Strandline Resources Limited advised 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% complete with the priority transitioning to construction of the wet concentration plant (WCP) and supporting process and power infrastructure, which are well underway. Key progress achieved to date includes: Zero lost time injury (LTI) and medical treatment injury (MTI) reported to date; Early mobilisation of the mining contractor and mining equipment is currently underway, along with construction of site offices, buildings and workshops for operations; Site-wide bulk earthworks and roads are almost completed, with focus shifting to the North West Coastal Highway intersection, bitumen sealing, punch listing and progressive handover; Vertical construction of the processing plant structures is advancing rapidly, with concrete installation 90% complete; key steel and platework fabrication is complete, assembly of WCP spiral modules underway, with progressive deliveries of mechanical-electrical equipment and materials; Fabrication and supply of three dozer mining units is almost completed, with factory testing and delivery of units to site expected on-schedule in May 2022; Installation of sitewide overhead power lines, HDPE field piping and water bore installation are all progressing in accordance with the plan; All site accommodation rooms and key support facilities now commissioned (272 rooms in total) ahead of construction workforce approaching peak level; current site headcount of approx.

250; Construction of the hybrid power station is also advancing on-schedule, which includes the multi-work front installation of the 10MW solar farm, LNG storage and engine hall complexes; Commissioning planning and establishment of key operational systems, maintenance procedures and workforce plans is ramping up, with a key focus on local recruitment, workforce diversity and indigenous engagement opportunities. 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.