AKORA RESOURCES LIMITED — Capital/Financing Update 2023

Dec 13, 2023

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Akora Resources Limited Phone +61 3 9381 0859
211 McIlwraith Street
North Carlton Victoria 3054 info@akoravy.com
Australia
www.akoravy.com
ASX: AKO
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14 December 2023

ASX RELEASE

Pre-feasibility Study to start for Direct Shipping HighGrade Iron Ore at the Bekisopa Project, Madagascar.

AKORA Resources Limited (ASX: AKO) has advanced plans to develop a Direct Shipping Ore (DSO) start-up operation at its high-grade Bekisopa Iron Ore Project in Madagascar by starting a Pre-Feasibility Study (PFS) for the project.

Close on the heels of an encouraging Scoping Study announced last month[1] , which reported Bekisopa could produce up to 2 million tonnes per annum (Mtpa) of high-grade lump and fines products at an average 61% iron (Fe) grade over the first five years, the PFS will focus on the “low CAPEX” option which utilises the project’s DSO JORC Indicated Resource of 4.4 million tonnes (Mt) hosted in the project’s southern zone[2] . This southern zone Resource comes from just 20% of Bekisopa’s 6km of strike length, and it is anticipated that with further drilling, the PFS will include an expanded resource and production profile in due course.

In this Low CAPEX Case open pit mining operation, the Scoping Study found that Bekisopa could deliver an estimated initial five-year revenue of US$545 million and generate pre-tax operating cash flow of US$270 million, providing an operating cost margin of over 100% and delivering an IRR of 64%.

The estimated upfront capital cost of US$55.3 million[3] is based on using contractor labour, mining equipment (excavators and trucks), and mobile processing equipment (crushing and screening plant). Contractors would also be used for truck hauling the products to port and for ship loading to keep upfront capital costs contained.

Wardell Armstrong International (WAI) will conduct the PFS. The first modules of work will focus on defining the port options and delivering an updated Mineral Resource Estimate which will include the recent 2023 infill DSO drilling across Bekisopa’s northern and central zones. Notably, Bekisopa‘s 5.5Mt of Indicated and Inferred DSO resource is from just the project’s southern zone.

AKORA’s Managing Director and CEO, Mr Paul Bibby, said: “A great deal has been achieved over the last three years with November’s Scoping Study confirming AKORA is well positioned to deliver higher value, lower impurity iron ore products for making lower CO2 emissions greener steel.

“Advancing to the PFS phase is another major step towards developing an iron ore DSO operation at Bekisopa.”

1 Refer ASX Release dated 14 November 2023 Bekisopa: Scoping Study shows project could build to 2 million tonnes per year of high-grade Direct Shipping Iron Ore with significant upside.

2 Refer ASX Release date 11 April 2022 Maiden Resource Southern Zone

3 The US$55.3M is the “Low CAPEX Case” Contractor Operations / mobile crushing plant capital approach.

Higher-grade iron ore for greener steel.

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Figure 1. Location of Bekisopa and Satrokala iron ore projects in central Madagascar, Africa.

Bekisopa Project Overview

AKORA’s Bekisopa Iron Ore Project in south central Madagascar has a JORC Exploration Target of 0.5 to 1 billion tonnes[4] within two tenements totalling 31.2km[2] in area.

The project’s initial 194.7 million tonne (Mt) Inferred JORC Resource has very low impurities and an average head grade of 32% Fe able to produce a 67.6% Fe concentrate at a 75-microns grind.[5]

The project has the significant advantage of offering an initial high-grade cash generating DSO startup option, followed by either the production of a 2mm Fines product, and/or an iron Concentrate. Direct Reduced Iron-Electric Arc Furnace (DRI-EAF) technology which is used to make greener steel with considerably less carbon emissions requires iron ore grades of at least 67%. A finer grind should deliver even higher iron grades and lower impurity levels.

In Bekisopa’s southern zone, 4.4Mt of Indicated DSO tonnes has been defined according to JORC standards within the overall total project resource of 194Mt. The Scoping Study prepared by WAI was focused on a Low CAPEX option on this DSO resource and presented two scenarios for comparison:

1. Low CAPEX Case - a minimum capital DSO open pit mining operation which uses contractor labour, mining equipment (trucks and loaders) and mobile processing equipment (crushing, screen and conveying) suitable for processing the iron ore into a 61% Fe average grade lump and fines

4 Refer AKORA Prospectus – WAI - Independent Geologists Report

5 Refer ASX Release date 11 April 2022 Bekisopa Total Maiden Inferred Resource 194.7 million tonnes

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product. Contractors would also be used for truck hauling the products to stockpiling location and for ship loading.

1. Low OPEX Case - a DSO open pit low OPEX mining operation which uses contract mining fleet and labour and AKORA labour, as well as fixed equipment (crushing, screening and conveying) suitable for processing the iron ore into a lump and fines product. AKORA would also own and operate the on-road truck hauling fleet and to develop, own and operate a dedicated port facility with ship loading infrastructure.

The PFS now being embarked on will focus on combining the best aspects of these two cases such that a single optimised DSO start-up operation can be defined.

This announcement has been authorised by Akora Resources’ Board of Directors.

For further information please contact:

Paul G Bibby Managing Director Phone +61(0) 419 449 833 www.akoravy.com

Gareth Quinn Investor Relations Phone +61(0) 417 711 108 gareth@republicpr.com.au

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Higher-grade iron ore for greener steel

Akora Resources (ASX: AKO) is an exploration company engaged in the exploration and development of the Bekisopa, Satrokala, Tratramarina and Ambodilafa Projects, all iron ore prospects in Madagascar where the company holds 308km[2] of tenements across these three prospective exploration areas.

Bekisopa Iron Ore Project is a high-grade iron ore project with an ~6km strike length and an Inferred Resource of 194.7 million tonnes. Bekisopa has outcropping and weathered zone Direct Shipping Ore (DSO) iron ore and potential to produce a premium grade +68% iron concentrate suitable for Direct Reduced Iron pellets for a green steel future.

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