VANADIUM RESOURCES LIMITED — Capital/Financing Update 2024

Apr 29, 2024

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30 April 2024

ADDITIONAL OFFTAKE MOU SIGNED WITH MAJOR VFB PRODUCER

HIGHLIGHTS

• VANADIUM RESOURCES LIMITED (ASX: VR8; DAX: TR3) (“VR8” or the “Company”) has entered into a Memorandum of Understanding (“MOU”) with Enerflow Technology Co., Ltd. (“Enerflow”), a subsidiary of Tian’en Energy Co., Ltd. (“Tian’en Energy”)

• Tian’en Energy is the provider of a comprehensive range of services, including the construction and operation of power stations, for the photovoltaic, wind power, gas power generation and cogeneration sectors

• Significantly for VR8, the MOU represents a source of vanadium demand from the growing global energy storage market including Vanadium Flow Batteries (“VFBs”), which comes in addition to the continuing demand for vanadium from the steel & alloy market.

• Similar to the recently announced MOU with Panjin Hexiang New Materials Technology Co., Ltd (“Hexiang”)[1] , the MOU with Enerflow envisions the sale of 4ktpa of vanadium pentoxide (V2O5) for an initial 5-year term, with an option to extend for a further 5 years

• Together, the MOUs of Hexiang and Enerflow represent 8ktpa (or ~73%) of the planned 11ktpa V2O5 production planned for Steelpoortdrift’s Phase 1 operations[2] , and highlights the continuing strong demand from China for reliable sources of vanadium supply

• VR8 remains in discussions for further offtake MOUs and agreements with a variety of Chinese, Japanese, Korean and European end-users and traders for the balance of its planned production

Vanadium Resources Limited (ASX: VR8; DAX: TR3) (the “Company”) provides the following update for its worldclass Steelpoortdrift Vanadium Project (the “ Project ”) in South Africa, consisting of the Steelpoortdrift Mine and Concentrator (“ Steelpoortdrift” ) and the planned Tweefontein Salt Roast Leach (“ SRL ”) operation (“ Tweefontein ”).

The Company is pleased to announce that it has signed a non-binding MOU for the offtake of V2O5 production from its Project with Enerflow Technology Co., Ltd. (“ Enerflow ”), a subsidiary of Tian’en Energy Co., Ltd. (“ Tian’en Energy ”). The MOU provides for the supply of 4ktpa of V2O5 flake over a period of five years with an option for Enerflow to extend a further five years.

The MOU provides a framework for further negotiations in relation to price, product quality and other offtake parameters.

1 Refer to ASX Announcement dated 11 April 2024 “Off-take MOU with large vanadium nitride producer”.

2 Refer to ASX Announcement dated 4 October 2022 “ DFS delivers A$1.9Bn NPV confirming World Class Project ”.

Vanadium Resources Limited (ASX.VR8) 7/63 Shepperton Road, Victoria Park, WA 6100 Australia contact@VR8.global • (+61) 08 6158 9990 www.VR8.global

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The MOU with Enerflow represents a further ~37% of VR8’s planned annual average V2O5 flake production capacity of ~11ktpa[3] for the initial Phase 1 operation at its Project, and now totals 8ktpa, or ~73%. The Company remains in discussions with a range of Chinese, Japanese, Korean and European end-users and traders for the balance of its planned production.

Commenting on the MOU, Mr John Ciganek, Chief Executive of VR8 said :

‘We are delighted to announce another offtake MOU shortly after the conclusion of an MOU with Hexiang. Enerflow’s interest in VR8 testifies to the prominent role VFBs are starting to play in the Battery Energy Storage Solution space. Enerflow is on the cutting-edge of this market, having been a supplier for multiple projects, including the construction of one of the world’s largest all iron chromium energy storage projects, as well as the construction of China’s first hydrochloric acid based VFB power station. VR8 considers Enerflow to be an ideal partner in China given its strong technical background in the Chinese energy storage market.

We are continuing to engage with a range of offtake partners, strategic equity investors and debt financiers, and I look forward to keeping shareholders updated during this pivotal and exciting phase in the Company’s operations.’

Commenting on the MOU, Mr Jurie Wessels, Executive Chairman of VR8 said :

‘The MOUs with Enerflow and Hexiang demonstrate compelling interest in the products we intend to produce and could provide the Company with critical mass off-take to satisfy debt funding requirements. Our MOU with Enerflow indicates VR8’s potentially prominent role as a new entrant and supplier of Vanadium to the renewable energy storage market under circumstances where existing supply of Vanadium is expected to fall short of demand.

We also see the interest in off-take as confirmation that the demand for high-quality vanadium products and producers are gaining momentum globally, and particularly from a major Vanadium production jurisdiction such as China where the steel market consumes most of the Vanadium the country produces. This interest will be developed further and may very well be the impetus towards unlocking a comprehensive funding strategy for our world-class Steelpoortdrift Vanadium Project.’

ABOUT ENERFLOW

Enerflow Technology Co., Ltd. was jointly established by Tian’en Energy Co., Ltd. and Jiangsu Fanyu Energy Co., Ltd to enter the production, research and development, and system integration fields of liquid flow energy storage batteries. Enerflow has carried out work on a myriad of projects in the sector, including multiple electrochemical liquid flow battery energy storage systems, one of the world’s largest all iron chromium energy storage projects, vanadium flow battery (“ VFB ”) production and manufacturing, and China’s first hydrochloric acid based VFB power station.

3 Refer to ASX Announcement dated 4 October 2022 “ DFS delivers A$1.9Bn NPV confirming World Class Project ”.

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ABOUT TIAN’EN ENERGY

Tian’en Energy Co., Ltd. was established in 2013 with headquarters in Beijing. Tian’en Energy is a comprehensive enterprise which integrates comprehensive energy development, power station construction and operation, research and manufacturing of energy storage products, contract energy management and new energy blockchain and big data industries, across 8 wholly owned subsidiaries and 3 participating companies. The Company is primarily focused on the photovoltaic, wind power, energy storage sectors.

This announcement has been authorised for release by the directors of Vanadium Resources Limited.

For further information, please visit https://vr8.global or contact:

Jurie H. Wessels John Ciganek Executive Chairman Managing Director and Chief Executive Officer VANADIUM RESOURCES LIMITED VANADIUM RESOURCES LIMITED E: contact@vr8.global E: contact@vr8.global

Erik Bergseng, CFA® Investor Relations P: (612) 8350 0882 E: ebergseng@nrinvestor.com.au

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Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which VR8 operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside VR8’s control.

VR8 does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of VR8, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by VR8. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

Competent Person’s Statement and Compliance Statements

The information in the referenced announcements footnoted below that relates to Exploration Results, including the Mineral Resources contained within the Production Target (and forecast financial information derived from the production targets) at the Steelpoortdrift project has previously been released to the ASX. The Company confirms that it is not aware of any information or data that materially affects the information included in the market announcement, and that all material assumptions and technical parameters underpinning the announcement continue to apply. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

2 ,3ASX: VR8 4 October 2022, DFS delivers A$1.9Bn NPV confirming World Class Project

4 ASX: VR8 4 October 2022, VR8 Updates Mineral Resource and Ore Reserve for the Steelpoortdrift Vanadium Project

Mineral Resources

The Company confirms it is not aware of any new information or data that materially affects the information included in the 4 October 2022 (VR8 updated mineral resource and ore reserve for the Steelpoortdrift Vanadium Project) Vanadium Resource estimate and all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed when referring to its resource announcement made on 04 October 2022. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

Ore Reserves

The Company confirms that it is not aware of any new information or data that materially affects the information included in the Ore Reserves Statement and that all material assumptions and technical parameters underpinning the estimates in the Ore Reserves Statement continue to apply and have not materially changed. The Information that has been presented in this report has been extracted from the announcement dated 4 October 2022 (VR8 updated mineral resource and ore reserve for the Steelpoortdrift Vanadium Project). The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

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APPENDIX 1 – MINERAL RESOURCE ESTIMATE

The Resource statement as reported on the 4 October 2022[4] was updated and is as follows:

Mineral Resource Estimate (as at 30 April 2022)

CLASSIFICATION	VOLUME **(M m3) **	QUANTITY (Mt)	QUALITY % V2O5 (In-situ)	CONTAINED V2O5 (Mt)	QUALITY % Fe2O (In-Situ)	CONTAINED Fe2O (Mt)
Measured	43.77	145.46	0.72	1.05	22.47	32.68
Indicated	98.75	327.29	0.70	2.29	22.80	74.62
Inferred	63.41	207.38	0.68	1.40	22.90	47.49
Total Mineral Resource	205.93	680.13	0.70	4.74	22.76	154.80

Source: Sound Mining, 2022 Notes:

• Stated at a cut-off grade of 0.45% V2O5;

• The Mineral Resources are stated on a 100% attributable basis for VanRes, of which VR8 owns 86.49%;

• The Mineral Resources are inclusive of Ore Reserves; and

Reported in-situ with any apparent computational errors due to rounding not considered significant.

APPENDIX 2 – ORE RESERVE

The updated Ore Reserve statement as at 30 September 2022.

Ore Reserves as at 30 September 2022

CLASSIFICATION	QUANTITY (Mt)	QUALITY (% V2O5 RoM)	CONTAINED V2O5 (Mt)
Proved Ore Reserves	30.23	0.70%	0.21
Probable Ore Reserves	46.62	0.72%	0.34
Total Ore Reserves	76.86	0.72%	0.55

Source: Sound Mining, 2022

Notes:

• The Ore Reserves are stated at a price of USD9.50/lb;

• The Ore Reserves are stated on a 100% attributable basis for VanRes, of which VR8 owns 86.49%;

• The LoM was restricted to a production forecast of 25 years whereafter the mining licence will need to be renewed.

• The Ore Reserves are reported at the point of delivery for processing;

• The Quantity is reported in metric tonnes and the Grade reported as a percentage of contained V2O5;

• Any apparent computational errors due to rounding are not considered significant;

• The Ore Reserves may be subject to legal, political, environmental or other risks;

• Losses that could occur as a result of transportation of content or Flake are considered to be negligible; and

• 39% of the Ore Reserves are in the Proved category and no Inferred Mineral Resources included in the Ore Reserve estimate.

4 Refer to ASX Announcement 4 October 2022 “VR8 Updates Mineral Resource and Ore Reserve for the Steelpoortdrift Vanadium Project”

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