In this study, we investigate the microstructure and mechanical properties of as-extruded Al-1.0RE alloys. The molten Aluminum alloy was maintained at 800 °C and then poured into a mould at 200 °C. Aluminum alloys were hot-extruded into a rod measuring 12 mm thick with a reduction ratio of 38:1. The microstructure and electric conductivity properties of as-extruded Al-1.0RE alloy under different annealing processes were investigated and compared. After extrusion, the intermetallic compound having a needle shape in the cast state was finely decomposed based on the direction of extrusion. Significant changes in the microstructure were detected after annealing at 500 °C with fragmentation and sphering of eutectic particles. The annealing temperature of Al-1.0RE alloy increased proportionally to the electrical conductivity. The formation of Al-RE intermetallic compounds increases the electrical conductivity and improves the mechanical properties of the alloy through precipitation hardening.