COBR Cobra Resources Plc

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

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26 April 2024

Cobra Resources plc

("Cobra" or the "Company")

Re-Assay Results Confirm High Grades Over Exceptional Scale at Boland

&

£600,000 Placing Completed to Advance Work Programme

Cobra (LSE: COBR), an exploration company focused on the Wudinna Project ("Wudinna") in South Australia, is pleased to announce re-assay results which support regionally scalable, high grade rare earth ("REE") mineralisation at Boland which is amenable to in situ recovery ("ISR").

In order to accelerate the strategy to realise the value of Boland, and progress towards a Scoping Study, the Company is also pleased to announce it has raised gross proceeds of £600,000 through a placing (the "Placing") of 60,000,000 new ordinary shares of 1p each in the capital of the Company at a price of 1p per share. Approximately 30% of the Placing was to Australian investors including certain original vendors of the Wudinna Project.

Highlights:

Historical drillholes yield high grades over exceptional scale

·    Extensive Rare Earth Mineralisation: Significant intersections of rare earth mineralisation from historical drill samples of across 11.5km of palaeochannel sediments, supporting the Company's modelled interpretation of mineralised lithologies extending over ~139km² (at Boland alone)

o  Results from 13 drillholes (233 samples) received; a further 869 samples from 42 drillholes have been submitted for re-assay and are expected in the coming weeks

·    De-risking Economic Recovery of Ionic REE Mineralisation: The Australian Nuclear Scientific and Technology Organisation ("ANSTO") is preparing a column leach trial on core samples from the installed wellfield to test recovery potential under ISR conditions

o  Results of this work are expected in June 2024

·    High Grade: Multiple high-grade intersections where:

o  Maximum grade of 2m at 2,708 ppm Total Rare Earth Oxides ("TREO"), where Nd₂O₃ + Pr₆O₁₁ totals 1,066 ppm and Dy₂O₃ + Tb₂O₃ totals 151 ppm Magnet Rare Earth Oxides ("MREO") 22%, Heavy Rare Earth Oxides ("HREO") 21% from 2m

·    Valuable Basket: MREO of intersections averaging 23% of the TREO, with HREO enrichment up to 37% of the TREO

·    Shallow: High-grade mineralisation identified in upper palaeochannel clay zones north of the recently installed wellfield 2m from surface

Placing to accelerate development of ionic REE discovery towards a Scoping Study

·    Raised £600,000: accelerates strategy to define economic value from the Boland REE discovery through advancing ISR as the preferred extraction method, undertaking Aircore drilling to support a maiden Mineral Resource Estimate over the interpreted 139km² of mineralisation, and progressing metallurgical work in preparation to undertake a Scoping Study

Rupert Verco, CEO of Cobra, commented:

"When we first drilled the Boland prospect a year ago, we believed that the geological conditions were supportive of ionic mineralisation and amenable to ISR. We are now methodically de-risking aspects necessary for the Boland prospect to produce a resource that will have the capacity to change the cost and environmental profile of magnet and heavy rare earth mining. 

These results validate our interpretation for the potential scale of ionic mineralisation across the Narlaby Palaeochannel. With further results to come, we will be able to refine our interpretations and plan resource drilling to target high-grade zones of mineralisation. This is exciting, considering that the interpreted 139km² at Boland only represents 5% of the palaeochannels held across Cobra's extensive land tenure. 

Our Sonic core drilling demonstrated high-grade concentration and these results are supporting scale for a future resource. We are eagerly awaiting ANSTO's completion of our column ISR tests to confirm our belief that this mineralisation can be mined by this most cost-effective form of mining, thus demonstrating the economic value of the Boland discovery.

Greg Hancock, Chairman of Cobra, commented:

"We are pleased to have received further investor support today, corner stoned once again by some of the original vendors to the Company of Wudinna. With 100% of the project now under Cobra's ownership, these funds will enable us to accelerate progress towards unlocking the  transformational value we believe exists within this unique geology that has the capacity to alter the western world's access to critical magnet and heavy rare earths.

Rupert and the team are experienced in ISR having been involved in Uranium operations previously. This is a well known and proven form of mining, and one in which we continue to receive encouraging evidence to suggest it can be applied to our unique REE discovery at Boland. "

Boland Re-Assay Results - Significant Intersections

·    IR 114 intersected 2m at 2,407 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 737 ppm and Dy₂O₃ + Tb₂O₃ totals 40 ppm (MREO 32%, HREO 11%) from 4m and 2m at 564 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 130 ppm and Dy₂O₃ + Tb₂O₃ totals 12 ppm (MREO 25%, HREO 15%) from 16m

·    IR 229 intersected 8m at 1,763 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 354 ppm and Dy₂O₃ + Tb₂O₃ totals 47 ppm (MREO 32%, HREO 21%) from 2m

·    IR 112 intersected 6m at 964 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 184 ppm and Dy₂O₃ + Tb₂O₃ totals 24 ppm (MREO 22%, HREO 19%) from 42m, including 3m at 1,392 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 263 ppm and Dy₂O₃ + Tb₂O₃ totals 36 ppm (MREO 21%, HREO 20%) from 42m

·    IR 237 intersected 8m at 641 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 124 ppm and Dy₂O₃ + Tb₂O₃ totals 19 ppm (MREO 22%, HREO 27%) from 16m

·    IR 117 intersected 2m at 691 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 148 ppm and Dy₂O₃ + Tb₂O₃ totals 11 ppm (MREO 22%, HREO 12%) from 14m and 4m at 685 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 187 ppm and Dy₂O₃ + Tb₂O₃ totals 6 ppm (MREO 28%, HREO 10%) from 42m

Boland Strategy

Cobra is progressing the ISR potential of ionic rare earths from permeable geology, where metallurgical analysis has yielded high recoveries of MREOs and HREOs through a simple ammonium nitrate, sulphuric acid wash. Recently, the Company installed a wellfield in preparation to test the environmental and cost-effective mining process of ISR. 

ISR is a scalable, low capital-intensive form of mining already widely used to mine uranium where permeable, low-grade deposits can be mined with minimal ground disturbance. Cobra believes that the unique geology of the Boland prospect can re-shape the preferred process of mining MREOs and HREOs from ionic clays.

Using historical geophysical logs, Cobra has modelled the extent of the mineralised geological units over significant areas of the palaeochannel. Re-assaying of historical samples supports initial geological assessments for a scalable, low-cost sourcing of magnet and heavy rare earths. 

Benefits of ISR

Cobra confirmed ionic REE metallurgical recoveries at Boland in 2023 and recent Sonic core drilling provided greater geological detail supporting the Company's thesis that grade concentrations are high, mineralisation is amenable to low-cost extraction via ISR, and the discovery has exceptional province-scale potential.

Cobra believes that the amenability of the permeable palaeochannel geology to ISR has the potential to differentiate the Boland project from other ionic and clay hosted REE projects, as ISR:

·    Removes bulk stripping, rehandle and rehabilitation requirements

·    Does not require crushing or screening to de-logulate ores

·    Eliminates the need to de-slime clays from solution

·    Materially reduces water consumption

·    Mitigates ore beneficiation

As ISR bypasses typical mining and processing steps, the inherent costs of recovery are typically lower than traditional mines. This is widely demonstrated in the uranium industry, where:

·    Capital costs of project construction are 10-15% of the costs attributed to hard rock projects

·    Ongoing costs of ISR production are 30-40% less than the costs attributed to hard rock uranium mining

¹ United States Nuclear Regulatory Commisions www.nrc.gov TradeTech - the nuclear review (October 2016)

Figure 1: Plan detailing the extent of re-analysis results, previous Cobra drilling, pending assays and the modelled extent of the geological stratigraphy that hosts 'Zone 3' mineralisation identified in Boland wellfield drilling

Next Steps

Cobra's strategy to realise the value of the Boland discovery is to systematically advance the ISR recoverability of REEs at Boland, whilst defining grade upside and scale. The forward plan presented in Table 1 summarises the timeframes for key scopes of work for Boland.

Table 1:  Forward work plan

Discussion of Results

·    In March 2024, the Company announced the results of a Sonic drilling programme, and the subsequent installation of a wellfield to advance ISR as the preferred mining method. Narrow sampling, downhole geophysics and improved geological detail enabled Cobra's technical team to model the extent of three geological lithologies (zones 1-3) that host ionic REEs. Modelled mineralised units support extensive scale where host units have been modelled across:

o  The geological formation hosting zone 1 mineralisation is mapped across ~128km²

o  The geological formation hosting zone 2 mineralisation is mapped across ~58km²

o  The geological formation hosting zone 3 mineralisation is mapped across ~139km²

·    Modelling was based on the downhole geophysical responses attributed to each mineralised zone in alignment with a REPTEM survey flown in 2008 that defines the base of the Narlaby Palaeochannel

·    Downhole geophysics from historical uranium focused drilling were digitised, interpreted and wireframes developed

·    Re-analysis results support the extent of scale and define intersections across all zones

·    Mineralisation has now been defined along 11.5km of strike within the Narlaby Palaeochannel. Further re-analysis shall look to expand and infill the mineralisation footprint

·    Mineralisation is deeper within the central regions of the palaeochannel, and less concentrated. This is interpreted to be a result of fluvial, river streams re-working and eroding the marine sediments that host the ionic REEs. This supports targeting the peripheral areas of the palaeochannels for higher grades

·    Historical results will be used to inform follow up drilling as:

o  Historical 2m downhole sample composites do not represent the concentrated nature of mineralisation at permeable boundaries, resulting in poor definition between mineralised zones. Intersections reported across zones 1 and 2 are amalgamated

o  The highly concentrated nature of zone 3 is poorly represented by 2m sample compositing; however, elevated grades support regional scale

o  The geological controls resulting in shallower mineralisation north of the Boland wellfield are unknown and require further investigation to confirm the historical results and test their amenability to ISR

o  Variable basket compositions reflect REE mobility and are a common trait of ionic rare earth systems, owing to the drainage nature of the palaeochannel being different to the hydraulic drivers in typical ionic systems, the distribution and variability of mineralisation requires follow-up drilling

Table 2: Significant intersections

£600,000 Placing

Cobra has raised gross proceeds of £600,000 through the Placing of 60,000,000 new ordinary shares of 1 pence each in the capital of the Company (the "Placing Shares") at a price of 1p per share (the "Placing Price"), representing a discount of approximately 3% to the mid-market closing share price on 25 April 2024.

Following the completion of the acquisition of 100% of the Wudinna Project as announced on 22 April 2024, the Company has raised funds to advance the work programme summarised in Table 1 above to define economic value from the Boland REE discovery through:

·    Advancing ISR - a low-cost, low-disturbance mining process that could be integrated into existing land practices - as the preferred mining and extraction method

·    Undertaking Aircore drilling to support a maiden Mineral Resource Estimate for ionic REEs

·    Progressing metallurgical work beyond the currently funded programme to optimise a flowsheet which will enable the company to commence a Scoping Study on the development of the resource

Approximately 30% of the Placing was to Australian investors including certain of the original vendors to the Company of Wudinna.

The Placing has been conducted within the currently available share authorities.

Admission of Placing Shares

The Company has made applications to the FCA and the London Stock Exchange in connection with the admission of the Placing Shares, which is expected to occur at 8.00 a.m. on 2 May 2024 ("Admission").

Total Voting Rights

The Company hereby notifies the market, in accordance with the FCA's Disclosure Guidance and Transparency Rule 5.6.1, that, on Admission, the Company's issued share capital will consist of 726,559,550 ordinary shares, each with one vote. The Company does not hold any ordinary shares in treasury. On Admission, the total number of voting rights in the Company will be 726,559,550 and 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 Company under the FCA's Disclosure Guidance and Transparency Rules.

Enquiries:

The person who arranged for the release of this announcement was Rupert Verco, Managing Director of the Company.

Information in this announcement relates to exploration results that have been reported in the following announcements:

·    Wudinna Project Update: "Drilling results from Boland Prospect", dated 25 March 2024

·    Wudinna Project Update: "Historical Drillhole Re-Assay Results", dated 27 February 2024

·    Wudinna Project Update: "Ionic Rare Earth Mineralisation at Boland Prospect", dated 11 September 2023

·    Wudinna Project Update: "Exceptional REE Results Defined at Boland", dated 20 June 2023

Competent Persons Statement

Information and data presented within this announcement has been compiled by Mr Robert Blythman, a Member of the Australian Institute of Geoscientists ("MAIG"). Mr Blythman is a Consultant to Cobra Resources Plc and has sufficient experience, which is relevant to the style of mineralisation, deposit type and to the activity which he is undertaking to qualify as a Competent Person defined by the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC" Code). This includes 10 years of Mining, Resource Estimation and Exploration relevant to the style of mineralisation.

Information in this announcement has been assessed by Mr Rupert Verco, a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Verco is an employee of Cobra and has more than 16 years' industry experience which is relevant to the style of mineralisation, deposit type, and activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves of JORC. This includes 11 years of Mining, Resource Estimation and Exploration.

About Cobra

Cobra is defining a unique multi-mineral resource at the Wudinna Project in South Australia's Gawler Craton, a tier one mining and exploration jurisdiction which hosts several world-class mines. Cobra's Wudinna tenements totalling 1,832km², and other nearby tenement rights totalling 2,941km², contain highly desirable and ionic rare earth mineralisation amenable to low-cost, low impact in situ recovery mining, and critical to global decarbonisation. Cobra's greater Wudinna tenements are also prospective for uranium. Additionally, Cobra holds a 213km² exploration tenement in northern Tasmania which is also considered highly prospective for ionic rare earth mineralisation.

Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation and are characterised by potentially open-pitable, high-grade gold intersections, with ready access to infrastructure. Cobra has 22 orogenic gold targets outside of the current 279,000 Oz gold JORC Mineral Resource Estimate, and several iron oxide copper gold (IOCG) targets.

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Appendix 1: JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

Appendix 2: Section 2 Reporting of Exploration Results