Zanaga Project Financing LOI and RAM Update

31 July 2026

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018 ("MAR"), AND IS DISCLOSED IN ACCORDANCE WITH THE COMPANY'S OBLIGATIONS UNDER ARTICLE 17 OF MAR

Zanaga Iron Ore Company Limited

("ZIOC" or the "Company")

Update on Zanaga Project, US$500m Project Financing LOI and Red Arc Minerals Transaction

Further to the publication of the Annual Report and Accounts on 1 July 2026, Zanaga Iron Ore Company Limited (AIM: ZIOC) reports that discussions with Red Arc Minerals LLC ("RAM") continue, and RAM has provided evidence of significant progress towards securing strategic financing of up to US$500m for the Zanaga Iron Ore Project and its associated infrastructure from a large western government backed development financing institution ("DFI").  The DFI has issued a letter of intent ("LOI") and discussions with the DFI continue. As a result of these potentially significant financing discussions, RAM's proposed strategic equity investment in the Zanaga Iron Ore Project (the "Zanaga Project") requires additional time to finalise to allow alignment with the objectives of the strategic investor consortium. RAM and ZIOC have therefore agreed to extend the period within which RAM may conclude the proposed transaction to 30 November 2026.

Bulk sampling process update:

The Zanaga Project team are pleased to report that earthworks and logistics partners have commenced mobilisation with all related activities advancing according to plan. The completion of the bulk sampling will be a significant step in optimising the process flow sheet and equipment definition, bringing the project closer to producing DRI-grade pellet feed product.

The LOI is an expression of interest at this stage and the proposed funding is subject, amongst other things, to agreeing documentation and so there is no certainty that they will occur or, if they do, the terms on which they occur. The Company will keep shareholders updated on progress on the proposed funding and project development, as and where required by market rules.

Clifford Elphick, Chairman of ZIOC commented:

"We are delighted to see the significant progress that Red Arc Minerals has made towards securing US$500m of strategic investment interest in the Zanaga Project and its associated infrastructure. The key stakeholders in RAM have substantial credibility in financing large-scale strategic mining assets, and Zanaga is already benefiting from this support. We look forward to continuing our good working relationship with RAM, and progressing the RAM strategic transaction to a financial close."

"The Project's detailed engineering phase remains on schedule, with earthworks and logistics contractors mobilising on site to commence the iron ore bulk sampling process"

For further information, please contact:

ENDS

About ZIOC:

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

The Zanaga Iron Ore Project is a globally significant asset with a 6.9 billion tonne resource and a 2.1 billion tonne reserve, targeting 30Mtpa production of high-grade DRI pellet feed with very low impurity levels. When fully developed, Stage One (12Mtpa) and Stage Two (18Mtpa expansion) together could establish Zanaga as one of the world's largest iron ore mines. With all key permits secured, Zanaga is well positioned to benefit from increasing demand for high-quality, low-impurity iron ore, supported by low operating costs and an efficient slurry pipeline to port.

In the context of the global transition towards lower-carbon steel production, the Zanaga Project is well positioned to become one of the largest producers of high-grade, premium DRI pellet feed iron ore concentrate.

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