees, legal fees,

issuance costs, accounting and audit fees, and other related advisory costs. No amount was incurred and accrued on the balance sheet

as of March 31, 2026. The related income statement adjustment is reflected at adjustment (CC).

(D) Reflects

the issuance of USAR’s common stock in an amount of $216 million upon conversion of earnout liabilities of $145 million. The $71

million increase in fair value of the earnout liability between March 31, 2026 and the conversion dates will be recorded as loss on fair

market value of financial instruments, net in the Company’s unaudited condensed consolidated statement of operations and comprehensive

income (loss) for the three and six months ended June 30, 2026.

(E) Reflects

i) the issuance of the Incremental Loan pursuant to the Retained Finance Agreement in an amount of $100 million, net of estimated debt

issuance costs of $1 million; ii) the reduction to goodwill due to the increase of the SVRE’s net assets of $99 million. The warrant

liability upon the issuance of the DFC Warrants will be eliminated upon the closing of the Merger, at which point the DFC Warrants will

be exercised. The Incremental Loan will be deemed to be extinguished upon the exercise of the DFC Warrants, pursuant to which the outstanding

principal amount of the Incremental Loan shall be deemed repaid in full, and unpaid accrued interest will be settled in cash. The amount

of the interest accrual will be determined upon the closing of the Merger. As both the DFC Warrant and the Incremental Loan are assumed

to be exercised and extinguished, respectively, upon the closing of the Merger, no adjustment has been reflected in the unaudited pro

forma condensed combined statement of operations. The recognition of the Incremental Loan and DFC Warrant liability will be recorded

in SVRE’s unaudited condensed financial statements as of and for the six months ended June 30, 2026.

(F) Reflects

the issuance of 16,132,790 shares of USAR common stock, with a fair value of approximately $451.4 million to the DOC pursuant to the

Securities Issuance Agreement dated June 3, 2026, as a condition precedent to the Direct Funding Agreement under the CHIPS Act. The deferred

financing cost represents the deferred asset recoverable through the maximum direct funding award which is $277.0 million, and will commence

amortization upon recognition of grant income under the Direct Funding Agreement. The $174.4 million difference between the fair value

of the SIA shares and the deferred financing cost represents the cost of obtaining the Direct Funding Agreement which is presented as

an increase to accumulated deficit.

(G) Reflects

the issuance of the warrant to the DOC to purchase 17,600,584 shares of USAR common stock pursuant to the Warrant to Purchase Common

Shares of USA Rare Earth, Inc Agreement dated June 3, 2026, as a condition precedent to the Loan Guarantee Agreement. The DOC Warrant’s

initial fair value approximates $430.9 million. The corresponding deferred loan commitment asset recorded upon the issuance of the warrant

to the DOC will be derecognized proportionately as a component of the related debt’s amortized cost basis as the debt is drawn,

and will be amortized over the term of the debt using the effective interest method. The changes in fair value of the warrant liability

will be recognized as a gain or loss within other income (expense), net in the Company’s condensed consolidated statements of operations

and comprehensive income (loss).

Adjustments to the Unaudited Pro Forma Condensed Combined Statement of Operations for the three months ended March 31, 2026 and for the

year ended December 31, 2025

The

adjustments included in the unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2026

and for the year ended December 31, 2025 are as follows:

(AA) Reflects

a reclassification adjustment to conform SVRE’s historical expenses to the financial statement presentation of USAR.

(CC) Reflects

the recognition of nonrecurring expenses related to estimated transaction costs in the amount of $113 million, which are primarily comprised

of investment banking fees, legal fees, issuance costs, accounting and audit fees, and other related advisory costs. The related balance

sheet adjustment is reflected at adjustment (C).

(DD) Reflects

the recognition of post-combination stock-based compensation expense in the amount of $1.2 million for the three months ended March 31,

2026 and $10.4 million for the year ended December 31, 2025 related to Performance-Vesting Options which will be substituted with USAR

time-vesting restricted stock units.

(EE) Reflects

the elimination of the recognized loss due to the change in fair value of warrant liability in an amount equal to $6.2 million for the

three months ended March 31, 2026 and $7.7 million for the year ended December 31, 2025 related to the private placement warrants issued

by SVRE to its investors. These warrants will be settled through equity consideration to the holders pursuant to the Merger. The related

balance sheet adjustment is reflected in adjustment (B).

(FF) Reflects

the elimination of interest related to Class A Preferred Shares in an amount equal to $2.3 million for the three months ended March 31,

2026 and $4.3 million for the year ended December 31, 2025 due to their redemption pursuant to the side letter agreement, dated March

5, 2026, between SVRE and Orion.

(GG) Reflects

estimated interest expense related to long-term debt financing of SVRE pursuant to the Retained Finance Agreement, calculated using an

estimated interest rate of Term SOFR plus 4%. This adjustment also includes the amortization of estimated debt discount and debt issuance

costs of $0.5 million for the three months ended March 31, 2026 and $1.9 million for the year ended December 31, 2025. An increase or

decrease of one-eighth of a percent in the interest rate would not result in a significant change in interest expense for the three months

ended March 31, 2026 and for the year ended December 31, 2025.

(HH) Reflects

the elimination of interest related to the OMF Credit Agreement in an amount equal to $1.5 million for the three months ended March 31,

2026 and $0.7 million for the year ended December 31, 2025 due to their repayment.

Unaudited Pro Forma Net Loss Per Share

The

pro forma net loss per share calculations have been performed for the three months ended March 31, 2026 and for the year ended December 31,

2025, assuming the Pro Forma Transactions had been consummated on January 1, 2025.

(in thousands except per share amounts)

For the

Three Months Ended

March 31,

2026

For the

Year Ended

December 31,

2025

Numerator

Pro forma net loss attributable to USA Rare Earth, Inc.

$ (73,345 )

$ (453,070 )

Declared and deemed dividends, and interest accretion

(709 )

(26,594 )

Pro forma undistributed net loss attributable to USA Rare Earth, Inc.

$ (74,054 )

$ (479,664 )

Denominator

USAR weighted average number of common shares outstanding-basic

196,479

98,021

Add: Shares issued to SVRE shareholders in a Merger

126,849

Add: Shares issued in a private placement(*)

—

69,767

Add: Shares issued for earnout payments

10,100

—

Add: Shares issued to DOC

16,133

Pro forma weighted average shares of common stock outstanding – basic & diluted

349,561

310,771

Pro forma net loss per share – basic & diluted

$ (0.21 )

$ (1.54 )

* Shares

to be issued in a private placement for the three months ended March 31, 2026 are already reflected in the historical unaudited condensed

consolidated financial statements of USAR and therefore are not reflected separately.

The

Company’s potentially dilutive outstanding securities, including DOC Warrant to purchase 17,600,584 shares of USAR Common Stock

were excluded from the computation of pro forma diluted net loss per share because their effect would have been anti-dilutive.

EX-99.2 — OTHER UPDATED DISCLOSURES

EX-99.2

Filename: ea029675201ex99-2.htm · Sequence: 4

Exhibit 99.2

USA Rare Earth, Inc. (“USAR,” “we,”

“our,” and “us”) is providing the additional information below for the purpose of supplementing disclosures contained

in USAR’s filings with the Securities and Exchange Commission (the “SEC”). Unless otherwise noted or the context otherwise

requires:

● references

to the “merger” refer to merger of SVRE Holdings Ltd. (“SVRE”) with

and into Middlebury Merger Sub Ltd. (“Merger Sub”), an indirect, wholly owned

subsidiary of USAR, with Merger Sub continuing as the surviving company and an indirect,

wholly owned subsidiary of USAR, pursuant to the Agreement and Plan of Merger, dated as of

April 19, 2026 (as it may be amended from time to time, the “Merger Agreement”),

by and among USAR, Merger Sub, SVRE and Serra Verde Rare Earths Ltd., as Shareholder Representative;

and

● references

to the “Parent Loan Agreement” refer to (i) a direct funding agreement (the “Direct

Funding Agreement”) among USAR, certain subsidiaries of USAR, as guarantors, and the

U.S. Department of Commerce (the “DOC”) entered into on June 3, 2026, providing

for direct funding awards with a maximum award amount of $277.0 million, and (ii) a loan

guarantee agreement (the “Loan Guarantee Agreement”) entered into on June 3,

2026 among USAR, certain subsidiaries of USAR, as guarantors, and the DOC, pursuant to which

the DOC has agreed to guarantee USAR’s repayment of advances in an aggregate principal

amount of up to $1.3 billion made by the Federal Financing Bank pursuant to a note purchase

agreement to be entered into among USAR, the Federal Financing Bank and the Secretary of

Commerce.

The issuance of shares of Common Stock in the merger and other

contemplated issuances will dilute the voting power of existing USAR stockholders and their percentage interest in any future earnings

of USAR.

In connection with the merger, USAR will issue 126,849,307

shares of USAR’s common stock, par value $0.0001 per share (“Common Stock”) to the former SVRE securityholders as aggregate

stock merger consideration.

As a result, the issuance of shares of Common Stock

in the merger will significantly reduce the relative voting power of existing USAR stockholders and dilute their percentage interest in

any future earnings, dividends or other distributions of USAR. The actual extent of any such dilution will depend on a number of

factors, including the number of shares of Common Stock outstanding at the effective time of the merger, the future operating results

of USAR and the combined company, and the timing and amount of any future issuances of Common Stock or other equity securities by USAR.

The impact of dilution to USAR’s shareholders

will also be impacted by other transactions that are currently pending or that have been consummated since the date of the Merger Agreement,

including (1) USAR’s agreement to issue 3,823,328 shares of Common Stock as merger consideration in connection with the proposed

acquisition of Texas Mineral Resources Corp. (“TMRC”) (the “TMRC Transaction”), (2) the issuance of 16,132,790

shares of Common Stock and a warrant to purchase 17,600,584 shares of Common Stock (at an exercise price of $17.17 per share) to the U.S. Department

of Commerce on June 3, 2026 in connection with the Parent Loan Agreement, (3) our commitment to issue approximately $13.5 million

of Common Stock (or pay cash) to Carester SAS (“Carester”) in connection with the proposed transaction with Carester (the

“Carester Transaction”), and (4) the issuance of an aggregate of 10,100,000 shares of Common Stock as earnout shares

(the “Earnout Shares”) upon the achievement of the applicable market-price conditions (5,050,000 shares issued on April 15,

2026 and 5,050,000 shares issued on May 15, 2026).

The following table quantifies, on a disaggregated basis, the potential

dilutive effect of these transactions and material agreements. Dilutive effect percentages are calculated based on 244,671,142 shares

of Common Stock outstanding as of June 29, 2026.

Transaction

Shares of

Common Stock

Issuable

% of Fully-

Diluted

Shares of Common Prior to Issuances Noted Below(1)

225,294,054

54.8 %

The Merger

126,849,307

30.9 %

U.S. Department of Commerce – Warrant(2)

17,600,584

4.3 %

U.S. Department of Commerce – Direct Funding Agreement(3)

16,132,790

3.9 %

Shares Reserved Under USAR Equity Incentive Plan for Future Grants

10,418,629

2.5 %

Earnout Shares(4)

10,100,000

2.5 %

TMRC Transaction

3,823,328

0.9 %

Carester Transaction(5)

641,722

0.2 %

Total Fully-Diluted Shares

410,860,414

100 %

(1) Includes shares of Common Stock outstanding and shares issuable

upon the exercise or conversion of outstanding equity instruments as of June 29, 2026, except for (1) the shares underlying

the warrant issued to the U.S. Department of Commerce on June 3, 2026, (2) the shares of Common Stock issued to the U.S. Department

of Commerce on June 3, 2026, (3) the Earnout Shares issued on April 15, 2026 and May 15, 2026, or (4) shares

reserved under USAR’s equity incentive plan for future grants, which are included as separate line items.

(2) Assumes full exercise at an exercise price of $17.17.

(3) Issued June 3, 2026.

(4) Consists of 5,050,000 shares issued on April 15, 2026 and

5,050,000 shares issued May 15, 2026.

(5) Number of shares estimated based on the dollar amount of the

share consideration to be issued in the transaction (approximately $13.5 million based on the EUR to USD exchange rate on June 29,

2026), divided by the closing price of the Common Stock on such date.

If the conditions precedent to the Offtake Agreement are not

satisfied or waived, or if the Offtake Agreement is terminated for any reason, SVRE may lose the significant commercial benefits provided

by the Offtake Agreement and be forced to seek alternative buyers on less favorable terms, which could materially adversely affect the

combined company’s business, financial condition, results of operations and prospects.

The Offtake Agreement (as defined below) was entered

into between SV Management Switzerland AG (“SV Management Switzerland”), a wholly owned subsidiary of SVRE, and US SIIE, LLC

(the “Counterparty”), a special purpose vehicle capitalized by the U.S. government and private capital sources. Commencement

of deliveries under the Offtake Agreement is subject to the satisfaction or waiver of certain conditions precedent by an agreed long-stop

date, including, among others, the execution of the Call Option Agreement (as defined below) and the receipt by the Counterparty of specified

financial support from the U.S. government. If conditions precedent relating to execution of the Call Option Agreement or evidence that

SV Management Switzerland is not owned or controlled by restricted persons are not satisfied or waived by such date, the Counterparty

may terminate the Offtake Agreement without liability. If the conditions precedent relating to U.S. government financial support is not

satisfied or waived by such date, SV Management Switzerland may terminate the Offtake Agreement without liability. There can be no assurance

that all such conditions will be satisfied or waived on a timely basis, or at all. In particular, if the U.S. government or private capital

sources fail to provide adequate capitalization to the Counterparty, or if such capitalization is significantly delayed, the Counterparty

may lack the financial resources necessary to perform its purchase obligations under the Offtake Agreement, and the applicable conditions

precedent may not be capable of satisfaction. The Offtake Agreement may also be subject to termination in other circumstances, including

as a result of a material breach by either party, changes in the regulatory or political environment, or other events beyond the control

of SVRE or the Counterparty.

In addition, pursuant to Amendment No. 1 to the

Merger Agreement, dated July 16, 2026, the satisfaction (and non-waiver) of certain of these conditions precedent under the Offtake

Agreement, the lapse of the right of SV Management Switzerland to terminate the Offtake Agreement, and the Offtake Agreement being in

full force and effect as of the closing are conditions to the obligation of USAR and Merger Sub to complete the merger. As a result, if

these conditions are not satisfied, USAR and Merger Sub would not be obligated to complete the merger, and the merger may not be completed

on its anticipated timeline or at all.

The Offtake Agreement provides SVRE with a number

of significant commercial benefits that underpin its business plan and financial projections. These benefits include the option for SVRE

to deliver higher-value products, such as separated rare earth oxides, and support for the extension of the term of the Retained Finance

Agreement (as defined below) from 12 to 15 years upon satisfaction of certain conditions under the Offtake Agreement. These arrangements

are expected to provide a meaningful measure of certainty with respect to SVRE’s medium- and longer-term cash flows and to help

de-risk the combined company’s revenue.

If the conditions precedent to the Offtake Agreement

are not satisfied or waived, if the Offtake Agreement is terminated for any reason, or if the Counterparty defaults on its purchase obligations,

SVRE may be forced to seek alternative buyers for its rare earth products. There can be no assurance that alternative offtake arrangements

would be available on comparable terms, or at all. Any alternative arrangements would likely not include the floor price protection, annual

price escalation, favorable upside-sharing mechanics, take-or-pay volume commitments, or long-term duration provided by the Offtake Agreement.

The loss of these protections would expose the combined company to the full volatility of rare earth commodity prices and market demand

fluctuations, which could result in materially lower and less predictable revenue, reduced margins and impaired ability to service the

combined company’s substantial indebtedness, including under the Retained Finance Agreement. In addition, the failure to maintain

the Offtake Agreement could jeopardize the combined company’s ability to satisfy the conditions required for the extension of the

Retained Finance Agreement term from 12 to 15 years, potentially accelerating repayment obligations. The occurrence of any of the foregoing

events could have a material adverse effect on the combined company’s business, financial condition, results of operations and prospects.

We are subject to risks associated with being designated on an

export control list by China.

On June 22, 2026, USAR was added to China’s export control list,

along with several other U.S. companies. Following this designation, exporters in China have been prohibited from exporting certain items

to USAR, and exporters outside China have been prohibited from transferring or providing certain China-origin items to USAR without a

license from the Chinese government, which in practice may be difficult or impossible to obtain. This restriction has had and is expected

to continue to have an adverse impact on USAR’s ability to source key raw materials and supplies from China, which in turn has impacted

and is expected to continue to impact USAR’s business. This designation, as well as any future designations or adverse actions taken

by the Chinese government, may have a negative effect on USAR’s ability to produce its products, including if USAR is unable to

source impacted items of the same quantity and quality from outside of China that are not of Chinese origin. China's export control regime

is relatively new, has recently been substantially expanded, and continues to evolve. The scope, extraterritorial reach and enforcement

of these measures remain uncertain and, in certain respects, untested, and further changes could materially and adversely affect USAR’s

business.

GOVERNMENT

SUPPORT AND FINANCING

USAR and SVRE are party to, or have entered or expect

to enter into, the following government-related financing and offtake arrangements, each of which is relevant to the consummation of the

merger.

The Retained Finance Agreement

On January 21, 2026, SVRE entered into a Finance

Agreement with the United States International Development Finance Corporation (the “DFC”), which was amended on March 5,

2026 (as further amended from time to time, the “Retained Finance Agreement”). The Retained Finance Agreement provides SVRE

with a long-term debt financing to support the debottlenecking and optimization of its rare earth mining and processing operations in

an aggregate committed amount not to exceed $565 million, consisting of (i) an initial loan tranche with a principal amount

not to exceed $465 million and (ii) a second loan tranche with a principal amount not to exceed $100 million (the “Incremental

Loan”). As of March 31, 2026, the aggregate outstanding principal amount of indebtedness of SVRE and its subsidiaries under

the Retained Finance Agreement was approximately $325 million. The Incremental Loan was fully disbursed to SVRE on June 4, 2026.

In connection with the Retained Finance Agreement,

following the disbursement of the Incremental Loan, the DFC holds warrants to purchase ordinary shares of SVRE, which warrants will be

automatically exercised immediately prior to the closing. As a condition to the disbursement of the Incremental Loan, SVRE and the DFC

entered into a side letter (the “DFC Side Letter”) pursuant to which the DFC will have the right to nominate (i) a director

to the board of directors of Merger Sub, and (ii) an observer to attend all meetings of the board of directors of Merger Sub, which

appointments, if made, are conditions to USAR’s obligation to complete the merger.

The transactions contemplated by the Merger Agreement

require certain consents, amendments or waivers under the Retained Finance Agreement, including (i) the release of the SVRE securityholders

from an equitable share mortgage granted in favor of the DFC over certain SVRE shares, and (ii) the consent from the DFC to permit

the transactions contemplated by the Merger Agreement under the Retained Finance Agreement. As a condition to providing such consents,

the DFC may require the surviving company to assume SVRE’s obligations under the Retained Finance Agreement and to maintain or re-create

the related security interests. At this time, the DFC has not requested that USAR nor any of its subsidiaries (other than Merger Sub and

its subsidiaries) provide guarantees, pledges, purchase rights or other credit support in connection with such consents.

The Offtake Agreement and Related Call Option Agreement

On April 20, 2026, SV Management Switzerland

AG (“SV Management Switzerland”), a subsidiary of SVRE, entered into an offtake agreement with a special purpose vehicle capitalized

by the U.S. government and private capital sources (the “Counterparty”) (as amended from time to time, the “Offtake

Agreement”) for the long-term supply of rare earth materials produced by SVRE.

The Offtake Agreement contemplates the sale and

purchase of 100% of the rare earth payable products produced by SVRE from the first phase of operations at the Pela Ema project, subject

to limited carve-outs. The Incremental Loan was fully disbursed on June 4, 2026, and the parties have acknowledged that SVRE’s obligation

to deliver the full annual contract quantity will be for 100% of the first phase of operations at the Pela Ema project. The Offtake Agreement

provides for a term ending on the earlier of (i) the date on which deliveries by SV Management Switzerland equal the rare earth products

produced from 198,000,000 metric tons of run-of-mine ore and (ii) the date that is 20 years after the date on which SVRE’s

facility becomes capable of producing the contemplated products (the “Commercial Operations Date”), with mutually agreed extensions

subject to the consent of the U.S. government. The purchase price for the principal payable rare earth elements is determined on

the basis of contractual floor prices, escalated by 2% annually, with 70% of the excess of the prevailing market index price over the

applicable floor price payable to SV Management Switzerland and certain cost savings and yield variances allocated 70% to SV Management

Switzerland and 30% to the Counterparty. Prior to the Commercial Operations Date, SV Management Switzerland is required to offer to the

Counterparty all rare earth products available for sale, and the Counterparty is obligated to purchase such products subject to agreement

on the terms and conditions for such sale. The commencement of deliveries under the Offtake Agreement is subject to the satisfaction or

waiver of certain conditions precedent by an agreed long-stop date, June 12, 2026, including the execution of the Call Option Agreement,

the receipt by the Counterparty of specified financial support from the U.S. government, confirmation that the Retained Finance Agreement

is in place and confirmation by the U.S. government that SVRE is not owned or controlled by restricted persons; if the conditions precedent

are not satisfied or waived by such date, either party may terminate the Offtake Agreement without liability. On June 29, 2026, SV Management

Switzerland and the Counterparty entered into an amendment, consent and waiver to the Offtake Agreement that extended the long-stop date

from June 12, 2026 to August 14, 2026.

In connection with the amendment, consent and waiver

described above, the description of the U.S. government financial support to be provided to the Counterparty was revised to consist of

(i) an initial capital investment in the Counterparty of $500 million, (ii) a debt facility and/or an inventory monetization facility

with a funding amount of $500 million to be made available to the Counterparty, and (iii) one or more forward purchase contracts pursuant

to which the U.S. government will acquire no less than $300 million of rare earth payable products from the Counterparty over the first

five years following the Commercial Operations Date (extended from three years), in each case with any obligations of the U.S. government

in excess of $300 million in the aggregate subject to the availability of appropriations.

On July 16, 2026, USAR, Merger Sub, SVRE and the

Shareholder Representative entered into Amendment No. 1 to the Merger Agreement, pursuant to which the satisfaction (and non-waiver) of

the conditions precedent set forth in Clauses 2.2(b) and 2.2(c) of the Offtake Agreement, the lapse of the right of SV Management Switzerland

to terminate the Offtake Agreement in accordance with Clause 2.4 of the Offtake Agreement, and the Offtake Agreement being in full force

and effect as of the closing became conditions to the obligation of USAR and Merger Sub to complete the merger. The condition precedent

set forth in Clause 2.2(b) of the Offtake Agreement, which is for the benefit of SV Management Switzerland, is the receipt by the Counterparty

of the specified financial support from the U.S. government described above (including the execution by the U.S. government and the Counterparty

of one or more contracts for the purchase by the U.S. government of products from the Counterparty), together with the delivery to SV

Management Switzerland of satisfactory evidence thereof. The condition precedent set forth in Clause 2.2(c) of the Offtake Agreement,

which is for the benefit of the Counterparty, is the confirmation by the U.S. government that it has received the Retained Finance Agreement

and evidence satisfactory to it that SV Management Switzerland is not owned or controlled by restricted persons. Under Clause 2.4 of the

Offtake Agreement, SV Management Switzerland may terminate the Offtake Agreement without liability if the condition set forth in Clause

2.2(b) is not satisfied or waived by the applicable long-stop date.

In connection with the Offtake Agreement, SVRE, the SVRE securityholders

and the Counterparty have agreed to enter into a related call option agreement, to be dated on or before the closing date (as amended

from time to time, the “Call Option Agreement”).

Pursuant to the Call Option Agreement, upon the

occurrence of certain specified triggering events, including, among others, the insolvency or bankruptcy of SV Management Switzerland

or its mining subsidiary (subject to a carve-out where certain U.S. government entities are lenders), the voluntary cessation of

all or substantially all of the mining operations at the project site for 60 or more consecutive days, breaches by SV Management

Switzerland of certain obligations under the Offtake Agreement (including the change of control and assignment provisions), and events

of default under new approved lender financing documents, the Counterparty shall have the option to purchase all (but not less than all)

of the equity interests in SVRE held by each party to the Call Option Agreement. The purchase price would be equal to the fair market

value of the equity interests, as determined by a panel of three independent experts. The Call Option Agreement restricts transfers of

SVRE equity interests by the parties thereto to certain third parties without the Counterparty’s prior written consent and automatically

terminates upon the earliest of (i) the closing of the sale of equity interests thereunder, (ii) with respect to any party to

the Call Option Agreement, the date on which such party no longer holds any equity interests in SVRE due to a permitted transfer, or (iii) the

termination of the Offtake Agreement, subject to a 180-day survival period if the Offtake Agreement is terminated by the Counterparty

following a fundamental seller default. The consummation of the merger requires the receipt of certain consents, amendments or waivers

under each of the Offtake Agreement and the Call Option Agreement, including the release of the SVRE securityholders from the Call Option

Agreement. In connection with the closing, the wholly owned subsidiary of USAR that will directly hold the equity interests of Merger

Sub is expected to enter into the Call Option Agreement and is expected to grant a pledge of those equity interests in favor of the DFC.

It is anticipated that neither USAR nor any of its subsidiaries (other than Merger Sub and its subsidiaries and, with respect to such

pledge, the direct parent of Merger Sub) will be required to provide guarantees, pledges, purchase rights or other credit support in connection

with such consents.

The Parent Loan Agreement

On January 26, 2026, USAR entered into a letter

of intent with the U.S. Department of Commerce (the “DOC”) setting forth the principal terms on which USAR expected to

enter into a long-term financing package with the DOC to support the development of USAR’s domestic rare earth and magnet supply

chain, including the Round Top Mountain heavy rare earth elements deposit (the “Round Top”) and USAR’s Stillwater magnet

manufacturing facility. On June 3, 2026, USAR entered into (i) a direct funding agreement (the “Direct Funding Agreement”)

among USAR, certain subsidiaries of USAR, as guarantors, and the DOC, providing for direct funding awards with a maximum award amount

of $277.0 million, and (ii) a loan guarantee agreement (the “Loan Guarantee Agreement”) among USAR, certain subsidiaries

of USAR, as guarantors, and the DOC, pursuant to which the DOC has agreed to guarantee USAR’s repayment of advances in an aggregate

principal amount of up to $1.3 billion made by the Federal Financing Bank pursuant to a note purchase agreement to be entered into

among USAR, the Federal Financing Bank and the Secretary of Commerce (collectively, the “Parent Loan Agreement”). Concurrently

with the execution of the Direct Funding Agreement and the Loan Guarantee Agreement, USAR entered into a Securities Issuance Agreement

with the DOC and issued to the DOC 16,132,790 shares of USAR common stock, par value $0.0001 per share (“Common Stock”) and

a warrant to purchase 17,600,584 shares of Common Stock at an exercise price of $17.17 per share. For additional information regarding

the Parent Loan Agreement, see USAR’s Current Report on Form 8-K filed with the SEC on June 3, 2026, which is incorporated by reference

into this Proxy Statement.

Disbursements under the Parent Loan Agreement are

subject to the achievement of various project-specific milestones, the making of cash equity contributions by USAR to its subsidiaries,

the satisfaction of financial ratio and liquidity thresholds, the receipt of required permits and approvals and other customary conditions.

The Royalty Agreements

SVRE is party to two royalty agreements with

affiliates of Orion Mine Finance: (i) an amended and restated royalty agreement dated as of July 11, 2022, among SVRE, as

grantor, the other royalty parties named therein, OMF Fund III (CR) Ltd., as royalty holder, and TMF Canada Inc., as collateral

agent (as amended, supplemented and/or otherwise modified from time to time, the “Non-Buyback Royalty Agreement”), and

(ii) a royalty agreement (buyback) dated as of August 15, 2023, among SVRE, as grantor, the other royalty parties named

therein, OMF Fund III (F) Ltd. (“OMF F”), as royalty holder, and TMF Canada Inc., as collateral agent (as

amended, supplemented and/or otherwise modified from time to time, the “Buyback Royalty Agreement” and, together with

the Non-Buyback Royalty Agreement, the “Royalty Agreements”). Under the Royalty Agreements, SVRE has granted to the

applicable royalty holders a perpetual royalty interest at a royalty rate of 5.25% (in the aggregate) in respect of all products

extracted and recovered from the Serra Verde rare earths projects located in Brazil.

In connection with the transactions contemplated

by the Merger Agreement, the parties to the Royalty Agreements amended each Royalty Agreement to, among other things, add a definition

of “Permitted Transaction” to permit the merger, exempt the merger from the general prohibition on Transfers, and add USAR

to the schedule of additional holders. As a condition to providing such amendments to the Royalty Agreements, Orion Mine Finance will

require the surviving company to assume SVRE’s obligations under the Royalty Agreements and to maintain or re-create the related

security interests.

Concurrently with the execution of the Merger Agreement,

SVRE and OMF F entered into a payout letter to the side letter, dated as of March 5, 2026, between SVRE and OMF F (the “Orion

Side Letter”), which provided OMF F a right to receive a Post-Optimal Redemption Payment (as defined under the Orion Side Letter).

Pursuant to such payout letter, OMF F confirmed that once the Post-Optimal Redemption Payment is received, SVRE’s obligation under

the Orion Side Letter will be satisfied.

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Address Line 1 such as Attn, Building Name, Street Name

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Name of the City or Town

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Code for the postal or zip code

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Name of the state or province.

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A unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK.

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Indicate if registrant meets the emerging growth company criteria.

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Indicate if an emerging growth company has elected not to use the extended transition period for complying with any new or revised financial accounting standards.

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Commission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.

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Two-character EDGAR code representing the state or country of incorporation.

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The exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC.

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The Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS.

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Local phone number for entity.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act.

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Title of a 12(b) registered security.

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Name of the Exchange on which a security is registered.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act.

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Trading symbol of an instrument as listed on an exchange.

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Boolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act.

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