Power Solutions MoU

Zanaga Iron Ore Company Limited ("ZIOC") is pleased to announced that ZIOC, and its 100% subsidiary MPD Congo, have today signed a memorandum of understanding with Centrale Électrique du Congo (CEC) SA to evaluate potential solutions to supply the Zanaga Iron Ore Project's power demand, leveraging CEC's existing assets.

CEC is a private power producer based in the Republic of Congo, owned by the Government of the Republic of Congo (80%) and Eni Congo (20%). With an installed capacity of 484 MW from its assets located in Côte Matève and Point-Noire, CEC currently supplies more than 70% of the country's electricity demand, benefitting from the vast gas resources developed by Eni Congo.

Under the terms of the memorandum, the parties will assess the technical, economic, and legal aspects required for power generation and distribution for the Zanaga Project's needs for its Stage One operations, allowing it to reach a production capacity of 12 millions tons per annum of iron ore with a view to further expansions.

Background

ZIOC aims to develop the Zanaga Iron Ore Project, comprising iron ore deposits located in the Zanaga mining licence area, in the western part of the Republic of Congo. The Zanaga Project represents one of the largest iron ore reserves in the world with a JORC compliant 6.9 billion tonne iron Ore Resource and with 2.1 billion tonnes in iron Ore Reserve. The Zanaga Project is planned to be developed in stages, ultimately ramping up to targeted 30 Mtpa of iron ore production capacity. CEC is a successful energy company owned by Eni Congo and the Government of the Republic of Congo. CEC operates significant power generation assets near Pointe-Noire, providing the bulk of domestic power supply in the Republic of Congo.

ZIOC has been actively engaging with multiple power solution providers, including existing producers such as CEC, and power companies seeking to develop additional future power projects in the Republic of Congo.

Clifford Elphick, Chairman of ZIOC commented:

"ZIOC's partnership with CEC further reinforces the industry's view that the Zanaga Project is world class, opening the path to establish the required power needs for the Project."

Martin Knauth, CEO of ZIOC commented:

"Together with the recent partnership with Arise to develop bulk mineral export facilities, the partnership with CEC to develop a range of power solutions supports a pathway to further de-risk the Zanaga Project from the two largest development challenges, being the availability of adequate power and port infrastructure. Such solutions, together with CEC's capability, continue to include progressing hydroelectric and solar options. In having a partner in CEC, I can confidently look forward to achieving our next Project milestones."

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

CEC is a private power producer based in the Republic of Congo, owned by the Government of the Republic of Congo (80%) and Eni Congo (20%). With an installed capacity of 484 MW from its assets located in Côte Matève and Point-Noire, CEC currently supplies more than 70% of the country's electricity demand, benefitting from the vast gas resources developed by Eni Congo.