Strategic Minerals Regulatory News (SML)

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15 July 2019

Strategic Minerals plc

("Strategic Minerals" or the "Company")

June Quarter 2019 Magnetite Sales and Cash Balances

Strategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to provide the following update on ore sales at the Company's Cobre magnetite operations in New Mexico, USA ("Cobre") for the three months to 30 June 2019 and to inform the market of cash available at the end of the quarter.

Highlights

· US$203,000 of free cash generated by Cobre in the quarter

· £820,000 of the 25 June 2019 equity raise received in early July

· Major Cobre client continues to express intention to pay with legal proceedings expected to commence soon should payment not be forthcoming

· Over US$1m re-invested during the quarter into the Company's projects, with over US$0.9m for LCCM alone

· First revenue receipts from LCCM

· Group cash balance of US$319,225 as at 30 June 2019, prior to the receipt of the balance of the recent equity issue

Sales update: Cobre magnetite tailings operations

Lower sales volumes at Cobre have been partially offset by an increase in sales prices and the recognition of US$375,000 of payments from the major Cobre client now forfeited.

Sales comparisons on quarterly and annual periods to 30 June 2019, along with associated volume details, are shown in the table below:

Finalisation of the claim against the major client is currently being prepared and is expected to be issued by Southern Minerals Group, LLC ("SMG") shortly, should payment not be made prior.

Financials and Operations

At 30 June 2019, the Group's non-restricted cash balance was US$0.319m (31 March 2019: US$1.240m). During the quarter, profits and cash were again generated by SMG's Cobre operations and, along with existing cash balances, were re-invested into the Company's multi-mineral project portfolio, notably Leigh Creek Copper Mine Pty Ltd ("LCCM" or "Leigh Creek") (US$0.922m) and Central Australian Rare Earths Pty Ltd (US$0.082m), as well as covering corporate overheads of approximately US$297,000.

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

"The June quarter was a busy and productive period for SML, which saw the Company not only make its maiden sale of copper cement concentrate from Leigh Creek but also sign binding contracts for the acquisition of the remaining 50% of Redmoor and complete a crucial equity fundraise.

"In line with its stated strategy, the Company continued to reinvest its cash reserves which enabled it to successfully activate both Leigh Creek's heap leach programme and progress the regulatory approval processes for Paltridge North/Rosmann East.

"Sales volumes at Cobre have remained lower but this quarter's sales margin was bolstered by the recognition of a payment previously made by its major client, now forfeited.

"While the Board is confident that a satisfactory resolution can be reached with the major client at Cobre, we remain focussed on developing the Company's broad multi-mineral portfolio and steering SML towards its goal of commencing a second, major income stream, expected in Q1 2020."

Notes to Editors

Strategic Minerals plc is an AIM-quoted, operating minerals company actively developing projects prospective for battery materials. It has an operation in the United States of America and Australia 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 being sought in the burgeoning electric vehicle/battery market.

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 January 2016, the portfolio was expanded with the acquisition of shares in Central Australian Rare Earths Pty Ltd, which holds tenements in Western Australia prospective for cobalt, nickel sulphides and rare earth elements. The Company has since acquired all shares in Central Australian Rare Earths Pty Ltd. In September 2018, the Company entered contracts for the sale of certain CARE tenements identified as gold targets.

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 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 into production in April 2019.

In March 2019, the Company entered into arrangements to acquire the balance of the Redmoor Tin/Tungsten project in Cornwall, UK which is now expected in the second half of July 2019.