Framework Agreement for Phase 1 of Balasausqandiq

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."