Ironveld Regulatory News (IRON)

05 December 2014

IRONVELD PLC

 ("Ironveld" or the "Group")

FINAL RESULTS FOR THE 12 MONTH PERIOD ENDED 30th JUNE 2014

Ironveld plc, the High Purity Iron ("HPI"), Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa (the "Project"), is pleased to announce its final results for the 12 months ended 30 June 2014

2014 Operational Highlights

· Further de-risking the 15MW DC Smelter project both financially, technically and operationally

· Production of High Purity Iron, Vanadium and Titanium products from the 15MW smelter due in H1 2016

· Updated Mineral Resource Estimate and increase in the grade of the Company's Main Magnetite Layer ("MML") Mineral Resource to 48 percent Fe and 1.12 percent Vanadium Pentoxide (V2O5)

· Definitive Feasibility Study confirmed:

o Project's viability to deliver exceptionally high grade (99.5% Fe) High Purity Iron ("HPI") which commands a premium to the pig iron

o Vanadium and titanium slag containing commercial grades of vanadium and titanium

o Project life is in excess of 100 years and highly scalable

o No need for beneficiation of ore

o Ability of Project to deliver annual turnover of GBP 26.4 million with an EBITDA of GBP 8.1 million per annum (based upon April 2014 costs and commodity values)

o Project projected to be cash flow positive from the commencement of production

· Sold non-core Mercury Recycling Limited to Environmental Safeguard Limited for a total consideration of £1.575 million in cash

Post Year End

· Fully subscribed placing to raise gross proceeds of approximately £750,000 through the issue of 10,714,286 Placing Shares with at a price of 7.0p each

· Proceeds used towards finalising plans for the development of the 15MW DC smelter

· Economics improved through approval of 12I Tax allowance and will be further enhanced with the expected approval of the Critical Infrastructure Program application

· Completion of the Broad-Based Black Economic Empowerment mining and smelting structures

· Offtake negotiations on-going with high level of demand for the Company's products

· All necessary environmental applications submitted

· Approval of National Environmental Management Act expected in Q1 2015, with construction of the smelter scheduled to commence in mid-2015, and full production in H2 2016

Giles Clarke, Chairman said:

"We have made tremendous progress in 2014 and subsequently, such that the 15MW DC smelter and process is on track to be producing High Purity Iron, as well as Vanadium and Titanium slag products in H1 2016. The Definitive Feasibility Study confirmed very attractive economics of the plant which is due to be cash flow positive from the commencement of production.

"I was pleased with the positive response to the fully subscribed placing, done at a premium, we announced earlier in the week, which is testament to the quality of our project, asset, shareholder base and management team. Your Board looks to the future with considerable confidence."

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Notes to Editors:

Ironveld (IRON.LN) is a High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa. Ironveld expects to mine its own VTM ore as feedstock for a 15MW smelter which will produce speciality iron products including high purity iron powder as well as Vanadium and titanium products.

The Definitive Feasibility Study published in April 2014 confirms the project's viability to deliver an exceptionally high grade iron product (99.5% Fe) called High Purity Iron which commands a premium in the market place. Vanadium and Titanium slag containing commercial grades of vanadium and titanium will also be produced and sold.

Ironveld's Board includes; Giles Clarke as Chairman, Peter Cox, CEO and Nick Harrison as a Non-Executive Director.

Ironveld is an AIM traded company. For further information on Ironveld please refer to www.ironveld.com.

CHAIRMAN'S STATEMENT

During the period we have been focused on further de-risking the 15MW DC Smelter project both financially, technically and operationally, as we work towards delivering production of High Purity Iron, Vanadium and Titanium products from the 15MW smelter in early 2016.

Following the success of our drilling campaign on the farms La Pucella, Altona and Nonnenwerth (the "Lapon properties"), we were delighted to announce an updated Mineral Resource Estimate and increase in the grade of the Company's Main Magnetite Layer ("MML") Mineral Resource to 48 percent Fe and 1.12 percent Vanadium Pentoxide (V2O5).

This was followed by the excellent results of our Definitive Feasibility Study in April, which showed that the ore required no beneficiation beyond crushing, and which assessed the economic viability of the project and confirmed that this is a highly scalable project, mining and processing Vanadiferous, Titaniferous Magnetite ore to deliver exceptionally high grade HPI (99.5% Fe) which commands a premium to the price of pig iron, with commercial grades of vanadium and titanium slag. These results re-affirmed our confidence in the project to meet the strong market demand for our products from end users in a range of industries including chemical, automotive and energy.

High Purity Iron Powder is produced in many different grades for varieties of applications. High purity fine iron powders are used to manufacture sintered components, soft magnetic components, brazing, surface coatings, friction, printing and welding products, as well as chemistry and polymer filtrations. Iron powder products are classified by purity, production method, grain and density. Vanadium which has traditionally been used in the steel industry now has new uses in the production of Vanadium redox flow battery (VRB) systems for grid energy storage applications. These systems are under development with high potential to have a significant impact on future vanadium demand. Vanadium-flow batteries (VFBs), are being heralded as an answer to the "missing link" in clean energy production, specifically, the lack of volume storage for electricity generated by solar and wind power installations. Titanium has a variety of uses in the metallic and pigment industry however, recently, scientists from Nanyang Technological University, Singapore (NTU) have developed a new battery that can be recharged up to 70 percent in only 2 minutes, the key ingredient being Titanium. Application of Titanium also increases the number of times a battery can be charged. NTU's scientists replaced the traditional graphite used for the anode (negative pole) in lithium-ion batteries with a new gel material made from titanium dioxide.

It has been a busy period for the Company, completing and submitting the necessary documentation to support the overall funding of the 15MW smelter, the construction of which is expected to commence in Q2 2015 and which we anticipate will be running at full production in early 2016, when annual production is expected to be 42,000 tons of HPI, 415 tons of Vanadium in slag grading 36% V and 8,269 tons of Titanium in slag grading 65% TiO2. It is anticipated that the smelter will be cash flow positive from first production. Offtake agreements for all three products are currently being negotiated.

In the year under review we progressed discussions with a number of parties (end users as well as marketing companies) in respect of our products. We have received a formal expression of interest from amongst others a South African based, black owned and fully empowered international marketing organization specializing in world wide procurement, physical movement and distribution of industrial raw materials. In line with the approvals required by the National Environmental Management Act 107 of 1998 ("NEMA") we have completed the various environmental studies for not only the mining operations but also for the smelter. I am happy to report that and subsequent to having both the Environmental Scoping Report and the Draft Environmental Assessment ("EIA") for the 15 MW Smelter accepted and approved by the Limpopo Department of Economic Development, Environment and Tourism. ("LEDET") we have now submitted the final Environmental Impact Assessment to LEDET, approval is expected in Q1 2015. In addition, Prescal, our environmental consultants have submitted Ironveld's Air Emission License application.

Post the year end the South Africa Government further demonstrated its commitment to the project with the approval of the 12I Tax Allowance Incentive, designed to support greenfield investments and offers support for both capital investment and training, and will contribute c.R50.5 million (£2.8 million) to the 15MW smelter. We are currently awaiting a response to our Critical Infrastructure Programme ("CIP") application, which was submitted in October 2014, a further incentive of the Department of Trade and Industry to stimulate investment growth in line with the National Industrial Policy Framework (NIPF) and its Industrial Policy Action Plan (IPAP). If successful, we expect to receive a grant of approximately R15million (£0.85million). Together these grants further enhance the project's already favourable economics.

We have subsequent to the reporting period completed our Broad Based Black Economic Empowerment (BBBEE) structures as required by the provisions of the Mineral and Petroleum Resources Act 2002 (MRPDA). This process which has been on-going since Q2 2013, has now been finalised and the various community trusts have been registered with the Master of the High Supreme Court. These trusts will hold, in trust for local communities, tribal authorities and future workers, shares in the BBBEE companies which have a shareholding in the operating companies that make up the Ironveld Group. This shareholding is 26% as per the BBBEE's Code of Good Practice and the Mining Charter. The completion of these agreements and structures has allowed the company to move forward with its various licensing and funding negotiations.

As previously reported the MRA for our HWIRON company was submitted by HACRA in April 2013, the company has fulfilled all the requirements of the MRPDA in terms of this application and approval is imminent.

As previously announced the capital cost of the 15MW DC is GBP36 million. As the company has progressed with its compliance with the South African regulatory framework, negotiations in regard to financing the smelter have been advancing steadily. Post the financial year end the company has assisted its BBBEE partners to apply for finance for their portion of the capital expenditure. The company is working with international development finance institutions (DFI's) that have expressed an in principle interest to provide a significant portion of the funding requirement as debt under standard project finance conditions. In addition discussions with local banks and Mezzanine finance providers and progressing and some of the numerous offtake agreements the company is considering include working capital and pipeline funding offers. The company expects to enter into agreements in Q2 2015.

The company has continued to support its local communities by drilling and equipping water boreholes for agricultural and domestic use. In addition we have supplied local schools offices with computers and printers to assist in administration of the schools. In addition we are actively involved in the "Keep a Girl Child at School" campaign, supporting the needs of some 900 learners in our local communities.

Sale of non-core subsidiary

During the period under review the Group announced that it had entered into an agreement to sell our non-core wholly-owned trading subsidiary, Mercury Recycling Limited ("MRL"), to Environmental Safeguard Limited for a total consideration of £1.575 million in cash, comprising a purchase price of £1.45 million and a working capital adjustment of £125,000. The sale was in line with the Board's strategy to focus the Group's resources on the progression of the Ironveld Project.

Financial

The Group recorded a loss before tax of £1m (2013: £5.5m including discontinued operations) and cash balances of £0.7m (2013: £0.6) at the end of the period. The Company does not plan to pay a dividend for the year ended 30th June 2014.

Summary

On behalf of the Board, I would like to thank our shareholders for their continued support and our employees for their hard work and commitment. Ironveld is in an excellent position as we enter the next phase of the project's development and we look forward to the commencement of the 15MW smelter's construction.

Giles Clarke

Chairman

5 December 2014

CONSOLIDATED INCOME STATEMENT

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONSOLIDATED BALANCE SHEET

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

Notes to the final results for the 12 month period ended 30th June 2014

1. Basis of preparation

The information in this announcement has been extracted from the Group's audited Financial Statements which have been prepared in accordance with International Financial Reporting Standards (IFRSs) as adopted by the European Union.

 2. Posting of accounts

The Report and Accounts for the period ended 30th June 2014 will shortly be available on the Group's website and will be sent to registered shareholders who have elected to receive paper communications by post shortly together with notice of the Group's AGM.

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