Strategic Resources Explores Construction of a Larger Iron Ore Pellet Operation at Port Saguenay

MONTREAL, Nov. 20, 2023 - Strategic Resources Inc. (TSXV:SR) (the "Company" or "Strategic") announced that it has received written confirmation from the Quebec Ministry of Environment ("QME") that it can build a larger iron ore pelletizer at Port Saguenay in Quebec. The Company's November 2022 NI 43-101 Feasibility Study (the "Study") included a pellet plant sized at 1 million tonnes per annum to process iron-vanadium-titanium concentrate at its Saguenay Metallurgical Facility site. Strategic has received confirmation from the QME that it can build up to a 4 million tonne per annum pelletizing unit by modifying the existing certificate of authorization to produce iron ore pellets for the steel industry. The QME notice enables the Company to utilize its existing environmental authorizations, which accelerates timelines, reduces costs and project execution risk in pursuit of this compelling opportunity.

Following the receipt of the QME's confirmation, the Company is now looking to secure third party iron ore pellet feed to be processed into iron ore pellets on a merchant basis for use in the high purity green steel market. Pelletizing capacity is required in North America to address the need for high purity materials used in electric furnace steel mills, an important industrial strategy for reducing greenhouse gas emissions globally.

Sean Cleary, CEO commented: "This is an exciting near-term opportunity for the Company to take advantage of the advanced development of the BlackRock Project at Port Saguenay. The industry is in need of pelletizing capacity and we have a world class permitted location to execute our business plan. Natural gas availability and hydroelectric power makes Port Saguenay a much more desirable site than other site locations, many of which require bunker fuel to pelletize iron ore. This option could eventually increase the scale and profitability of the overall BlackRock project, while providing a measured approach to a phased construction of the overall BlackRock Project."

The Company's evaluation of phasing the project with the larger pelletizer will include discussions with potential partners, including iron ore producers and traders. Key project stakeholders and partners, notably the Cree and Innu nations as well as the Government of Quebec, local communities and officials at Port Saguenay will be consulted on the phasing plan.

Detailed work with Strategic's preferred original equipment manufacturer, Metso Outotec has already been completed. Strategic will now engage an engineering firm to evaluate altering the site configuration of the Saguenay metallurgical facility to accommodate the larger pelletizer module. The Company expects that work to be completed by early Q1 2024.

The Company believes that by prioritizing the larger pellet operation as a first step in constructing the BlackRock Project, Strategic dramatically reduces the execution and financing risks to achieve cashflow and commercial production. A potential partnership on the pelletizer may further reduce the net overall cost of capital for the BlackRock Project to Strategic shareholders.

Strategic Resources Inc. (TSXV:SR) is a critical mineral exploration and development company focused on 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 the Port Saguenay seaport in Québec with full access to the St. Lawrence Seaway. The Company's Head Office is in Montreal, Quebec.

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 & Chairman

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.

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 potential phasing of the BlackRock project, the potential construction of a larger pelletizer and completion of engineering work by Q1 2024. 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.