Strategic Resources Signs High Purity Iron Ore Supply and Offtake Agreements with Javelin Global Commodities along with a US$150 Million Working Capital Facility

MONTREAL, Nov. 25, 2024 - Strategic Resources Inc. (TSXV: SR) (the "Company" or "Strategic") is pleased to announce that it has signed definitive agency agreements (the "Offtake Agreements") with Javelin Global Commodities (SG) PTE Ltd, a subsidiary of Javelin Global Commodities ("Javelin") to procure approximately four million tonnes of direct reduction ("High Purity Iron" or "DR") grade iron ore concentrate and sell up to four million tonnes a year of DR grade iron pellets from Strategic's planned High Purity Iron pelletizer facility at Port Saguenay, Québec (the "Project" or "Plant"). Along with these agreements, Javelin and Strategic have signed an indicative term sheet for Javelin to provide a secured working capital facility up to US$150 million to support the operations of the Plant.

Sean Cleary, CEO commented: "These Offtake Agreements solidify our business plan to move ahead with the four million tonne High Purity Iron pellet plant at Port Saguenay, Quebec as Phase 1 of the BlackRock Project. Javelin is an outstanding long-term partner to work with given their demonstrated track record in the seaborne iron concentrate and iron pellet markets and provides another major international sponsor for the Project. The completion of the Offtake Agreements is a significant milestone for Strategic and puts the Company in a position to complete the required next steps over the first three quarters of 2025 as it works towards the start of construction of the High Purity Iron Pellet Plant."

Key Terms of the agreements:

• Javelin will be the exclusive agent for the supply of iron concentrate feed and the marketing of the High Purity Iron ore pellets.
• A ten-year contract from the completion of construction with an option for Strategic to terminate, including the right to terminate after seven years from the commencement of production of the iron ore products.
• Javelin will be paid a percentage fee on the total cost of the iron concentrate feed and percentage fee of the revenue from direct reduction iron pellet sales.
• Javelin will, subject to satisfactory due diligence and contract, provide a working capital facility of up to US$150 million for the Project for a period of up to three (3) years.

Other Project Updates

Javelin will work with Strategic, its Feasibility Study consultant and Metso to provide iron ore concentrate samples from the selected feed sources for testing. This test work will allow Metso to optimize the pellet plant and refine the detailed engineering for the project. It is estimated that the Feasibility Study and testing will take approximately six months to complete.

Strategic will continue to have discussions with parties globally around their interest in funding or partnering on Phase 2 of the Project; the Tenova direct reduction unit at Port Saguenay. Phase 2 allows for the production of direct reduced iron or hot briquetted iron, which would ultimately help with the global transition to electric arc furnaces in the Steel Industry. Phase 2 is permitted and would allow Québec and Canada to capture more of the value in the global steel supply chain, while helping to reduce global carbon dioxide emissions.

Construction of the two-way, multiuser conveyor belt at Port Saguenay is well advanced and on track for completion in 2025. The 1.5 km conveyor system will serve to deliver iron ore concentrate, and other materials from the wharf to the industrial park at Port Saguenay. The finished pellets will be transported on the same conveyor system to the wharf for export. The conveyor project, which is being funded by the Federal Government of Canada and Province of Québec is expected to cost approximately C$110 million.

The phased approach of building a 4-million tonne pellet plant as Phase 1 of the BlackRock Project means that consumption of natural gas will be significantly lower compared to the construction of the entire metallurgical facility planned for Phases 2 and 3. Since the volumes have changed significantly, the project no longer meets the profitability requirements established by Énergir's regulator. Therefore, the existing natural gas distribution contract signed in 2018 between Énergir and Strategic Resources will be terminated. This enables Strategic Resources to benefit from the return of C$4.27 million of cash onto its balance sheet from the letter of credit that had been put in place in April 2023. This capital will be used to continue advancing the Phase 1 High Purity Iron pellet plant project. Taking into account the new volumes and the profitability required by Énergir's regulator, a new natural gas distribution contract will have to be negotiated.

About Javelin

Javelin Global Commodities is a global commodities physical trading, logistics, operations, financing and investment group headquartered in the United Kingdom, engaged across multiple commodities sectors, including power generation fuel commodities, steel raw material, oil & gas, metals, steel scrap, hydrocarbons, freight, softs, and renewables. Founded in 2015, Javelin has grown to become one of the leading commodity traders in the world and operates globally with over 180 employees serving the energy, steel and industrial sectors, with offices in London, Bangalore, Calgary, Melbourne, New York and Singapore.

About Strategic Resources

Strategic Resources Inc. (TSXV:SR) is a critical mineral development company focused on becoming a supplier of green steel inputs. The Company has a planned metallurgical facility site in Canada and high-purity iron and vanadium projects in Canada and Finland. The Company is developing its flagship BlackRock Project, which is a fully permitted and ready to construct mine, concentrator and metallurgical facility located at a seaport in Québec with full access to the St. Lawrence Seaway. The Company's Head Office is in Montreal, Québec.

Further details are available on the Company's website at https://strategic-res.com/. To follow future news releases, please sign up at https://strategic-res.com/contact/.

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STRATEGIC RESOURCES INC.
Signed: "Sean Cleary"
Sean Cleary, CEO & Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Note Regarding Forward-Looking Information

Certain statements and information herein, including all statements that are not historical facts, contain forward-looking statements and forward-looking information within the meaning of applicable securities laws. Such forward-looking statements or information include but are not limited to statements or information with respect to the size of and completion of a working capital facility, the supply of approximately 4 million tonnes of High Purity Iron, the sale of up to 4 million tonnes of direct reduction pellets, the completion of test work with Metso, the completion of a Feasibility Study, the completion timing of the multiuser conveyor and the negotiation of a new contract with Énergir. Often, but not always, forward-looking statements or information can be identified by the use of words such as "will" or "projected" or variations of those words or statements that certain actions, events or results "will", "could", "are proposed to", "are planned to", "are expected to" or "are anticipated to" be taken, occur or be achieved.

Although management of the Company believes that the assumptions made and the expectations represented by all forward-looking statements or information are reasonable, there can be no assurance that a forward-looking statement or information herein will prove to be accurate. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause the Company's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. These factors include, but are not limited to: risks associated with the business of the Company; business and economic conditions in the mining industry generally; the supply and demand for labour and other project inputs; changes in commodity prices; changes in interest and currency exchange rates; risks relating to inaccurate geological and engineering assumptions (including with respect to the tonnage, grade and recoverability of reserves and resources); risks relating to unanticipated operational difficulties (including failure of equipment or processes to operate in accordance with specifications or expectations, cost escalation, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters); risks relating to adverse weather conditions; political risk and social unrest; changes in general economic conditions or conditions in the financial markets; and other risk factors as detailed from time to time in the Company's continuous disclosure documents filed with Canadian securities administrators. Strategic does not undertake to update any forward-looking information, except in accordance with applicable securities laws.

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SOURCE Strategic Resources Inc.