Exceptional REE Results Defined at Boland

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20 June 2023

Cobra Resources plc

("Cobra" or the "Company")

Exceptional REE Results Defined at Boland with Characteristics of Ionic Mineralisation

Further High-Grade Intersections Support REE Resource Growth

Cobra, a gold, rare earth and IOCG exploration company focused on the Wudinna Project in South Australia, announces additional Rare Earth Element ("REE") results from Aircore ("AC") drilling, which demonstrate further REE resource growth and a highly desirable style of mineralisation.

Key Points

·    Combined 48m intersection at the Boland prospect of over 2,000 ppm Total Rare Earth Oxides ("TREO")

·    Characteristics of REE mineralisation demonstrate properties supportive of ionic mineralisation (subject to desorption and simple leach testing)

o  Mineralisation occurs within Eocene aged playa clays that are low in phosphate and zircon and are therefore not expected to contain primary mineral REE phases

o  Mineralisation has been defined within palaeo-channel sediments, a geological environment that could enable low impact, low cost insitu leach mining

o  Mineralised clays are bound stratigraphically by un-mineralised, permeable sands, indicating that REEs have been transported

o  Mineralisation occurs on the eastern margin of the palaeo-channel where playa clays are in contact with, or close proximity to, saprolite

o  Grade peaks are associated with variances in acidity/alkalinity that occur between sand and clay units which are a principal catalyst for clay adsorption

o  REE intersections are associated with reduced (smectitic) clays (with high adsorption capacities) and are the principal host of other Australian ionic REE projects

o  Ratios of heavy REEs vary significantly between saprolite and channel intersections, supporting transportation and enrichment processes that are characteristics of ionic REE deposits

o  Insitu leach mining is an established technique among South Australia's uranium producers which is low in environmental impact and requires lower capital and operating costs than load and haul, hard rock mining

o  Ionic REE mineralisation would complement insitu leaching owing to its fast rate of desorption and its ability to be integrated into current land use

·    Drilling has tested only 1.5 km of a prospective >30 km zone of palaeo-channel where clays are likely to make contact with saprolite on channel boundaries - highly scalable

·    Selected samples have been sent to Australia's Nuclear Science and Technology Organisation ("ANSTO") for desorption and simple leach testing

Rupert Verco, CEO of Cobra, commented:

"It is truly exciting to have identified palaeo-channel-hosted REEs in our first targeted programme, with these results re-affirming the Company's approach to advancing rare earth targets that have unique economic advantages.

While not yet definitive, the Boland results are significant due to the style of mineralisation being amenable to low impact, low-cost extraction with significant growth potential due to the scalability of palaeo-channel systems on our tenements. This places Cobra in the minority of Australian REE companies able to show unique REE occurrences with significant economic enablers.

The Board believes that, between the unique dual gold and REE resource and the confirmation of palaeo-channel hosted REEs, the Wudinna Project is positioned with highly competitive economic advantages that make it a market standout.

I would like to congratulate our technical team and partners for their work which has driven our understanding of REE mobility and the key drivers for economic REE mineralisation which has led to defining the Boland discovery."

Boland Highlights

Signature intersections:

·    CBAC0164: 3m at 942 ppm TREO (22% Magnet Rare Earth Oxides ("MREO")) from 15m, and 3m at 1,333 ppm TREO (13% MREO) from 30m and 42m at 2,189 ppm TREO (25% MREO) from 36m

·    CBAC0163: 3m at 559 ppm TREO (24% MREO) from 18m, and 3m at 618 ppm TREO (22% MREO) from 21m and 12m at 1,191 ppm TREO (27% MREO) from 36m

·    CBAC0168: 12m at 948 ppm TREO (19% MREO) from 42m

·    CBAC0176: 3m at 429 ppm TREO (23% MREO) from 27m, and 3m at 661 ppm TREO (19% MREO) from 48m and 3m at 1,984 ppm TREO (22% MREO) from 54m

Further resource extension highlights include:

·    CBAC0130: 10m at 2,349 ppm TREO (23% MREO) from 21m, including 3m at 5,382 ppm TREO (23% MREO)

·    CBAC0179: 18m at 2,854 ppm TREO (24% MREO) from 36m, including 6m at 5,066 ppm TREO (25% MREO) from 39m

·    CBAC0133: 15m at 1,040 ppm TREO (22% MREO) from 24m, including 6m at 1,206 ppm TREO (22% MREO) from 27m

·    CBRC0081: 15m at 1,557 ppm TREO (17% MREO) from 33m

·    CBAC0128: 23m at 847 ppm TREO (23% MREO) from 12m, including 3m at 1,701 ppm TREO (24% MREO) from 12m

·    CBAC0125: 29m at 630 ppm TREO (22% MREO) from 12m

·    CBAC0180: 9m at 1,107 ppm TREO (22% MREO) from 39m

·    Drilling has defined significant extensions to the existing 20.9 Mt REE JORC resource in areas that complement defined gold mineralisation

·    High-grade mineralisation remains open to the north of the Clarke prospect and to the southwest of Baggy Green

REE Strategy

The economic viability of clay hosted REEs is more dependent upon low mining and processing costs, a consequence of mineralogy rather than grade. On this basis, the Company has focused on:

1.    REE resource expansion aimed at growing its complementary dual gold and REE resources, where the spatial proximity of REE mineralisation to gold enables cost efficient, value add potential

2.    Targeting low cost, easily extractable ionic clay hosted mineralisation by defining and targeting conditions that promote ionic mineralisation. The Boland prospect was defined on the basis of chemical and geological conditions that promote the mobility and adsorption of ionic REEs. AC drilling has validated this concept

Whilst the Exploration Target at the Thompson prospect and high-grade intersections at the Anderson prospect demonstrate regionally scalable REE mineralisation potential that will be tested in the foreseeable future, the Company has prioritised the drilling of the Boland prospect based on its potential to host easily leachable ionic REE mineralisation, thereby accelerating the commercial pathway of the project. 

Next Steps

The Company will now focus on advancing work scopes in alignment with its strategic advancement of expanding dual gold and rare earth resources:

Metallurgy

·    Select samples submitted to ANSTO for desorption and simple leach testing to confirm ionic mineralisation and leachability of mineralisation from the Boland prospect

·    Select samples from the Baggy Green and Thompson prospects submitted for simple leach testing to inform expansion strategies at both targets

·    Optimisation studies focusing on beneficiation and recovery optimisation from resource extension samples

Resource Updates

·    Update the 211,000 Oz 2019 Gold MRE to incorporate over 10,000m of resource expansion drilling as well as over 700m of defined mineralised gold strike at the Clarke prospect

·    Update the 20.9 Mt at 658 ppm TREO REE MRE which overlies gold mineralisation to incorporate results from 2023 expansion drilling

Further drilling will be planned on the results of the above.

Enquiries:

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

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 3,261 km², 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 211,000 Oz gold JORC Mineral Resource Estimate. In 2021, Cobra discovered rare earth mineralisation proximal to and above the gold mineralisation which has been demonstrated to be regionally scalable. In 2023, Cobra published a maiden rare earth JORC Mineral Resource Estimate of 20.9 Mt at 658 ppm Total Rare Earth Oxides enabling a strategic baseline to advance an economically beneficial combination of gold and rare earth resources.

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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 ("FAusIMM"). Mr Verco an employee of Cobra Resources Plc has more than 16 years relevant industry 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 as defined in the 2012 Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves (the "JORC" Code). This includes 11 years of Mining, Resource Estimation and Exploration

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

·    "Wudinna Project Update - Aircore Drilling Yields Exceptional Gold and Rare Earth Results at Clarke" dated 16 August 2022

·    "Wudinna Project Update - Additional High-Grade Rare Earths Defined Across Regional Targets" dated 12 September 2022

·    "Wudinna Project Update - Exceptional Rare Earth Scale Potential at Thompson Prospect Increases REE Footprint from 4 km² to 22.5 km²" dated 26 September 2022

·    "Wudinna Project Update - Maiden Rare Earth Resource Estimate - Unique and Unconstrained" dated 9 January 2023

·    "Wudinna Project Update - RC Drilling Results - Expanding Gold and Rare Earth Occurrence

at Clarke Prospect Position Cobra for Dual Resource Expansion" dated 17 January 2023

·    "Wudinna Project Update - Stage 3 Earn-In to Obtain 75% of the Wudinna Project Achieved" dated 24 April 2023

·    "Wudinna Project Update - Initial RC Drilling Results Underpin Gold Resource Growth Potential" dated 9 May 2023

·    "Drilling Defines REE Resource Extension Potential" dated 12 June 2023

Definitions

REO - Rare Earth Oxides

TREO - Total Rare Earth Oxides plus yttrium

MREO - Magnet Rare Earth Oxide (Nd₂O₃ + Pr₆O₁₁ + Dy₂O₃ + Tb₂O₃)

HREE - Heavy Rare Earth Elements

MRE - Mineral Resource Estimate

Further Information Regarding the Boland Results

Since the prospectivity of REEs at the Wudinna Project was identified in late 2021, the Company has taken a technical approach in understanding the enrichment, mobility, and mineralogy of REE occurrences within clay saprolite and tertiary and quaternary aged clays across the 3,261 km² land tenure of the Wudinna Project.

Owing to the depletion of saprolite-hosted REEs at the 104,000 Oz Barns Gold Resource, the Company believed that the highly acidic conditions (pH<2) contribute to the re-mobilisation of REEs away from the Barns gold resource and the sulphide rich Hiltaba granites. The Boland prospect is considered to host the right conditions to promote ionic adsorption of mobilised REEs and therefore act as a 'trap' for fluid mobile REEs.

Drilling results demonstrate:

·    Mineralisation is most prominent along the eastern margin of the tested area, where channel clays are in direct contact with granitic saprolite

·    HREEs are depleted within saprolite zones and enriched in assemblage within the palaeo-channel sediments

·    REE enrichment in playa smectite clays at discrete changes in sample acidity/alkalinity

·    Light Rare Earth ("LREO") enrichment in saprolite that is in direct contact with palaeo-channel sediments

A total of 17 holes for 775m was drilled at the Boland prospect. Owing to the aquifers contained within the palaeo-channel sands, where excessive sand intervals were intersected, 10 holes were abandoned before achieving targeted depths due to challenges maintaining hole integrity due to the abundance of ground water.

Figure 1: Overview of AC drilling results at the Boland prospect

Two distinct playa clay bands are present within interbedded channel sands that are variable in oxidation state. Mobility of REEs from the saprolite to the playa clays is demonstrated by the variability of HREEs within the downhole profile.

Significant intersections include:

·    CBAC0164: 3m at 942 ppm TREO (22% MREO) from 15m (playa clay), and 3m at 1,333 ppm TREO (13% MREO) from 30m (playa clay) and 42m at 2,189 ppm TREO (25% MREO) from 36m (saprolite clay)

·    CBAC0163: 3m at 559 ppm TREO (24% MREO) from 18m (playa clay), and 3m at 618 ppm TREO (22% MREO) from 21m (playa clay) and 12m at 1,191 ppm TREO (27% MREO) from 36m (saprolite clay)

·    CBAC0168: 12m at 948ppm TREO (19% MREO) from 42m (saprolite clay)

·    CBAC0176: 3m at 516 ppm TREO (23% MREO) from 27m (playa clay) and 3m at 661 ppm TREO (19% MREO) from 48m (contact saprolite clay) and 1,984 ppm TREO (22% MREO) from 54m (saprolite clay)

·    CBAC0175: 3m at 429 ppm TREO (23% MREO) from 27m (playa clay)

·    CBAC0172: 3m at 685 ppm TREO (20% MREO) from 54m (saprolite clay)

·    CBAC0177: 3m at 545 ppm TREO (26% MREO) from 42m (saprolite clay) to EOH

·    CBAC0162: 6m at 437 ppm TREO (24% MREO) from 42m (playa clay)

·    CBAC0160: 3m at 390 ppm TREO (22% MREO) from 15m (playa clay)

Figure 2: Cross section demonstrating significant intersections in relation to geology

Figure 3: 3m composite samples from CBAC00164 normalised to chondrite REE abundance, demonstrating the HREE enrichment in the sample 18-21m (941 ppm TREO) in comparison to the 30-33m (1,133 ppm TREO) and the samples from deeper than 36m (>2000 ppm TREO)

Fluid and clay acidity/alkalinity is an important environmental control on the adsorption process of REE to clay particles. Discrete variances in alkalinity/acidity occur across lithologies and suggest a relationship between pH and REE grade distribution. Unlike Kaolin clays that require a lower (acidic) pH to optimise adsorption potential, Smectite clays require a higher (alkaline) pH to promote adsorption. The observed pH variances in association with reduced clays are a positive indication for clay adsorption.

Figure 4: Downhole plot of REO grade distribution and associated sample pH for drillhole CBAC00164

Samples of variable chemical and lithological conditions have been selected from the Boland prospect for desorption and simple leach testing to confirm their potential for insitu leach recovery.

Further Information Regarding the Clarke and Baggy Green Resource Extension Results

Resource expansion drilling demonstrates the growth potential of the existing 20.9 Mt REE MRE. Areas of expansion drilling at Baggy Green west and Clarke (north and south) were designed to complement future optimisation of both gold and REE mineralisation.

The existing MRE estimate is based upon a defined mineralisation footprint of ~4km². These results expand the defined mineralisation footprint to ~6km².

Results demonstrate broad, and high-grade zones of REE mineralisation as demonstrated by the following intersections:

·    CBAC0130: 10m at 2,349 ppm TREO from 21m where the MREO equates to 23%, including 3m at 5,382 ppm TREO from 21m where the MREO equates to 23%

·    CBAC0179: 18m at 2,854 ppm TREO from 36m where the MREO equates to 24%, including: 6m at 5,066 ppm TREO from 39m where the MREO equates to 25%

·    CBAC0131: 6m at 459 ppm TREO from 24m where the MREO equates to 23%

·    CBAC0133: 15m at 1,040 ppm TREO from 24m where the MREO equates to 22%, including 6m at 1,206 ppm TREO from 27m where the MREO equates to 22%

·    CBAC0118: 15m at 769 ppm TREO from 24m where the MREO equates to 21%, including 3m at 1,298 ppm TREO from 30m where the MREO equates to 22%

·    CBAC0119: 12m at 785 ppm TREO from 30m where the MREO equates to 24%, including 3m at 1,230 ppm TREO from 30m where the MREO equates to 25%

·    CBAC0120: 12m at 743 ppm TREO from 18m where the MREO equates to 32%, including 3m at 1,139 ppm TREO from 24m where the MREO equates to 33%

·    CBAC0121: 6m at 420 ppm TREO from 27m where the MREO equates to 21%

·    CBAC0122: 6m at 644 ppm TREO from 30m where the MREO equates to 22%

·    CBAC0123: 25m at 527 ppm TREO from 33m where the MREO equates to 22%

·    CBAC0124: 6m at 663 ppm TREO from 12m where the MREO equates to 22% and 3m at 562 ppm TREO from 27m where the MREO equates to 25%

·    CBAC0125: 29m at 630 ppm TREO from 12m where the MREO equates to 22%

·    CBAC0126: 9m at 569 ppm TREO from 12m where the MREO equates to 20%

·    CBAC0127: 12m at 513 ppm TREO from 24m where the MREO equates to 20%

·    CBAC0128: 23m at 847 ppm TREO from 12m where the MREO equates to 23%, including: 3m at 1,701 ppm TREO from 12m where the MREO equates to 24%

·    CBAC0129: 3m at 885 ppm TREO from 15m where the MREO equates to 24%

·    CBAC0184: 18m at 632 ppm TREO from 24m where the MREO equates to 20%

·    CBAC0186: 9m at 487 ppm TREO from 27m where the MREO equates to 23%

·    CBRC0081: 15m at 1,557 ppm TREO from 33m where the MREO equates to 17%

·    CBAC0180: 9m at 1,107 ppm TREO from 39m where the MREO equates to 22%

Additional samples from resource expansion drilling have been selected to advance metallurgical optimisation studies that will focus on beneficiation, increased extraction through varying lixiviants and salt spiking with the aim of designing a REE extraction flowsheet that can complement gold mining.

Figure 5: Overview of resource extension targeted AC drilling results at the Clarke and Baggy Green prospects

Table 1:  New significant intersections from 2023 AC drilling

Location and Land Tenure

The Wudinna Project is located on the northern Eyre Peninsula, within South Australia, a tier 1 mining jurisdiction. The defined dual Gold and REE MRE occurs within EL6131 (Corrobinnie) and lies within the Pinkawillinie Conservation Park (dual proclamation land). Gold Resources extend across EL5953 (Minnipa) and EL6131. The tenements are held by Peninsula Resources, a subsidiary of Andromeda Metals. In April 2023, the Company announced its 75% earn-in had been recognised by Andromeda Metals under the terms of the Wudinna Heads of Agreement.

Figure 6: Locality plan

Geology and Nature of the REE Mineralisation

The gold and REE deposits at the Wudinna Project are considered to be related to the structurally controlled basement weathering of epidote-pyrite alteration related to the 1590 Ma Hiltaba/GRV tectonothermal event of the Gawler Craton. Gold and REE mineralisation have a spatial association with mafic intrusions/granodiorite alteration and are associated with metasomatic alteration of host rocks. Epidote alteration associated with gold mineralisation is REE enriched and believed to be the primary source.

The REE mineralisation is regionally extensive in weathered (saprolite and saprock) zones developed on basement rocks. The nature of controlling structures that act as conduits for gold mineralisation are also thought to act as catalysts for the secondary processes that promote weathering and subsequent mobilisation of REEs to the saprolite and saprock.

The following simplified model is proposed for clay hosted REEs and the Clarke and Baggy Green prospects:

·    Gold and sulphide mineralisation is directly associated with Hiltaba Suite volcanics (~1590-1575 Ma)

·    WNW redial shears under NS compression (craton emplacement) act as dilatational conduits through Kimbian and Sleaford age granitoids

·    Hiltaba suite mafics are enriched in light REEs

·    Gold and sulphide mineralisation forms along sheeted granitoid "dome" joints, bound within shear zones

·    Sericite and epidote alteration halos form peripheral to gold mineralisation

·    Epidote alteration is enriched in REEs providing an enriched source

·    Supergene enrichment of gold occurs at the base of oxidation, where the weathering of primary sulphides generates acidic conditions

·    Primary REE phases are weathered to secondary REE phases through prolonged weathering

·    Acidic conditions generated by the weathering of sulphides re-mobilises REEs

·    At acid/alkalinity changes (pH 6-7) a greater component of REE is absorbed to clay particles

·    Colloidal phase REEs are thought to result from ongoing chemical and environmental changes. 

·    Strongly reduced sediments (playa clays) deposited in the Eocene (a period of tropical climate conditions) form interbeds and aquitards within palaeo-channels

·    Fluid mobile REEs migrating into palaeo-drainage systems are adsorbed to playa clays at discrete changes in fluid chemistry (acidic to alkaline) 

Figure 7: Proposed geological model for gold and REE mineralisation at the Clarke and Baggy Green prospects

Table 2: Drillhole survey details

Appendix 1: JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

Appendix 2: Section 2 Reporting of Exploration Results