Tranche 2 Private Placement Completion & Upsizing

Zanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to provide an update to shareholders on the Company's equity fundraise announced on 3 March 2025 (the "Fundraise").

In accordance with the Fundraise, the Company entered into Subscriptions totalling US$21.51 million of gross proceeds at a price of US$0.0516 (approximately 4.10 pence) per Ordinary Share (the "Issue Price"), with Subscriptions to be completed in two tranches, with the completion of the first tranche of US$17.43 million announced on 13 March 2025.

As announced on 3 March 2025, Greymont Bay, the cornerstone investor in the Fundraise, was provided the right at its sole election to invest an additional US$1.50 million in the second tranche at the Issue Price ("Additional T2 Subscription"). If Greymont Bay elected to make the Additional T2 Subscription, the gross proceeds of the second tranche would increase from US$4.08 million to US$5.58 million, and the total gross proceeds from the Fundraise would increase to US$23.01 million.

Greymont Bay has worked with the Company's management team, via its newly established Zanaga Technical Committee, to assess the opportunity to accelerate key Project workstreams and targeted milestones. Greymont Bay has confirmed its support for the Company's proposed workstreams, and its intention to subscribe for the Additional T2 Subscription. Following a request from Gagan Gupta, Founder and CEO of Arise, who also invested in the Fundraise, to increase his investment in ZIOC, Greymont Bay has provided Gagan Gupta the right to commit a further US$0.30 million of the Additional T2 Subscription, reducing Greymont Bay's Additional T2 Subscription to US$1.20 million.

As a result of the above, Greymont Bay's total investment in the Fundraise has increased to US$12.05 million with resulting ownership of 28.11% following Admission to trading on AIM of the tranche two shares ("Second Admission"). Gagan Gupta's total investment in the Fundraise has increased to US$4.30 million with resulting ownership of 10.03% following Second Admission.

Application has been made for 108,139,536 Ordinary Shares to be admitted to trading on AIM as part of the Second Admission. Second Admission is expected to take place at 8:00 a.m. on 27 March 2025.

The Company believes that the provision of this additional funding now secures its ability to progress a number of key metallurgical testwork initiatives with the potential to provide significant upside value, as well as accelerating its ability to achieve the pre-construction engineering phase (FEED) objectives.

Martin Knauth, CEO of ZIOC, commented:

"I wish to thank all Parties involved in this fundraise and welcome the support of our strategic investors in pursuing the value-adding objectives recently announced."

Total Voting Rights

Following Second Admission, the total number of Ordinary Shares and voting rights in the Company will be 830,879,996 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Guidance and Transparency Rules. The Company does not hold any shares in treasury.