Two Year Magnetite DSO Offtake Non Binding MoU Signed, Advancing Strategy for Near-Term Production and Early Cashflow

Vanadium Resources Limited (ASX: VR8; DAX: TR3) (the “Company”) is pleased to announce that its subsidiary, Vanadium Resources (Pty) Limited (“VanRes”) has signed an MoU with China Precious Asia Limited (“CPAL”) in relation to a magnetite ore supply agreement from its world-class Steelpoortdrift Vanadium Project (the “Steelpoortdrift” or the “Project”) in South Africa.

HIGHLIGHTS

• A Non Binding agreement has been reached between China Precious Asia Limited (“CPAL”) and VR8’s subsidiary, Vanadium Resources (Pty) Limited (“VanRes”) for the supply of vanadium-rich magnetite Direct Shipping Ore (“DSO”) from VR8’s world- class Steelpoortdrift Vanadium Project (“Steelpoortdrift”).
• VR8 is advancing this opportunity to unlock early revenues and operating cashflows in support of its staged development and funding strategy for Steelpoortdrift.
• The initiative has been made possible due to the suite of valuable minerals within the Steelpoortdrift orebody and VanRes holding a fully permitted Mining Right over the Steelpoortdrift 365KT farm.
• Under the terms of the Memorandum of Understanding (“MoU”), VanRes would supply CPAL with an average of 100,000 metric tons of magnetite ore per month.
• The arrangement positions VR8 to become a near-term producer by monetising its substantial JORC resource base (+180 years), while retaining full flexibility to scale into full development as vanadium market conditions improve.
• Founded in 2012, CPAL is a metals and minerals trader and processor of magnetite- bearing ore, targeting Asian steel markets. CPAL’s focus on vanadium-rich magnetite ore aligns with China’s broader push to secure primary sources of vanadium.
• As part of its ongoing strategic equity and offtake process, VR8 also continues to assess additional near-term, value-accretive opportunities, such as profit share agreements with existing operations, that complement the development of Steelpoortdrift and are not mutually exclusive to DSO operations.

Commenting on the MoU with CPAL, Mr. Jurie Wessels, Executive Chairman of VR8 said:

“We are very pleased to have signed this MoU with a quality partner like CPAL for the supply of magnetite ore. Through our ongoing strategic equity and offtake process, it became increasingly apparent that there is a compelling opportunity to potentially transition the Company toward near-term production, even at this low point in the vanadium market cycle. This has been made possible by our advanced permitting status and the suite of valuable minerals within Steelpoortdrift’s ore, which contains not only vanadium credits but also iron-rich magnetite.

Based on the Company’s internal assessments and the volumes proposed under the MoU, we anticipate that a DSO operation at Steelpoortdrift has the potential to generate material positive operating cashflows for VR8 and its shareholders. While the MoU is non-binding, the level of engagement and interest from CPAL gives me confidence that a binding and value-accretive commercial agreement can be reached.

We believe focusing on the generation of early cashflow is the ideal response to the current realities of both the Vanadium and wider commodity markets. Our strategy enables us to unlock near-term value, minimise shareholder dilution and allow time for a clearer pathway to full-scale development to emerge. Our goal is to maximise shareholder exposure to our world-class resource and the underlying long-term growth of the Vanadium market.

I look forward to keeping shareholders updated as we look to transition the MoU with CPAL into a commercial agreement.”

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