Strategic Minerals Regulatory News (SML)

28 July 2014

Strategic Minerals plc

("Strategic Minerals" or the "Company")

Operational and Corporate Update

The Board of Strategic Minerals Plc (AIM: SML; USOTC:SMCDY), is pleased to provide an operational and corporate update for the quarter to 30 June 2014.

Highlights:

· Cobre domestic sales remain strong with 86% of the previous full year's product sold in the first six months of this year

· Approvals for an exploration programme on the Jotanooka Project in Western Australia commenced

· Revised corporate strategy continues to evaluate a number of acquisition opportunities in tin, copper, iron ore, gold and other high value strategic minerals

· A board restructure was completed during the quarter and the appointments of Mr McInally and Mr Hobbs were confirmed at the Company's Annual General Meeting held in London

· Launch of website for SML's wholly owned subsidiary, Southern Minerals Group, which operates the Company's Cobre asset ('Cobre') in New Mexico

· Cash of US$1.29M at 30 June 2014

Commenting on the update Mr Julien McInally said, "Sales for domestic iron ore from our magnetite tailings project in New Mexico continues to see strong demand with 86% of last year's full year product sold in the previous six month period. The Company continues to evaluate a number of other near term production opportunities in line with our stated strategy of diversifying the portfolio. We look forward to updating shareholders as and when these opportunities progress further."

The Cobre magnetite tailings operation in New Mexico

The Cobre magnetite tailings operation in New Mexico continues to service domestic magnetite customers. Sales for domestic product continue to be strong on a year to date basis with 86% of last year's product sold in the previous six month period. This represents a 44% improvement to the same six month period last year with domestic sales margins remaining strong for the period.

The Company launched a local US website for Southern Minerals Group, which operates the Company's Cobre operation, which has increased our electronic presence in the region. Marketing of product continues with a view to improving sales quantities. The website is: http://southernmineralsgroup.com

As previously announced, the Company ceased international exports in the first quarter of this year and the focus is now on domestic sales which are not linked to the iron ore price and provide for more attractive margins.

The Company continues to evaluate the opportunity to produce a higher value product for sale to the dense media market and other markets. This provides another opportunity to expand the Company's customer base and unlock the value from its existing portfolio.

Australian exploration properties

During the quarter the Company started the process of obtaining approval for an exploration programme on its Jotanooka project in Western Australia. This work will allow the Company to initiate an exploration programme to evaluate the near surface high grade haematite potential for a direct shipping ore project. The Jotanooka project is ideally located 300 kilometres from a deep water port which has existing modern rail infrastructure nearby. The project is neighboured by Sinosteel Midwest Corporation's Koolanooka project, which delivered 4Mt of direct shipment haematite ore to the Chinese steel markets over a three year mine life before closing in 2013. Once approvals are obtained a decision to initiate the exploration programme will be made in light of the Company's cash position at that time.

The Iron Glen project in Queensland Australia continues to be maintained and some rehabilitation work was commenced on the site. Further work on this project will be conditional on further funding and after prioritisation of project initiatives.

Financial and corporate

During the quarter, the Board undertook a corporate review resulting in the streamlining of its corporate overheads. The corporate review resulted in a reduction in Director fees and overheads and the Company is on track to reduce overall corporate overhead to less than US$1.2M on an annualised basis going forward excluding costs associated with reviewing new opportunities and other exceptional items.

Alongside the corporate review in the quarter the board underwent a restructure and new Directors Mr McInally and Mr Hobbs were appointed. Following these changes, the Board is evaluating a number of UK based candidates to take on the position of Non-Executive Chairman to the Company.

As at 30 June 2014, the Company's cash position was US$1.29M.

Strategy

The Company's strategy is to build a diversified portfolio of cash generating high quality strategic minerals operations and near term mining projects in jurisdictions where returns are commensurate with risk.

The current activities of the company to support the strategy are as follows:

1. Reduce overheads and improve domestic sales at Cobre so that profits at Cobre can fund the company's corporate costs.

2. Improve profitability of Cobre project through increased focus on higher value domestic sales in the Heavy Dense Media market.

3. Grow the company through investment in projects via acquisition or joint venture which have the capability of generating cash quickly and increase shareholder value.

4. Bring on new directors to support the growth strategy.

The Company continues to evaluate a number of acquisition opportunities in commodities such as tin, copper, iron ore, gold and other high value strategic minerals with a focus on projects that can be monetised quickly. As well, the Company is reviewing some larger projects in these strategic minerals that the Company believes can be funded via joint venture arrangements.

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