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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25 March 2024

Cobra Resources plc

("Cobra" or the "Company")

Drilling Results from Boland Prospect

Assays confirm high grade concentrations; modelled geology demonstrates massive scale; high calculated permeability supports in situ recovery

Cobra (LSE: COBR), an exploration company focused on the Wudinna Project ("Wudinna") in South Australia, is pleased to announce that preliminary results from recent sonic core drilling at the Boland ionic rare earths ("REE") prospect further demonstrate that the discovery could be a world class source of magnet and heavy rare earths.  

Cobra confirmed ionic REE metallurgical recoveries at Boland in 2023 and recent sonic core drilling has provided greater geological detail which confirms the Company's thesis that grade concentrations are high, mineralisation is amenable to low-cost extraction via in situ recovery ("ISR"), and the discovery has exceptional province scale potential. Results demonstrate:   

·    High grade concentrations across three zones of mineralisation

·    High grades in geological formations with high permeabilities amenable to ISR

·    Modelled mineralised units support exceptional scale

Rupert Verco, CEO of Cobra, commented:

"These results are sensational! It is pleasing to see our value proposition materialise, and these results, coupled with the excellent metallurgical recoveries achieved last year, demonstrate Boland is not only unique but world class.

The value of in situ recovery cannot be overestimated. It is the preferred mining method from scale, cost and environmental perspectives and we are now positioned to be industry leaders in applying this form of mining long used for uranium to ionic rare earth mineralisation.

Whilst the Brazilian ionic rare earth projects have captured market interest, our results are comparable in grade, scale and metallurgy and the Boland prospect's advantage is the unique geology that makes it amenable to ISR. Our forward work programme is designed to demonstrate the project's commercial advantage as we continue to define scale, grade upside, and highlight the value of ISR."

Highlights

·    High grade concentrations across three zones of mineralisation: results received from three holes intersect three zones of mineralisation that yield length-weighted averages of:

o  Zone 1: 3.1m at 1,007 ppm Total Rare Earth Oxides ("TREO"), where Nd₂O₃ + Pr₆O₁₁ totals 212 ppm and Dy₂O₃ + Tb₂O₃ totals 23.5 ppm (Magnet Rare Earth Oxides ("MREO") 23.4%, Heavy Rare Earth Oxides ("HREO") 17%) from 15.6m

o  Zone 2: 1.9m at 1,043 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 205 ppm and Dy₂O₃ + Tb₂O₃ totals 22 ppm (MREO 22%, HREO 18%) from ~20.5m

o  Zone 3: 0.6m at 1,538 ppm TREO where Nd₂O₃ + Pr₆O₁₁ totals 305 ppm and Dy₂O₃ + Tb₂O₃ totals 52 ppm (MREO 23%, HREO 28%) from ~26.6m

·    High grades with high permeabilities: the highest grade assay of 4,608 ppm TREO, where Nd₂O₃ + Pr₆O₁₁ totals 934 ppm and Dy₂O₃ + Tb₂O₃ totals 91 ppm (MREO 24%, HREO 27%), comes from Zone 3, where:

o  Particle size distribution analysis supports high calculated permeabilities with 67.6% of the mineralised interval having a particle size greater than 0.1mm (fine sand)

o  Particle size distribution yields a high calculated transmissivity of 135-275 m/day¹ and is very supportive of high ISR success

o  The highest ionic recoveries were yielded: 79% Tb, 67% Dy, 60% Nd and 47% Pr using a simple AMSUL wash at pH3

Further sizing analysis is underway for Zones 1 and 2

·    Modelled mineralised units support exceptional scale: mineralised host units have been modelled across the palaeochannel at Boland, where:  

o  The geological formation hosting Zone 1 mineralisation is mapped across ~128,000,000m²

o  The geological formation hosting Zone 2 mineralisation is mapped across ~58,000,000m²

o  The geological formation hosting Zone 3 mineralisation is mapped across ~139,000,000m²

·    Modelling is 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 has been digitised, interpreted and wireframes developed

·    233 samples from 13 drillholes from south and north of Boland are at the laboratory. These results will validate and refine the model with the aim of supporting a near term maiden mineral resource estimation

Next Steps:

·    Samples are being prepared for mineralogy studies to understand the adsorption characteristics of REEs

·    Sieve sizes are being assayed to understand distribution of REEs

·    A total of 233 historic pulp samples from the greater Boland target area have been submitted for re-analysis to validate the model of mineralised geological formations

·    A total of five holes were drilled, cased, and screened with slotted PVC screens. Screens have been set at a depth to coincide with Zone 3 mineralisation. These wells will enable hydrology studies and support a future pilot study

·    Hydrology testing has commenced. Water quality and water yield data will be compiled to define environmental baselines and evaluate productivity potential

·    Select zones of core have been sent to Australia's Nuclear Science and Technology Organisation ("ANSTO") to enable column ISR testing. Results from these tests are anticipated to support the amenability of mineralisation to be mined through ISR

·    Pregnant solutions from ANSTO testwork will be used by Watercycle Technologies to advance a flow sheet through membrane desorption

·    Hydrology testing has commenced. Water quality and water yield data will be compiled to define environmental baselines and evaluate productivity potential

Sonic Drilling - Overview of Boland Strategy

Results are from a five drillhole programme totalling 145m completed in February 2024. The programme has successfully provided quality drill core that is enabling Cobra to advance the ISR potential of the Boland ionic REE discovery. Drilling was undertaken in a five-hole ISR wellfield configuration at 25m spacings, where holes were cased and screened to support a future "push-pull" pilot ISR study.

The wellfield was drilled proximal to Aircore hole CBAC00163 that yielded the following intersections:

·    Zone 1: 3m at 559 ppm TREO (24% MREO) from 18m (playa clay)

·    Zone 2: 3m at 618 ppm TREO (22% MREO) from 21m (playa clay)

·    Zone 3: 3m at 468 ppm TREO (21% MREO) from 27m (basal clay)

·    Saprolite: 12m at 1,191 ppm TREO (27% MREO) from 36m

Cobra believed that, owing to the geological and chemical conditions that promote ionic adsorption, higher grades would be defined concentrated to lithologies with high permeability and be amenable to ISR.

Sonic drilling has enabled representative sampling. Narrow intervals relating to geology from three holes were sampled and submitted for assay to evaluate potential grade concentration. Length weighted average composites from three sonic core holes assayed proximal to CBAC00163 validate grade concentration, where:

o  Zone 1: 3.1m at 1,007 ppm TREO (23.4% MREO) from 15.6m represents a 180% increase in grade

o  Zone 2: 1.9m at 1,043 ppm TREO (22% MREO) from ~20.5m represents a 169% increase in grade

o  Zone 3: 0.6m at 1,538 ppm TREO (MREO 23%, HREO 28%) from ~26.6m represents a 329% increase in grade

Increased grades confined to permeable lithology is important from an ISR standpoint and bodes well for future extraction success. Mineralised intervals from the two holes not reported have been sent to ANSTO for bench scale leach ISR testing. A summary of significant intersections is tabulated below:

Table 1: Significant intersections from sonic core holes

Figure 1: Aerial photograph of the Boland wellfield with significant intersections

Table 2: Length weighted averages of significant intersections

Association of Metallurgy to Mineralised Lithology

Sonic core drilling has enabled the Company to evaluate the nature of mineralisation and its potential to be mined via ISR. Whilst sizing results, further assays, and bench scale ISR column leach tests are outstanding, preliminary observations are very positive and correlate well to diagnostic metallurgical tests performed by ANSTO. Observations and average recoveries by zone are summarised in table 3: 

Table 3: 2023 averaged metallurgical recoveries of magnet rare earths achieved in ANSTO sighter testwork according to mineralised palaeochannel horizon and the ranked ISR recovery potential

Downhole Geophysics and Implications for Scalability

All sonic core holes were logged for lithology and compared against downhole geophysical measurements. Downhole geophysical responses can de directly attributed to the geological formations that host mineralisation. In particular:

·    Zone 1: mineralisation is confined between two distinct gamma peaks at the margins of the mineralised unit, where the lower peak relates to a narrow, coarse reduced sand unit

·    Zone 2: mineralisation has an overall low gamma response where small spikes associate with elevated REE grades

·    Zone 3: mineralisation is associated with a high geophysical response that is interpreted to be a product of the high quantity of organics contained within the mineralised sandy clay

Figure 2-4: Grade distribution of rare earths down-hole and their association to palaeochannel geology and associated downhole geophysics

·    Downhole geophysics across all five sonic core holes exhibit responses that can be attributed to mineralised lithologies

·    The Boland prospect is located on EL5953 "Minipa" where uranium explorers have previously undertaken exploration and carried out downhole geophysics on numerous holes across the tenement

·    Downhole geophysical data and historical logs have been digitised and interpreted, enabling Cobra's technical team to assess the extent of the mineralised zones across the tenement area

·    Mineralised zones are most prominent on the margins of the palaeosystem, which is interpreted to be a result of their marine transgressional deposition and not the fluvial depositional environment that is constrained in the central portions of the palaeochannel

·    This supports significant scale potential as sediments from marine transgression are interpreted to be more extensive across the palaeosystem

·    The scale of the geological formations that host mineralisation are mapped across ~155km² on EL5953 alone. Recent reanalysis results demonstrate that these formations host mineralisation across the Company's greater tenement holdings which cover an additional 1,850km² of palaeosystems

·    Re-analysis of samples from drillholes highlighted in Figure 5 are aimed to validate the modelled zones and confirm estimated volumes

·    Collation and digitisation of downhole geophysical data across Cobra's greater land tenure is ongoing and will inform further re-analysis and future drilling

·    Follow-up Aircore drilling will be designed to infill shortfalls in geological data, supporting a maiden mineral resource estimate

Figure 5: 3D section highlighting the modelled geological units that host REE mineralisation (zones 1-3)

Figure 6: Plan view - highlighting the regional scale of the mapped geological units that host Boland ionic REE mineralisation and the holes that form stage 2 of the Company's re-assay strategy

Particle Size Distribution

Samples from each mineralised zone were taken and screened to evaluate:

·    The particle distribution of mineralised lithologies

·    The distribution of grade to particle size

·    The permeability of material and its amenability to ISR

Samples were wet screened, and only the results on a zone 3 sample are reported. Results are highly favourable for ISR and indicate:

·    Zone 3 mineralisation has a high quantity of sand with 67% of the sample mass screening above 0.1mm

·    Particle size distribution parameters have been used to calculate the potential permeability using the Kozeny-Carman equation1, where:

o  Using the median particle size distribution yields a very high permeability of 275 m/day

o  Using the lower quartile of the particle distribution analysis provides a moderate -high permeability of 135 m/day

Figure 7: Particle size distribution of zone 3 (27-27.5m) from drillhole CBSC0001

Figure 8: Cumulative distribution of particle sizes by screen passing

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

Appendix 1: Drillhole coordinates