Strategic Minerals Europe and IberAmerican Lithium Announce Spanish Court Denies Appeal on Penouta Project Section C Permit

Rhea-AI Summary

Strategic Minerals Europe and IberAmerican Lithium announced that the Superior Court of Xustiza of Galicia (TSXG) has upheld its decision to suspend the section C permit for the Penouta tin-tantalum mine. The permit was initially challenged by Ecoloxistas en Acción, an environmental group, against the local mining authority, Xunta de Galicia. Despite this setback, Strategic Minerals and IberAmerican are exploring legal options, including a potential appeal to the Supreme Court of Spain. The section B permit remains unaffected, allowing exploitation of tailings and waste deposits. Both companies are committed to the Penouta Project and sustainable development, with a business combination between them approved by a majority of shareholders.

Positive

• Section B permit for Penouta Project remains unaffected, allowing exploitation of tailings and waste deposits.
• Business combination between Strategic Minerals and IberAmerican approved by majority of shareholders.
• Commitment to sustainable development and community engagement in the Penouta Project.

Negative

• Superior Court of Xustiza of Galicia upheld suspension of section C permit for Penouta Project.
• Environmental group's complaint led to revocation of section C permit granted in May 2022.
• Potential delays and legal costs associated with exploring legal avenues to reverse the decision.

Toronto, Ontario--(Newsfile Corp. - June 13, 2024) - Strategic Minerals Europe Corp. (Cboe CA: SNTA) (FSE: 26K0) (OTCQB: SNTAF) ("Strategic Minerals") and IberAmerican Lithium Corp. (Cboe CA: IBER) (OTCQB: IBRLF) ("IberAmerican"), jointly announce that the Superior Court of Xustiza of Galicia (the "TSXG") has upheld on appeal its decision to suspend (the "Decision") the section C permit for Strategic Minerals' Penouta tin-tantalum mine in Spain (the "Penouta Project").

The Decision of the TSXG relates to a complaint filed by an environmentalist group known as "Ecoloxistas en Acción" against the local mining authority, Xunta de Galicia (the "Xunta"), requesting a revocation of the section C permit granted to Strategic Minerals in May 2022. Strategic Minerals and IberAmerican respectfully disagree with the Decision and are exploring all available legal avenues to reverse the Decision and to expedite the reinstatement of the section C permit, including a potential appeal to the Supreme Court of Spain (the "SCS"). The Decision does not impact the section B permit at the Penouta Project, which permits Strategic Minerals to exploit tailings and waste deposits. Upon completion of the Business Combination (as defined below), IberAmerican expects to promptly resume exploitation activities pursuant to the section B permit in an effort to generate immediate cash flow.

Furthermore, Strategic Minerals is firmly committed to the Penouta Project and is dedicated to social, economic, and environmental sustainability. This approach underscores Strategic Minerals' ongoing commitment to responsible and legally compliant operations. Upon completion of the previously announced business combination with IberAmerican (the "Business Combination"), IberAmerican will continue to uphold these principles, ensuring the shared alignment of values and regulatory standards. The Business Combination has been approved by an overwhelming majority of Strategic Minerals' shareholders.

Strategic Minerals wishes to express its gratitude to the local communities impacted negatively by the Decision for their strong support over the past eight months. This includes all those parties and partners involved in the Penouta Project, the mayors and municipal corporations of the region of Galicia, and all political and union organizations, as well as the neighbours who have publicly supported Strategic Minerals. As Strategic Minerals and IberAmerican move forward with Business Combination, both parties remain committed to upholding the principles of community engagement and support, ensuring that the future combined company continues to build on this foundation of mutual respect and collaboration.

Strategic Minerals and IberAmerican remain dedicated to revitalizing the region through the Penouta Project, promoting sustainable development, creating wealth in Galicia, and ensuring ongoing commitment to environmental stewardship and economic growth in the region.

About Strategic Minerals Europe Corp.

Strategic Minerals' wholly-owned subsidiary, Strategic Minerals Spain, S.L.U. ("SMS"), produces, identifies, explores, and develops mineral resource properties critical to the green economy, predominantly in Spain. SMS holds permits and a production license for the Penouta Project. SMS is the largest cassiterite concentrate and tantalite producer in the European Union and has been recognized within the EU as an exemplary company of good practices in the circular economy. Strategic Minerals is well-positioned as a major producer of sustainable and conflict-free tin, tantalum, and niobium. Strategic Minerals is a "reporting issuer" under applicable securities legislation in the provinces of British Columbia, Alberta, and Ontario.

Additional information on Strategic Minerals can be found by reviewing its profile on SEDAR+ at sedarplus.ca and its website at www.strategicminerals.com.

About IberAmerican Lithium Corp.

IberAmerican Lithium Corp. is a hard-rock lithium exploration company focused on advancing its 100% owned Alberta II & Carlota Properties located in the Galicia region of northwestern Spain. IberAmerican Lithium's properties are located in a favorable lithium district with world class infrastructure and a supportive and proactive mining jurisdiction.

Additional information on IberAmerican is available at www.iberamericanlithium.com and by reviewing its profile on SEDAR+ at www.sedarplus.ca.

To learn more visit: https://iberamericanlithium.com/.

Cautionary Note Regarding Forward-Looking Information:

This news release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, including statements with respect to resumption of exploitation at the Penouta Project and cashflow therefrom, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Strategic Minerals or IberAmerican to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Factors that could cause actual results for Strategic Minerals to differ materially from those anticipated in these forward-looking statements are described under the caption "Risks Factors" in Strategic Minerals' Annual Information Form dated March 27, 2024 which is available for view on SEDAR+ at www.sedarplus.ca. Factors that could cause actual results for IberAmerican to differ materially from those anticipated in these forward-looking statements are described under the caption "Risks Factors" in IberAmerican's Annual Information Form dated March 26, 2024 which is available for view on SEDAR+ at www.sedarplus.ca. These risks include, but are not limited to, the risks associated with the mining and exploration industry, such as operational risks in development or capital expenditures, the uncertainty of projections relating to production, any appeal to the SCS and the success thereof and any delays or changes in plans with respect to the exploitation of the site. Each of Strategic Minerals and IberAmerican disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader is cautioned not to place undue reliance on forward-looking statements.

SOURCE: Strategic Minerals Europe Corp. and IberAmerican Lithium Corp.

Further Information

For further information regarding Strategic Minerals, please contact:

Elena Terrón, Corporate Secretary; HR and Legal Director in Spain
Strategic Minerals Europe Corp.
eterron@strategicminerals.com

For further information regarding IberAmerican, please contact:

Campbell Becher
inquiries@ialithium.com
647-404-9071

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/212837

FAQ

What was the court's decision regarding the Penouta Project's section C permit?

The Superior Court of Xustiza of Galicia upheld the suspension of the section C permit for the Penouta Project.

How does the court decision impact the Penouta Project?

The suspension affects the section C permit but does not impact the section B permit, allowing continued exploitation of tailings and waste deposits.

What legal actions are Strategic Minerals and IberAmerican considering?

They are exploring all available legal avenues, including a potential appeal to the Supreme Court of Spain.

What is the stock symbol for IberAmerican Lithium?

The stock symbol for IberAmerican Lithium is IBRLF.

What impact does the court's decision have on the business combination between Strategic Minerals and IberAmerican?

The business combination has been approved by shareholders and will proceed, with both companies committed to the Penouta Project.

Who challenged the section C permit for the Penouta Project?

An environmental group named Ecoloxistas en Acción filed the complaint leading to the suspension.