Strategic Minerals Regulatory News (SML)

For immediate release: 21st February 2012

Strategic Minerals Plc

("Strategic" or the "Company")

Financing and Cobre Update

Strategic Minerals Plc (AIM:SML) is pleased to announce that it has entered into a £3 million Standby Equity Distribution Agreement ("SEDA") and a US$1.5 million loan facility ("Loan Agreement") with YA Global Master SPV Ltd (the "Investor"), an investment fund managed by Yorkville Advisors LLC ("Yorkville"). The SEDA will provide flexibility to the Company over future funding while the Loan Agreement will be used primarily to provide the funding required to complete the rail upgrade programme at Strategic's Cobre Project in New Mexico.

Due for completion in March, the Cobre rail upgrade will enable the magnetite from Cobre to be delivered to the Port of Guaymas for export and via the rail network to bulk users within the USA. The rail upgrade works consists of rehabilitating some 6.3 miles (10 kilometres) of track, with the objective to ensure the track can accept the 100+ short ton rail cars. The upgrade works include tie replacements, crossing and point changes, rail replacement and re-ballasting and alignment.

Site meetings held last week with the rail road Vice President and Senior Management of the rail road have confirmed that the expectation is the rail will be completed by mid-March as originally planned.

The Loan Agreement allows up to a maximum of US$1.5 million to be drawn down if required, in two equal tranches, with US$750,000 being drawn down immediately and the second tranche of US$750,000 being at the mutual discretion of both parties. The SEDA will be available to finance repayments of the Loan Agreement and to provide flexible funding options to the Company going forward.

David Weidemier, Chief Executive Officer of Strategic, said:

"I am very pleased that we are in the final stages of the rail upgrade programme. It will place Strategic in the position to service contracts with magnetite buyers both for export and sales within the USA."

Steven Sanders, Chairman, added:

"The Board is looking forward with confidence to the near-term full start up of Cobre operations and the generation of revenues from the project, in line with our expectations when we acquired the project last September, as well as seeing Strategic move into a positive cash generation position only nine months from admission to AIM. The Yorkville funding option was selected specifically to minimize the near-term equity dilution associated with traditional equity finance. We believe our arrangements with Yorkville allow us to meet that objective and maximise the return to shareholders."

The SEDA

Subject to its terms, the £3 million SEDA facility can be used entirely at the discretion of the Company. Under the terms of the agreement, Strategic may draw down funds, at its discretion, over a period of up to three years in exchange for the issue of new ordinary shares of 0.1p each in the Company ("Ordinary Shares"). The Ordinary Shares will be issued at a 5% discount to the lowest daily volume weighted average price ("VWAP") prevailing during the 10 trading day period following a draw down request. The Company shall set a minimum issue price for each draw down (such price not to be greater than 90% of the VWAP on the day immediately prior to the draw down request), which may reduce the size of the permitted draw down. The maximum advance that may be requested cannot exceed either (i) 200% of the average daily trading volume of Ordinary Shares multiplied by the VWAP of Ordinary Shares for the 5 trading days prior to the draw down request; or (ii) such amount that would result in the Investor holding more than 2.99% of the Ordinary Shares.

The Loan Agreement

The Loan Agreement can, at the Company's election, be repaid either out of cash resources or through draw down under the SEDA. The Loan Agreement bears interest at 10% per annum and each tranche is repayable in instalments over a 180 day period.

In an event of default, the Investor has the right to invoke the SEDA or convert the due principal and interest into Ordinary Shares at a discount of 20% to the closing price of Ordinary Shares on the date of exercise.

- ends -

Contacts:

About Strategic Minerals

Strategic Minerals Plc (AIM: SML) is developing a portfolio of projects that provide near term production along with those that potentially offer longer term capital gains. Strategic Minerals currently holds iron ore stockpile assets in North America and exploration properties in Australia.

www.strategicminerals.net