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

18 March 2025

Zanaga Iron Ore Company Limited

("ZIOC" or the "Company")

 Project Development Strategy Update

Zanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to announce an updated project development strategy.

ZIOC published an update to the Zanaga Iron Ore Project's (the "Zanaga Project" or the "Project") Feasibility Study in April 2024, highlighting strong support to progress the Project within its legislated permit status, continued demonstration of robust economics, and a forward work programme to evaluate additional value opportunities to optimise the construction and operation of the Zanaga Project.

During the process of conducting ZIOC's equity fundraise (the "Fundraise") announced on 3 March 2025, a number of the investors have been engaging with the Company in evaluating these value adding opportunities.  Subject to the closing of the second tranche of the Fundraise expected on 26 March 2025, the Company will be in a position to rapidly advance the workstreams outlined below:

Project Development Strategy

Four key workstreams have been identified which have the potential to result in high impact value improvement outcomes for the Zanaga Project. The combined impact from these workstreams is targeted to increase the Net Present Value (NPV) of the Project by more than US$4 billion.

1.   Product Quality Enhancements - Direct Reduction Iron ("DRI") test work

Demand for premium products is driving a major iron ore market shift, with decarbonisation of the steel supply chain expected to result in a supply-demand deficit in premium higher grade iron ore products - reinforcing Zanaga's strategic value. The ability to achieve DRI specification from the Zanaga Project's ores has the potential to transform the value proposition of the Zanaga Project and increase its NPV by up to US$6bn (DRI product price dependent), where significant price premiums could potentially create substantial upside value for the project. New technologies have been proven since the 2014 Feasibility Study which are amenable to processing Zanaga's ore. The Company will immediately be conducting a laboratory-scale test work programme capable of completion within a short timeframe, and, if successful, the Company will consider pilot scale test work supported by conducting test work on a bulk haematite sample.

Conclusion: Study to be conducted during the remainder of the year to evaluate this high impact value upside opportunity, which is now being prioritised for immediate assessment.

2.   Pellet Plant Feasibility Study

The Republic of Congo is striving to develop new industrial manufacturing capability. Abundant gas and energy availability in Republic of Congo provides an ideal environment for potential pelletisation of Zanaga's high grade iron ore products. The Pointe-Indienne Special Economic Zone ("SEZ"), under development by Arise (the Zanaga Project's port development partner) is ideally suited for such industrial activity, adequately supported by excess power capacity from the neighbouring Centrale Électrique du Congo (CEC) power plant with whom the Company has recently concluded a Memorandum of Understanding (MoU) to develop power solutions. Further, the Company has received interest from various groups in Saudi Arabia and the United Arab Emirates (UAE) and is exploring these opportunities.

Conclusion: Study to be conducted to evaluate the opportunity to monetise a pellet plant strategy at sites well-suited to host Zanaga's downstream pelletisation facilities with a potential to increase the NPV of up to US$1bn targeted. Priority will be given to evaluation of sites in the Pointe-Indienne SEZ in Republic of Congo, or sites identified in the Middle East.

3.   Single 30 million tonnes per annum ("Mtpa") capacity pipeline Feasibility Study

An opportunity exists to construct a single buried 30Mtpa capacity pipeline for the Project's Stage One 12Mtpa initial development. This would eliminate the need to construct a second independent pipeline to support the Stage Two 18Mtpa expansion (to 30Mtpa total production). This initiative would reduce Stage Two capital costs substantially (~US$700 million capex saving targeted), reduce environmental impact, enable the acceleration of the Stage Two expansion, and streamline financing of Stage Two from Stage One cash flows.

Conclusion: Study to be conducted to assess the capability to significantly reduce costs of Stage Two and substantially reduce engineering, environmental, and social aspects of the Stage Two expansion project

4.   Dry Tailings Feasibility Study

A large wet Tailings Storage Facility ("TSF") is currently planned for the base case staged development project. An opportunity exists to utilise thickened paste or filtered tailings technology to reduce moisture content, thus creating substantial benefits such as reducing long term management costs (via reduced sustaining capex), and enable a smaller footprint TSF with simpler operation and progressive rehabilitation.  It is estimated that, if successful, this could deliver up to US$2bn of sustaining capex savings over the life of the mine.

Conclusion: Study to be conducted in Q3 2025 to evaluate the opportunity to make substantial capital and operating cost reductions from reduced water management and improved production efficiencies

Updated Corporate Presentation

An updated corporate presentation is available on the Company's website, https://www.zanagairon.com/,  including further information on the Company's corporate and project development strategy outlined above.

Martin Knauth, CEO of ZIOC, commented:

"In addition to restructuring the Company's shareholding, this Fundraise process has secured funding to pursue workstreams capable of delivering high impact value upside while adding efficiencies to the Zanaga Project through its construction and operating phases."

"We look forward to commencing this work upon settlement of the second tranche of the Fundraise and, through these investigations, we aim to quantify the benefits to the Project and our investment, community, State and industry stakeholders."

"In parallel with this optimisation, we look forward to engaging with potential strategic partners as we look to develop the Zanaga Project."

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 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.

The Zanaga Iron Ore Project is a world-class asset with a 6.9 billion tonne resource and 2.1 billion tonne reserve, designed for 30Mtpa production of high-grade (66-68.5% Fe) pellet feed with very low levels of impurities. A 2024 Feasibility Study reaffirmed its robust economics. When fully ramped, Phase 1 and Phase 2 combined could make Zanaga one of the largest iron ore mines globally. With all key permits in place, Zanaga is positioned to capitalise on growing demand for high-quality, low-impurity iron ore, leveraging low operating costs and a cost-efficient slurry pipeline to the port.

In light of the changes in the world's economy, and the growing demand for low-carbon steel production, the Zanaga Project is well-placed to become one of the largest producers of high grade premium pellet feed iron ore.

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