Strategic Minerals Europe Corp. provided an update on the provisional suspension (the "Decision") of the section C permit for the Company's Penouta tintantalum mine in Spain (the "Penouta Project"). As a result of the Decision, the Company has received the support of local workers through demonstrations aggregating more than 1,000 people, as well as the support of the Workers' Commission (CCOO), the larger trade union in Spain, along with the unions representing the workers employed at the Penouta Project.

Additionally, The Xunta de Galicia, the Mayor of Viana do Bolo, A Veiga and Vilarino de Conso, sector associations such as the Galician Aggregates Association, the professional associations of mining engineers and geologists, and the Mining Chamber, as well as planners and deputies from all political parties have voiced their frustration with the Decision. On October 31, 2023, Strategic Minerals employees took to the streets of Viana do Bolo to gather in a March against the Decision that brought together more than 500 people. This support has arisen because the Decision threatens the financial well-being of local families, businesses and entities in the areas surrounding the Penouta Project.

On October 23, 2023, the Company submitted an appeal (the "Appeal") of the Decision to the Administrative Court of the High Court of Justice of Galicia (the "High Court"). There is currently no update to provide on the appeal nor a definitive timeline as to when the Company can expect a decision from the High Court. Additional updates on the appeal will be provided by the Company when available.

Since filing the appeal, the local mining authority Xunta de Galicia (the "Xunta") has requested that the Company refrain from continuing conducting mineral exploitation operations at the Penouta Project until the appeal is decided.