Confirmation of cancellation of listing from KASE

Ferro-Alloy Resources Limited / Index: LSE / Epic: FAR / Sector: Natural Resources

21 February 2020

Ferro-Alloy Resources Limited

("Ferro-Alloy" or "the Company")

Confirmation of cancellation of listing from KASE

Further to the announcement of 8 January 2020, Ferro-Alloy Resources Limited, the vanadium mining and processing company with operations based in Southern Kazakhstan, confirms that its listing on the Kazakhstan Stock Exchange ("KASE") has now been cancelled.

Shares in Ferro-Alloy are traded on the London Stock Exchange (LSE: FAR) and Astana International Exchange (AIX:FAR) in Kazakhstan, and are fully fungible between both exchanges.

For further information, visit www.ferro-alloy.com or contact:

Further information about Ferro-Alloy Resources Limited

The Company's operations are all located at the Balasausqandiq deposit in Kyzylordinskaya Oblast in the South of Kazakhstan. Currently the Company has two main business activities:

(a) the Balasausqandiq Vanadium Project (the "Project"); and

(b) a vanadium concentrate processing operation (the "Existing Operation")

Balasausqandiq is a very large deposit, situated in Kyzylordinskaya Oblast in Southern Kazakhstan. The ore contains vanadium as the principal product, together with by-products of carbon, molybdenum, uranium, rare earth metals, potassium, and aluminium.

A reserve on the JORC 2012 basis has been estimated only the first ore-body number which amounts to 23 million tonnes, not including the small amounts of near-surface oxidised material which is in the Inferred resource category. On the locally required basis, the reserves have been estimated to be over 70m tonnes in ore-bodies 1 to 5 but this does not include the full depth of ore-bodies 2-5.

Development of the Project is planned in two phases. Phase 1 will produce 5,600 tonnes per year of vanadium pentoxide, and Phase 2 will bring the total to 22,400 tonnes per year plus approximately one third of revenue from by products. Owing to the particular characteristics of the ore which enables a much lower cost process to be used, the Company expects to be the world's lowest cost producer.

The vanadium concentrate processing operation is situated at the site of the Balasausqandiq deposit. The production facilities were originally created from a 15,000 tonnes per year pilot plant which was then adapted to treat low-grade concentrates and is now in the process of being expanded and further adapted to treat a wider variety of vanadium-containing raw-materials. The Company has already completed the first steps of a development plan which is expected to result in annualised production capacity increasing gradually to around 1,500 tonnes of contained vanadium pentoxide. The development plan includes upgrades to infrastructure, an extension to the existing factory and the installation of equipment to increase the throughput and to add the facilities to convert AMV into vanadium pentoxide.

The strategy of the Company is to develop both the Existing Operation and the Project in parallel. Although they are located on the same site and use some of the same infrastructure, they are separate operations.