Carbon Black Substitute Memorandum of Understanding

Ferro-Alloy Resources Limited (LSE:FAR), the vanadium producer and developer of the large Balasausqandiq vanadium deposit in Southern Kazakhstan, is pleased to announce that it has entered into a non-binding, non-exclusive, memorandum of understanding (“MOU”) for the supply of up to 360,000 tonnes of carbon black substitute (“CBS”) per year, to Qingdao Master Tyre Co., Ltd (“Master Tyre”).

The MOU will be for the supply of the new CBS product (“New CBS”) which will be produced from high-carbon / low vanadium waste rock (as announced on 27 June 2025).

Testing and development of the New CBS product is considered to be a priority project for Master Tyre over the next three years, as part of its 2036 strategy.

Commenting, Nick Bridgen, CEO of Ferro-Alloy Resources, said:

“Master Tyre’s innovative approach to tyre manufacturing and R&D capability will maximise the environmental and cost benefits of using our latest CBS product and will develop significant technical knowledge in optimising its use in rubber manufacturing.

This New CBS product was not included in our recently announced feasibility study, which only envisaged our original CBS product made from the tailings of the vanadium production process. The net cash flows from this New CBS product are additional to the already strong financial characteristics of the Balasausqandiq project.”

MOU summary

• The Company has entered into a non-binding, non-exclusive, MOU for the supply of New CBS to Master Tyre.
• Master Tyre plans to use the New CBS for its own production and for sale to other tyre and rubber manufacturers in the People’s Republic of China (“China”).
• Key terms of the MOU as follows:
  • Supply of up to 360,000 tonnes of New CBS per year
  • Pricing to be agreed in future commercial negotiations
  • Close technical cooperation between the Company and Master Tyre in the optimisation of product specification for the substitution of New CBS into rubber production
  • Development of the relevant agreements and legal documents necessary to achieve a binding sale and purchase contract
  • Termination upon the earlier of the conclusion of a binding sale and purchase contract between the parties or three years

About Master Tyre

• Master Tyre (www.mastertyre.net) is a leading Chinese tyre manufacturer established in 2016 focused on the production of car and truck tyres that are sold throughout China and over 150 overseas regions.
• Master Tyre is also a distributor of carbon black across major tyre manufacturers in China and as a result the New CBS is being tested by its own carbon black customers as well as the Qingdao University of Science and Technology.
• As part of these test programmes the New CBS, in addition to carbon black substitution, is being tested as a substitute for silicon dioxide (another key component of tyre rubber manufacturing) given the background silica content of the New CBS product.
• At the end of 2025 Master Tyre formulated its 2036 strategy and has included the Company’s New CBS product as a priority project for…