Ironveld Regulatory News (IRON)

28 March 2019

IRONVELD PLC

("Ironveld" or the "Company")

Interim results for the six months ended 31 December 2018

Ironveld plc, the owner of a 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 interim results for the six months ended 31 December 2018 ("the period").

Highlights

Operational and Financial

· Commenced a bulk sampling programme with a potential off-take partner, supplying sufficient tonnage to undertake a full kiln smelting test

· Successfully completed a placing in November 2018, raising £400,000 with the proceeds used to purchase equipment to process the Company's magnetite ore in line with the specifications of the potential off-take partner

· Received a number of enquiries from potential industrial partners, who have carried out extensive due diligence

Post Period

· The potential off-taker concluded its metallurgical tests as part of the bulk sampling programme

· Discussions with the potential off-taker regarding the terms of the off-take agreement continue

· Successfully completed a placing in February 2019 of £1.1 million to strengthen the Company's financial position

· The Company remains in detailed discussions with two potential industrial partners

Peter Cox, CEO, said:

"The Company has made significant progress towards securing a long term off-take agreement and is encouraged by the status of current discussions and the interest from potential development partners. We have a vast resource of High Purity Iron, Vanadium and Titanium in situ at the project, all three of which have strong demand markets, and we are hopeful that we can capitalise on the increasing demand for these high value materials through a commercial agreement.

"We thank our shareholders for their continued support and look forward to providing further updates as we make continued progress."

For further information, please contact:

Notes to Editors:

Ironveld (IRON.LN) is the owner of a High Purity Iron (HPI), 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 7.5 MW DC smelter which will produce speciality iron products including high purity iron powder as well as vanadium and titanium slag 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 as CEO, Vred von Ketelhodt as CFO, Nick Harrison, Rupert Fraser and Duncan George Harvey as a Non-Executive Directors.

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

Chairman's Statement:

During the period, the Company has made a number of significant advancements towards its aim of becoming a production-led mining company. Substantial progress is expected over the coming months as we remain confident of securing a commercial off-take agreement and remain in discussions with potential industrial partners.

In September 2018, after a period of engagement, Ironveld commenced a bulk sampling programme with a potential off-take partner, who is a specialist subsidiary of an international steel group. The programme saw us supplying the potential off-take partner with an initial delivery of 7,000 tons of mine ore for processing, enabling the potential off-taker to undertake a full kiln smelting test.

The potential off-take partner has now completed metallurgical tests on the sample and discussions are progressing, with the aim of concluding a commercial offtake agreement. Finalising a long-term agreement would support the Company by generating significant revenue as Ironveld begins to monetise its vast resource and take advantage of the growing demand for vanadium and existing stable demand for HPI and Titanium.

Whilst substantially all of the operating costs for the sampling were covered by payment for the ore, the programme also had the benefit of raising the profile of the Project, which led to enquiries from a number of potential industrial partners, all of whom carried out extensive due diligence. The Company remains in discussions with these potential industrial partners and is hoping to conclude an agreement which would allow it to commence operations.

The Company's Project holds 27 million tons of HPI and 1.4 billion pounds of Vanadium (V2O5) in situ. The fundamentals driving vanadium pricing continue to be supportive as the global annual demand continues to grow, partly driven by increasing Chinese demand and the advancements in technology for vanadium redox batteries.

The demand for HPI, as a water atomized powder, continues to increase as it is commonly used in the automotive industry, powder metallurgy and magnetic materials. Titanium slag is a key element in the development of new battery technology and is widely utilized in the steel, alloy and pigment industries.

We would like to thank our shareholders for their ongoing support, which has enabled us to successfully raise £400,000 through a placing during the period, and a further £1.1 million post-period end. These proceeds have been used to fund the purchase of a secondary gyratory crusher and magnetic separation equipment used to process the Company's magnetite ore and also to strengthen the Company's financial position.

We aim to operate in a responsible manner and continue to work closely with stakeholders in the Project area to improve standards of living. We remain committed to our Keep a Young Girl in School Program, which provides hygiene support to approximately 600 female students at schools in the local area in together with our partners, the Imbumba Foundation and the Nelson Mandela Foundation. In conjunction with the Imbumba Foundation, we are working to introduce a support programme to encourage academic excellence amongst male students in the Project area.

FinancialThe Group recorded a loss before tax of £254,000 (H1 2018: £243,000) and cash balances of £322,000 (30 June 2018: £517,000) at the end of the period. The Company does not plan to pay a dividend for the six months ended 31 December 2018.

Going concern

Following the recent share placing, the Group's present financial resources and existing facilities are only considered adequate to meet committed overhead expenditure for the period to November 2019 by which time, the Directors anticipate completing the further funding of the Project (the High Purity Iron, Vanadium and Titanium project located on the Northern Limb of the Bushveld Complex in Limpopo Province, South Africa owned by the Group). The Directors are presently fully engaged with potential industrial and commercial partners to raise the additional finance which will allow them to commit to the next phase of the Project.

The Directors are confident that sufficient funds can be raised for this planned activity and therefore have a reasonable expectation that the Group will have adequate resources to continue in operational existence for the foreseeable future, being twelve months from the date of the approval of these interim financial statements. The Group is committed to developing the Project and is actively engaged in raising the appropriate finance to allow the development to proceed. For this reason, the Board continues to adopt the going concern basis in the preparation of the financial statements.

OutlookThe Company continues to hold discussions with the potential off-take partner and other potential industrial partners, with the intention of either concluding an agreement with one of the parties involved or completing an off-take arrangement with a third party.

The long-term strategic focus of the Company remains to become a production led mining company as we look to monetise our vast HPI, Vanadium and Titanium resources.

We would like to thank all of our shareholders for their continuing support for both the Company and the Project and we look forward to providing further updates in the near future.

Giles Clarke

Chairman

27 March 2019

IRONVELD PLC

CONSOLIDATED INCOME STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2018

IRONVELD PLC

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIOD ENDED 31 DECEMBER 2018

IRONVELD PLC

CONSOLIDATED BALANCE SHEET

AS AT 31 DECEMBER 2018

The accompanying notes form an integral part of these financial statements.

IRONVELD PLC

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIOD ENDED 31 DECEMBER 2018

The accompanying notes for an integral part of these financial statements.

IRONVELD PLC

CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 31 DECEMBER 2018

IRONVELD PLC

NOTES TO THE FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 DECEMBER 2018

1 Basis of preparation and accounting policies

The results for the six months to 31 December 2018 have been prepared under International Financial Reporting Standards (IFRS) as adopted by the EU and International Accounting Standards Board.

The accounting policies are consistent with those of the annual financial statements for the year ended 30 June 2018, as described in those financial statements.

The financial information does not constitute statutory accounts as defined by section 435 of the Companies Act 2006. Full accounts of the company for the year ended 30 June 2018 on which the Auditors gave an unqualified report, have been delivered to the Registrar of Companies.

2 Loss per share

The calculation of basic and diluted loss per share is based upon the loss for the period and the weighted average number of ordinary shares in issue during the period.

Where the Group reports a loss for any period, then in accordance with IAS 33, the share options and warrants in issue are not considered dilutive.

3 Registered office and copies of the report

The registered office is Ironveld plc, Lakeside Fountain Lane, St Mellons, Cardiff, CF3 0FB and copies of this report are available from the registered office.

INDEPENDENT REVIEW REPORT

UHY Hacker Young Manchester LLP

St. James Building

79 Oxford Street

Manchester M1 6HT

TO IRONVELD PLC

Introduction

We have reviewed the accompanying balance sheet of Ironveld plc as at 31 December 2018 and the related statements of income, changes in equity, cash flows for the six month period then ended and other explanatory notes 1 to 3. Management is responsible for the preparation and fair presentation of this interim financial information in accordance with the International Financial Reporting Standards. Our responsibility is to express a conclusion on this interim financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information does not give a true and fair view of the financial position of the entity as at 31 December 2018, and of its financial performance and its cash flows for the six month period then ended in accordance with International Financial Reporting Standards as applicable in the United Kingdom.

In forming our opinion on the financial information, which is not modified, we have considered the adequacy of the disclosures made in the Chairman's statement concerning the Group's ability to continue as a going concern. The Group are currently negotiating with potential industrial and commercial partners in order to finance the additional planned activity and this indicates the existence of a material uncertainty which may cast significant doubt about the Group's ability to continue as a going concern. The financial information does not include the adjustments that would result if the Group were unable to continue as a going concern and the directors remain confident that the negotiations will be successful and that suitable finance will be arranged.

UHY Hacker Young Manchester LLP

Chartered Accountants

27 March 2019

IRONVELD PLC

OFFICERS, ADVISORS AND AGENTS

Directors: Giles Clarke (Chairman) Peter Cox (Chief Executive Officer)

Vred von Ketelhodt (Chief Financial Officer)

John Harrison (Non-Executive Director)

Rupert Fraser (Non-Executive Director)

Duncan George Harvey (Non-Executive Director)

Secretary: Kirsti Jane Pinnell

Company Number: 04095614

Registered Office: Ironveld Plc

Lakeside Fountain Lane

St Mellons

Cardiff

CF3 0FB

Nominated Advisor Shore Capital Stockbrokers Limited

And Broker: Bond Street House

14 Clifford Street

London

W1S 4JU

Solicitors: Kuit Steinart Levy LLP

3 St Marys Parsonage

Manchester

M3 2RD

Auditors: UHY Hacker Young Manchester LLP

Chartered Accountants

St James Building

79 Oxford Street

Manchester M1 6HT

Bankers: HSBC

97 Bute Street

Cardiff

CF10 5NA

Registrars: Capita IRG Plc

Northern House

Woodsome Park

Fenay Bridge

Huddersfield

HD8 0LA