Rare Earth and Gold Resource Upgrades

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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7 September 2023

Cobra Resources plc

 ("Cobra" or the "Company")

Rare Earth and Gold Resource Upgrades

Unique and Economically Advantageous Dual Resource Project

Cobra, a gold, rare earth and IOCG exploration company focused on the Wudinna Project in South Australia, is pleased to announce upgrades to both its Rare Earth Elements ("REE") and Gold JORC Mineral Resource estimates ("MRE"), which establish this dual resource project as unique and economically advantageous.

Highlights - Rare Earth Elements

·    Upgraded REE MRE includes:

o  +99% increase in tonnes

o  +5% increase in Magnet Rare Earth Oxide ("MREO") grade

o  +109% increase in MREO metal content

·    An exclusively unique REE resource that overlies the Baggy Green and now, Clarke gold resources, providing a competitive metric for low operational costs

Highlights - Gold

·    Upgraded Gold MRE includes:

o  +32% increase in gold metal (+68,000 Oz)

o  +1.4Mt increase in ore tonnes

o  33,000 Oz maiden MRE estimate at the Clarke prospect

·    Shallow resource - all resource ounces occur within 200m of surface, presenting as low cost, camp scale open pit extraction with enhanced economics from REE overburden

·    Total gold resource of 5.8Mt at 1.5 g/t gold for 279,000 Oz

·    Gold ounce increases across all deposits, demonstrating potential for additional growth through infill and further extensional drilling

Rupert Verco, CEO of Cobra, commented:

"It is pleasing to see resource extension at all gold deposits and a doubling of rare earth resources, achieved at exceptionally low cost. 

We are one step closer to demonstrating the commercial value of this unique dual resource and Wudinna is undoubtedly presenting as an economically advantageous project to take forward. 

Cobra's rare earth strategy has been based upon economic viability. Defining rare earths within overburden provides a competitive edge when compared to stand-alone clay-hosted REE projects - with the exciting additional potential of ionic mineralisation at Boland, where we are eagerly awaiting final metallurgical results to validate proof-of-concept for in situ-leachable, low cost and sustainable sourcing of critical minerals.

Between our growing resources and our pipeline of targets such as Boland, Cobra is delivering transformational exploration success with potentially global implications."

The 2023 Gold and REE JORC MRE updates are defined below:

Table 1: Wudinna Project 2023 JORC MRE Update

Rare Earth Mineral Resources reported above a cut-off grade of 320 ppm TREO-Ce

Gold Mineral Resource reported above a cut-off grade of 0.5 g/t gold

The Wudinna Project's gold resource comprises four primary, shallow, camp scale gold occurrences. The alteration mineralogy and structural genesis associated with the gold mineralisation event is believed to act as a catalyst for REE enrichment and mobilisation. The spatial proximity of rare earth mineralisation has the potential to economically complement the gold mineralisation.

The Wudinna Project's unique REE resource lends itself to a sustainable supply of critical minerals central to decarbonisation, owing to the resource's position as overburden. Metallurgical testwork has demonstrated MREO recoveries of up to 35% at a pH 1. In comparison to other clay-hosted REE projects, these results are considered economically competitive. Further testwork is underway to enhance recoveries without materially increasing acidities which impact cost and environmental risk. Current studies include beneficiation, material characterisation and gangue element management. This work is iterative in nature.

Figure 1: Locality plan - Wudinna Project 2023 MRE Update

Figure 2: Cross section of the Clarke and Baggy Green dual gold and REE resource models demonstrating the complementary spatial nature of the MREs

Figure 3: Wudinna Project gold MRE variance since the 2019 MRE

Figure 4: Grade tonnage curve for the Baggy Green and Clarke rare earth MRE demonstrates the relative relationship between grade and tonnage distribution. The cut-off grade of 320 ppm TREO-Ce reflects the deflection point between background and grade enrichment

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 total 1,832 km², with other nearby tenement rights totalling 1,429 km².

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.

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Competent Persons Statement

The information in this announcement that relates to the estimation and reporting of the gold Mineral Resource estimates for the Barns, Baggy Green and White Tank Deposits and the Clarke and Baggy Green REE Mineral Resource estimates has been compiled by Mrs Christine Standing BSc Hons (Geology), MSc (Min Econs), MAusIMM, MAIG. Mrs Standing is a Member of the Australian Institute of Geoscientists and the Australian Institute of Mining and Metallurgy and is a full-time employee of Snowden Optiro (Optiro Pty Ltd) and has acted as an independent consultant. The information in this announcement that relates to the estimation and reporting of the gold Mineral Resource estimate for Clarke has been compiled by Ms Justine Tracey BSc Hons (Geology), MSc (Geostatistics), MAusIMM. Ms Tracey is a Member of the Australian Institute of Geoscientists and is a full-time employee of Snowden Optiro (Optiro Pty Ltd) and has acted as an independent consultant.

Mrs Christine Standing and Ms Justine Tracey have sufficient experience with the style of mineralisation, deposit type under consideration and to the activities undertaken to qualify as Competent Persons as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mrs Standing and Ms Tracey consent to the inclusion in this announcement of the contained technical information relating the Mineral Resource estimations in the form and context in which it appears.

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 has more than 16 years' 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, Mineral Resource estimation and exploration.

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

·      "Wudinna Gold Resource Update", dated 7 May 2019

·      "Wudinna Project Update - Initial Gold and Rare Earth Results", dated 14 December 2021

·      "Wudinna Project Update - Northern Drillholes at Clarke Intersect Additional Gold Mineralisation, Additional Rare Earth Intersections Directly Above Gold Zones", dated 7 February 2022

·      "Wudinna Project Update - Re-Analysis Defines Large Rare Earth Mineralisation Footprint Above Baggy Green and Clarke Gold Mineralisation", dated 4 May 2022

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

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

·      "Wudinna Project Update - Initial RC Drilling Results Underpin Gold Resource Growth Potential - Completion of Aircore Drilling Confirms Highly Prospective Conditions for Ion-Adsorbed Rare Earths", dated 9 May 2023

·      "Drilling Defined REE Resource Extension potential", dated 12 June 2023

Definitions

REE - Rare Earth Elements

REO - Rare Earth Oxides

MREO - Magnet Rare Earth Oxides (dysprosium + terbium + praseodymium, neodymium)

TREO - Total Rare Earth Oxides plus yttrium

TREO-Ce - Total Rare Earth Oxides plus yttrium and minus cerium

Further Information Regarding the REE and Gold MREs

Location and Land Tenure

The Wudinna Project is located on the northern Eyre Peninsula, within South Australia, a tier 1 mining jurisdiction. The defined REE MRE occurs within EL 6131 (Corrobinnie) and lies within the Pinkawillinie Conservation Park (dual proclamation land). The tenement is held by Peninsula Resources, a subsidiary of Andromeda Metals. Cobra is entitled to 75% ownership in the project through the Wudinna Heads of Agreement. In April 2023, the Company announced it had achieved its 75% earn-in obligation.

Figure 5: Locality plan

Geology and Nature of Gold and 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 1,590 Ma Hiltaba/GRV tectonothermal event of the Gawler Craton. Gold and REE mineralisation has a spatial association with mafic intrusions/granodiorite alteration and is associated with metasomatic alteration of host rocks. Epidote alteration associated with gold mineralisation is REE enriched and believed to be the primary source.

Gold mineralisation at Barns is associated with a large hydrothermal alteration halo. Within the host granodiorite the outermost alteration comprises a propylitic alteration zone where primary biotite is altered to chlorite, the composition of primary plagioclase becomes albite, and iron sourced from accessory magnetite and possibly biotite is oxidised and forms a red dusting. Epidote is common and may form from the calcium lost from the plagioclase during albitisation. The propylitic altered rocks display fine scale micro-fracturing which has allowed ingress of hydrothermal fluids. At Baggy Green, the host rocks are visibly altered and sheared in and around the mineralised zone. Alteration phases include biotite, chlorite, sericite and possibly hydrothermal magnetite. Gold occurs as free grains which can be panned from drill samples. The gold mineralisation style at Barns is reflective of the general features of the gold resources at Baggy Green, Clarke and White Tank.

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. Weathering processes have resulted in a supergene enrichment of gold withing the saprolite and saprock horizons.

The following simplified model is proposed for ionic REEs at the Clarke and Baggy Green prospects:

·      Gold and sulphide mineralisation is directly associated with Hiltaba Suite volcanics (~1,590-1,575 Ma)

·      WNW Riedel shears, under north-south compression (craton emplacement) act as dilatational conduits through Kimban 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 rare earth 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

·      Near redox boundaries (pH 6-7) a greater component of REE are adsorbed to clay particles

·      Colloidal phases occur as conditions become alkaline

Figure 6: Proposed geological model for gold and REE mineralisation at the Clarke and Baggy Green prospects

X-Ray Diffraction analysis performed by the Commonwealth Scientific and Industrial Research Organisation supports that a component of REE bursary is adsorbed to the primary clay particles, being kaolin and montmorillonite, in similar fashion to the highly desirable Ion Adsorbed Clay ("IAC") hosted deposits of southern China.

SEM analyses performed by the University of South Australia determined that:

·      Primary REE mineral phases in basement, hard rock lithologies are zircon, titanite, apatite, andradite, epidote

·      Secondary REE mineral phases within the lower saprock (weakly to moderately weathered basement) are monazite, bastnaesite, allanite, rutile

Figures 7-9: SEM imagery of samples from 27, 47 and 117m downhole of CBRC0042

·      REE enrichment in source rock is associated with Hiltaba intrusive alteration, the primary gold mineralising event

·      Elevated phosphate is identified at the base of saprolite, however the peak is not associated with elevated REE grades (Figure 10)

Figure 10: REE grades downhole of CBRC0042 intersected 8.2m at 561 ppm TREO from 38.1m below surface, and 19m at 0.79 g/t gold from 83m, including 5m at 2.62 g/t gold from 95m

·      Definitive change in REE bearing mineral phases between basement and saprolite, demonstrated by the calculated mass abundance of respective REE mineral phases

·    Rare earth grade peaks in the upper saprolite occur where secondary REE phases are low, supporting clay adsorption

The identified changes in mineral phase from hard rock to lower saprock and the occurrence of grade peaks within the weathered saprolite with very low identifiable rare earth mineral phases is supportive of a component of the REE bursary being adsorbed to clay particles and is analogous to the ionic rare earth deposits of Southern China.

Figure 11: CBRC0042 downhole REO grades, sample pH and the SEM calculated primary and secondary rare earth bearing mineral phases

Drilling data and intersections can be located in company announcement: "Wudinna Project Update - Northern Drillholes at Clarke Intercept Additional Gold Mineralisation - Additional Rare Earth Interceptions Directly Above Gold Zones", dated 07 February 2022

Drilling Techniques

The Barns Mineral Resource estimate is based on 94 drillholes (11,193.1m) consisting of Diamond ("DD"), Reverse Circulation ("RC"), and Rotary Hammer ("RH"). 20 holes have been drilled by Cobra since 2019.

The White Tank Resource is based on 49 drillholes (3,687m) consisting of RC and RH drilling. 5 holes have been drilled by Cobra since 2019.

The Baggy Green Resource is based on 102 holes (9,433.0m) consisting of DD, RC, and RH drilling. 15 holes have been drilled by Cobra since 2019.

The Clarke Resource is based on 87 holes (7,789m) consisting of AC and RC drilling. 67 holes have been drilled by Cobra since 2019.

The Rare Earth Mineral Resource estimate is based upon the drill results or re-analysis of 271 drillholes (19,065.1m) that consist of Aircore ("AC"), RH, and RC and a single DD drillhole. 48 RC and 69 AC holes have been drilled by Cobra since 2019. All rare earth results incorporated within the MRE were announced during 2022 and 2023.

The drillhole spacing within the Mineral Resource for the rare earths area is generally 200m by 200m, however areas of tighter drilling and sampling occur proximal to gold mineralisation where drill density is up to 25m by 100m. The drillhole spacing for the gold resources is on transects designed at 50-80m apart. Drillholes are typically 50-60m apart on the drill lines in the Inferred Mineral Resource areas. At Barns the drillhole spacing narrows to 50m by 20m in the area where Mineral Resources have been classified as Indicated.

Sampling and Sub-sampling Techniques

Downhole sample composites vary over the Mineral Resources, with historic drilling and subsequent re-analysis being performed on pulp samples from 1m, 2m, 4m and 6m down-hole intervals. Samples from Cobra's drilling have produced 1m composites from RC drilling and 2-3m from AC drilling. Owing to the variable nature of REE mineralisation through the saprolite, greater composite lengths are expected to understate grade.

RC drill samples were collected via a rig mounted cyclone and cone splitter to produce 2-4kg of sample. A riffle splitter was used to split any oversize samples to the 2-4kg size.

AC samples were collected via a rig mounted cyclone into a green bag or bucket for each 2-3m interval. A PVC spear was used to collected a representative 2-4kg.

Samples were collected from the top of hole. Samples for REE analysis were submitted from the top of the saprolite profile to the end of hole.

Sample Analysis Methods

From 2019 to the end of 2022, samples were submitted to Genalysis Intertek Laboratories, Adelaide, for preparation and analysis. Multi-element geochemistry was digested by four acid ICP-MS and analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho, La, Lu, Na, Nd, Pr, Sc, Sm, Tb, Th, Tm, U, Y and Yb. Au analysis was completed through 50g and 25g fire assay.

From the start of 2023, samples were submitted to Bureau Veritas, Adelaide for preparation and analysis. Multi-element geochemistry was digested by four acid ICP-MS/ ICP-OES and analysed for Ag, Ce, Cu, Dy, Er, Eu, Gd, Ho, La, Lu, Mg, Na, Nd, P, Pr, Sc, Sm, Tb, Th, Tm, U, Y and Yb. Au analysis was completed through 50g fire assay.

Mineral Resource Estimation and Classification

The REE and gold Mineral Resources have been estimated by independent consultants to the Company, Snowden Optiro.

The resource model for the REE mineralisation at Clarke and Baggy Green was constructed using a parent block size of 25 mE by 40 mN on 1 m benches and the parent blocks were allowed to sub-cell down to 5 mE by 10 mN by 0.5 mRL to more accurately represent the geometry and volume of the saprolite and saprock domains. Categorical Indicator Kriging ("CIK") at the sub-cell resolution was used to define REE mineralised (>100 ppm CeO₂ at a 45% threshold) blocks. The REE block grades were estimated using ordinary kriging. All REE (La₂O₃, CeO₂, Pr₆O₁₁, Nd₂O₃, Sm₂O₃, Eu₂O₃, Gd₂O₃, Tb₄O₇, Dy₂O₃, Ho₂O₃, Er₂O₃, Tm₂O₃, Yb₂O₃, Lu₂O₃ and Y₂O₃) were estimated independently.

The gold resource model at Barns was constructed on a block size of 10 mE by 10 mN on 4m benches. At White Tank, a parent block size of 10 mE by 20 mN on 4m benches was used. At Clarke, 25mE by 25 mN on a 3m bench blocks were used and at Baggy Green a parent block size of 10 mE by 10 mN on 5m benches were used.

The REE Mineral Resources and the majority (96%) of the gold Mineral Resources have been classified as 'Inferred' on the basis of confidence in geological and grade continuity and taking into account data quality, data density and confidence in the grade estimation, using the modelled grade continuity. In places, the drillhole density is sufficient to support a higher Mineral Resource classification and scope exists to review the current Mineral Resource classification if positive results are obtained from additional metallurgical studies that support economic viability.

An area of Barns has been classified as Indicated within areas where drill spacing is generally 20 mE by 50 mN or less and is above 20 mRL.

At Clarke, two northern mineralisation domains have not been included in the Mineral Resource estimate due to limited confidence in geometry and grade distribution. These areas have been classified as exploration potential.

Density

Weathering domains that reflect the controls to rare earth distribution were produced to remove transported cover and fresh basement from the REE Mineral Resource estimate. Within the saprolite domain, density was measured for 19 saprolite samples from diamond drilling at the Baggy Green and Barns gold prospects that exhibit a range of densities between 1.2 t/m³ and 2.01 t/m³. The average density of 1.6 t/m³ was applied for tonnage estimation of the REE Mineral Resource.

No changes have been applied to the bulk density parameters used for the gold Mineral Resource estimates. As previously reported, a total of 255 bulk density determinations were undertaken at Barns on either historical or recent DD drillholes and 185 bulk density determinations were undertaken at Baggy Green on recent DD drillholes. Average values were calculated from the complete dataset by Mining Plus in 2016 and were used in the "Wudinna Gold Resource Update", dated 7 May 2019. The average values determined for the transitional material and the fresh mineralisation at Barns were applied to the Barns and White Tank (located 1 km to the south of Barns) Mineral Resource estimates and the average values determined for the supergene and fresh mineralisation at Baggy Green were applied to the Clarke and Baggy Green Mineral Resource estimates.

Cut-off Grade

The REE Mineral Resource has been reported above a cut-off grade of TREO-Ce of 320 ppm and assumes extraction by open pit mining. The cut-off grade was selected based on the evaluation of other advanced clay-hosted rare earth mineral resources and the consideration that future economic analysis of the cut-off grade is likely to incorporate parameters that support extraction of the underlying gold mineralisation.

A gold cut-off grade of 0.5 g/t has been selected to reflect current commodity prices and a likely open pit mining option in conjunction with the overlying rare earth extraction.

Metallurgy

·    Preliminary metallurgical test work focusing on extraction techniques adopted to ionic phase mineralisation using H₂SO₄ as a lixiviant, and performed by Australia's Nuclear Science and Technology Organisation, yielded recoveries of up to 34% Total Rare Earth Element ("TREE") from samples across two holes at Clarke

·    Preliminary metallurgical testwork has provided positive indications that REE bursary is bound to clay particles. The identification of a technique or techniques to optimally recover rare earth metals from the saprolite mineralisation is ongoing with further desorption and leach testing underway

·    pH testing of drill samples demonstrates variable conditions across all prospects, saprolite horizons, and types of clays that are associated with high REE adsorption capacity

·    The nature of the bonds which adsorb the REEs within enclosing clay appear dependent upon the local chemical environment:

o  Where local pH is greater than optimal (moderately alkaline), colloidal bonding is more abundant and a positive cerium anomaly is generally present

o  Where local pH is in an optimal range, ionic bonding appears favoured, the valuable MREO mineral suite is enhanced (pH 5-6.8), and REE baskets generate negative cerium anomalies

o  Where local pH is lower than optimal (acidic), REEs appear to have remained mobile and enhanced grades are not retained within the saprolite zone

·    pH testwork completed to date provides an encouragement that it can be utilised as a process to identify metallurgical upside

·    REE grade is considerably higher at pH conditions 6-7 and 9-10. Should further metallurgical testing support a higher component of ionic adsorption, then saprolite acidity will be a key identifier for determining higher grades and zones amenable to lower processing costs

Figure 12: TREO breakdown of the Clarke dataset evaluating drillhole grades at a cut-off of 350 ppm TREO compared to a pH range of 6-7

The likelihood of eventual economic extraction of gold was considered in terms of possible open pit mining and results from metallurgical testwork commissioned by Andromeda in 2017. Metallurgical testwork from material at Barns and Baggy Green indicated gold recoveries ranging from 94.3% to 99.3% and averaging 97.7% across all samples from a combination of conventional gravity and cyanide leaching.

Gold and REE Mineral Resource update

Appendix 1: JORC Code, 2012 Edition - Table 1

The table below summaries the assessment and reporting criteria used for the Barns, White Tank, Clarke and Baggy Green gold Mineral Resource estimates and the Clarke and Baggy Green REE Mineral Resource estimates and reflects the guidelines in Table 1 of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code, 2012).

Section 1 Sampling Techniques and Data

Appendix 2: Section 2 Reporting of Exploration Results

Appendix 3: Section 3 Estimation and Reporting of Mineral Resources