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.

11 July 2024

Cobra Resources plc

("Cobra" or the "Company")

ISR Bench Scale Study Update

Further metallurgical success at world leading ISR rare earth project

Cobra (LSE: COBR), an exploration company advancing a strategy to lower the cost of critical rare earth production at the Boland Project in South Australia, is pleased to announce that diagnostic tests being carried out as part of ongoing in situ recovery ("ISR") bench scale testing of a high-grade core sample, have produced positive preliminary metallurgical results.

ISR is a low capital, and low disturbance mining process that utilises unique geological conditions to bypass traditional mining and processing methods with low environmental risk. ISR has been used for many years to produce uranium in South Australia from similar geological environments.

The Australian National Scientific and Technical Organisation ("ANSTO") is undertaking mineral-recovery trials on rare earth mineralisation recovered from Cobra's recently installed ISR wellfield to demonstrate the value of applying ISR to Cobra's unique ionic rare earth mineralisation. Testing has yielded low impurity levels and low acid consumption which support a pathway for cost-effective recovery.

For further context to the technical information discussed in this announcement with comparative analysis, please view the Q&A on Cobra's Investor Hub here:

https://investors.cobraplc.com/link/6rkjLe

Highlights:

·    Strong ionic recoveries from a high-grade sample: 41% recoveries of Rare Earths ("REEs") from a sub-sample grading 2,688 ppm Total Rare Earth Oxide ("TREO") magnet rare earths Nd2O3 + Pr6O11 total 532 ppm and Dy2O3 + Tb2O3 total 83 ppm at pH 3, ambient temperature

·    Low-cost metallurgical characteristics: Low impurities and low acid consumption support a simple low-capital flowsheet for purification and precipitation - favourable for project economics

·    Low levels of deleterious radioactive elements: in Pregnant Liquor Solution ("PLS") of 0.24 mg/L U and <0.01 mg/L Th, important for product transport and oxide separation

·    Ability to increase recoveries through ISR: low acid consumption and low levels of impurities enable optimisation to further maximise REE recovery. This is being tested by increasing leach time of the bench scale ISR test and making lixiviant adjustments

Rupert Verco, CEO of Cobra, commented:

"These initial recoveries are very pleasing. Managing impurities and acid consumption are significant factors of rare earth processing costs and these results provide a pathway for cost-effective recovery - particularly when coupled with ISR mining.

Achieving recoveries of 41% from such a high head grade of 2,688 ppm TREO in this diagnostic test is highly encouraging for optimising recoveries from the bench scale ISR tests being performed on a core sample exceeding 4,506 ppm TREO. There is plenty of room to optimise these recoveries considering the low level of impurities, low acid consumption and the minimal costs involved in ISR mining.

Our overarching objective is to produce metals which are critical to energy efficiency through a mining process with the lowest environmental risk and the lowest possible cost. We aim to demonstrate the value of this by confirming recovery via ISR and maximising metallurgical confidence. We look forward to bringing further metallurgy results to the market in the coming weeks."

Next Steps

Considering these favourable results, the following adjustments to Cobra's work programme have been made:

1.    Extended duration of ISR bench scale study: to determine maximum recovery / impurity limits with results anticipated over the coming weeks

2.    Commencement of a second ISR bench scale ISR study: on core from CBSC0002 to achieve repeatability and increase the volume of pregnant liquor for flowsheet development

3.    Further diagnostic leach tests: across installed wellfield holes to enable economic assessment of the complete wellfield and all zones of mineralisation

4.    Resource drilling: planning and design have been completed. The commencement of resource drilling has been delayed enabling metallurgical results to be interpreted and evaluated against existing drilling ensuring the most desirable areas of the palaeochannel are targets

5.    Flowsheet advancement: pregnant liquor produced from both bench scale ISR tests to be used to advance both membrane desorption and traditional REE purification and precipitation processes

Further information relating to diagnostic leach test results are presented in the appendices.

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: "ISR bench scale update - Exceptional head grades revealed", dated 18 June 2024

·    Wudinna Project Update: "Re-Assay Results Confirm High Grades Over Exceptional Scale at Boland", dated 26 April 2024

·    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

The information in this report that relates to metallurgical results is based on information compiled by Cobra Resources and reviewed by Mr. James Davidson who is the Director of Process Engineering at Wallbridge Gilbert Aztec and a Fellow of the Australian Institute of Mining and Metallurgy (F AusIMM). Mr. Davidson has sufficient experience that is relevant to the metallurgical testing which was undertaken to qualify as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr. Davidson consents to the inclusion in this report of the matters based on this information 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. 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 12 years of Mining, Resource Estimation and Exploration.

About Cobra

In 2023, Cobra discovered a rare earth deposit with the potential to re-define the cost of rare earth production. The highly scalable Boland ionic rare earth discovery at Cobra's Wudinna Project in South Australia's Gawler Craton is Australia's only rare earth project amenable for in situ recovery (ISR) mining - a low cost, low disturbance method. Cobra is focused on de-risking the investment value of the discovery by proving ISR as the preferred mining method which would eliminate challenges associated with processing clays and provide Cobra with the opportunity to define a low-cost pathway to production.

Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation, including a 279,000 Oz gold JORC Mineral Resource Estimate, characterised by potentially open-pitable, high-grade gold intersections. 

Regional map showing Cobra's tenements in the heart of the Gawler Craton

​

Follow us on social media:

LinkedIn: https://www.linkedin.com/company/cobraresourcesplc  

X (Twitter): https://twitter.com/Cobra_Resources  

Subscribe to our news alert service: https://investors.cobraplc.com/auth/signup

Appendix 1: Diagnostic leach results

Preliminary metallurgical testing being performed by the Australian Nuclear Science and Technology Organisation ("ANSTO") aimed at demonstrating the suitability for ISR mining - a low cost, low-disturbance method - has yielded low impurity levels and low acid consumption with robust recoveries providing scope for further optimisation. The objectives of metallurgical testing are outlined below:

Diagnostic tests are aimed to:

i.              Confirm the quantity of recoverable ionic REE mineralisation

ii.             Determine the quantity of acid consumed

iii.            Measure the anticipated level of impurities

iv.           Enable optimising adjustments to parallel bench scale ISR tests

The parameters of the diagnostic leach test were:

·    Reagent: 0.5M Ammonium Sulphate

·    Sulphuric Acid addition to maintain pH3

·    Ambient Temperature

·    Duration: 24 Hours

The results reported in this announcement are derived from the diagnostic test

The composite sample subject to the diagnostic leach test was from CBSC003 (26.7m to 27.2m) the sub-sample calculated head grade and subsequent recoveries are presented in table 1 below:

Table 1: Diagnostic leach sample head grade and subsequent recoveries

A favourable characteristic of ionic mineralisation is the low level of impurities and radioactive deleterious elements that are recovered.

Desorption at benign acidities between pH 3-4 reduces the leaching of key impurities such as aluminium, iron and silica. A key metric to measure the level of impurities is the apparent ratio of rare earths to impurities within a pregnant solution. When the ratio of REEs to impurities in solution is low, the metallurgical process for purification become complex, and the rate of REE recovery through purification decreases.

Diagnostic leach results demonstrate that the level of REEs in solution far exceed the level of impurities, supporting a low-cost, low-temperature single-step for impurity removal.

Table 2: Diagnostic leach impurity ratios and levels of radioactive deleterious elements in solution

TREY = La+Ce+Pr+Nd+Sm+Eu+Gd+Tb+Dy+Ho+Er+Tm+Yb+Lu+Y

Al - Aluminium

Fe - Iron

Si - Silica

U - Uranium

Th - Thorium

Appendix 2: ISR bench scale test CBSC003 26.7m - 27.2m

The diagnostic leach sample is a sub-sample of CBSC003 26.7m - 27.2m, a length of core that is currently subject to bench scale ISR tests. The head grade of the sample is 4,506 ppm TREO calculated from the sample composites presented in Table 3

Table 3: Sample composites of the sample subject to the bench scale ISR test

MREO = Pr₆O₁₁+ Nd₂O₃+ Tb₂O₃+ Dy₂O₃

HREO = Sm₂O₃+ Eu₂O₃+ Gd₂O₃+ Tb₂O₃+ Dy₂O₃+Ho₂O₃+Er₂O₃+Tm₂O₃ +Yb₂O₃+Lu₂O₃+Y₂O₃

Bench scale ISR test is designed to emulate the ISR process to determine:

i.              The rate in which the lixiviant can percolate through the pore space of the mineralised sample

ii.             The subsequent time required to adjust sample pH

iii.            The rate and quantity in which rare earths are liberated to solution

The results of the initial bench scale ISR study are expected over the coming weeks

Appendix 3: Interpretation of results

·    Strong un-optimised recoveries from a high-grade sample: 38% recoveries of Magnet Rare Earths ("MREO") from a sample grading 2,688 ppm Total Rare Earth Oxide ("TREO") magnet rare earths Nd2O3 + Pr6O11 total 528 ppm and Dy2O3 + Tb2O3 total 83 ppm

·    Low-cost metallurgical characteristics: acid consumption: over 24 hours total sulphuric acid (H₂SO₄) consumption of 8.8 kg/t - equivalent to ~A$2/t (£1.06/t)¹

·    Low levels of impurity: TREY:Al ratio of 13:1, TREY:Fe ratio of 9.7:1 TREY:Si ratio of 7.9:1 - these results are considered very favourable for low-cost purification via a low temperature single step impurity removal

·    Low levels of deleterious radioactive elements: in Pregnant Liquor Solution ("PLS") of 0.24 mg/L U and <0.01 mg/L Th, an important aspect for product transport and oxide separation

·    Un-optimised recoveries with upside: owing to the low level of impurities and the low acid consumption, the ability to increase REE recoveries is being evaluated by increasing the length of the bench scale ISR study and making adjustments to the lixiviant. These results are expected in the coming weeks.

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

*Partially assayed

^#Stored for metallurgical testing, pending assay

Appendix 4: Cobra's Boland rare earth discovery

·    Ionic clay-hosted rare earths present as a low-capital, low operating cost source of heavy and magnet rare earth metals

·    Processing of clay ores induces several operating challenges, including productivity loss, material handling, dewatering, reagent use and reclamation

·    Ionic rare earth mineralisation at Boland exists in permeable geology in an environment that permits ISR, thus bypassing the challenges associated with processing of clay ores

·    ISR is the preferred method of recovery used in the uranium industry, where¹:

o  Global ISR production accounted for ~60% of mined uranium in 2022

o  Capital expenditure for ISR is 1-15% of conventional mines

o  Operating costs of ISR is generally 30-40% lower than traditional mines

o  Environmental impact and rehabilitation cost is significantly lower than traditional mines

·    South Australia is home to Australia's only three operating ISR uranium mines and has a regulatory framework that supports ISR mining

·    Bench-scale leach studies under ISR conditions are currently underway at ANSTO, a first for ionic REE projects outside of China

·    Cobra has installed a wellfield to rapidly advance the project towards an infield pilot study

·    Cobra aims to demonstrate that the cost of production at Boland can be materially reduced via ISR, providing operating resilience to volatile rare earth markets which has stalled the commencement of many rare earth projects

·    Re-assaying of historic uranium focused drilling is being used to confirm the scale of rare earth mineralisation. These results confirm the presence of rare earth mineralisation over a strike of 12 km, where mineralisation is open in most directions. Follow-up drilling will aim to infill these results to support a maiden Mineral Resource Estimate ("MRE") at Boland

Appendix 5: Further information relating to the Boland Project and reported results

·    In February 2024, Cobra drilled five sonic core holes and installed screened and cased wells to advance ISR mining of ionic rare earths

·    On 25 March 2024, the Company announced the assay results of three of the five holes drilled, revealing three consistent zones of mineralisation

·    Core from two holes were preserved and transported to ANSTO for metallurgical testing. Samples have been kept air-tight and refrigerated to prevent changes in oxidation and therefore sampling and assaying can only occur directly before the commencement of metallurgical testing

·    Zone three represents the deepest and highest-grade zone of mineralisation. The wellfield has been designed and installed to pilot test ISR from zone three

·    Further core from CBSC0003 and CBSC0002 is being prepared for further metallurgical testwork to support flow sheet optimisation

·    Drilling results have been reported via a four-acid digest method, which is a partial digest that represents the ionic / leachable portion of REE mineralisation. Samples prepared for and subject to metallurgical testing have been assayed via lithium borate fusion; a complete digest of REE-bearing minerals. Results from Boland are 10-15% higher when reported via lithium borate fusion

·    Recoveries reported in this announcement have been reported against head grades calculated via lithium borate fusion assays and are therefore a reflection of the recoverable quantity of the total rare earth oxide grade

Appendix 6: JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

Appendix 5: Section 2 Reporting of Exploration Results

Appendix 6: Drillhole coordinates