Land Acquisition for Boland Project Expansion

36% increase in target geological system landholding significantly expands resource growth potential of Boland Rare Earth Project

Cobra (LSE: COBR), the mineral exploration and development company advancing a potentially world-class ionic Rare Earth Elements ("REEs") discovery enriched with dysprosium and terbium at its Boland Project ("Boland") in South Australia, announces it has executed binding documentation to acquire Exploration Licences 6742, 6774 and 6780 (the "New Tenements") from the Tri-Star Group ("Tri-Star").

The New Tenements cover a further 1,200 km2 of prospective geology across the Yaninee and Narlaby palaeochannel systems which host the unique and highly favourable geology that makes the Boland Project amenable to in situ recovery ("ISR"), a low-cost, low impact mining process with high environmental stewardship.

Highlights

• 36% increase in Cobra's total palaeochannel holding which now stands at ~3,365 km2 with New Tenements infilling more key areas of the target geology (see Figure 1)
• The REE enriched Hiltaba Suite granites present are regionally prolific, providing significant scale potential
• Historical uranium focused drilling on the New Tenements intersected the target Pidinga formation over vast footprints in direct contact with Hiltaba Suite Saprolites
• Drill samples are available through the South Australian core library for assay providing a low-cost pathway to drill targeting
• Preparations are underway to incorporate targets within the New Tenements with the next stage of the REE resource drilling programme

Rupert Verco, Managing Director of Cobra, commented:

"This is a landmark acquisition that consolidates our dominant regional land position to ensure Cobra can become the leader in the in situ recovery of rare earths and we thank Tri-Star for their cooperation throughout this process. It is our ambition to grow a multi-generational resource that can provide critical metals including dysprosium and terbium at a bottom quartile cost with the highest possible environmental stewardship. In simple terms: our mineral resource opportunity just got much bigger!

Upon the transfer of ownership, Cobra intends to move expeditiously, re-assaying available drill core and executing a drill programme to support our resource expansion drilling at Boland."

Follow this link to watch a short video of Managing Director Rupert Verco discussing the land acquisition: https://investors.cobraplc.com/link/8r6L0y

Figure 1: Cobra's exploration land package including the New Tenements

Terms of Transaction

Subject to the approval of the South Australian Department of Energy and Mining, Cobra, through its subsidiary LAM Wudinna Pty Ltd, has executed binding documentation to acquire a 100% interest in the New Tenements through:

Cash Consideration:

• A$50,000 paid upon the transfer of tenure
• A future cash payment of A$200,000 after five years should Cobra choose to retain the New Tenements. This amount shall be reduced by up to A$50,000 should Cobra not gain heritage approval to drill within defined areas of the Narlaby Palaeochannel

Milestone Payments

• A$500,000 cash if a JORC compliant Mineral Resource Estimate of at least 100Mt at more than 1,000 ppm Total Rare Earth Oxide ("TREO") is defined across the New Tenements
• A$500,000 if a JORC compliant Mineral Reserve of at least 50Mt at more than 1,000 ppm TREO is defined across the New Tenements

Granting of a Royalty

• 1.5% Net Smelter Royalty on rare earths capped at A$5.0 million (uncapped on all other commodities) which shall increase proportionately for every percentage increase in the JORC Code compliant study showing a Mineral Reserve Estimate of greater than 75Mt at greater than or equal to 1,000ppm of Total Rare Earth Oxide (TREO).

Other

• Cobra to hand back New Tenements to Tri-Star for $100 if the Company elects not to proceed, or conditions of the sale agreement are not met
• Cobra assumes all obligations for the New Tenements
• Existing Native Title Mining Agreements ("NTMA") be transferred to Cobra

Boland Project

Further information relating to Boland is presented in the appendix.

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Appendix 1: Background information - the Boland Project and ISR

Figure A1: Comparison between the Chinese and the proposed Boland process for ISR mining of REEs