SUREFIRE RESOURCES NL — Capital/Financing Update 2024

Jan 14, 2024

SUREFIRE SIGNS MEMORANDUM OF UNDERSTANDING WITH SAUDI ARABIA BASED "AJLAN & BROS. MINING AND METALS COMPANY" , FOR VICTORY BORE PROJECT

• Surefire has signed a non-binding Memorandum of Understanding ("MOU") with Ajlan & Bros Mining and Metals Company ("Ajlan"), a company based in the Kingdom of Saudi Arabia (KSA).
• Under the MOU, Surefire and Ajlan will collaborate to complete binding agreements in relation to a joint venture structure for the development of Surefire's Victory Bore Vanadium Project ("Victory Bore Project") in Australia and the development of a mineral processing facility in Saudi Arabia for the processing of magnetite concentrate from the Victory Bore Project.
• The MOU also establishes a framework for an investment into the Victory Bore Project by Ajlan, with a view to Surefire and Ajlan owning the Victory Bore Project and Saudi Arabian processing facility in joint venture.
• Signing of this agreement follows an MOU with Ministry of Investment Saudi Arabia, ("MISA"), (see ASX announcement dated 16 August 2023) and the outstanding Pre-Feasibility Study results on the Victory Bore Project (see ASX announcement dated 5 December 2023).
• The MOU was exchanged at a formal ceremony at the Future Minerals Forum in the Kingdom of Saudi Arabia on 10 January 2024.

Management Comment: Mr Paul Burton, Surefire Resources Managing Director said "This is another milestone for the Company in its approach to develop the Victory Bore Project and follows the outstanding Pre-Feasibility Study results that establish Victory Bore as a world class asset with a feasible development plan. We welcome this agreement with Ajlan, a highly regarded and prestigious company in KSA, and thank the Ministry of Investment for the introduction. We look forward to working closely with both to achieve our mutually beneficial development plans".

Surefire Resources NL ("Surefire" or "the Company") is pleased to announce that it has executed a non-binding Memorandum of Understanding ("MOU") with Saudi Arabian company Ajlan & Bros. Mining and Metals ("Ajlan") in relation to the further development of the Company's 100% owned Victory Bore Vanadium Project ("Victory Bore Project" or "Project").

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Ajlan is a wholly-owned subsidiary of Ajlan & Bros Holding ("AB Holding"), a highly respected prestigious Company in the Kingdom of Saudi Arabia ("KSA") with leading mining, processing, manufacturing and development capabilities in KSA and internationally. AB Holding was established to invest in a diversified portfolio of projects across Saudi Arabia's key economic growth sectors as part of the Kingdom's VISION 2030. For more information on Ajlan and AB Holding, please visit https://ajlanbros-holding.com/.

The MOU provides a framework for the parties to negotiate binding agreements relating to:

• the establishment of a joint venture between the parties for the development of the Project in Australia and mineral processing in Saudi Arabia of magnetite concentrate from the Project. While the binding joint venture agreement would more exhaustively set out the obligations of the parties, it is envisaged that Surefire would be responsible for the Australian elements of the joint venture, and that Ajlan would be responsible for the Saudi Arabian elements of the joint venture; and
• an investment into the Project by Ajlan.

Surefire and Ajlan will work towards agreeing terms and executing binding agreements relating to the joint venture and investment by July 2024, when the term of the MOU expires (unless extended by mutual agreement).

The signing of the MOU with Ajlan is part of the Company's business development plan to have a Saudi partner to jointly progress a feasible development pathway for the project, and to take advantage of the incentives available in the Kingdom of Saudi Arabia for resource projects. The Kingdom of Saudi Arabia is a low power and utilities cost jurisdiction providing the Company with significant operating cost advantages and has significant funding incentives available of up to 75% of capital expenditure for mineral processing projects.

This MOU with Ajlan builds on the memorandum of understanding signed with the Ministry of Investment Saudi Arabia (MISA) in 2023 for downstream processing of vanadium from the Victory Bore Project (see ASX announcement dated 16 August 2023 ("Surefire Executes MOU with Kingdom of Saudi Arabia")), and on the outstanding Pre-Feasibility Study (PFS) results, an extract of which is shown in table 1 below (see ASX announcement dated 5 December 2023 ("Outstanding Prefeasibility Study Victory Bore Vanadium Project")).

Project Parameter	Unit	Amount
Pre-tax NPV at a 10% discount rate	USD M	$1,110
Pre-tax NPV at a 10% discount rate	AUD M	$1,708
Pre-tax Internal Rate of Return	%	42.22%
Capital Cost	USD M	$498
Capital Cost	AUD M	$767
OPEX: normalised back to concentrate produced	USD per tonne of concentrate	$254.08
Life of Mine	Years	24
Pre-tax payback	Years	2.4
Exchange rate	USD:AUD	0.65

Table 1: Summary of project economics estimate. All values are approximate rounded to nearest significant digit.

Surefire plans on producing approximately 1.25 million tonnes per year (Mt/a) of high quality vanadium-titanium magnetite concentrate from the Victory Bore Project, and to produce up to six products from that concentrate at a processing facility in the Kingdom of Saudi Arabia:

• 2,580 t/a High purity vanadium
• 5,760 t/a of Ferrovanadium
• 192,880 t/a of Titanium slag
• 364,480 t/a of Pig iron
• 245,480 t/a of High purity iron oxide pigment
• 245,480 t/a of High-grade iron ore

Further announcements will be provided once matters progress with Ajlan.

Authorised for ASX release by Paul Burton, Managing Director:

Inquiries:+61 8 6331 6330

Forward Looking Statements:

This announcement contains 'forward-looking information' that is based on the Company's expectations, estimates and projections as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, development, objectives, performance, outlook, growth, cash flow, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking information can be identified by the use of forwardlooking terminology such as 'outlook', 'anticipate', 'project', 'target', 'potential', 'likely', 'believe', 'estimate', 'expect', 'intend', 'may', 'would', 'could', 'should', 'scheduled', 'will', 'plan', 'forecast', 'evolve' and similar expressions. Persons reading this announcement are cautioned that such statements are only predictions, and that the Company's actual future results or performance may be materially different. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company's actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.

Production Targets and Financial Forecasts

The information in this announcement that relates to production targets and forecast financial information derived from a production target is extracted from the Company's ASX announcement dated 5 December 2023 ("Outstanding Prefeasibility Study Victory Bore Vanadium Project") available to view at www.asx.com.au. The Company confirms that all material assumptions underpinning the production targets and forecast financial information derived from production targets set out in the announcement released on 5 December 2023 continue to apply and have not materially changed. The signing of the MOU with Ajlan is not expected to have any material financial impact on the Company until definitive binding agreements have been entered into.