Vanadium Resources Secures A$1M Placement to Advance V-Iron Plant

Vanadium Resources Secures Placement to Fund V-Iron Plant Development, Targeting Western Critical Minerals Supply Chains

Vanadium Resources Limited (ASX: VR8; DAX: TR3) has announced firm commitments to raise approximately A$1.0 million through an equity placement, providing the capital needed to advance the next critical phase of its Steelpoortdrift Vanadium Project in South Africa. As Vanadium Resources secures placement to fund V-Iron Plant development, the raise comes on the back of a recently executed non-binding offtake term sheet with U.S. Vanadium Holding Company LLC (USV) and the appointment of Rand Merchant Bank (RMB) as exclusive financial advisor — a combination of moves that signals a meaningful strategic shift for the company.

A Strategic Pivot With Real Commercial Momentum

VR8 is repositioning Steelpoortdrift away from a vanadium-only production model toward a co-production strategy centred on a next-generation critical minerals smelter, termed the V-Iron Plant. Rather than selling vanadium concentrate alone, the proposed V-Iron Plant would process high-grade vanadium-titanium-magnetite (VTM) ore to simultaneously produce two marketable products: vanadium-bearing slag and pig iron.

This dual-product approach is more than a technical refinement — it represents a fundamental broadening of the company's revenue profile and, critically, its ability to attract project financing. A vanadium-only model is inherently exposed to commodity price cycles in a single market. By adding pig iron as a co-product, VR8 introduces exposure to the steel sector and reduces single-commodity risk.

The non-binding offtake term sheet with USV covers 100% of vanadium-bearing slag production from the proposed V-Iron Plant. USV operates an integrated vanadium refinery in Hot Springs, Arkansas, and is a majority-owned portfolio company of TechMet Ltd — a firm known for its focus on critical minerals aligned with Western supply chain priorities.

Metallurgical testwork conducted by USV has confirmed that high-grade vanadium slags of South African Bushveld Complex origin are well-suited to USV's Arkansas refinery, removing a key technical uncertainty from the offtake pathway.

"We believe that VR8 is well positioned to advance and transform our fully permitted, tier-1 Steelpoortdrift Project into a secure and reliable source of vanadium supply for Western markets."
— Jurie Wessels, Executive Chairman, VR8

Placement Details at a Glance

The placement was conducted using existing placement capacity under ASX Listing Rule 7.1, allowing for rapid execution without requiring a shareholder vote — with the exception of the director participations noted below.

Directors and Management Back the Raise With Their Own Capital

One of the more telling signals in this announcement is the participation of the company's own directors and senior management in the placement. Executives subscribing for shares alongside external investors is a meaningful alignment signal.

*Subject to shareholder approval at a general meeting.

Combined, VR8's leadership team committed A$170,000 of the total A$1.0 million raise — representing 17% of gross proceeds. Furthermore, CEO Nick Diack and CFO Tim Feather are notably establishing share positions from zero, demonstrating conviction in the strategy at a foundational level.

What the Funds Will Be Used For

The placement proceeds are earmarked for four specific workstreams, each directly supporting the V-Iron Plant development pathway:

1. Preliminary scoping study, scoping study and feasibility study preparation — the foundational technical work to define optimised production parameters, assess technology trade-offs, and ultimately support a final investment decision.
2. Professional costs for offtake and strategic funding — legal, advisory and engagement costs to progress the USV term sheet toward a binding offtake agreement and to advance pig iron offtake discussions.
3. V-Iron Plant site leasehold agreements, utility agreements and environmental workstreams — securing brownfield site access and locking in key infrastructure arrangements covering power, water, oxygen, transport and waste handling.
4. Costs of the offer and working capital — standard placement costs and general corporate purposes.

VR8 has been explicit that the raise is sized to fund the company through to the next key milestone — the completion of scoping and trade-off studies — rather than diluting shareholders for a larger capital raise before that work is done.

Understanding the V-Iron Plant Concept

What Is a V-Iron Plant and Why Does It Matter?

A V-Iron Plant is a high-temperature processing facility that smelts vanadium-titanium-magnetite (VTM) ore to produce two outputs simultaneously:

• Pig iron — a raw iron product used as a feedstock in steelmaking
• Vanadium-bearing slag — a vanadium-rich byproduct that can be refined into high-purity vanadium products such as vanadium pentoxide (V₂O₅) or vanadium electrolyte for batteries

This co-production approach is well established globally — it is the predominant method used in South Africa, China and Russia for processing Bushveld Complex-type ores. By adopting a proven, widely-applied processing method, VR8 can benefit from shorter technical study timescales and reduced development risk compared to deploying novel processing technology.

Why Does This Matter for Investors?

As Vanadium Resources secures placement to fund V-Iron Plant development, the co-production model fundamentally changes VR8's financial and strategic profile:

• Two revenue streams instead of one reduce commodity price exposure
• Pig iron sales can help underwrite project economics even during vanadium price softness
• A larger portion of the orebody is converted into valuable products, improving overall project economics
• Project financing becomes more accessible when lenders can assess cash flows from multiple product streams

The Steelpoortdrift Asset: Scale That Underpins the Strategy

The commercial logic of the V-Iron Plant strategy rests on the scale and quality of the underlying asset. Steelpoortdrift is one of the largest vanadium deposits outside of China and Russia.

Mineral Resource Summary (as at 30 April 2022)

Ore Reserve Summary (as at 30 September 2022)

VR8 owns 86.49% of VanRes, the entity holding the project. The asset is fully permitted, and the Definitive Feasibility Study completed in 2022 — which delivered an NPV of approximately A$1.9 billion — provides a strong technical foundation that the V-Iron Plant studies will build upon rather than replace. In particular, the DFS concentrator design is expected to require updating rather than fundamental redevelopment.

Rand Merchant Bank Appointment Adds Institutional Credibility

The appointment of FirstRand Bank's Rand Merchant Bank (RMB) division as exclusive financial advisor and capital sourcing agent is a significant structural development for the project. RMB is one of South Africa's leading investment banks with deep capital markets capabilities and experience in large-scale resource project financing.

RMB's mandate is to assist VR8 in securing debt and/or non-ASX related equity funding for the construction of processing facilities, including both the concentrator and pyrometallurgical processing facilities. Having an institution of RMB's stature in that role materially strengthens VR8's credibility with institutional capital sources.

"A diversified revenue model, broadened sub-sector exposure, and most importantly, a materially strategic position in Western critical minerals supply chains greatly strengthen our ability to secure project financing."
— Nick Diack, CEO, VR8

Key Workstreams and the Path to Production

VR8 has outlined a comprehensive set of parallel workstreams that will be advanced using the placement proceeds and beyond.

Near-Term Priorities

• Complete preliminary and full scoping study, incorporating USV's metallurgical testwork results
• Conduct trade-off studies to determine preferred reduction technology (rotary kiln vs. fluidised bed) and assess next-generation furnace options
• Secure a binding brownfield site agreement for the V-Iron Plant location

Medium-Term Development Activities

• Progress binding offtake agreement with USV for vanadium-bearing slag
• Develop pig iron offtake agreements with South African steel producers or international buyers
• Conclude utility and supply agreements covering renewable and conventional power, water, oxygen, transport and waste handling
• Appoint in-house pyrometallurgical expertise to lead technical development
• Complete feasibility study, FEED and final engineering ahead of final investment decision

Financing Pathway

VR8 intends to pursue a blended financing structure for the V-Iron Plant construction, expected to include senior debt, equity, grants, guarantees and political risk insurance, with RMB leading the capital sourcing effort.

Anticipated Development Timeline

A Glossary of Key Terms

V₂O₅ (Vanadium Pentoxide): The primary refined form of vanadium, used in steel alloys, chemical processes, and vanadium redox flow batteries.

VTM (Vanadium-Titanium-Magnetite): An iron ore type that contains vanadium and titanium, typically processed via high-temperature routes to recover all three metals.

Pyrometallurgy: High-temperature processing of metallic ores using heat (smelting). The V-Iron Plant approach uses this method to co-produce pig iron and vanadium slag.

Pig Iron: A crude form of iron produced during smelting, used as a raw material in steelmaking.

JORC: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves — the standard under which VR8's resource and reserve estimates are reported.

DFS (Definitive Feasibility Study): A comprehensive technical and financial study confirming the viability of a mining project. VR8's 2022 DFS returned an NPV of approximately A$1.9 billion.

FEED (Front-End Engineering Design): Detailed engineering work conducted after a feasibility study and before final investment decision, used to firm up cost estimates and project design.

Brownfield Site: An existing industrial site with infrastructure in place, reducing greenfield capital requirements for a new plant.

Why Investors Should Follow VR8

Several factors converge to make this a development worth monitoring closely.

1. Scale of the underlying asset is exceptional. At 4.74 Mt of contained V₂O₅, Steelpoortdrift is one of the world's largest vanadium deposits outside of China and Russia. The DFS-level work already completed provides a credible foundation for the V-Iron Plant strategy.

2. The co-production model materially strengthens the investment case. Adding pig iron to the revenue profile reduces single-commodity exposure, improves financing attractiveness, and allows VR8 to monetise a larger share of its orebody.

3. The USV offtake term sheet provides early commercial validation. A non-binding agreement for 100% of vanadium-bearing slag production — with a counterparty that has physically tested the suitability of Bushveld Complex-origin slags for its Arkansas refinery — is a meaningful step. Converting this to a binding agreement is a near-term catalyst to watch.

4. RMB's appointment signals institutional-grade financing ambitions. Rand Merchant Bank's involvement as exclusive financial advisor elevates the credibility of the project financing pathway and opens doors to institutional and strategic capital that may not be accessible through ASX equity markets alone.

5. Management is financially committed. With A$170,000 of personal capital invested by the executive team at the same price as external investors, the leadership group has clear skin in the game.

6. Dilution has been managed carefully. The A$1.0 million raise is deliberately sized to fund the next development phase rather than pursue excessive dilution ahead of key value creation milestones.

As Vanadium Resources secures placement to fund V-Iron Plant development, the company is executing a well-structured pivot toward a dual-product strategy at its world-scale Steelpoortdrift Project. Backed by a confirmed offtake pathway, institutional financial advisory support, and meaningful insider participation, VR8 is building the commercial and technical foundations needed to progress toward a final investment decision. Investors focused on Western critical minerals supply chain exposure should, however, keep a close watch on VR8's progress across these workstreams in the months ahead.

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