Ironveld Plc

("Ironveld" or the "Company")

Update on DMS Magnetite Joint Venture

Ironveld, the AIM quoted mining development company, is pleased to confirm that its subsidiary, Ironveld Mining (Pty) Limited ("Ironveld Mining"), and its Joint Venture ("JV") partner, Pace SA Pty Limited ("Pace"), have agreed with a subsidiary of JSE-listed Sable Exploration and Mining Limited ("SEAM", ticker code SXM) certain amendments to the funding and operational structure of the DMS Magnetite operation currently being established at Ironveld's mining area. The new structure retains Ironveld's ability to supply ore into the JV and benefit from a share of positive cashflows without having to fund the initial capital expenditure.

The JV between Ironveld and Pace, IPace Pty Limited ("IPace"), shall continue to be responsible for erecting, operating, and maintaining the plant alongside all marketing of the final product and Ironveld Mining will continue to supply ore on a 'cost plus' basis to IPace.

The parties have now agreed that SEAM, via a subsidiary company Sable Platinum Holdings (Pty) Limited ("SPH"), will advance all necessary funding of approximately ZAR 15 million (approximately £650,000) for the establishment of an initial quick start 10,000 tonnes per month ("tpm") capacity plant. There will also be an option to fund future expansions in capacity, depending on the success of the venture. 

Once SPH's capital loan has been repaid out of 70% profits, it will retain a 50% interest and IPace will own 50% of the venture and remain entitled to 50% of all profits.

SEAM and Pace have both introduced significant offtake customers to IPace, and forecasted tonnage volumes are now approximately double the level envisaged in early 2023 when Ironveld Mining and Pace established the JV. The amendments to percentage interests between the parties will have a negligible effect on the positive cashflows likely to accrue to Ironveld.

This revised structure maintains the benefits for Ironveld Mining in being able to mine and sell additional ore, including 'fines' that would otherwise not be suitable for the Group's Rustenburg smelter. The reduced upfront capital requirement for a smaller and more efficient plant, which minimises unused capacity versus the original plant design, means that, based on anticipated sales, the period before such capital is repaid is also reduced, thereby bringing forward the point where positive cashflows are likely to arise for IPace.

Ground works and civil works at the site are progressing well, with the expectation of the plant to be installed in around four weeks, and first sales to follow approximately four to six weeks after that.

Martin Eales, Chief Executive Officer, said: "Ironveld and Pace welcome SEAM as a funding partner for the DMS Magnetite Joint Venture. The DMS Magnetite project is beneficial for Ironveld Mining in terms of reducing overall average mining costs and should in time contribute positive cashflow, without us having to divert funding from our core smelting activities in order to establish the venture."

James Allan, Chief Executive Officer of SEAM, said: "Sable is really pleased to be partnering with IPace in this exciting project that we believe will generate good cashflow for all the parties and provide a base for further developments."

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NOTES TO EDITORS

Ironveld (IRON.LN) is the owner of Mining Rights over approximately 28 kilometres of outcropping Bushveld magnetite with a SAMREC compliant ore resource of some 56 million tons of ore grading 1,12% V2O5, 68,6% Fe2O3 and 14,7% TiO2.

In 2022 Ironveld agreed to acquire and refurbish a smelter facility in Rustenburg, South Africa, in which it can process its magnetite ore into the marketable products of high purity iron, titanium slag and vanadium slag. This transaction became unconditional in March 2023.

Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.