Cobre Quarterly Sales Update and Issue of Warrants

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable producing mineral company, is pleased to provide the following update on quarterly Cobre sales and the issue of warrants associated with short term funding.

Highlights

• March quarter sales revenue of US $0.841m, up over 100% on March quarter 2023.
• New client, with expected volume of circa 5,000-7,000 tons pa, confirmed.
• Trackhoe acquired and operating minimising weather disruptions to truck loading.
• Sales in line with expectations that 2024 full year revenues will exceed US $3.5m.
• Additional small short-term working capital funding facility agreed with warrants.

Cobre Sales

The return of Cobre's major client and the addition of a new client, expected to take between 5,000 to 7,000 tons pa, have resulted in a strong March quarter performance. Not unexpectedly, this is an impressive 103% increase on the March 2023 quarter when Cobre's major client was not purchasing magnetite. However, this is also an impressive 27% increase on March 2022 sales, when the major client was active.

March Quarter Sales Annual Sales

Quarter $'000 Volume $000 Volume

2024 841 12,393 2,002 25,625

2023 415 4,733 2,198 30,405

2022 663 10,610 2,502 40,244

To ensure minimal weather disruptions during the US winter and early spring seasonal weather, the Company acquired a Trackhoe as shown below, which came into operation in March.

Pictured from left to right; Kyle Drye (Pit Manager), Nick Contor (Office Manager) and Tim Klumker (President)

The March quarter results have reinforced the Company's view that the 2024 Cobre full year sales volumes will exceed 50,000 tons (17,965 tons in 2023) with revenues expected to exceed US $3.5m (US $1.6m in 2023).

Cash Management and Issue of Warrants

Given the substantial reduction in sales during 2023, the Company maintained operations, including project development, through creditor management and from the Board's election to take substantially lower cash payments.

Considering future sales volumes, and the Company's historical creditor balances, the Company has augmented its previous AUD $100,000 short-term financing facilities, from an individual investor, with a further six-month AUD $50,000 funding, from another individual investor. This funding is at an interest rate of 12% per annum and has attached 10,000,000 warrants, which have the same warrant terms as those previously agreed (exercise price 0.5p and maturity 31 December 2025). Again, these unsecured loans have been undertaken through the Company's 100% owned subsidiary Ebony Iron Pty Ltd.

The additional 10,000,000 warrants, over new ordinary shares of 0.1 pence each in the Company with an exercise price of 0.5p maturing 31 December 2025, have now been issued (along with those previously notified to the market on 8 February 2024). No funds raised under these facilities will be applied to balances outstanding to the Directors or CFO and, currently, it is not envisaged that additional short-term funding will be required.

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

"The quarter's sales have confirmed our expectations for a strong performance at Cobre in 2024 and a likely annual result exceeding US $3.5m. The team at our New Mexico, USA operations have managed the resurgence in demand and rebuilt the team after having to contract operations during the 2023 downturn. New, fully externally funded, equipment has assisted to ensure smooth operation during inclement weather.

"Management remains focused on short term cash flow and believes that the Company remains committed to avoiding the need for a dilutive capital raise, which the Board and Management, currently, considers will be unnecessary. With after tax cash flow in 2024 being applied to normalising creditor balances, built up during the sales downturn in 2023, the Company expects 2025 will see after tax balances accruing."