28 December 2023

MoU signed with CMEC and FS Process Update

Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM: ZIOC), is pleased to announce that a memorandum of understanding ("MoU") has been signed with China Machinery Engineering Corporation ("CMEC") relating to hydroelectric power solutions for the Zanaga Iron Ore Project (the "Zanaga Project") and associated funding of such power projects. Furthermore, the Company provides an update to shareholders on the timing of the Company's FS update process with its Chinese EPC Partner.

·    ⁠Following CMEC's preliminary inspections and engineering of potential hydroelectric sites near the Zanaga Project, an MoU has been agreed between ZIOC and CMEC with the following objectives:

o  Advance engineering and related studies for the identified hydroelectric sites near the Zanaga Project.

o  Draft arrangements for the funding of development and operation of the identified hydroelectric project(s), between the government of the Republic of Congo and third Parties.

·    Chinese EPC Partner FS update progress

o  The initial review and re-costing phase of the 2014 Feasibility Study ("2014 FS") has been completed, indicating potential cost reductions versus the 2014 FS.

o  The market enquiry and financial modelling phase 2 is underway and will now be extended into Q1 2024 given the comprehensive nature of the update.

Clifford Elphick, Chairman of ZIOC commented:

"I am pleased to report that ZIOC has signed an MoU with China Machinery Engineering Corporation to advance engineering and related studies for a number of hydroelectric power sites identified near the Zanaga Project, including drafting of arrangements for the funding, development and operation of the hydroelectric project(s) between the Republic of Congo and third Parties.

In addition, ZIOC's FS study update process is progressing well and has identified a number of potential value engineering opportunities, with the conclusion of the study now scheduled for Q1 2024."

The Zanaga Iron Ore Company Limited LEI number is 21380085XNXEX6NL6L23.

For further information, please contact:

Zanaga Iron Ore

Corporate Development and                         Andrew Trahar

Investor Relations Manager                           +44 20 7399 1105

Liberum Capital Limited

Nominated Adviser                                            Scott Mathieson, Kane Collings

and Corporate Broker                                       +44 20 3100 2000

About us:

Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is an iron ore exploration and development company, with the Company's flagship asset being its 100% owned Zanaga Iron Ore Project located in the Republic of Congo, for which the Government Mining Licence, Environmental Permit and Mining Convention are all in place.

A major Project update is underway to freshen historical studies in light of changes in the world's economy and growing demand for low-carbon steel production, for which the Zanaga resource is highly suited, with the potential to become one of the largest producers of high grade premium pellet feed iron ore.