Strategic Minerals Regulatory News (SML)

01 November 2011

Strategic Minerals plc

("Strategic Minerals", "SML" or the "Company")

Issue of Equity

Strategic Minerals plc (AIM: SML) is pleased to announce that the Company has raised £751,585 through the subscription to 7,515,854 new ordinary shares of 0.1p each in the Company (the "Subscription Shares") at a price of 10p per Subscription Share, by certain investors including Steven Sanders, Chairman of the Company (the "Subscription"). The Subscription has been carried out within the Company's existing share authorities.

The proceeds of the Subscription will be used by the Company to carry out the required rail upgrade at its Cobre magnetite stockpile in New Mexico.

Application will be made for the Subscription Shares to be admitted to trading on AIM ("Admission") and it is anticipated that Admission will occur on or around 04 November 2011. On Admission the Subscription Shares, will rank pari passu with the Company's existing ordinary shares of 0.1 pence each ("Ordinary Shares").

Following Admission the total number of Ordinary Shares in issue will be 399,396,393. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Services Authority's Disclosure and Transparency Rules.

Steven Sanders has acquired shares in the Subscription, as follows:

Following Admission James Chisholm, who it is proposed will be appointed to the Board of SML (further details of which were announced by the Company on 05 September 2011) will have a total beneficial interest in the Company of 31,419,092 Ordinary Shares, equivalent to 7.87% of the Company's enlarged share capital, through two family trusts of which he is a beneficiary.

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About Strategic Minerals

Strategic Minerals plc (AIM: SML) is developing a balanced portfolio of magnetite stockpile assets that generate near-term significant revenues and longer term iron ore exploration projects for progression to JORC Measured Resource status. Strategic Minerals currently holds stockpile assets North America and exploration properties in Australia. www.strategicminerals.co.uk.