Robust Project Economics Confirmed Following Completion of DRI Process

Zanaga Iron Ore Company Limited (AIM: ZIOC) is pleased to announce the successful completion of the project development strategy programme (the “Programme”), which now includes the results of a technical and commercial evaluation of the process flowsheet to produce premium quality Direct Reduced Iron (“DRI”) pellet feed concentrates.

The Programme has provided increased confidence in the economic potential of the Zanaga Iron Ore Project in the Republic of Congo (the “Project”), confirming the achievement of significant value enhancements since the Programme was launched in March 2025.

Background

In March 2025, the Company launched the Programme with the ambition to deliver value enhancements to the Project through product quality enhancements, improved thickened tailings solutions, and options for the pipeline development solution. This was intended to culminate in securing updated technical cost estimates and economic results, capable of being provided to strategic investors, lenders and financiers.

The first key objective was to ascertain the potential to adjust the process plant flow sheet to produce an even higher grade premium DRI grade product – which was achieved and announced in July 2025. This provided a foundation for the next phases of work, most of which were completed and announced in January 2026, but at that stage ZIOC still did not possess updated estimates for the newly designed DRI process plant. Today, as the final step of the Programme, the DRI process plant results are completed and incorporated into an updated financial model and economic evaluation.

The Programme has achieved all of its most important objectives, and now provides a clear pathway to launch the detailed engineering process ahead of a Final investment Decision (“FID”) recommendation, targeted for mid-2027.

Workstreams now completed include:

• The confirmation of DRI product quality potential in Stage One and Stage Two
• The completion of costing and feasibility of:
  • modular hematite processing facilities for Stage One;
  • thickened and dry tailings facilities for both Stage One and Stage Two; and
  • an optional single 30 million tonnes per annum (“Mtpa”) pipeline during Stage One (providing a compelling optional alternative to the April 2026 case two-stage pipeline plan).
• Update of specific project costs through an Original Equipment Manufacturer (“OEM”) enquiry process
• Assembly of a Constructor Engagement Programme for the Project

Updated Project Economics

The completion of the Programme offers increased confidence in the Project’s economic prospects, which are now updated and accurate as of end December 2025:

Key Highlights from the April 2026 Case[1],[2]

• Stage One Capital Expenditure Estimate: US$2.17 billion
• Stage One Net Present Value (“NPV”): US$2.54 billion (increase of approx. 30.9% vs 2024 Feasibility Update)
• Stage One Internal Rate of Return (“IRR”): 22.5% (vs 21.4%)
• Combined Stage One & Two Capital Expenditure Estimate: US$4.05 billion
• Combined Stage One & Two NPV: US$4.90…