Update on Improved Project Economics

Key Economic Highlights[1]:

• Post-tax NPV (10%) increased 37% to US$5,206 million
• IRR increased to 26.7%, reflecting enhanced project returns
• FOB operating costs (including Royalty) expected to remain competitive at approximately US$27/tonne
• Proposed Life of Asset: 30 years of premium DRI grade pellet feed, with a planned production of 12 million tonnes per annum ("Mtpa") during Stage 1 and 18 Mtpa during Stage 2
• Increased price premium expected due to higher iron content with low impurities

Zanaga Iron Ore Company Limited (AIM: ZIOC), the iron ore development Company focused on advancing its flagship Zanaga Project in the Republic of Congo, is pleased to report a material improvement in the Project's targeted economics, driven by the ability to produce a high grade Direct Reduced Iron ("DRI") pellet feed product following recent laboratory confirmation from the metallurgical test work and process flow sheet optimisation.

This positive economic impact assessment follows the announcement on 25 June 2025 regarding test results confirming the ability to produce a high-grade product suitable for DRI pellet feed. The in-house evaluation offers guidance on the project's targeted economics, while also updating the Company capital and operating cost estimates for the revised process plant configuration to achieve DRI grade pellet feed specification from the Zanaga Project. The Company's technical consultants have indicated that capital and operating costs are unlikely to differ significantly from those in the 2024 FS cost update exercise and therefore, the Company has used the capital and operating costs from the 2024 FS cost update to produce the economic evaluation above. Updated capital and operating costs for the revised process design are expected to be obtained by Q4 2025, after which the Company will announce the Project's enhanced development plan.

The high-grade DRI grade pellet feed, confirmed through detailed metallurgical testing and processing flow sheet optimisation, is expected to command a significant price premium in global markets, especially from iron and steel makers focused on enhanced efficiency, lower operating costs, and reduced emissions associated with electric arc furnace iron and steel production.

Martin Knauth, CEO of ZIOC, commented:

"Zanaga Project's ability to produce an enhanced specification to meet the growing sector of low-emission DRI, a key step in producing green steel, is a significant achievement and drives a considerable positive re-rating of the Project's valuation.

The global DRI market's supply from mine assets is expected to decline markedly in the coming years, forcing iron and steel makers to invest in downstream upgrading infrastructure; Zanaga Project's ability to support this premium market from source is viewed as a lucrative opportunity."

The Company will integrate these updated results into its ongoing projects and plans, while actively engaging with potential partners and offtake counterparts. A detailed presentation on the economic assessment is available on the Company's website: