Interim report
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30 September 2025 Ferro-Alloy Resources Limited ("Ferro-Alloy" or "the Company" or "the Group") Interim Results for the six months ended 30 June 2025 and feasibility study update Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, announces its unaudited interim results for the six months ended 30 June 2025 and a revised publication date for the feasibility study. Overview The Company's main focus during the year to date has been the completion of the feasibility study (the "Study") into the development of the Balasausqandiq vanadium deposit (the "Project"). The Study was targeted to be published by 30 September 2025 and is substantially complete but requires some final adjustments and confirmations from contributing consultants. The Company is confident that it will be published by the middle of October 2025. Research and development As previously announced, the main purpose of the existing process plant was changed to a research and development facility, with concentrates only being treated when profitable to do so. The research and development has been targeted at areas that will assist in the development of the Project and marketing its products. · Carbon black substitute ("CBS"): the Group commissioned a pilot plant, capable of producing 400 kg per hour of the new CBS product announced earlier in the year. Production of commercial samples of this new type of CBS, to bemade from the high carbon / low vanadium waste rock scheduled to be stripped during the mining of Ore-Body 1,has commenced. This pilot plant uses a dry milling process and has operated without problems, allowing the Groupto test this method of milling for use in the Project, where it will be applicable to milling the original CBS, madefrom concentrated tailings, as well as the new form of CBS. · Vanadium oxides: the Group has commissioned the dissociation oven required for the production of vanadium oxides suitable for the production of battery electrolyte for vanadium redox flow batteries. Process optimisation and producttesting are underway. Although the making of such oxides does not form part of the base case of the Study, it isanticipated that this part of the vanadium market will grow dramatically in the coming years. Understanding thistechnology and proving its feasibility will allow the Group to make the minor adjustments necessary to supply thismarket at a later date when the market has developed. · High purity vanadium pentoxide: the Group has commissioned the recrystallisation circuit and centrifuge drying required for the production of high purity vanadium pentoxide or other vanadium oxides. High purity products arerequired for the manufacture of battery electrolyte and other chemical purposes and commands a price premium overstandard vanadium pentoxide. Processing · Despite the focus of the existing plant being on research and development, the Group procured and treated vanadium- bearing concentrates that were considered sufficiently profitable to process. · As a result, the existing plant produced 151 tonnes of vanadium pentoxide (mainly as ammonium metavanadate) in the first six months of the year (H1 2024: 169.2 tonnes) and 27.8 tonnes of molybdenum (in ferro-molybdenum) (H12024: 14 tonnes). Financial · Total revenues of US$2.5 million for the period (H1 2024: US$2.1 million) reflected the processing ofconcentrates with a higher molybdenum content than in the prior year, benefiting from the currently highmolybdenum prices. · Overall loss for the period was US$3.5 million (H1 2024: loss of US$3.99 million).
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· Cash balance of US$0.4 million at the period end and US$0.5 million as at 23 September 2025. · The Group has appointed Northcott Capital Limited Northcott, in partnership with Oval Advisory Limited,as lead financial adviser with respect to the financing of the Project. Corporate · During the period, the Company issued 10,422,098 ordinary shares of nil par value in the capital of the Company in lieu of cash for the payment of non-executive director fees, payment of certain Group suppliers and fulfilment of a share subscription received from its Astana International Exchange market maker. Nick Bridgen, CEO of Ferro-Alloy Resources said: "The results of the research and development projects at the existing plant have been impressive. The Company is positioned to benefit both from the anticipated growth in vanadium demand for energy storage and we now have a superior milling process to develop the fast-moving advent of our carbon black substitute product. We are eagerly awaiting the imminent publication of the feasibility study to demonstrate the preeminent financial and operating characteristics of the Balasausqandiq project." ENDS For further information, visit www.ferro-alloy.com or contact: Ferro-Alloy Resources Limited Nick Bridgen (CEO) / WilliamCallewaert (CFO) info@ferro-alloy.com Shore Capital (Joint Corporate Broker) Panmure Liberum Limited(Joint Corporate Broker) BlytheRay (Financial PR) Toby Gibbs / Lucy Bowden Scott Mathieson / John More Tim Blythe / Megan Ray / Will Jones +44 207 408 4090 +44 20 3100 2000 +44 20 7138 3204 Notes to Editors About Ferro-Alloy Resources Limited: The Company's operations are all located at the Balasausqandiq deposit in Kyzylordinskoye Oblast in the Southof Kazakhstan. Balasausqandiq is a very large deposit, with vanadium as the principal product together with the carbon blacksubstitute ("CBS") and several by-products. Owing to the nature of the ore, the capital and operating costs are verymuch lower than for other vanadium projects. The most recent mineral resource estimate for ore-body one (of seven) provided an Indicated Mineral Resource of32.9 million tonnes at a mean grade of 0.62% vanadium pentoxide ("V2O5") equating to 203,364 contained tonnes of V2O5. In the system of reserve estimation used in Kazakhstan the reserves are estimated to be over 70 million tonnes in ore-bodies 1 to 5, but this does not include the full depth of ore-bodies 2 to 5, or the remaining ore-bodies which remain substantially unexplored. The grade of carbon in the deposit is over 8%. The carbon flows through to the tailings from where it isconcentrated, in a simple low-cost operation, into a 40% carbon product, the CBS, that can be used in place ofcarbon black as a reinforcing filler in the making of rubber. The Project will be developed in two phases, Phase 1 and Phase 2, with Phase 1 treating 1.65 million tonnes peryear. There is an existing concentrate processing operation at the site of the Balasausqandiq deposit. The productionfacilities were originally created from a 15,000 tonnes per year pilot plant, which was then expanded and adaptedto recover vanadium, molybdenum and nickel from purchased concentrates. Alongside this operation, there is awell-equipped laboratory and highly skilled technical team, who have already developed the technology that isbeing built into the feasibility study and is further developing and optimising processes needed for futurevanadium and carbon operations. The plant will operate only when profitable concentrates are available and, whennot operating as a production facility, will operate on an expanded basis as an R&D centre.
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Interim Management Report Introduction The Group has been engaged primarily in carrying out a feasibility study into the giant Balasausqandiq vanadiumproject. The study will be announced shortly after this Interim Financial Report and will be the subject of aseparate announcement. Concurrently, the Group operates a small-scale process plant which treats vanadium-bearing concentrates when itis profitable to do so, but with a strategic focus on research and development. Research and development The Group continues to progress several research and development initiatives at the existing plant, aimed atbuilding capability for use in the planned major development of the Balasausqandiq project. Carbon black substitute ("CBS"): The company commissioned a pilot plant, capable of producing 400 kg per hourof the new CBS product announced earlier in the year. Production of commercial samples of this new type of CBS,to be made from the high carbon / low vanadium waste rock scheduled to be stripped during the mining of Ore-Body 1, has commenced. Vanadium oxides: the Group has commissioned the dissociation oven required for the production of vanadiumoxides suitable for the production of battery electrolyte for vanadium redox flow batteries. Process optimisationand product testing are underway. High purity vanadium pentoxide: the Group has commissioned the recrystallisation circuit and centrifuge dryingrequired for the production of high purity vanadium pentoxide or other vanadium oxides. High purity products arerequired for the manufacture of battery electrolyte and other chemical purposes and commands a price premiumover standard vanadium pentoxide. Processing Despite the focus of the existing plant being on research and development, the Group procured and treatedvanadium-bearing concentrates that were considered sufficiently profitable to process. As a result, the existing plant produced in the first six months of the year 151 tonnes (2023: 169.2 tonnes) ofvanadium pentoxide (mainly as ammonium metavanadate) and 27.8 tonnes (2023: 14 tonnes) of molybdenum (inferro-molybdenum). Corporate During the period, the Company issued 10,422,098 ordinary shares of nil par value in the capital of the Companyin lieu of cash for the payment of non-executive director fees, payment of certain Group suppliers and fulfillmentof a share subscription received from its Astana International Exchange market maker. See note 16 for furtherdetails. Earnings and cash flow The Group generated total revenues of US$2.5m for the period compared to US$2.1m for the first six months of2024, representing an increase in overall revenues of 16.7%. The increase in revenue reflects the processing ofconcentrates with a higher molybdenum content for which prices are more favourable than vanadium pentoxide. The cost of sales for the period under review was US$3.4m in line, given the volumes and nature of concentratesprocessed during the period, with the first six months of 2024 (2024: US$3.6m). Administrative expenses for the period were US$1.5m (2024: US$1.9m) representing an overall decrease ofUS$0.4m mainly attributable to reductions in employment costs and the costs associated with the Company'slisting and the raising of debt finance. The Group made a loss before and after tax of US$3.5m (2024: loss of US$3.99m). Net cash outflows used in operating activities were US$0.5m (2024: cash outflow of US$2.6m). Net cash used ininvesting activities during the period was US$2.2m (2024: cash outflow of US$1.1m) an increased outflow ofUS$1.1m attributable to the capitalisation of feasibility study costs. Net cash outflow from financing activities wasUS$1.1m (2024: net cash inflow of US$4.5m) representing the payment of interest on the bonds previously issuedby the Company under the Kazakhstan Bond Programme. Balance sheet review
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At the period end, non-current assets totalled US$13.2m (2024: US$14.1m) reflecting, in the main, the impairmentof the Group's plant and equipment during the prior financial year. Current assets, excluding cash balances, totalled US$5m at the period end compared to US$5.1m for the priorperiod. The Group held an aggregate cash balance of US$0.4m at the period end (2024: US$2.5m) and US$0.5m as at 23September 2025. The Group held non-current liabilities of US$17.2m at the period end (2024: US$12.4m) representing the value ofthe Company's bonds sold since the inception of the Kazakhstan Bond Programme. Current liabilities at the period end were US$4.6m (2024: US$3.9m) comprising of trade payables and accruedbond interest. Environmental, social and governance Both the existing operation and the planned process plant for Balasausqandiq will have a strongly positive environmentalimpact. The vanadium from production will benefit energy storage in both vanadium redox flow batteries, the front-runningtechnology for fixed ground long-term energy storage, but also potentially in certain technologies for mobile batteries used inelectric vehicles. In its use for alloying steel, the greater strength and performance imparted reduces the amount of steelrequired. The CO2 emissions created by our production at Balasausqandiq are expected to be a fraction of most other producers which generally require concentration and high-temperature roasting to liberate the vanadium. The carbon black substitute productwhich we plan to market as a replacement for carbon black is produced without burning hydrocarbons, as is the usualproduction process. Description of principal risks, uncertainties and how they are managed (a) Current processing operations Current processing operations make up a small part of the Group's expected future value and allow the Group togain valuable experience of the vanadium and carbon black industries. The principal risks of this operation are theprices of its products (vanadium, molybdenum and nickel), availability of profitable vanadium-bearingconcentrates and the efficiency of recovery of products from those concentrates. The Group is constantly reviewing the market opportunities for supplies of profitable vanadium-bearingconcentrates from reliable suppliers that can deliver concentrates on a timely basis. The Group aims to extract allthe useful components of the raw materials so that ultimately no residues remain on site and so that the maximumvalue is obtained from each tonne treated. (b) Balasausqandiq project The Balasausqandiq project is primarily dependent on long-term vanadium prices. The project is also dependent on raising finance to meet projected capital costs (see below) and the successfulconstruction and commissioning of the project's proposed mine processing facilities. It is not unusual for newmining projects to experience unforeseen problems, incur unexpected costs and be exposed to delays duringconstruction, commissioning, and initial production, all of which could have a material adverse effect on theGroup's operations and financial position. The Group has taken steps to mitigate such potential adverse effects byengaging globally recognised engineers and consultants to assist with the development and design of the keyelements of the project in addition to the Group's own highly qualified workforce. (c) Geopolitical situation While the ongoing invasion of Ukraine by Russia is not directly impacting the Group, the Directors remain vigilantof the situation. The continued main risk of the conflict is to the Group's transport routes, many of which involvetransit through Russia. Whilst these are currently operating without issue, sanctions have been made againstRussian and Belarusian vehicles transiting through Europe (but not against vehicles registered in otherjurisdictions in the region such as Kazakhstan). There is a risk that further sanctions might prevent transitthrough Russia into Latvia, through which the majority of the Group's exports flow. The Group continues toreview alternative transit routes for raw material imports and product exports through the West of Kazakhstan,either via the Caspian Sea or overland south of the Caspian Sea. Routes to China are working normally. With respect to the global sanctions imposed on certain Russian entities and individuals, the Group monitors theimplications of those sanctions on the Group's trading activities on an ongoing basis. (d) Financing risk The Balasausqandiq project will require substantial funds to be raised in debt and equity which will be dependentupon market conditions at the time of fundraising. In March of 2021 the Company signed an investment agreement with Vision Blue Resources Ltd ("Vision Blue").Under the terms of this agreement and in addition to Vision Blue's participation in the 2022 and 2025 equity
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fundraises, investments totalling US$14.5m have already been made and Vision Blue has the right to subscribe afurther US$2.5m at the original deal price of 9 pence per share at any time up to two months after theannouncement of the Phase 1 feasibility study. Vision Blue also has further options to subscribe up to US$30m athigher prices to partially finance the construction of the project. (e) Climate change risk The Group has not identified any particular climate change related scenarios that would likely have a significantimpact on the Balasausqandiq project or the existing operation. The existing operation already functions in anenvironment that is subject to extreme weather conditions and is, therefore, considered to have a strong resilienceto existing and future climate-related scenarios. (f) Risks associated with the developing nature of the Kazakh economy According to the World Bank, Kazakhstan has transitioned from lower-middle-income to upper-middle-incomestatus in less than two decades. Kazakhstan's regulatory environment has similarly developed and the Companybelieves that the period of rapid change and high risk is coming to an end. Nevertheless, the economic and socialregulatory environment continues to develop and there remain some areas where regulatory risk is greater than indeveloped economies. (g) Commodity price risk As already noted above, the success of the Group is dependent upon the long-term prices of the products to beproduced by the planned mine processing facilities. As a result of there being no formally established tradingmarkets for the Company's principal products from the project, there is a risk that price fluctuations and volatilityfor these products may have an adverse impact on the Group's future financial performance. Directors' Responsibility Statement We confirm that to the best of our knowledge: a. the condensed set of unaudited financial statements which have been prepared in accordance with IAS34 'Interim Financial Reporting' give a true and fair view of the assets, liabilities, financial positionand profit or loss of the Company and its undertakings included in the consolidation as a whole, asrequired by DTR 4.2.4R; b. the interim management report includes a fair review of the information required by DTR 4.2.7R; and c. the interim management report includes a fair review of the information required by DTR 4.2.8R. This interim financial report for the six months ended 30 June 2025 has been approved by the Boardand signed on its behalf by: William Callewaert Director 29 September 2025
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Condensed unaudited Statement of Profit orLoss and Other Comprehensive Incomefor the six months ended 30 June 2025 Note Unauditedsix-monthperiod ended30 June 2025$000 Unaudited six-monthperiod ended30 June 2024$000 Audited yearended31 December2024$000 Revenue from customers (pricing at shipment) 2 2,533 2,170 4,722 Final pricing adjustments after delivery 2 (4) (21) 16 Total revenue 2 2,529 2,149 4,738 Cost of sales 3 (3,354) (3,622) (7,550) Gross loss (825) (1,473) (2,812) Other income 4 42 7 50 Administrative expenses 5 (1,547) (1,850) (3,022) Impairment loss - - (954) Distribution expenses (59) (58) (149) Other expenses 6 (36) (24) (563) Loss from operating activities (2,425) (3,398) (7,450) Net finance cost 8 (1,072) (593) (1,979) Loss before income tax (3,497) (3,991) (9,429) Income tax - - - Loss for the period (3,497) (3,991) (9,429) Other comprehensive loss Items that may be reclassified subsequently to profit or loss Exchange differences arising on translation offoreign operations (523) (761) (1,080) Total comprehensive loss for the period (4,020) (4,752) (10,509) Loss per share (basic and diluted) 16 (0.007) (0.008) (0.020) These condensed unaudited financial statements were approved by the directors on 29 September 2025 andsigned by: _____________________________ William Callewaert Director Condensed unaudited Statement ofFinancial Positionfor the six months ended 30 June 2025 Note Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December2024$000 ASSETS Non-current assets Property, plant and equipment 9 3,237 5,404 3,535 Exploration and evaluation assets 10 8,975 7,836 7,999 Intangible assets 11 17 20 18 Prepayments 14 944 853 971 Total non-current assets 13,173 14,113 12,523 Current assets
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Condensed unaudited Statement ofFinancial Positionfor the six months ended 30 June 2025 Note Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December2024$000 Inventories 12 2,198 1,800 874 Trade and other receivables 13 2,083 2,152 1,237 Prepayments 14 732 1,166 853 Cash and cash equivalents 15 391 2,528 3,777 Total current assets 5,404 7,646 6,741 Total assets 18,577 21,759 19,264 EQUITY AND LIABILITIES Equity Share capital 56,118 55,027 55,027 Additional paid-in capital 397 397 397 Share-based payment reserve 42 20 42 Foreign currency translation reserve (5,725) (4,883) (5,202) Accumulated losses (54,032) (45,097) (50,535) Total equity (3,200) 5,464 (271) Non-current liabilities Loans and borrowings 17 17,134 12,396 17,134 Provisions 24 30 24 Total non-current liabilities 17,158 12,426 17,158 Current liabilities Trade and other payables 18 4,316 3,636 1,843 Deferred income 19 - - 102 Interest payable 17 303 233 432 Total current liabilities 4,619 3,869 2,377 Total liabilities 21,777 16,295 19,535 Total equity and liabilities 18,577 21,759 19,264 Condensed unaudited Statement of Changes in Equityfor the six months ended 30 June 2025 Sharecapital$000 Additionalpaid incapital$000 Share-basedpaymentreserve$000 Foreigncurrencytranslationreserve$000 Accumulatlosses$000 Balance at 1 January 2024 55,027 397 20 (4,122) (41, Loss for the year - - - - (3, Other comprehensive income
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Exchange differences arising on translation of foreignoperations - - - (761) Total comprehensive loss for the year - - - (761) (3, Balance at 30 June 2024 55,027 397 20 (4,883) (45, Balance at 31 December 2024 55,027 397 42 (5,202) (50, Balance at 1 January 2025 55,027 397 42 (5,202) (50, Loss for the period - - - - (3, Other comprehensive loss Exchange differences arising on translation of foreignoperations - - - (523) Total comprehensive loss for the period - - - (523) (3, Transactions with owners, recorded directly in equity Shares issued, net of issue costs 1,091 - - - Balance at 30 June 2025 56,118 397 42 (5,725) (54, Condensed unaudited Statement of Cash Flowsfor the six months ended 30 June 2025 Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Cash flows from operating activities Note Loss for the period (3,497) (3,991) (9,429) Adjustments for: Depreciation and amortisation 3, 5 404 391 962 Impairment of plant and equipment - - 954 Profit on sale of plant and equipment - - (42) Write-off of property, plant and equipment - 3 2 Write-down of inventory to net realisable value - - 71 Write-off of prepayments - - 273 Share-based payment expense - - 22 Net finance costs 8 1,072 593 1,979 Cash used in operating activities before changes inworking capital (2,021) (3,004) (5,208) Change in inventories (1,324) 183 1,109 Change in trade and other receivables (846) (836) 79 Change in prepayments 148 (369) 47 Change in trade and other payables 3,451 1,495 (298) Change in deferred income 19 102 (102) - Net cash used in operating activities (490) (2,633) (4,271) Cash flows from investing activities Acquisition of property, plant and equipment 9 (104) (135) (204)
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Condensed unaudited Statement of Cash Flowsfor the six months ended 30 June 2025 Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Acquisition of exploration and evaluation assets 10 (2,101) (1,002) (2,113) Acquisition of intangible assets 11 - (1) (3) Proceeds on fixed asset disposal - 45 Net cash used in investing activities (2,205) (1,138) (2,275) Cash flows from financing activities Proceeds from issue of share capital 16 10 - - Proceeds from borrowings 17 - 5,003 10,003 Issue cost on borrowing - - (565) Interest paid 17 (1,123) (523) (1,041) Net cash used in financing activities (1,113) 4,480 8,397 Net (decrease) / increase in cash and cashequivalents (3,808) 709 1,851 Cash and cash equivalents at the beginning of theperiod / year 15 3,777 1,952 1,952 Effect of movements in exchange rates on cash andcash equivalents 422 (133) (26) Cash and cash equivalents at the end of the period /year 391 2,528 3,777 Notes to the Condensed unaudited Financial Statements for the six months ended 30 June2025 1 (a) Basis of preparation These Condensed unaudited Financial Statements have been prepared in accordance with IAS34 'InterimFinancial Reporting' and International Financial Reporting Standards as adopted by the European Union("IFRS") on a going concern basis. The same accounting policies and basis of preparation have been followed as adopted in the annual financialstatements of the Group which were published on 29 April 2025. (b) Going concern The consolidated unaudited financial statements for the six months ended 30 June 2025 have been prepared in accordance with IFRS on a going concern basis. The operations of the Group are financed from a combination of cash flows generated by the existing operation, bond issues and funds raised from shareholders and strategic investors. In common with many pre- production entities, the Group will need to raise further funds in order to progress from the feasibility study phase into construction and ultimately into production.
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Following the publication of the Balasausqandiq Phase 1 feasibility study, the Directors are confident based on their previous experience and success in raising capital and the results of the feasibility study to date, that the Company will be able to secure further funding and will, therefore, continue as a going concern for at least the next 12 months. Accordingly, the Directors believe that it is appropriate that the Company adopts the going concern basis of accounting in preparation of these financial statements but note that the requirement to raise further funding is considered to be a material uncertainty. The financial statements do not include the adjustments that would be required if the Group was unable to continue as a going concern. (c) Use of estimates and judgements Preparing the financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected. Inventories (Note 12) The Group holds material inventories which are assessed for impairment at each reporting date. The assessment of net realisable value requires consideration of future cost to process and sell and spot market prices at the period end less applicable discounts. The estimates are based on market data and historical trends. Exploration and evaluation assets (Note 10) The Group holds material exploration and evaluation assets and judgement is applied in determining whetherimpairment indicators exist under the Group's accounting policy. In determining that no impairment indicatorexists management have considered the Competent Person's Report on the asset, the strategic plans forexploration and future development and the status of the Subsoil Use Agreement ("SUA"). Judgement wasrequired in determining that a current application for deferral of obligations under the SUA will be grantedand management anticipate such approvals being provided given their understanding of the Kazakh marketand plans for the asset. (d) Unaudited status These Condensed unaudited Financial Statements have not been audited or reviewed by the Group's auditor. 2 Revenue Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Sales of vanadium products 1,457 1,264 3,076 Sales of ferro-molybdenum 1,055 720 1,517 Tolling revenue - 179 - Service revenue 21 7 129 Total revenue from customers under IFRS 15 2,533 2,170 4,722 Other revenue (adjustments to price afterdelivery and fair value changes) (4) (21) 16 Total revenue 2,529 2,149 4,738 Vanadium products Under certain sales contracts the single performance obligation is the delivery of ammonium metavanadate("AMV") to the designated delivery point at which point possession, title and risk on the product transfers tothe buyer. The buyer makes an initial provisional payment based on volumes and quantities assessed by theCompany and market spot prices of vanadium pentoxide for AMV at the date of shipment. The final paymentis received once the product has reached its final destination with adjustments for quality / quantity and
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pricing. The final pricing is based on the historical average market prices during a quotation period based onthe date the product reaches the port of destination and an adjusting payment or receipt will be made to therevenue initially received. Where the final payment for a shipment made prior to the end of an accountingperiod has not been determined before the end of that period, the revenue is recognised based on the spotprice that prevails at the end of the accounting period. Other revenue related to the change in the fair value of amounts receivable and payable under the salescontracts between the date of initial recognition and the period end resulting from market prices is recorded asother revenue. 3 Cost of sales Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Materials 2,162 2,438 4,729 Wages, salaries and related taxes 600 659 1,401 Depreciation 366 355 783 Electricity 67 60 139 Other 159 110 498 3,354 3,622 7,550 4 Other income Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Currency conversion gain 9 3 5 Other 33 4 45 42 7 50 5 Administrative expenses Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Wages, salaries and related taxes 867 955 1,688 Professional services 63 120 332 Taxes other than income tax 18 - 71 Listing and financing expenses 234 356 163 Audit 136 107 124 Materials 16 22 48 Rent 21 37 37 Depreciation and amortisation 38 36 70 Insurance 14 43 45 Bank fees 10 5 18 Travel expenses 12 23 44
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Communication and information services 7 9 16 Other 111 137 366 1,547 1,850 3,022 6 Other expenses Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Currency conversion loss 35 20 49 Write-down of inventory to net realisable value - - 71 Write-down of obsolete assets - - 2 Impairment loss - - 273 Share-based payment expense - - 22 Other 1 4 146 36 24 563 7 Personnel costs Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Wages, salaries and related taxes 1,532 1,702 3,640 1,532 1,702 3,640 Personnel costs of US$502,000 (2024: US$537,000) have been charged to cost of sales,US$867,000 (2024: US$955,000) to administrative expenses and US$163,000 (2024: US$210,000)were charged to cost of inventories which were not yet sold as at the end of the period. 8 Finance costs Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Net foreign exchange gain 79 (28) 337 Unwinding of discount on bonds - - 302 Interest expense on financial liabilities (bonds) 993 621 1,340 Net finance costs 1,072 593 1,979 9 Property, plant and equipment
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Land andbuildings$000 Plant andequipment$000 Vehicles$000 Computers$000 Other$000 Cost Balance at 1 January 2024 5,015 3,822 522 49 Additions - 81 - 2 Transfers - 194 - - Disposals - (3) - - Foreign currency translation difference (179) (150) (19) (1) Balance at 30 June 2024 4,836 3,944 503 50 Balance at 31 December 2024 4,410 3,448 452 42 Balance at 1 January 2025 4,410 3,448 452 42 Additions - 101 - - Disposals - (12) - (4) Foreign currency translation difference 27 20 3 - Balance at 30 June 2025 4,437 3,557 455 38 Depreciation Balance at 1 January 2024 851 2,621 361 33 Depreciation for the period 226 227 17 3 Disposals - (1) - - Foreign currency translation difference (41) (104) (14) (1) (4) Balance at 30 June 2024 1,036 2,743 364 35 Balance at 31 December 2024 1,208 3,448 341 31 Balance at 1 January 2025 1,208 3,448 341 31 Depreciation for the period 200 201 15 3 Disposals - (12) - (4) Foreign currency translation difference 97 (80) 1 - Balance at 30 June 2024 1,505 3,557 357 30 Carrying amounts At 1 January 2024 4,164 1,201 161 16 At 30 June 2024 3,800 1,201 139 15 At 31 December 2024 3,202 - 111 11 At 30 June 2025 2,932 - 98 8 Depreciation expense of US$366,000 (2024: US$355,000) has been charged to cost of sales, excluding cost of finishedgoods that were not sold at year-end, US$38,000 (2024: US$36,000) to administrative expenses, and US$9,000 has beencharged to the cost of finished goods that were not sold at the end of the period (2024: US$96,000). Construction in progress relates to upgrades to the processing plant. 10 Exploration and evaluation assets The Group's exploration and evaluation assets relate to the Balasausqandiq deposit. During the six monthperiod ended 30 June 2025, the Group capitalised the costs of technical design, sample test-work and projectmanagement costs, all relating to the Group's Phase 1 feasibility study. As at 30 June 2025, the carrying valueof exploration and evaluation assets was US$9.0m (2024: US$7.8m).
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Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Auditedyear ended31 December2024$000 Balance at 1 January 7,999 7,145 7,145 Additions (Phase 1 feasibility study) 2,101 1,002 1,619 Foreign currency translation difference (1,125) (311) (765) Balance at 30 June / 31 December 8,975 7,836 7,999 11 Intangible assets Mineralrights$000 Patents$000 Computer software$000 Total$000 Cost Balance at 1 January 2024 84 34 3 121 Additions - 1 - 1 Foreign currencytranslation difference (3) (1) - (4) Balance at 30 June 2024 81 34 3 118 Balance at 31 December2024 73 31 3 107 Balance at 1 January 2025 73 31 3 107 Additions - - - - Foreign currencytranslation difference - 1 - 1 Balance at 30 June 2025 73 32 3 108 Amortisation Balance at 1 January 2024 84 14 3 101 Amortisation for the year - 1 - 1 Foreign currencytranslation difference (3) (1) - (4) Balance at 30 June 2024 81 14 3 98 Balance at 31December 2024 73 13 3 89 Balance at 1 January 2025 73 13 3 89 Amortisation for the year - 1 - 1 Foreign currencytranslation difference - 1 - 1 Balance at 30 June 2025 73 15 3 91 Carrying amounts At 1 January 2024 - 20 - 20 At 30 June 2024 - 20 - 20 At 31 December 2024 - 18 - 18
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At 30 June 2025 - 17 - 17 During the six months ended 30 June 2025 and 2024, amortisation of intangible assets was charged toadministrative expenses. 12 Inventories Unaudited30 June 2025$000 Unaudited 30 June 2024$000 Audited 31December 2024$000 Raw materials and consumables 1,548 815 516 Finished goods 528 975 287 Work in progress 122 10 71 2,198 1,800 874 During the six months ended 30 June 2025, inventories expensed to profit and loss amounted to US$2.2m(2024:US$2.4m). 13 Trade and other receivables Current Unaudited30 June 2025 $000 Unaudited30 June 2024 Audited 31December 2024 $000 $000 Trade receivables from third parties 914 1,215 319 Due from employees 37 20 - VAT receivable 1,190 918 781 Other receivables - 63 195 2,141 2,216 1,295 Expected credit loss provision forreceivables (58) (64) (58) 2,083 2,152 1,237 The expected credit loss provision for receivables relates to credit impaired receivables which are indefault and the Group considers the probability of collection to be remote given the age of thereceivable and default status. 14 Prepayments Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December 2024$000 Non-current Prepayments 944 853 971 944 853 971 Current Prepayments for goods andservices 732 1,166 853 732 1,166 853
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15 Cash and cash equivalents Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December 2024$000 Cash at current bank accounts 324 551 209 Cash at bank deposits 67 1,976 3,567 Petty cash - 1 1 Cash and cash equivalents 391 2,528 3,777 16 Equity (a) Share capital Number of shares unless otherwise stated Ordinary shares Unaudited30 June 2025 Unaudited30 June 2024 Audited 31December 2024 Par value - - - Outstanding at beginning ofyear 483,222,238 483,222,238 483,222,238 Shares issued 10,422,098 - - Outstanding at end of period /year 493,644,336 483,222,238 483,222,238 Ordinary shares All shares rank equally. The holders of ordinary shares are entitled to receive dividends as declared from timeto time and are entitled to one vote per share at meetings of the Company. On 6 January 2025, the Company issued 1,684,160 ordinary shares of nil par value in the capital of the Company in lieu of cash for the payment of non-executive director fees (1,151,724 ordinary shares issued in lieu of US$142,500) and certain Group suppliers (532,436 ordinary shares issued in lieu of US$65,877). Additionally, the Company received a share subscription of US$10,000 for 80,823 ordinary shares of nil par value in the capital of the Company from its Astana International Exchange market maker. On 13 March 2025, the Company issued a total of 8,657,115 ordinary shares of nil par value in the capital of the Company in lieu of cash (US$872,552.76) for the payment of a Group supplier. Reserves Share capital: Value of shares issued less costs of issuance. Additional paid in capital: Amounts due to shareholders which were waived. Share-based payment: Share options issued during the period. Foreign currency translation reserve: Foreign currency differences on retranslation of results from functionalto presentational currency and foreign exchange movements on intercompany balances considered torepresent net investments which are considered as permanent equity. Accumulated losses: Cumulative net losses. (b) Dividends No dividends were declared for the six months ended 30 June 2025 (2024: US$ nil). (c) Loss per share (basic and diluted) The calculation of basic and diluted loss per share has been based on the loss attributable to ordinaryshareholders and the weighted-average number of ordinary shares outstanding. There are no convertible bondsand convertible preferred stock, so basic and diluted losses are equal. (i) Loss attributable to ordinary shareholders (basic and diluted)
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Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Audited yearended31 December2024$000 Loss for the period, attributable to owners of theCompany (3,497) (3,991) (9,429) Loss attributable to ordinary shareholders (3,497) (3,991) (9,429) (ii) Weighted-average number of ordinary shares (basic and diluted) Shares Unauditedsix-monthperiod ended30 June 2025 Unauditedsix-monthperiod ended30 June 2024 Audited yearended31 December 2024 Issued ordinary shares at 1 January(after subdivision) 483,222,238 483,222,238 483,222,238 Effect of shares issued (weighted) 7,313,189 - - Weighted-average number ofordinary shares at period / yearend 490,535,427 483,222,238 483,222,238 Loss per share of common stockattributable to the Company: (Basic and diluted / US$) (0.0071) (0.0083) (0.020) 17 Loans and borrowings In 2023 the Company launched a US$20m bond programme in Kazakhstan ("the Programme") and has issued four tranches of unsecured corporate bonds under the Programme with effective interest rates of 9.2%, 10.4%, 11% and 13.5% respectively. With respect to the first tranche of bonds (2023), investors have subscribed for a total of 1,500 bonds with a nominal value of US$2,000 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 9%, paid twice-yearly. The bonds have been listed on AIX with ISIN number KZX000001474. With respect to the second tranche of bonds (2023), investors have subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 10%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000001623. With respect to the third tranche of bonds (2024), investors have subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term and bear a coupon rate of 11%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000001946. With respect to the fourth tranche of bonds (2024), investors have subscribed for a total of 50,000 bonds with a nominal value of US$100 each. These bonds are unsecured, have a three-year term with an option to redeem 12 months early and bear a coupon rate of 13.5%, paid quarterly. The bonds have been listed on AIX with ISIN number KZX000003348. Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December 2024$000 Non-current liabilities Bonds payable 17,134 12,396 17,134 17,134 12,396 17,134 Current liabilities Interest payable 303 233 432
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303 233 432 Non-cash transactions from financing activities are shown in the reconciliation of liabilities from financingtransactions below: Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Audited yearended 31December 2024$000 At 1 January 17,566 7,527 7,527 Cash flows: -Interest paid (1,123) (523) (1,041) -Proceeds from loans and borrowings - 5,003 10,003 Total 16,443 12,007 16,489 Non-cash flows - Interest accruing in the period 993 622 1,340 - Bond discount / premium - - (263) At 30 June / 31 December 17,436 12,629 17,566 18 Trade and other payables Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December 2024$000 Trade payables 2,861 2,565 1,273 Debt to employees 269 242 188 Other taxes 381 52 310 Advances received 805 777 72 4,316 3,636 1,843 19 Deferred income Unaudited30 June 2025$000 Unaudited30 June 2024$000 Audited 31December 2024$000 Government grants - - 102 - - 102
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During 2023, the Group was awarded grant funding by the Kazakhstan Science Fund for thedevelopment of technology for the production of mixed vanadium oxides for use in vanadium redoxflow batteries. 20 Contingencies (a) Insurance The insurance industry in the Kazakhstan is in a developing state and many forms of insurance protectioncommon in other parts of the world are not yet generally or economically available. The Group does not havefull coverage for its plant facilities, business interruption or third party liability in respect of property orenvironmental damage arising from accidents on Group property or relating to Group operations. There is arisk that the loss or destruction of certain assets could have a material adverse effect on the Group's operationsand financial position. (b) Taxation contingencies The taxation system in Kazakhstan is relatively new and is characterised by frequent changes in legislation,official pronouncements and court decisions which are often unclear, contradictory and subject to varyinginterpretations by different tax authorities. Taxes are subject to review and investigation by various levels ofauthorities which have the authority to impose severe fines, penalties and interest charges. A tax yeargenerally remains open for review by the tax authorities for five subsequent calendar years but under certaincircumstances a tax year may remain open for longer. These circumstances may create tax risks in Kazakhstan that are more significant than in othercountries. Management believes that it has provided adequately for tax liabilities based on itsinterpretations of applicable tax legislation, official pronouncements and court decisions. However,the interpretations of the relevant authorities could differ and the effect on these consolidatedfinancial statements, if the authorities were successful in enforcing their interpretations, could besignificant. There are no tax claims or disputes at present. 21 Segment reporting The Group's operations are split into three segments based on the nature of operations: processing, subsoiloperations (being operations related to exploration and mining) and corporate segment for the purposes ofIFRS 8 Operating Segments. The Group's assets are primarily concentrated in the Republic of Kazakhstan andthe Group's revenues are derived from operations in, and connected with, the Republic of Kazakhstan. Unaudited six-month period ended 30 June 2025 Processing$000 Subsoil$000 Corporate$000 Total$000 Revenue 2,529 - - 2,529 Cost of sales (3,354) - - (3,354) Other income 42 - - 42 Administrative expenses (390) (28) (1,129) (1,547) Distribution & other expenses (95) - - (95) Finance costs (283) - (789) (1,072) Loss before tax (1,551) (28) (1,918) (3,497) Unaudited six-month period ended 30 June 2024 Processing$000 Subsoil$000 Corporate$000 Total$000 Revenue 2,149 - - 2,149 Cost of sales (3,622) - - (3,622) Other income 6 - 1 7 Administrative expenses (475) (42) (1,333) (1,850) Distribution & other expenses (82) - - (82) Finance costs 217 - (810) (593) Loss before tax (1,807) (42) (2,142) (3,991) Audited year ended 31 December 2024
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Unaudited six-month period ended 30 June 2025 Processing$000 Subsoil$000 Corporate$000 Total$000 Processing$000 Subsoil$000 Corporate$000 Total$000 Revenue 4,738 - - 4,738 Cost of sales (7,550) - - (7,550) Other income 49 - 1 50 Administrative expenses (1,132) (40) (1,850) (3,022) Impairment charge (954) - - (954) Distribution & other expenses (690) - (22) (712) Finance costs 394 - (2,373) (1,979) Loss before tax (5,145) (40) (4,244) (9,429) Included in revenue arising from processing are revenues of US$2.2m (2024: US$1.3m) which arose fromsales to two of the Group' largest customers. No other single customer contributes 10 per cent or more to theGroup's revenue. All of the Group's assets are attributable to the Group's processing operations. Sales to the Group's largest customers during the six months ended 30 June 2025 were as follows: Customer A US$ 1.9m (81%) (2024:US$ 0.4m) Customer B US$ 0.3m (14%) (2024: US$1.0m) 22 Related party transactions Transactions with management and close family members Management remuneration Key management personnel received the following remuneration during the year, which is included inpersonnel costs (see Note 7): Unauditedsix-monthperiod ended30 June 2025$000 Unauditedsix-monthperiod ended30 June 2024$000 Audited yearended 31December 2024$000 Wages, salaries and related taxes 538 538 1,053 The amount of wages and salaries outstanding at 30 June 2025 is equal to US$ nil (2024: US$ nil). 23 Subsequent events On 7 July 2025, the Company issued 16,666,667 ordinary shares of nil par value in the capital of the Company, raising gross proceeds of £1,000,000, having received share subscriptions from investors including certain directors of the Company and VBR. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authorityto act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information
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