Strandline Resources Limited (ASX: STA) is pleased to advise that construction of its 100%-owned Coburn mineral sands project in Western Australia continues to progress in line with its timetable and capital budget, ensuring it remains on track for first production of HMC later this year.

Overall project progress is now 65 per cent complete with the priority transitioning to construction of the wet concentration plant (WCP) and supporting process and power infrastructure, which are well underway.

Strandline Managing Director Luke Graham said the outstanding progress on site came against a backdrop of further rises in mineral sands prices. 'The Coburn DFS in June 2020 forecast average annual EBITDA of A$104 million over the 22.5-year mine life,' Mr Graham said. 'But mineral sands prices are continuing to increase, with spot prices now at least 35 per cent above the assumptions contained in the Coburn DFS. 'These prices would significantly increase Coburn's financial returns.' As Coburn approaches peak activity and manning on site, the Company continues to focus on managing the various risk factors associated with development of the project.

This includes, but not limited to, HSE risks, potential impacts of COVID-19, inclement weather, contractor performance and contractual claims. The capital expenditure (Capex) forecast to complete the project, including an assessment of contractual claims received to date, is regularly evaluated by the Company's technical, financial and legal experts. The project forecast remains within the overall Capex budget.

ABOUT COBURN MINERAL SANDS PROJECT

In May-2021 Strandline made a Final Investment Decision (FID) to proceed with the full development of its world-scale Coburn mineral sands project, located in the Gascoyne region of Western Australia. The construction schedule has first production of HMC planned for the December quarter of 2022. The Coburn project is set to capitalise on its robust margins, the strengthening minerals sands commodity pricing outlook, its tier-1 location, and the growing demand for critical minerals. The Coburn mine life currently sees mining continue until 2045 (based on mining the initial 22.5-year JORC compliant Ore Reserves), with the potential to extend to 2060 (total 37.5 years mine life) by converting Mineral Resources which exist immediately north and along strike of existing Ore Reserves.

Contact:

Luke Graham

Tel: +61 8 9226 3130

Email: enquiries@strandline.com.au

FORWARD LOOKING STATEMENTS

This report contains certain forward looking statements. Forward looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside of the control of Strandline. These risks, uncertainties and assumptions include commodity prices, currency fluctuations, economic and financial market conditions, environmental risks and legislative, fiscal or regulatory developments, political risks, project delay, approvals and cost estimates. Actual values, results or events may be materially different to those contained in this announcement. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statements in this announcement reflect the views of Strandline only at the date of this announcement. Subject to any continuing obligations under applicable laws and ASX Listing Rules, Strandline does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement to reflect changes in events, conditions or circumstances on which any forward looking statements is based.

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