Ironveld Regulatory News (IRON)

Ironveld plc ("Ironveld" or the "Company")

Publication of Positive Pre-Feasibility Study

The Company is pleased to announce a summary of the Pre-Feasibility Study (the 'Study' or 'PFS') assessing the economic viability of its pig iron and ferro-vanadium project (the "Project") on the Northern Limb of the Bushveld Complex in Limpopo Province South Africa.

PFS Highlights:

·; The Study demonstrates the viability of developing the Ironveld Pig Iron Project delivering one million tons per annum of pig iron and 9,670 tons of Ferro Vanadium ("FeV") production from 2019

·; World class ferro vanadium grades significantly enhance the overall Project economics

·; Post- tax project IRR of 28.8% and NPV (10%) of R 10,694 million (US$ 1,069 million) with a capital payback of seven years

·; Estimated capex of R 9,375 million (US$ 938 million) for a 25 year life of mine ("LOM") with operating Cost of R 2,393/t pig iron and R 47/kg FeV

·; Study has been based on pig iron prices of U$ 450/ t and U$35/kg for FeV, yielding total annual revenue of R 6,500 million at full production

·; Robust infrastructure surrounding the Project with delivery routes for water, rail and power identified

·; Confirmation of viability to install an early stage 12MW smelter to produce an initial 46,000 tons of Pig iron and 445 tons of ferro vanadium per annum from 2015 some two years ahead of the larger project

·; The 12MW smelter will provide significant near term revenue as well as deliver proof of concept ahead of commissioning of four 75MW smelters required to achieve the longer term one million ton production target

Commenting on the Study, Peter Cox, CEO of Ironveld plc, said: "The results of the PFS are extremely positive. Our project has been shown to have excellent economics with both the pig iron and ferro vanadium grades exceeding our initial expectations. The ferro vanadium grade in particular has been confirmed as world class and will significantly reduce the overall operating cost while delivering a robust margin.

"We have focused on ensuring the Study produces a Project that is achievable in its delivery while at the same time provides significant scope for excellent shareholder returns. We have established an early path to revenue through the planned 12MW smelter which will also serve as a proof of concept, provide near term cash flow and serve as a training facility for staff enabling quicker commissioning of the four main smelters and build up to full production capacity ahead of originally planned."

The Study has been based on a Project that is capable of delivering one million tons of pig iron and 9670 tons of ferro vanadium per annum. The Study has shown that on this run rate, the Project is forecast to produce a post-tax IRR of 28.8% and NPV (10%) of R 10,694 million (US$ 1,069 million) with a LOM of 25 years.

Based on the ore resource grades and the proposed level of pig iron production the Project will also produce approximately 9,670 tons of Ferro Vanadium per annum at a grade of 75% vanadium. The flow sheet also allows for the production of high grade Vanadium flakes suitable for use in the battery industry for the manufacture of Vanadium Redox batteries. In addition Titanium slag grading 55-60% titanium will also be produced, although no account of the titanium has been taken in the valuation. Test work to commercialise this slag product is continuing.

In order to produce one million tons of pig iron it will be necessary to build four 75MW smelters. It is planned that these will be located on the farm Altona.

The production of ferro vanadium from the vanadium slag generated by the four 75MW smelters will require a 12MW smelter. In the course of the pre-feasibility study the Company has established that 20MW of power is immediately available from an ESKOM substation close to the Project area. As a result of this the Company has examined the viability of establishing a 12MW smelter producing approximately 46,000 tons of Pig iron per annum and vanadium slag which would be toll processed to produce about 445 tons of ferro vanadium per annum. In addition the smelter will produce Titanium slag. Production could commence in 2015 some two years ahead of the larger project, providing significant near term revenue ahead of originally forecast as well as serving as a proof of concept and training facility for staff of. This would enable earlier commissioning and accelerated ramp up, with the four 75MW smelters being at full capacity a year ahead of the originally envisaged schedule.

It is estimated that it would cost approximately US$60 million to commission the 12MW smelter. It is expected that this would be financed principally through third party project finance.

Based on the results of recent exploration programme, the ore from the main magnetite layer, with the exception of the farm Nonnewerth, can be fed directly to the proposed smelters without the need for beneficiation beyond crushing.

Test work has shown that it is not necessary to pre-reduce the ore prior to feeding to the smelters. However, to minimise electrical requirements of the smelters, the ore will be pre heated which has several advantages for the project:

·; capital requirements and technology requirements are reduced;

·; cheap coal can be used for the pre heating as opposed to expensive highly reactive coal, not available in South Africa, which would be necessary for pre reduction; and

·; the off gases from the heating are carbon monoxide rich and can be used for co-generation purposes.

Power for the Project will be available from the new Medupi power station which is being constructed with first phrase commissioning planned for Q1 2015. The Company has appointed specialist consultants who have begun negotiations with the relevant authorities to investigate the feasibility of the Company installing overhead lines from the existing ESKOM substations to the smelters.

Water will be supplied via a new project being run by the Department of Water affairs to upgrade the water supply to Mokopane. There are sufficient local sources of water currently in place for the 12MW smelter.

Product would be exported by rail through Maputo some 650km from the Project site. The 12MW smelter product would all be consumed locally.

For further information, please contact:

Further information on the PFS

The figures in the PFS are based on the MSA Group (Pty) Ltd mineral resource estimates, a smelter study by Metix (the South African office of SMS Siemag) and mining and infrastructure studies undertaken by consultants under the control of Ironveld.

The metallurgical flow sheet is based on test work done at Mintek under the supervision of Dr Bacza.

The discounted cash flow model has been developed by Mr V Von Kettelhodt a mining engineer in private practice but formerly head of corporate finance, treasury and strategy at Kumba Iron ore limited.