2 June 2025

Ferro-Alloy Resources Limited

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

Framework Agreement to Design and Construct Phase 1 of the Balasausqandiq Project

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan (the "Balasausqandiq Project"), is pleased to announce that it has entered into a non-binding, non-exclusive framework agreement (the "Agreement") with China National Chemical Engineering Sixth Construction Co., Ltd ("CC6") to design and construct Phase 1 of the Balasausqandiq Project.

Framework agreement

The Company and CC6 (together, the "Parties") have entered into the Agreement to document the common intent between the Parties to advance CC6's potential engagement as the contractor to undertake the front end engineering and design ("FEED") contract and the engineering, procurement and construction ("EPC") contract (together, the "Contracts") for Phase 1 of the Balasausqandiq Project.  

Under the Agreement, the Parties will consider and negotiate the potential contractual terms between the Parties that could lead to the award of the Contracts to CC6.  

The Agreement is non-binding and non-exclusive. Any ultimate contractual relationship between the Parties remains subject to the entry into the relevant documentation on terms acceptable to both Parties.

CC6

CC6, founded in 1965, is a wholly owned subsidiary of China National Chemical Engineering Group Corp, and specialises in the engineering, design and construction of industrial processing plants.

CC6 has completed in excess of 4,000 large or medium sized projects in over 20 countries, including Kazakhstan, and has significant prior experience and expertise with FEED and EPC contracts for the design or construction of more than 50 vanadium related projects.     

Commenting on the framework agreement, Nick Bridgen, CEO of Ferro-Alloy Resources, said:

"CC6 is one of the most experienced construction companies in the world, with directly relevant experience in both vanadium and Kazakhstan. Signing this agreement is the first step towards what could turn out to be a very advantageous partnership, which could significantly advance the project schedule and ensure cost-effective engineering and construction.

I look forward to the continuation of our positive engagement with CC6, and the progression towards a contractual relationship that benefits both Parties."

ENDS

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

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 1 (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 70 million 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.