THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 (INCLUDING AS IT FORMS PART OF THE LAWS OF ENGLAND AND WALES BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR").

19 December 2024

Ferro-Alloy Resources Limited

("Ferro-Alloy", the "Group" or the "Company")

Issue of Equity to Directors / Suppliers and Share Subscription

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, announces that it has issued a total of 1,684,160 ordinary shares of nil par value in the capital of the Company (the "Fee Shares") in lieu of cash for the payment of non-executive director fees and certain Group suppliers. Additionally, the Company has also received a share subscription for 80,823 ordinary shares of nil par value in the capital of the Company ("Subscription Shares" together with the Fee Shares, the "New Shares") from its newly appointed Astana International Exchange ("AIX") market maker. The New Shares are being issued under existing shareholder authority granted at the Company's 2024 annual general meeting held on 23 October 2024.

Issue of Equity

·    The Company's non-executive directors have agreed to be issued with a total of 1,151,724 New Shares at 9.75p per share in lieu of fees for Q2 to Q4 2024 and Q1 2025 for the aggregate amount of £112,293.14

·    Following the issue of the New Shares, the beneficial interest of the Company's non-executive directors in the issued share capital of the Company will be as follows:

·   Christopher Thomas: 6,840,753 ordinary shares of nil par value in the capital of the Company ("Ordinary Shares"), representing 1.41% of the issued share capital of the Company

·    James Turian: 883,908 Ordinary Shares, representing 0.18% of the issued share capital of the Company

·    Petrus Nienaber: 383,908 Ordinary Shares, representing 0.08% of the issued share capital of the Company

·    Certain suppliers of the Group have agreed to be issued with a total of 532,436 New Shares at 9.75p per share in settlement of balances due to them for the amount of £51,912.53

·    The Company has also received a share subscription from SQIF Capital JSC, the Company's newly appointed AIX market maker, for 80,823 New Shares at 9.75p per share totalling £7,880.22   

·    All New Shares are being issued at the Company's closing mid-market share price as at 18 December 2024

Admission

Applications have been made to the Financial Conduct Authority for the New Shares to be admitted to the standard listing segment of the Official List and to the London Stock Exchange for the New Shares to be admitted to trading on its Main Market for listed securities ("Admission"). It is anticipated that Admission will become effective, and that dealings in the New Shares will commence at or around 8.00 a.m. GMT on 6 January 2025.

Total Voting Rights

Following Admission of the New Shares the Company's issued ordinary share capital will comprise 484,987,221 Ordinary Shares, with none held in treasury, and therefore, the total number of Ordinary Shares in the Company with voting rights will be 484,987,221. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the applicable legal and regulatory requirements.

ENDS

For further information, visit www.ferro-alloy.com or contact:

Details of the full notifications received by the Company are set out below:

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them

Notes to Editors

About Ferro-Alloy Resources Limited:

The Company's operations are all located at the Balasausqandiq deposit in Kyzylordinskoye Oblast in the South of Kazakhstan.

Balasausqandiq is a very large deposit, with vanadium as the principal product together with the carbon black substitute ("CBS") and several by-products. Owing to the nature of the ore, the capital and operating costs are very much lower than for other vanadium projects.    

The most recent mineral resource estimate for ore-body one (of seven) provided an Indicated Mineral Resource of 32.9 million tonnes at a mean grade of 0.62% vanadium pentoxide ("V₂O₅") equating to 203,364 contained tonnes of V₂O₅. In the system of reserve estimation used in Kazakhstan the reserves are estimated to be over 70m tonnes in ore-bodies 1 to 5 but this does not include the full depth of ore-bodies 2 to 5 or the remaining ore-bodies which remain substantially unexplored. 

The grade of carbon in the deposit is over 8%.  The carbon flows through to the tailings from where it is concentrated in a simple low-cost operation into a 40% carbon product, the CBS, that can be used in place of carbon black as a reinforcing filler in the making of rubber.

The Project will be developed in two phases, Phase 1 and Phase 2, with Phase 1 treating 1.65 million tonnes per year.

There is an existing concentrate processing operation at the site of the Balasausqandiq deposit. The production facilities were originally created from a 15,000 tonnes per year pilot plant which was then expanded and adapted to recover vanadium, molybdenum and nickel from purchased concentrates.  Alongside this operation there is a well-equipped laboratory and highly skilled technical team who have already developed the technology that is being built into the feasibility study and is further developing and optimising processes needed for future vanadium and carbon operations. The plant will operate only when profitable concentrates are available and, when not operating as a production facility, will operate on an expanded basis as an R&D centre.