Strategic Minerals Regulatory News (SML)

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16 January 2019

 Strategic Minerals plc

("Strategic Minerals" or the "Company")

December Quarter 2018 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 magnetite ore sales at the Company's Cobre magnetite operations in New Mexico, USA for the three months to 31 December 2018 and to inform the market of cash available at the end of the quarter.

Highlights

· US$647,000 of cash generated in the quarter

· Sales increased by 1,500 tons compared to December quarter 2016 (prior to introduction of Cobre's major client)

· Group cash balance of US$1.840m as at 31 December 2018

· US$440,000 re-invested into the Company's multi-mineral exploration and development assets during the quarter

Sales update: Cobre magnetite tailings operations

Sales volumes at Cobre have been maintained at strong levels, despite the suspension of minimum monthly sales associated with a major client's contract, as announced on 7 June 2018, with cash flow being augmented by advance payments received. As a result of strong sales and the advance payment arrangements with the major client, the cash flow from the Cobre operation remained robust during the quarter with US$647,000 in cash generated. Sales for the December quarter are greater than comparative historical quarterly sales figures, preceding the introduction of Cobre's major client, as demonstrated in the comparison of current quarter sales of 10,931 tons to sales of 9,431 tons in the quarter to December 2016.

Sales comparisons on quarterly and annual periods to December 2018, along with associated volume details, are shown in the table below:

Financials and Operations

At 31 December 2018, the Group's non-restricted cash balance was US$1.840m (30 September 2018 US$1.773m). During the quarter, profits and cash were generated by Southern Minerals Group's Cobre operations and were re-invested into the Company's multi-mineral project portfolio, including works conducted by Leigh Creek Copper Mine Pty Ltd, Cornwall Resources Limited (Redmoor) and Central Australian Rare Earths Pty Ltd (Hanns Camp and Mount Weld), totalling approximately $440,000, as well as covering corporate overheads of approximately $140,000.

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

"The December quarter saw the Company's long-term prospects benefitting in both volume and grade from receipt of assay results identifying bonanza style tin equivalent deposits at Redmoor and additional deposits and higher Copper grades likely to expand the existing JORC copper resource at Leigh Creek.

"The increased Group cash balance at 31 December, compared to 30 September, places the Company in a robust financial position for a strategically important year ahead. Strong ongoing sales at Cobre and the early rollover of access to the tailings stockpile announced earlier this week ensures that SML is in great financial shape as 2019 begins. Funds generated are being focused on developing the Company's three other projects. This reflects the Board's desire to grow the Company organically and progress our projects to points where markets can begin to fully appreciate their potential value, while exercising strict financial and technical discipline.

"Undoubtedly, the primary focus of 2019 will be the re-commencement of operations at Leigh Creek Copper Mine, where the Board is increasingly excited by the growing prospects for the life and scope of the project, as well as the positive impact a second long-term cash flow generating asset will have on the Company.

"I believe 2019 will be a busy and eventful year for Strategic Minerals and look forward to keeping the market apprised of further project developments."

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 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 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 its development projects.

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 that are 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 sold certain CARE tenements that had been 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. The 2018 drill programme has almost complete and has provided the best assay results to date.

In March 2018, the Company completed the acquisition of the Leigh Creek Copper Mine situated in the copper rich belt of South Australia and is currently working to bring this into operation in 2019.