Strategic Resources Inc. announced update shareholders on advances at the Mustavaara vanadium-iron project (the "Project") and recent activity in the vanadium and pig iron markets. Mustavaara Project Advancement: Exploration permit applications to transition the Project from reservation status were made in November 2021. This will advance all the concessions at the Project to the exploration license phase.

An application to extend the existing water permit allowing for future construction of mining operations at the Project was delivered to The Regional State Administrative Agency for Northern Finland in February 2022. It is Strategic's expectation that, once approved, this will extend the permit an additional three years to mid-2025. A proposal for an environmental baseline monitoring program was sent to The Centre for Economic Development, Transport and the Environment of North Ostrobothnia in November 2021.

Strategic has received positive initial feedback on the program and will commence its monitoring efforts once formal approval has been received. Prior to the conflict in Ukraine, rising FeV80 prices in China and Europe were driven primarily by new demand for structural steel. Prices rebounded from the lows of USD 21/kg during 2020 back to USD 39.25/kg in January 2022.

The recent conflict in Ukraine has caused FeV80 prices to increase further to USD 49.75/kg in Europe. Russian-owned Evraz represents approximately 17% of global vanadium production from the reprocessing of vanadium-bearing slag from their steel furnaces. Continued adoption of Vanadium Redox Flow batteries ("VRFB") is also providing new demand for vanadium.

Chinese vanadium demand for energy storage batteries is expected to triple this year as China looks to bring on new VRFB battery systems. Western VRFB developers such as Largo Inc. and Invinity Energy Systems have been making substantial advances on the production and sale of VRFB systems. Largo Inc. has also announced the launch of Largo Physical Vanadium Corp., which will hold physical vanadium that may be leased for long-term use in VRFBs sold through Largo. The initial financing for the physical trust is underway and is expected to raise up to CAD 20 million.