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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16 December 2024

Cobra Resources plc

("Cobra" or the "Company")

Further Positive Metallurgy Results from Boland Project

Results further support high productivity, low extraction costs and high recoveries

Preparing to commence resource drilling

Cobra (LSE: COBR), the mineral exploration and development company advancing a potentially world-class ionic Rare Earth Elements ("REEs") discovery at its Boland Project in South Australia, is pleased to announce further results from bench scale in situ recovery ("ISR") testing that support bottom quartile recovery costs. The results are a function of Boland's unique geology where ionic rare earth mineralisation is hosted within permeable sands. These results highlighted below further support the project's potential for efficient, low-cost extraction, positioning Boland as a highly competitive asset in the global REE market.

Summary

·    High Recoveries - Exceptional recoveries of 68% Magnet Rare Earths ("MREOs") and 62% Heavy Rare Earths ("HREOs")

·    Rapid Recoveries - 22% MREOs and 31% HREOs recovered within 24 hours in the second bench scale study with further recoveries expected over increased timeframes

·    High Productivity - Achieved by high mineralisation permeabilities, reducing recovery timeframes and reducing wellfield configuration costs

·    Low Extraction Costs - Low acid consumption and low impurities supporting a simple flowsheet, requiring low capital intensity

·    Low-Cost Flowsheet Tests Completed - a precursor to producing a saleable product - ambient temperature filtration and impurity removal steps completed

Preparing to drill

The Company is currently in the field preparing for upcoming resource drilling, aimed at testing the scale of the mineralisation footprint at Boland whilst forming sufficient geological confidence to support an economic evaluation through a scoping study.

Rupert Verco, CEO of Cobra, commented:

"Results from our ongoing metallurgical studies keep getting better. These latest results demonstrate the basis of our investment opportunity: high recoveries of critical rare earth metals at low-cost inputs, through a mining process that minimises environmental risk and capital expenditure.

As we prepare to commence resource drilling, we are excited to demonstrate the scale potential at Boland. We have demonstrated a significant mineralised footprint, but this drilling will enable the Company to estimate a resource that will support initial economic evaluations in the form of a scoping study."

Metallurgy Results Highlights

·    Increased final rare earth recoveries demonstrated by residue assays from Bench Scale ISR Study 1:

o  Achieved over 150 days (0.14 pore volumes per day) by decreasing the pH from 7.1 to 3.0 through the addition of ammonium sulphate (AMSUL) (H₂SO₄)

o  Low acid consumption of 15 kg/t H₂SO₄

o  Low levels of impurities including uranium and thorium, allowing for simple ambient temperature impurity removal techniques

o  Valuable MREO recoveries increased from 57% to 68% MREO

o  Strategic HREO recoveries increased from 50% to 62% HREO

o  Final head grade of sample calculated at 4,447 ppm Total Rare Earth Oxides ("TREO") including 865 ppm Nd₂O₃ + Pr₆O₁₁ and 128 ppm Dy₂O₃ + Tb₂O₃

·    Exceptional permeability demonstrated in Bench Scale ISR Study 2 suggesting potential for further cost reductions:

o  Valuable MREO recoveries of 22% MREO within 24 hours

o  Strategic HREO recoveries of 31% HREO within 24 hours

o  Study completed within 24 hours (43 pore volumes) where the pH was lowered from ~7.1 to pH 2.0

o  Total acid consumption was exceptionally low at 0.9 kg/t H₂SO₄

o  Final head grade of sample calculated at 1,103 ppm TREO including 204 ppm Nd₂O₃ + Pr₆O₁₁ and 26 ppm Dy₂O₃ + Tb₂O₃

o  Low impurity levels with a TREY:Al ratio of 4.7:1

o  Further REE recoveries anticipated with increased timeframes

·    The exceptional permeability achieved in the second bench scale study support higher anticipated permeabilities through Zone 3 mineralisation

·    The Company has engaged the Australian Nuclear Science and Technology Organisation ("ANSTO") to determine the optimal flowsheet steps required to produce a Mixed Rare Earth Carbonate ("MREC"). The status of this work is summarised below:

1.    Upfront filtration to reduce iron (completed with assays pending)

2.    Impurity precipitation by targeted pH adjustment (completed with assays pending)

3.    Mixed Rare Earth Carbonate Precipitation (outstanding, subject to the determination of the optimal pH defined in step 2)

Boland Project

Cobra's unique and highly scalable Boland discovery is a strategically advantageous ionic rare earth discovery where high grades of valuable HREOs and MREOs occur concentrated in a permeable horizon confined by impermeable clays. Bench scale ISR testing has confirmed that mineralisation is amenable to ISR mining. ISR has been used successfully for decades within geologically similar systems to recover uranium within South Australia. Results of this metallurgical test work support that, with minor optimisation, ISR techniques should enable non-invasive and low-cost production of critical REEs from Cobra's Boland discovery.

Follow this link to watch a short video of CEO Rupert Verco explaining the results released in this announcement: https://investors.cobraplc.com/link/NPwpGy

Further information relating to Boland and these metallurgical 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: "2^nd Bench Scale ISR Study & £1.7M Placing", dated 26 November 2024

·    Wudinna Project Update: "ISR Bench Scale Study Completion", dated 4 November 2024

·    Wudinna Project Update: "ISR bench scale study delivers exceptional results", dated 1 October 2024

·    Wudinna Project Update: "ISR bench scale update - Exceptionally high recoveries with low impurities and low acid consumption; on path to disrupt global supply
of heavy rare earths", dated 28 August 2024

·    Wudinna Project Update: "ISR bench scale update -Further metallurgical success at world leading ISR rare earth project", dated 11 July 2024

·    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 Conrad Wilkins who is the Group Process Engineering Lead at Wallbridge Gilbert Aztec, a Fellow of the Australian Institute of Mining and Metallurgy (FAusIMM), Chartered Professional Engineer and Member of Engineers Australia (CPEng MIEAust). Mr Wilkins 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 Wilkins 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 enabling bottom quartile recovery costs without any need for excavation or ground disturbance. Cobra is focused on de-risking the investment value of the discovery by proving ISR as the preferred mining method and testing the scale of the mineralisation footprint through drilling.

Cobra's Wudinna tenements also contain extensive orogenic gold mineralisation, including a 279,000 Oz gold JORC Mineral Resource Estimate, characterised by low levels of over-burden, amenable to open pit mining.

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

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Appendix 1: Background information - the Boland Project and ISR

·    The Boland Project was discovered by Cobra in 2023. Mineralisation is ionically bound to clays and organics within palaeochannel sands within the Narlaby Palaeochannel

·    Mineralisation occurs within a permeable sand within an aquifer that is saltier than sea water and is confined by impermeable clays

·    ISR is executed through engineered drillhole arrays that allow the injection of mildly acidic ammonium sulphate lixiviants, using the confining nature of the geology to direct and lower the acidity of the orebody. This low-cost process enables mines to operate profitably at lower grades and lower rates of recovery

·    Once REEs are mobile in solution in groundwater, it is also possible, from an engineering standpoint, to recover the solution to surface via extraction drillholes, without any need for excavation or ground disturbance

·    The capital costs of ISR mining are low as they involve no material movements and do not require traditional infrastructure to process ore - i.e. metals are recovered in solution

·    Ionic mineralisation is highly desirable owing to its high weighting of valuable HREOs and the cost-effective method in which REEs can be desorbed

·    Ionic REE mineralisation in China is mined in an in-situ manner that relies on gravity to permeate mineralisation. The style of ISR process is unconfined and cannot be controlled, increasing the risk for environmental degradation. This low-cost process has enabled China to dominate mine supply of HREOs, supplying over 90% globally

·    Confined aquifer ISR is successfully executed globally within the uranium industry, accounting for more than 60% of the world's uranium production. This style of ISR has temporary ground disturbance, and the ground waters are regenerated over time

·    Cobra is aiming to demonstrate the economic and environmental benefits of recovering ionic HREOs through the more environmentally aquifer controlled ISR - a world first for rare earths

Figure 1: Comparison between the Chinese and the proposed Boland process for ISR mining of REEs

Appendix 2: ISR study process and results

An initial bench scale study successfully confirmed favourable recoveries through ISR techniques and validated a 'proof of concept'. Owing to the homogenisation process applied to preparing the sample, lower than expected permeabilities were achieved. A second bench scale study was conducted on a section of Zone 3 core, with the permeability anticipated to remain unaffected by the sample preparation process.

Why have recoveries of Bench Scale ISR Study 1 changed?

Ionic REE mineralisation can contain highly variable concentrations of REEs. Through sample preparation, two estimations of sample grade were made:

1.    Composite interval estimate - estimated by taking sub-samples of narrow composite intervals

2.    Homogenised subsample estimate - taken from the final homogenised sample

The homogenised subsample estimate method returned a 16% higher head grade than the composite interval estimate method, and was subsequently applied throughout the study to calculate the recoveries being achieved.

At the completion of the bench scale study, samples of the remaining residue were taken. When combined with the recovered quantities of REEs in solution, a final calculated head grade can be achieved. The results of each head grade calculation are shown in Table 1 below:

Table 1: Comparative head grade estimates of Bench Scale ISR Study 1

Results of the study demonstrate:

·    Orebody characteristics are amenable to ISR mining - a maximum permeability rate of 0.16 pore volumes per day which is comparable to permeability rates of operating uranium mines

·    High ionic REE recoveries of 66% TREO, 68% MREO and 62% HREO achieved by lowering the sample acidity to pH 3

·    Low acid consumption of 15.0 kg/t H₂SO₄

·    High purity REE extraction: low impurity levels that support a simple purification process

Figure 2: Cumulative recoveries of REE to PLS plotted against PLS acidity in Bench Scale ISR Study 1 (compared to previously reported recoveries)

Table 2: Head grade and subsequent recoveries of Bench Scale ISR Study 1

Results of Bench Scale ISR Study 2

To assess the potential impact the incorporation of underlying saprolite may have had on the permeabilities achieved within Bench Scale ISR Study 1, a second test was performed on a second section of Boland core retained from drillhole CBSC0002. The test was performed using AMSUL 0.5M lixiviant at pH 2. The results of this study demonstrate:

·    High Productivity - Achieved by high mineralisation permeability, reducing recovery timeframes and reducing wellfield configuration costs:

o  A total of 43 pore volumes were achieved in less than 24 hours. This is over double the amount of pore volumes achieved in the initial study (achieved in ~150 days)

o  These increased rates support increased productivity potential through ISR

·    Rapid Recovery - Achieved 22% MREO and 31% HREO within 24 hours:

o  Higher flow rates are thought to have impacted lixiviant contact, higher recoveries expected at lower flow rates and increased residence time

o  This is easily optimised by managing pump rates and residence times

o  HREO recoveries more rapid than LREO recoveries supporting desired ratios of valuable REEs

·    Low Acid Consumption - Recoveries achieved with minimal sulphuric acid consumption of 0.9 kg/t

·    Low Impurities - Impurity levels remain low despite a reduction in pH from pH 3 to pH 2 and a lower sample grade.

Residue sample assays remain outstanding.

Table 3: Head grade and subsequent recoveries of Bench Scale ISR Study 2

Figure 3: Individual Magnet REE recoveries achieved within 24 hours of Bench Scale ISR Study 2

Table 4: Total Rare Earths and impurities reporting to pregnant liquor (mg/L)

Appendix 3: JORC Code, 2012 Edition - Table 1

Appendix 4: Section 2 reporting of exploration results

Table 3: Drillhole coordinates