REE Exploration Strategy to Include Uranium

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.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OF SUCH JURISDICTION.

12 February 2024

Cobra Resources plc

("Cobra" or the "Company")

REE Exploration Strategy to Include Uranium

Potential to cost effectively grow a valuable uranium asset alongside REE exploration

Cobra, an exploration company focused on the Wudinna Project ("Wudinna") in South Australia, advises that its strategy to demonstrate scalability of the Boland ionic rare earths ("REE") discovery will also test for extensions to roll-front uranium mineralisation identified at the adjacent Yarranna Uranium Project held by IsoEnergy (TSX-V: ISO) that extends onto the Company's newly granted tenement (announced 9 January 2024).

Highlights

·    Cobra's Boland ionic REE discovery occurs in the Narlaby Palaeochannel, and this system also hosts known uranium mineralisation at the adjacent Yarranna Project

·    IsoEnergy's Yarranna Uranium Project includes four defined uranium occurrences, being Yarranna North, Central, South, and South East, where roll-fronts contain broad zones of mineralisation and high-grade intersections

·    Cobra's newly granted tenement EL 6967 ("Pureba") covers the eastern roll-front mineralisation of the Yarranna South East prospect, where numerous intersections occur within broad > 200m spaced drilling from multiple mapped roll-fronts where, on Cobra's tenement, they exceed 3km in length and remain open. Intersections include¹:

o  1m at 708 ppm U₃O₈ from 66m (IR1436)

o  3m at 340 ppm U₃O₈ from 72m, including 1m at 420ppm U₃O₈ from 73m (IR1435)

o  1m at 209 ppm U₃O₈ from 68m (IR1448)

o  0.95m at 617 ppm eU₃O₈ from 69.95m (IR1065)

·    Historical plans and reports reference gamma eU3O8 grades of up to 1,000 ppm². Samples from these holes are being sought from the South Australian core library to be analysed as part of Cobra's REE re-analysis strategy to confirm the grade of uranium mineralisation

·    Similar geological mechanisms dictate REE and uranium mobilisation through the palaeochannel system where economic occurrences may be recoverable through low-cost, low disturbance in situ recovery ("ISR") mining

·    Historical water samples at Yarranna include U₃O₈ up to 12,300 ug/L and acidities as low as pH 2.7 which present as a potential source of acid for REE extraction, supporting potential cost reduction opportunities for ISR mining and warranting further testing upstream of the Yarranna roll-front²

·    South Australia (with 25% of the world's uranium resources) is a pro uranium mining jurisdiction, hosting Australia's only operating uranium mines: BHP's Olympic Dam, Heathgate Resources' Beverley and Four Mile, and Boss Energy's Honeymoon

·    South Australian sandstone hosted uranium assets are highly valued in the market as realised by Boss Energy (BOE.AX: Market Cap A$2,419M) and Alligator Energy (AGE.AX: Market Cap A$305M)

·    Cobra's exploration strategy to demonstrate scale to the Boland ionic discovery incorporates uranium testing and targeting as the controls that drive ionic REE mineralisation are likely to be maximised in front of REDOX (roll-front) boundaries

·    Cobra is already advancing the ISR potential of REEs from the Boland REE prospect and ISR is the established and dominant mining process for uranium

Rupert Verco, CEO of Cobra, commented:

"As we advance the potential of ionic REE extraction via ISR at Boland, it is prudent to maximise the resource potential of our assets at minimal additional cost to the work programme. The geological processes that are promoting uranium and REE mineralisation within the Narlaby Palaeochannel are intrinsically related and therefore can be incorporated into our exploration strategy. The extension of Yarranna South East onto our tenement is an exciting complementary opportunity, particularly given the considerable market success of IsoEnergy over the past six months as it approaches nearly A$1 billion in valuation.

The uranium spot price is at its highest point since 2007, breaking US$100/lb, and has strong market drivers for both supply and demand that see a robust foreseeable outlook.

Cobra has acquired a valuable, scalable asset with significant upside potential. We believe we can cost effectively grow a valuable uranium asset alongside our REE exploration strategy."

1 Open file envelopes No. 3715 & 4010, Carpentaria Exploration Co Pty Ltd, 1981 & 1984

2 eU3O8 refers to a calculated grade based on gamma readings that measure radiation from decay daughter products and accounts for a factor of disequilibrium

Figure 1: Cobra's Pureba tenement EL6967 and the location of the Yarranna South East palaeochannel hosted roll-front uranium occurrence

Background to the Yarranna Uranium Project

Sandstone hosted roll-front uranium mineralisation was discovered at Yarranna during the 1980s. Mineralisation occurs across four prospects, is generally broad, highly scalable and of moderate grade. Enriched source rocks, acidic ground waters and abundant reductant matter are properties of the Narlaby Palaeochannel making the system highly prospective for in situ recoverable sandstone hosted uranium. The Yarranna South East prospect that extends into Cobra's Pureba tenement comprises four primary roll-fronts that host mineralisation over ~17km². Mineralisation is open along strike and the broad nature of drilling warrants that further roll-fronts are possible within the defined area of mineralisation.

Consolidated Uranium (TSX-V: CUR) acquired the Yarranna Uranium Project in 2022 for CA$4M. Consolidated Uranium has since merged with IsoEnergy, a CA$900M uranium focused company with projects located in the world's top uranium jurisdictions. Its acquisition demonstrates the significant potential of the Narlaby Palaeochannel to produce world-class uranium assets.

Exploration Strategy and Future Work

REEs and uranium are sourced from similar minerals such as zircon, monazite, and xenotime within the enriched Hiltaba Suite granites of the Gawler Craton. Natural weathering and supergene leaching mobilises both uranium and REEs within acidic (and enriched) groundwaters that migrate through the Narlaby system. Whilst the chemistry for the secondary deposition for REDOX and ionic adsorption differ, the geological mechanisms that promote the oxidation for REDOX roll-fronts are likely to produce chemical boundaries that promote physisorption (the adsorption of REEs to clays). This warrants that the exploration approach targets oxidation sources that promote the deposition of both REEs and uranium.

Figure 2: Diagram demonstrating the proposed model for the relationship between ionic REEs and roll-front uranium within the Narlaby Palaeochannel

Cobra is working to demonstrate the district scale potential of ionic REE mineralisation discovered at the Boland prospect. The South Australian core library holds a significant number of samples from historical drilling. Currently, approximately 220 historical pulp samples from uranium focused drilling are being analysed for REEs and uranium.

Cobra is currently working to locate Yarranna South East samples from intersections that contain considerable gamma anomalies to analyse and confirm uranium grades.

Building on existing datasets will enable Cobra to:

·    Confirm the regional scalability of ionic REE mineralisation within the Narlaby Palaeochannel

·    Improve roll-front models for the Yarranna South East prospect

·    Identify roll-front extensions

·    Evaluate spatial relationships between uranium and potential ionic REE mineralisation to advance dual resource growth capable of being recovered through ISR mining

·    Define and prioritise targets for follow-up Aircore drilling subsequent to the Company gaining native title, landholder and regulatory approvals

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 Gold and Rare Earth 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 1,832 km², and other nearby tenement rights totalling 2,941 km², contain highly desirable and ionic rare earth mineralisation, amenable to low-cost, low impact in situ recovery mining, and critical to global decarbonisation. Additionally, Cobra holds a 213 km² 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