COBR Cobra Resources Plc

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30 April 2024

Cobra Resources plc

("Cobra" or the "Company")

Final Results for the Year Ended 31 December 2023

Cobra (LSE: COBR), an exploration company focused on the Wudinna Project in South Australia, announces its final results for the year ended 31 December 2023.

Highlights

·    Announced transformational discovery of ionic rare earth ("REE") mineralisation at the Boland prospect which is amenable to low cost, low disturbance in situ recovery ("ISR") mining

·    Published maiden REE Mineral Resource Estimate ("MRE") of 20.9 Mt at 658 ppm Total Rare Earth Oxides ("TREO") in saprolite above and proximal to gold mineralisation, which has since been upgraded to 41.6 Mt at 699 ppm TREO (not yet inclusive of any resources for the Boland discovery)

·    Increased gold MRE by 32% to 279,000 Oz

·    Granted new tenement (Deloraine) in Tasmania considered highly prospective for Ion Adsorption Clay ("IAC") hosted REE mineralisation

·    Raised £991,300 through a two-stage placing (completed pre and post year-end) to satisfy the cash consideration for the acquisition of the remaining 25% of the Wudinna Project from Andromeda Metals (ASX: ADN) and to advance the Boland ionic rare earth discovery

Post Year End

·    Completed Sonic core drilling programme at Boland

o  Preliminary results further demonstrate that the discovery could be a world class source of magnet and heavy REEs and confirm the Company's thesis that grade concentrations are high, mineralisation is amenable to ISR, and the discovery has exceptional regional scale potential

·    Finalised acquisition of the remaining 25% of the Wudinna Project from Andromeda Metals

·    Announced re-assay results from historical drillholes which support regionally scalable, high grade REE mineralisation at Boland

·    Raised £600,000 through a placing to accelerate the development of the Boland discovery towards a Scoping Study

·    Granted two new tenements (Smokey Bay and Pureba) on the Narlaby Palaeochannel which is considered highly prospective for ionic REE mineralisation

·    Updated the Company's REE strategy to include tests for extensions to roll-front uranium mineralisation identified at the adjacent Yarranna Uranium Project held by IsoEnergy (TSX-V: ISO) which extends onto the newly granted Pureba tenement

·    Appointed David Clarke in an executive role as Director, Business Development and Asset Marketing to help advance the commercialisation pathway of the Boland discovery

Greg Hancock, Chairman of Cobra, commented:

"The Company has consciously allocated its capital to ensure that future shareholder value is obtained through exploration success and the definition of resources. Delivering substantial increases in gold and REE resources provides a solid foundation but the upside post the discovery in 2023 of Australia's only REE project with ISR potential is exceptional, and an opportunity we look forward to advancing.

We are committed to unlocking the mineral wealth of the Wudinna Project and the greater Eyre Peninsula region and to providing a low cost, low disturbance supply of magnet and heavy REEs from outside of China."

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 totalling 1,832km², and other nearby tenement rights totalling 2,941km², contain highly desirable and ionic rare earth mineralisation amenable to low-cost, low impact in situ recovery mining, and critical to global decarbonisation. Cobra's greater Wudinna tenements are also prospective for uranium. Additionally, Cobra holds a 213km² 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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CHAIRMAN'S STATEMENT

INTRODUCTION

In 2023, Cobra made a game-changing ionic Rare Earth Element ("REE") discovery at Boland that has the potential to reshape global supply of magnet and heavy REEs, and materialised significant exploration success by gold and REE resource growth. The unique geology of the Boland discovery lends itself to In Situ Recovery ("ISR") mining. This is a huge advantage for the Company that makes Boland highly cost competitive and unrivalled for environmental credentials.  

The value of ionic REE discoveries is defined from their cost-efficient metallurgy and their simplistic mining process. Australia's long climate history and relatively arid climate mean that many Australian clay hosted REE discoveries lack the simple chemistry that enables cost efficient extraction. Cobra is focusing on the efficiencies required to make REE mining successful. This has been achieved through defining a 41.6Mt REE resource that sits within clay overburden to a shallow 279,000 Oz gold resource, and discovering standalone ionic REEs with excellent metallurgy that are present within a geological setting that lends itself to ISR mining - the lowest cost method available.

ISR mining has been highly successful in the uranium industry where over 50% of the global average annual production is mined via ISR. The CAPEX, OPEX and scale of these mines yield the lowest costs. We believe that by applying this form of mining at Boland, a future operation could be cost competitive with the ionic REE producers of southern China.

The Boland discovery is regionally scalable and the Company has expanded its landholding along the Narlaby Palaeochannel from 3,621km² to 4,773km² to have a controlling land position within a jurisdiction that actively regulates and supports ISR mining.

During the year, the Company demonstrated both technical capability and prudent use of finances through executing a 20-hole, 2,466m Reverse Circulation ("RC") programme and a 95-hole, 3,950m Aircore ("AC") drilling programme that contributed to:

·      The Boland discovery that has yielded high grade ionic REEs with favourable metallurgy, achieving recoveries of up to 79% Tb, 67% Dy, 60% Nd and 47% Pr at pH3 with low acid consumptions

·      A 109% increase in the complementary clay hosted REE resource that occurs within gold resource overburden

·      A 32% increase in the Wudinna Project gold mineral resource that now stands at 279,000 Oz and is amenable to open pit mining

The Company is also pleased to have finalised its acquisition of the remaining 25% of the Wudinna Project, welcoming Andromeda Metals (ASX: ADN) to the share register as a significant shareholder.

In the current turbulent gold and critical minerals markets, where gold prices are at all-time highs but investment sentiment remains suppressed, it is important for junior explorers to have upside exposure to a range of commodities and the ability to advance the economic assessment of production at an early stage. Cobra is well placed to provide shareholders with exposure to:

·    A scalable and low-cost source of magnet and heavy REEs which are critical to electrification and from which we plan to demonstrate value through ISR

·    The rising gold price as we evaluate commercial opportunities for the Wudinna gold resource

·    The strong uranium market where our recently added land tenure contains defined sandstone hosted uranium mineralisation - Cobra will look to grow these assets as we demonstrate the regional scale of the Boland ionic REE discovery

BACKGROUND

Cobra began life as a publicly listed company with the aim of finding suitable precious, base or other energy metals and minerals projects in Australia or Africa. During 2019, the Board identified several potentially suitable projects, which were reviewed in detail to evaluate their strengths, growth potential and long-term value to shareholders.

The Wudinna Project has been the Company's primary focus since acquiring earn-in rights to the project in 2019 through the negotiation of the "Wudinna Heads of Agreement". The primary objective of the Company's exploration focus to date has been to add to the 211,000 Oz gold JORC Mineral Resource Estimate at the project, and the success of this strategy materialised during 2023 when the Company increased the gold resource by 32% to 279,000 Oz whilst defining a complementary source of REE metals in gold overburden.

Since Cobra's involvement in the Wudinna Project began in 2019, the Company's approach to exploration has been to provide exposure to exploration success across a range of commodities, considerate of cost and discovery potential, from a world-class mineral domain.

The balance of exploration activities executed in 2023 focused on:

1.    Adding ounces to the Wudinna Gold Resource

2.    Defining a complementary REE resource that adds economic value to gold resources and provides a competitive basis for REE extraction

3.    Advancing an exploration model for ionic REEs amenable to cost efficient ISR extraction

Since identifying REEs in saprolite at the Wudinna Project in 2021, the Company has diligently assessed the economic, mineralogical and metallurgical requirements that underpin a successful REE project and has considered that the economic viability of clay hosted REEs is more dependent upon low mining and processing costs, a consequence of mineralogy rather than grade. On this basis, the Company has focused on:

1.    REE resource expansion aimed at growing its complementary dual gold and REE resources, where the spatial proximity of REE mineralisation to gold enables cost efficient, value add potential

o  This resulted in an REE JORC resource to date of 41.6Mt at 699 ppm TREO overlying the Clarke and Baggy Green gold resources

2.    Targeting low cost, easily extractable ionic clay hosted mineralisation by defining and targeting conditions that promote ionic mineralisation

By focusing on the environmental and chemical conditions that promote ionic adsorption, the Company defined an exploration model that satisfied the geological conditions for ionic adsorption and supported the potential for cost-efficient ISR mining.

AC drilling confirmed the presence of REE mineralisation within palaeochannel sediments at the Boland prospect in June 2023, where basket accumulations contained both enriched and depleted zones of Heavy Rare Earths Elements ("HREEs"), a common trait of ionic REE deposits. Follow-up metallurgical tests performed by Australia's Nuclear Science and Technology Organisation ("ANSTO") confirmed high recoveries of heavy and magnet REEs across three zones, where acid consumptions are low and recoveries are achieved over six hours. Owing to the interbedded presence of highly permeable sand layers, the Company believed that mineralisation could be recovered via ISR.

In November 2023, the Company finalised a deal to acquire the remaining 25% of the Wudinna Project from Peninsula Resources and subsequently raised £993,000 to fund the acquisition and advance the Boland discovery. The strategy to demonstrate the value of the discovery is to focus on advancing three key components:

1.    Scale: the Narlaby Palaeochannel is a significant system spanning over 250km in length. Cobra holds over 1,000km² of palaeochannel ground across the Narlaby, Yaninee and Corrobinnie systems - the geological units that host ionic REEs occur across all these systems.

2.    Grade concentration: the catalysts for ionic adsorption are believed to be confined to, or within proximity to, geology with high permeability. Samples from initial AC drilling were performed on 3m composites that were unlikely to represent the true nature of the mineralisation.

3.    ISR potential: aim to de-risk the ISR potential of Boland by installing ISR infrastructure to advance the project to a pilot study.

OPERATIONAL REVIEW

Results from the 2023 exploration programme contributed to exploration success and significant resource growth which was achieved through:

·    Drilling of 20 RC holes for ~2,500m aimed at expanding existing gold resources

·    Drilling of 95 AC drillholes for over 3,950m aimed at expanding the existing complementary REE resource and testing an alternate model for ionic REEs

·    Metallurgical testing of over 20 composite samples

AC Drilling - The Boland Discovery

A total of 17 holes for 775m were drilled at the Boland prospect. Significant results included:

·    CBAC0164: 3m at 942 ppm TREO (22% Magnet Rare Earth Oxides ("MREO")) from 15m, and 3m at 1,333 ppm TREO (13% MREO) from 30m and 42m at 2,189 ppm TREO (25% MREO) from 36m

·    CBAC0163: 3m at 559 ppm TREO (24% MREO) from 18m, and 3m at 618 ppm TREO (22% MREO) from 21m and 12m at 1,191 ppm TREO (27% MREO) from 36m

·    CBAC0168: 12m at 948 ppm TREO (19% MREO) from 42m

·    CBAC0176: 3m at 429 ppm TREO (23% MREO) from 27m, and 3m at 661 ppm TREO (19% MREO) from 48m and 3m at 1,984 ppm TREO (22% MREO) from 54m

Results demonstrated:

·    Mineralisation is most prominent along the eastern margin of the tested area, where channel clays are in direct contact with granitic saprolite

·    HREEs are depleted within saprolite zones and enriched in assemblage within the palaeochannel sediments

·    REE enrichment in playa smectite clays at discrete changes in sample acidity/alkalinity

·    Light Rare Earth Oxides ("LREO") enrichment in saprolite that is in direct contact with palaeochannel sediments

·    REE grades are highest where there are the greatest changes in alkalinity/acidity i.e. between acidic saprolite and alkaline smectite clays

Confirmation of Ionic Mineralisation Through ANSTO Metallurgical Testing

A total of 15 composite samples from the Boland prospect were submitted to ANSTO for ionic desorption testing. ANSTO is a world leader in REE metallurgy and the development in REE metallurgical flowsheets. Diagnostic testing parameters included:

·    0.5 M (NH4)2SO4 as lixiviant

·    pH4; pH3

·    pH4: 0.5 h & 6 h, pH3: 0.5 h, 2 h & 6 h

·    Ambient temperature (~22°C)

·    4 wt% solids density

·    Acidity maintained through the addition of H2SO4

Results confirmed highly recoverable ionic mineralisation within the palaeochannel sediments with low acid consumptions. Higher recoveries were achieved by increasing the acidity to pH3 and increasing the leach time to six hours. Recoveries are summarised in the table below:

Average recoveries of tested composites by mineralisation zone.

Metallurgical results demonstrate:

·    Desorption is greatest within palaeochannel clays

·    Zone 3 exhibits the highest metallurgical recoveries with the lowest acid consumption

·    Recoveries increase with time and increasing acidity

·    HREOs are recovered in greater ratios than LREOs

·    Moderate desorption times are interpreted to be a consequence of sample composite dilution. Faster desorption rates are likely with refined sample compositing

·    Acid consumption calculations includes ions (Mg, Na & K) that are likely to be present in salts and therefore acid consumptions are likely to be lower than presented

RC Drilling

A gold focused, 20-hole, 2,466m RC programme aimed at expanding the Wudinna Project's existing gold and REE resources delivered the following gold results:

White Tank

·    CBRC0070 intersected 12m at 2.35 g/t Au from 54m (including 2m at 8.5 g/t Au from 55m) 40m east of RHBN-0248 that intersected 21m at 2.9 g/t Au from 59m (including 6m at 7.95 g/t Au from 61m)

·    CBRC0069 intersected 9m at 0.41 g/t Au from 46m 80m east of RCBN-246 that intersected 3m at 0.53 g/t Au from 115m and represents the most southern intersection at White Tank

Barns Prospect

·    CBRC0072 intersected 2m at 0.69 g/t Au from 45m confirming up dip extensions to the gold resource

·    CBAC0092 intersected 2m at 1.00 g/t Au from 12m

At Clarke, drilling extended the strike of intersected gold mineralisation to beyond 700m where:

·    Mineralisation has been extended a further 50m to the south through:

o  CBRC0075 intersecting 2m at 0.93 g/t Au from 58m and 1m at 0.56 g/t Au from 73m 

o  CBRC0076 intersecting 8m at 0.63 g/t Au from 101m including 1m at 1.93 g/t Au from 105m

·    Mineralisation to the north increased in strike by a further 50m beyond the 2022 drilling intersection of CBRC0059 that intersected 6m at 4.15 g/t Au from 34m (including 4m at 5.74 g/t Au) through:

o  CBRC0082 intersecting 2m at 0.61 g/t Au from 137m

o  CBRC0083 intersecting 1m at 0.80 g/t Au from 64m and 1m at 0.70 g/t Au from 122m

·    Down dip continuities were validated through additional intersections, including:

o  CBRC0077 intersecting 1m at 0.55 g.t Au from 91m and 4m at 0.80 g/t Au from 96m (including 1m at 2.09 g/t Au)

o  CBRC0078 intersecting 1m at 1.37 g/t Au from 81m and 1m at 1.50 g/t Au from 90m and 37m at 0.50 g/t Au from 100m (including 2m at 4.58 g/t Au)

o  CBRC0086 intersecting 3m at 1.13 g/t Au from 123m validating the down dip continuity of the intersection received in CBRC0050 that intersected 33m at 1.03 g/t Au from 65m that was drilled in 2021

AC Drilling Programme

A total of 78 holes across seven targets were drilled to define REE resource extensions, test priority REE targets and assess further gold anomalies results, including at:

·    Clarke North, where a further 1km² of REE mineralisation was defined through the following intersections:

o  CBAC0109: 25m at 739 ppm TREO from 12m, where the MREO equates to 26%, including 9m at 1187 ppm TREO, where the MREO equates to 28%

o  CBAC0108: 10m at 710 ppm TREO from 27m, where the MREO equates to 22%

o  CBAC0105: 12m at 550 ppm TREO from 18m, where the MREO equates to 21%

o  CBAC0105: 12m at 550 ppm TREO from 18m, where the MREO equates to 21%

o  CBAC0104: 6m at 719 ppm TREO from 16m, where the MREO equates to 17%

o  CBAC0103: 6m at 602 ppm TREO from 18m, where the MREO equates to 22% and 2m at 683 ppm TREO from 40m, where the MREO equates to 23%

o  CBAC0102: 4m at 831 ppm TREO from 14m, where the MREO equates to 28%

·    Clarke South, where results from 8 of 11 holes received demonstrated further REE mineralisation beyond the southern extent of Clarke gold mineralisation and the REE resource extent with the following intersections:

o  CBAC0112: 6m at 621 ppm TREO from 24m, where the MREO equates to 23%

o  CBAC0113: 15m at 607 ppm TREO from 18m, where the MREO equates to 23%, including 3m at 1146 ppm TREO from 18m, where the MREO equates to 24%

o  CBAC0114: 21m at 736 ppm TREO from 15m, where the MREO equates to 24%, including 3m at 1298 ppm TREO from 33m, where the MREO equates to 22%

o  CBAC0115: 3m at 674 ppm TREO from 21m, where the MREO equates to 29%

o  CBAC0116: 3m at 634 ppm TREO from 21m, where the MREO equates to 26%, and 3m at 609 ppm TREO from 36m, where the MREO equates to 22%

o  CBAC0130: 10m at 2,349 ppm TREO (23% MREO) from 21m, including 3m at 5,382 ppm TREO (23% MREO)

o  CBAC0128: 23m at 847 ppm TREO (23% MREO) from 12m, including 3m at 1,701 ppm TREO (24% MREO) from 12m

o  CBAC0133: 15m at 1,040 ppm TREO (22% MREO) from 24m, including 6m at 1,206 ppm TREO (22% MREO) from 27m

o  CBAC0135: 3m at 1823 ppm TREO from 18m, where the MREO equates to 22%

o  CBAC0137: 12m at 629 ppm TREO from 15m, where the MREO equates to 20%

·    Grace, where 23 exploration holes were drilled to test structures similar to gold and REE enriched structures at the Clarke prospect. Results from 11 holes received include:

o  CBAC0146: 3m at 544 ppm TREO from 18m, where the MREO equates to 23%

o  CBAC0141: 9m at 756 ppm TREO from 21m, where the MREO equates to 21%

o  CBAC0139: 13m at 698 ppm TREO from 24m, where the MREO equates to 21%

o  CBAC0179: 18m at 2,854 ppm TREO (24% MREO) from 36m, including 6m at 5,066 ppm TREO (25% MREO) from 39m

o  CBAC0180: 9m at 1,107 ppm TREO (22% MREO) from 39m

·    Baggy Green West, where results from two of six holes drilled tested demagnetised zones that demonstrate increased saprolite horizons prospective for REE resource extensions, as supported by:

o  CBAC0135: 3m at 1,823 ppm TREO from 18m, where the MREO equates to 22%

o  CBAC0134: 18m at 1,123 ppm TREO from 21m, where the MREO equates to 21%, including 3m at 3,568 ppm TREO from 24m, where the MREO equates to 21%

·    Bradman, where 11 holes have verified the electromagnetic interpretation of an extensive palaeo-drainage system. Here, the channel sediments are more oxidised and clay intervals limited, and REE mineralisation is enriched on the contact to the palaeo-sediments, where the following intersections are present:

o  CBAC0147: 9m at 977 ppm TREO from 12m, where the MREO equates to 19%, including 3m at 1,719 ppm TREO from 12m, where the MREO equates to 19%

o  CBAC0149: 9m at 897 ppm TREO from 54m, where the MREO equates to 23%, including 6m at 1,076 ppm TREO from 54m, where the MREO equates to 23%

o  CBAC0153: 6m at 821 ppm TREO from 27m, where the MREO equates to 19%

o  CBAC0156: 15m at 825 ppm TREO from 45m, where the MREO equates to 25%, including 3m at 1417 ppm TREO from 48m, where the MREO equates to 25%

o  CBAC0158: 15m at 946 ppm TREO from 33m, where the MREO equates to 24%, including 3m at 1687 ppm TREO from 33m, where the MREO equates to 22%

o  CBAC0159: 6m at 637 ppm TREO from 54m, where the MREO equates to 23%

Update to Mineral Resource Estimates

During 2023, Cobra published three resource updates:

In January 2023, the Company released a maiden inferred REE JORC 2012 Mineral Resource Estimate ("MRE") of 20.9Mt and 658 ppm TREO, where MREO equate to 23.6% of the TREO. The MRE covers the Clarke and Baggy Green prospects, where underlying gold mineralisation is expected to improve future economic analysis of the published resource.

Following the 2,466m RC and 3,950 AC drilling campaigns, the Company incorporated both sets of drilling results and updated both gold and REE MREs. This update yielded considerable increases in resources that are summarised below (and are not yet inclusive of any REE resources for the Boland discovery):

REE MRE Update:

·    Upgraded REE MRE includes:

o  +99% increase in tonnes

o  +5% increase in 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

Gold MRE Update:

·    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 5.81Mt at 1.5 g/t Au for 279,000 Oz

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

The 2023 Gold and REE JORC MRE update is tabled below:

Resource estimates were prepared by external consultants Mrs Justine Tracey and Mrs Christine Standing of Snowden Optiro.

Granting of New Project

In November 2023, the Company was granted a new tenement named "Deloraine", located in northern Tasmania. The tenement ("EL22/2022") was staked in 2022 as the Company considered that the ground was prospective for further extensions to the neighbouring Deep Leads-Rubble Mound 52Mt 817 ppm TREO REE Resource owned by ABX group. The Deep Leads-Rubble Mound REE project has ionic metallurgy comparative to Cobra's Boland project.

Whilst this project will not be the Company's main focus going forward, Cobra believes it can materially add value to the project by cost effectively:

1.    Defining the extent of palaeovalley colluvium that hosts the ionic mineralisation through low-cost Loupe TEM geophysics

2.    Confirming the presence of REE mineralisation across mapped channels by shallow auger drilling

3.    Confirming ionic metallurgy through sighter testing

100% Wudinna Project Acquisition (refer to note 22 for further detail)

In November 2023, the Company announced that it had signed an agreement to acquire the remaining 25% of the Wudinna project from Andromeda Metals for A$500,000 cash and A$1,000,000 in consideration shares issued at 1p. Pursuant to the Wudinna Subdivision and Sale Agreement, Cobra's wholly owned subsidiary will acquire all the exploration rights in the relevant tenements held by Andromeda's subsidiary Peninsula Resources Pty Ltd ("Peninsula") by Peninsula relinquishing existing tenement rights and LAM applying for the grant of new tenements over the areas. The partial surrender process is a preferred process for acquisition as the granting of new tenements resets the tenement clocks, enabling renewals of up to a further 18 years. The transaction process is expected to be completed in May of this year.

ISSUES OF SHARES DURING THE PERIOD

On 21 November 2023, 74,400,000 shares were issued raising £744,000. A further 2,730,000 shares were issued in lieu of fees. All shares were issued at a 10% premium (1p) to the trading price. On 14 December 2023, shareholders approved the acquisition of the remaining 25% of the Wudinna Project through the issue of 52,000,000 "Consideration Shares".

Post period, a prospectus was published for the issue of the Consideration Shares and to raise a further £220,000 through the issue of 22,000,000 shares.

POST PERIOD END EVENTS

As stated above, post period, a prospectus was published for the issue of the Consideration Shares and to raise a further £220,000 through the issue of 22,000,000 shares.

Also, in January 2024, Cobra was granted two additional tenements (EL 6966 "Smokey Bay" and EL 6967 "Pureba"). The tenements cover a combined 1,512km² and overlie a further 1,000km² of the Narlaby paleochannel, the system that hosts the Boland ionic discovery located at the Wudinna Project. The prospectivity of the new tenements can be summarised as follows:

·    A review of historical datasets confirms that the geological units host ionic REEs

·    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 ISR mining.

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.

On the 22 April 2024, the Company announced that subject to only departmental and ministerial approvals, the Wudinna Sale Transaction, entitling Cobra to 100% ownership of the Wudinna Project had been completed.

On 26 April 2024, the Company announced the completion of a share placement raising £600,000 through the issue of 60,000,000 ordinary shares. The shares will be admitted to trading after the date of signing this report, on 2 May 2024.

Boland Project Advancement

In February 2024, Cobra completed a five drillhole sonic core drilling programme aimed at advancing the Boland ionic REE discovery by:

·    Installing x5 cased bores to form the infrastructure for a future ISR pilot study

·    Gaining better understanding of the nature of the ionic REE mineralisation and its amenability to ISR

·    Obtaining samples to perform bench scale ISR tests and to obtain sufficient samples to advance the development of a processing flow sheet

In March 2024, Cobra announced preliminary results from the drilling programme which further demonstrated that the discovery could be a world class source of magnet and heavy rare earths.

Sonic core drilling provided greater geological detail which confirmed the Company's thesis that grade concentrations are high, mineralisation is amenable to low-cost extraction via ISR, and the discovery has exceptional province scale potential. Results demonstrated:

·    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

In April 2024, Cobra announced re-assay results from historical drillholes which support regionally scalable, high grade REE mineralisation at Boland which is amenable to ISR.

CONCLUSION

The Company has consciously allocated its capital to ensure that future shareholder value is obtained through exploration success and the definition of resources. Delivering substantial increases in gold and REE resources provides a solid foundation but the upside post the discovery of Australia's only REE project with ISR potential is exceptional, and an opportunity we look forward to advancing. I thank my fellow directors for their contribution throughout the year, our CEO Rupert Verco, and Exploration Manager Robert Blythman, for their tireless efforts, our valued stakeholders, and our contractors and service providers. We are committed to unlocking the mineral wealth of the Wudinna Project and the greater Eyre Peninsula region and to providing a low cost, low disturbance supply of magnet and heavy REEs from outside of China.

Greg Hancock

Non-Executive Chairman

29 April 2024