Strategic Energy Resources Finalizes Full Acquisition of Diamantina Copper-Gold Project from Anglo American, Prepares for Maiden Diamond Drilling

Completion of $300,000 Final Payment Secures SER's Full Ownership of the Diamantina Project

Strategic Energy Resources has fulfilled the second and final payment under the Sale and Purchase Agreement (SPA) with Anglo American Exploration (Australia), achieving 100% ownership of the Diamantina Copper-Gold Project. The final consideration consisted of a $150,000 cash payment and the issuance of $150,000 worth of SER shares to Anglo American. Consequently, Anglo American Exploration (Australia) transitioned from vendor to shareholder, now holding 1,438,412 SER shares, which represent over 2% of SER's total issued capital post-issuance.

This transaction concludes a process initiated by SER's initial agreement to acquire the project, previously referenced in company updates from July 2025 and November 2025. The combined cash-and-scrip final payment structure aligns vendor and acquirer interests through retained shareholding, a common practice in junior explorer acquisitions. Full ownership grants SER unencumbered control over the project's exploration and development, enabling progression without further vendor approvals. The company did not disclose the aggregate consideration paid across both SPA tranches in the current update.

Overview of the Diamantina Project's Six Exploration Licences in Northwest Queensland

The Diamantina Copper-Gold Project is situated in northwest Queensland, an area known for copper-gold mineralisation potential. The project now includes six exploration licences. Two licences, EPM27134 and EPM27135, were acquired directly from Anglo American Exploration (Australia) as part of the SPA. The remaining four licences—EPM29278, EPM29279, EPM29280, and EPM29305—are adjoining Exploration Licence Applications independently secured by SER, as noted in prior updates from July and November 2025.

Consolidating these six tenements forms a significant contiguous exploration package prospective for copper-gold mineralisation. The adjoining applications expand the project footprint beyond the original Anglo American ground, potentially extending known mineralised systems. The total area covered by these combined tenements was not disclosed. This strategic tenement consolidation—acquiring core licences from a major and surrounding them with additional applications—is a recognized exploration approach to maximise potential mineralisation targets.

Elizabeth Springs East Prospect: Historical Drill Results Inform Upcoming Diamond Drilling Program

The immediate focus at the Diamantina Project is the Elizabeth Springs East Prospect, targeted for SER's maiden diamond drilling campaign. The program aims to extend two key historical drill intersections underpinning the exploration thesis. The first is drill hole DCT010, which intersected 6.5 metres at 0.52% copper and 0.16% nickel from 423 metres depth. This intersection is partially funded by a Queensland Government grant.

The second target is drill hole DTD002, which returned a broad intersection of 161 metres at 0.4% copper and 0.11 grams per tonne gold from 449 metres depth. Within this, a higher-grade zone of 17.3 metres at 1.76% copper and 0.37 grams per tonne gold was recorded from 465 metres. These historical results form the geological basis for SER's confidence in the prospect, as the company seeks to determine if these mineralised zones extend or expand at depth or along strike. The drilling program is designed to test the continuity and scale of the copper-gold system encountered.

Anglo American Becomes SER Shareholder Following Share Issuance

A notable aspect of the transaction is Anglo American Exploration (Australia)'s new role as a direct equity holder in Strategic Energy Resources. Receiving $150,000 worth of SER shares as part of the final consideration, Anglo American now holds 1,438,412 shares, representing just over 2% of SER's issued capital. This creates alignment of interests between the project vendor and the explorer advancing the asset.

The presence of a global mining major like Anglo American on SER's share register, even at a modest stake, may be perceived by the market as an endorsement of the project's prospectivity, given Anglo American's global copper and gold exploration expertise. However, this shareholding resulted from the asset sale consideration rather than a strategic investment. The company update did not indicate any ongoing rights, back-in options, royalties, or board representation linked to this shareholding. Investors should consider this when assessing Anglo American's significance on the register.

SER's Broader Queensland Exploration Portfolio Includes Canobie JV with Fortescue and Bulimba JV with Sumitomo

Strategic Energy Resources positions itself as a specialist undercover explorer targeting world-class copper-gold deposits in Queensland. Beyond Diamantina, the company operates two other active projects under joint ventures with major partners: the Canobie Project with Fortescue Metals Group and the Bulimba Project with Sumitomo Metal Mining.

Partnerships with Fortescue and Sumitomo provide third-party validation of SER's geological prospectivity and may contribute funding for exploration at those projects. In contrast, Diamantina is wholly owned by SER and will be advanced using the company's resources, including support from the Queensland Government grant related to the DCT010 drill hole. Together, Diamantina, Canobie, and Bulimba form a Queensland-focused copper-gold portfolio targeting world-class deposits in undercover geological settings.

Native Title Survey and Earthworks Scheduled Prior to Diamond Drilling This Quarter

Before drilling commences at Elizabeth Springs East, SER plans a sequence of preparatory activities. A Native Title survey will be conducted in the coming months to comply with legal requirements and ensure drilling aligns with Native Title obligations. The company did not specify the survey's expected duration.

Following the survey, earthworks will prepare the site for the diamond drill rig, expected to arrive within the current quarter. This sequence—survey, earthworks, then drilling—reflects logistical and regulatory realities in remote Queensland. SER will provide further updates on the drilling program's timing and nature as progress is made, acknowledging investor interest in drilling commencement.

Queensland Government Grant Supports Diamantina Diamond Drilling Program

The diamond drilling at Elizabeth Springs East will be partially funded by a Queensland Government grant, referenced specifically for the historical drill hole DCT010. This grant offers SER non-dilutive capital support for initial drilling activities, a positive factor for shareholders assessing project advancement.

The grant's amount, terms, conditions, and milestones were not disclosed. Typically, such grants aim to stimulate investment in Queensland's resource sector, especially in prospective but underexplored areas. The partial funding indicates government assessment of the project and targets as meeting exploration support criteria. The total estimated cost of the drilling program was not disclosed.

Managing Director Dr David DeTata Highlights Discovery Potential and Shareholder Value at Diamantina

SER Managing Director Dr David DeTata described the acquisition completion as a key milestone, securing 100% ownership of an advanced and highly prospective copper-gold project. He emphasized significant discovery potential and shareholder upside, with focus now on commencing the maiden diamond drilling at Elizabeth Springs East.

Dr DeTata highlighted the two historical drill holes guiding the upcoming program—DCT010 and DTD002—targeting extensions of these intersections. The high-grade interval within DTD002, with 17.3 metres at 1.76% copper and 0.37 grams per tonne gold from 465 metres, underscores the geological confidence. He cautioned that historical results do not guarantee future success, and investors should consider the early-stage nature of the project. The historical data was compiled by Competent Person Mr Neil Chalmers, BSc MSc (Geology) MAIG, a full-time employee and shareholder of Strategic Energy Resources Ltd.

Key Risks in SER's Early-Stage Exploration at Diamantina Copper-Gold Project

As an early-stage explorer, SER's Diamantina Project remains in exploration with no defined mineral resource or ore reserve. The upcoming maiden diamond drilling is the first systematic campaign at Elizabeth Springs East, with no assurance it will extend or expand historical intersections DCT010 or DTD002. Exploration in remote northwest Queensland carries technical, logistical, and cost risks, including potential delays from weather, access, equipment availability, or unforeseen geology.

Additional risks include SER's sole funding responsibility for Diamantina, unlike its Canobie and Bulimba projects supported by joint venture partners Fortescue Metals Group and Sumitomo Metal Mining. The company's financial position and cash reserves were not disclosed, limiting investor assessment of funding adequacy. Regulatory risks, such as completing the Native Title survey and progressing Exploration Licence Applications to granted status, may affect timelines and scope. Investors should carefully consider these project-specific risks when evaluating SER's exploration prospects.