Cobre Sales Update

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company, is pleased to announce that the February sales tonnage recorded at Cobre was a 6-year high for February sales and Southern Minerals Group LLC ("SMG"), the Company's wholly owned subsidiary and operator of the Cobre magnetite stockpile, is acquiring a Caterpillar Excavator (Trackhoe 320) to assist with expected volume increases.

Highlights

• February sales tonnage of 4,898 tons represents a 6 year high for February sales
• February was also the highest monthly sales tonnage since March 2021
• Current expectations are for sales of circa 13,000 tons per quarter after March 2024
• Revenue from Cobre for 2024 expected to be circa US$3.5m
• Acquiring a Caterpillar Excavator (Trackhoe 320) to assist year-round operations

Cobre Sales

February 2024 saw the sale of 4,898 tons of magnetite which represented a 6 year high for February sales. As a portion of SMG's clients are fertilizer companies, who seasonally increase demand in February and March, the 6 year high tonnage sales augurs well for the remainder of the year. As shown in the following chart, the tonnage sales for the past three years show how lean 2023 was and how the Company believes that sales are now on track to be maintained at significantly higher levels than over the past three years.

Based on February 2024 sales and expectations based on the major client's purchase order, the Company anticipates sales tonnages of circa 13,000 tons per quarter after March 2024. This is expected to result in 2024 revenues of circa US$3.5m.

Cobre Equipment Purchase

In line with increases in sales, SMG is acquiring a new Caterpillar 320 Trackhoe with delivery expected in early March 2024. This equipment is being acquired to ensure production, at these renewed higher levels, can continue during difficult weather conditions, particularly around the Winter/Spring period.

The purchase is being fully funded by Caterpillar Finance on a four year loan facility at an interest rate of 4.99% pa.

Commenting, John Peters, Managing Director of Strategic Minerals, said:

"Encouraging sales in February 2024 and expectations of returning to quarterly sales of circa 13,000 tons are providing a robust cash flow outlook for the end of 2024, after resolving creditor payments arising from 2023.

"Cobre's revamped management line up has risen to the challenge and recently sought the addition of a Trackhoe 320 to ensure continuation of higher volume operations in difficult weather conditions. Not only was this sourced locally but the acquisition was wholly financed, with repayments spread in line with future cash flow expectations.

"Discussions continue with another potentially large client at Cobre but, due to recent increases in activity, such discussions are now focussed on future years supply.

"At present, we anticipate further news flow from projects this month and beyond."