Ironveld Regulatory News (IRON)

30 March 2015

IRONVELD PLC

("Ironveld" or the "Group")

Interim results for the six months ended 31 December 2014

Ironveld plc, the High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa is pleased to announce its interim results for the six months ended 31 December 2014 (the "Period").

Operational Highlights:

· Successful placing of £750,000 in November 2014 with proceeds to be used towards finalising plans for the development of the 15MW smelter.

· Significant progress made de-risking the overall project:

o Approval of the 12I Tax Allowance Incentive to the value of approximately £3.1 million for the 15MW smelter.

o Approval of the Critical Infrastructure Programme ("CIP") grant of up to approximately £740,000 post period end.

o Submission of all necessary environmental applications.

o Completion of the Broad-Based Black Economic Empowerment ("BBBEE") arrangements.

Post Period:

· Granting of a mining right for the mining of iron ore, vanadium and heavy minerals over the farms: Cracouw 391 LR, Aurora 397, Harriets Wish 393 LR to Hacra Mining and Exploration Company (Pty) Ltd ("HACRA") by the Department of Mineral Resources ("DMR").

· In accordance with the terms of the agreement dated 14 March 2012 HACRA will transfer the mining right, via the section 11 process, to HW Iron (Proprietary) Ltd, a subsidiary of Ironveld plc.

· The Republic of South Africa's Limpopo Department of Economic Development, Environment and Tourism ("LEDET") have acknowledged the receipt of the final Environmental Impact Assessment ("EIA") for the Smelter and the approval process is ongoing.

Outlook

· Construction of the 15MW smelter on track to commence in mid-2015, with commissioning to begin in H1 2016 and full production in H2 2016.

· The 15MW smelter has a projected annual output of 42,000 tonnes of HPI, 415 tonnes of Vanadium and 8269 tonnes of Titanium per annum.

· Offtake negotiations with potential partners continue to progress positively with strong demand shown for the products.

Giles Clarke, Chairman said:

"We have made excellent progress during the period as we work towards bringing our world class HPI, vanadium and titanium project to production on time and to budget. We have worked hard to ensure it has the Government's commitment and are delighted with the support shown to date to the project further enhancing its attractive economics.

"Positive discussions continue around the financial arrangements for the project which we are in the process of finalising and the offtake arrangements for the three products. We look to the future with confidence and are excited to begin construction of the smelter which remains on track to begin in mid-2015."

For further information, please contact:

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 made excellent progress towards delivering the 15MW smelter, a highly attractive project which is on track to commence construction in mid-2015 with commissioning to begin in the first half of 2016.

The 15MW smelter is due to be cash flow positive from commencement of production and once on full production is projected to have an annual output of 42,000 tonnes of HPI, 415 tonnes of vanadium in slag grading 36% V and 8,269 tonnes of titanium in slag grading 65% TiO2 per annum. HPI, vanadium and titanium are important products with strong market demand and extensive industrial uses. HPI is generally sold as a powder and used to manufacture sintered components, soft magnetic components, brazing, surface coatings, friction, printing and welding products, as well as chemistry and polymer filtrations. Vanadium while predominately used in the steel industry has extensive applications in the grid energy storage market where vanadium redox flow battery systems are coming onto the market. Titanium which is used in the pigment industry as well as in the steel and alloying industries is a key part of a new battery technology. Offtake negotiations with potential partners for all three products continue to progress positively with strong demand shown for our products and we continue to work towards of a near term resolution.

We have worked hard to identify and apply for grants and incentives that financially de-risk the project and improve its already favourable economics. In September 2014, the Republic of South Africa's Department of Trade and Industry ("the DTI") classified the 15MW smelter as Greenfield Project under the 12I tax allowance incentive with qualifying status from September 2014 until 30 September 2018, valuing the incentive scheme at approximately £3.1 million and showing the Government's support and confidence in the project. The Government's commitment was again demonstrated post period end in February 2015 with the approval of the CIP application by the DTI. The CIP is an investment incentive of the South African Government to stimulate investment growth aimed at enhancing investment by supporting critical infrastructure and therefore lowering the business costs. The cost sharing grant covers a maximum of 30% of the project's total infrastructure development costs, up to approximately £740,000, and includes the design, engineering and associated preparatory activities and will be used specifically towards the development of external road infrastructure, bulk electricity infrastructure and bulk water.

The Company has been busy completing other necessary applications to ensure the delivery of the overall project remains on track and we continue to hit its major milestones as planned. We have completed all of the environmental applications required for both our mining and smelting operations by the National Environmental Management Act 107 of 1998 ("NEMA"), submitted our Air Emission License application and LEDET hasapproved both our Environmental Scoping Report and the Draft EIA for the 15 MW Smelter in 2014. Following this we have submitted the final EIA to LEDET and expect approval within the 90 day regulatory time frame.

In October 2014 we announced the signing and completion of the necessary mining and smelting structures for the BBBEE participation in the project as required by the provisions of the Mineral and Petroleum Resources Act 2002 ("MRPDA") and submitted the community and workers trust documentation for registration. Four global trusts are currently being registered at the Master of the 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 and we are currently assisting the BBBEE companies further with their applications for funding to allow them to meet their share of capital requirements for the Company.

In November we successfully raised £750,000 through a fully subscribed share placing at 7p, a premium to the share price with the proceeds to be used towards finalising plans for the development of the 15MW smelter in particular the engineering and design work for project realisation and to provide working capital. We are currently in the process of finalising financial arrangements for the project.

Post period end we hit another significant milestone with the granting of a mining right for the mining of iron ore, vanadium and heavy minerals over the farms Cracouw 391 LR, Aurora 397 and Harriets Wish 393 LR to HACRA a 71% subsidiary of Sylvania Platinum Ltd ("Sylvania") for 30 years. In accordance with the terms of the agreement dated 14 March 2012 for the acquisition by Mercury Recycling Group plc (now Ironveld plc) of the Ironveld Group from Sylvania, HACRA will transfer the mining right, via the Section 11 process, to HW Iron (Proprietary) Limited, a subsidiary of Ironveld plc.

The Company remains actively involved in the "Keep a Girl Child at School" campaign which has received increasingly support from a number of local companies and institutions. The campaign supports the needs of some 900 learners in our local communities.

Financial

The group recorded a loss before tax of £399,000 (H1 2013: £394,000) and cash balances of £928,000 (H1 2013: £1,372,000) at the end of the period. The Company does not plan to pay a dividend for the six months ended 31 December 2014.

Summary

On behalf of the Board of Directors I would like thank our employees and shareholders for their continued support. During the period we have made significant progress and we look to the future with confidence as we make the final preparations to ensure that we are able to commence construction of the smelter as planned in mid-2015. We look forward to updating shareholders on our progress in the near future.