Strategic Minerals Regulatory News (SML)

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Certain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.

1 March 2021

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Cobre Access Rollover Confirmed - Update on LCCM Project Financials

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a profitable, producing mineral company is pleased to confirm the rollover of access to the magnetite stockpile in New Mexico and updates the market on the impact of the recent significant rise in copper prices on the financial evaluation of the Leigh Creek Copper Mine ("LCCM") project.

Cobre Access Maintained

The 9th yearly rollover of access to the Cobre magnetite stockpile ensures continuity of profitable operations for the year ahead. Despite the pandemic, sales in 2020 grew, excluding sales relating to CV Investments LLC, by 21.6% to US $3.025m, and the Company expects it will maintain, if not increase, this level in 2021.

Southern Minerals Group, the Company's wholly owned subsidiary, is currently undertaking a survey of the existing stockpile, as part of the process of managing the stockpile's dam wall, and the result will be communicated to the market upon receipt.

Leigh Creek Copper Mine Financial Update

The recent surge in copper prices has had a significant impact on the forecasted profitability associated with current plans to monetise the Paltridge North and Lynda/Lorna Doone deposits within the LCCM project. The impact on the Company's internally projected financials, employing the same model used in the Company's RNS statement of 9 November 2020 but adjusted only for the current copper price of US $4/lb (US $3/lb previously) and the AUD/USD exchange rate of 0.7900 (0.7000 previously), indicates that the implied project value is around three times that assessed at the time of acquisition of LCCM.

The following table identifies this significant growth in forecast value since the acquisition of LCCM in March 2018 and reflects processing improvements developed and the Company's strategic decision to seek out and secure a near term copper project on its expectation that copper prices would rise:

The commencement of the project remains subject to the receipt from the South Australian Department of Energy and Mining of a Programme for Environmental Protection and Rehabilitation ("PEPR") approval for the Paltridge North deposit and funding of the AUD $3.1m project and start up working capital required.

The financial analysis provided by the Company is limited to the existing JORC resources and does not take into account additional material within the LCCM tenements or the possibility of processing the Lynda/Lorna Doone deposits as copper sulphate, as opposed to the copper cement product, historically produced. Inclusion of either of these is likely to add further valuation upside.

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

"The Company continues to differentiate itself from other junior AIM listed mining stocks through its access to a regular cash flow that covers overheads and contributes to funding project developments.

"Recent significant rises in the copper price to over US $4.00/lb. from a low of near US $2.00/lb in March 2020, have greatly increased the potential valuation of LCCM. This has occurred at a time when the Company is closing in on the regulatory approval for accessing the Paltridge North deposit.

"The increasing interest in copper and projects which offer a quick route to production, due to the continued rise in copper prices, has proven timely as the Company progresses discussions with potential LCCM joint venture partners. Given the material changes in the project economics, this update was deemed appropriate to highlight to the market the impact of the copper price rise ahead of completing any joint venture on LCCM."

Notes to Editors

Strategic Minerals plc is an AIM-quoted, profitable operating minerals company actively developing projects tailored to materials expected to benefit from strong demand in the future. It has an operation in the United States of America along with development projects in the UK and Australia. The Company is focused on utilising its operating cash flows, along with capital raisings, to develop high quality projects aimed at supplying the metals and minerals likely to be highly demanded in the future.

In September 2011, Strategic Minerals acquired the distribution rights to the Cobre magnetite tailings dam project in New Mexico, USA, a cash-generating asset, which it brought into production in 2012 and which continues to provide a revenue stream for the Company. This operating revenue stream is utilised to cover company overheads and invest in development projects orientated to supplying the burgeoning electric vehicle/battery market.

In May 2016, the Company entered into an agreement with New Age Exploration Limited and, in February 2017, acquired 50% of the Redmoor Tin/Tungsten project in Cornwall, UK. The bulk of the funds from the Company's investment were utilised to complete a drilling programme that year. The drilling programme resulted in a significant upgrade of the resource. This was followed in 2018 with a 12-hole 2018 drilling programme has now been completed and the resource update that resulted was announced in February 2019. In March 2019, the Company entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project which was settled on 24 July 2019 by way of a vendor loan which was fully repaid on 26 June 2020.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and brought the project temporarily into production in April 2019. The project currently awaits clearance from the South Australian Government of its lodged Program for Environmental Protection and Rehabilitation (PEPR).