Ironveld : ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2022

Company registration No 04095614 (England and Wales)

IRONVELD PLC

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 JUNE 2022

CONTENTS

YEAR ENDED 30 JUNE 2022

DIRECTORS

Giles Clarke - Chairman and Non-Executive Director

Giles Clarke is Chairman of Westleigh Investments Holdings Limited as well as Chairman of several private organisations. He founded Majestic Wine in 1981 and built it into a national chain of wine warehouses. He also co-founded Pet City in 1990, which he expanded nationwide before it was listed and subsequently sold in 1996 for £150 million, co-founded Safestore which was sold in 2003 for £44 million and was Chairman of Amerisur Resources plc, sold for approximately £242 million in 2020.

Martin Eales - Chief Executive Officer

Martin joined Ironveld in early 2020 and has overseen the Company's transition into production. Prior to that, Martin spent 5 years as CEO at Rainbow Rare Earths and had a 15 year career in the City of London rising to the role of Managing Director at RBC Capital Markets with a strong track record advising natural resource companies on fundraisings and other corporate transactions. He is also a qualified Chartered Accountant.

Peter Cox - Technical Director

Peter Cox started his career in the mining industry over 30 years ago as a learner surveyor. After studying mining engineering as a JCI bursar, he worked for that company in various positions at gold and platinum mines, ending as a senior section manager. In 1987, he joined a privately owned mining and exploration company, Severin Southern Sphere Mining, as consulting engineer and general manager. Since mid-1991 he has been the managing director of Goldline Global Consulting (Pty) Ltd, an engineering consulting company which serves the mining industry worldwide. He holds a Mine Surveyor's and a Mine Manager's Certificate of Competency. He has a number of achievements to his name, including being the youngest certificated surveyor in South African mining history and designing the country's narrow reef opencast mining method.

Nicholas Harrison - Non-Executive Director

Nicholas Harrison qualified as an accountant with Arthur Andersen and subsequently held a number of senior positions with other professional services organisations. He was Chief Financial Officer of Amerisur Resources plc until its sale in 2020 and has held finance director and chief executive positions in a number of other businesses. He is currently Chief Executive of Westleigh Investments Holdings Limited.

John Wardle - Non-Executive Director

John Wardle, whose first degree was in Mining Engineering followed by a PhD in Microseismic Geotechnics, was most recently CEO of Amerisur Resources plc, the AIM-listed Oil & Gas company, from 2007 to 2020 when it was acquired for approximately £242 million. Prior to this John held roles with BP, Britoil, Emerald Energy and Pebercan.

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YEAR ENDED 30 JUNE 2022

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YEAR ENDED 30 JUNE 2022

CHAIRMAN'S STATEMENT

Dear Shareholder,

I am pleased to present the Annual Report and the Financial Statements for the year to 30 June 2022.

During the Period, we continued to undertake various activities focused on realising the value of the Company's assets, with the most significant events having taken place post Period end.

In March 2021 the Company had announced that it was in discussions with a strategic partner seeking to take a substantial equity stake at the listed company level and this was confirmed in October 2021 with the announcement of an agreed Subscription by Grosvenor Resources (Pty) Limited ("Grosvenor") for 561,505,950 new ordinary shares at 1 pence per share, being a substantial premium over the prevailing share price. Shareholder approval for the transaction was granted at a General Meeting in November 2021, however due to delays in Grosvenor securing its own funding for the investment the transaction had not closed as at the period end and as at today's date Grosvenor is still in advanced negotiations to fund and proceed with an investment in Ironveld, but the Directors remain hopeful that a meaningful advance will soon be made.

In May 2021 the Company announced that it had agreed terms with a business rescue practitioner and a sole creditor to acquire an existing smelter in Rustenburg, South Africa for a total of ZAR 115 million (approximately £5.75 million), payable ZAR 15 million (approximately £750,000) on completion with the balance of ZAR 100 million (approximately £5.0 million) repayable from smelter cashflows over 10 years. The Company then completed a Placing to raise gross proceeds of £4.5 million in August 2022.

The acquisition of the Rustenburg smelter is a moment of huge significance for the Company as it provides the first opportunity to economically mine and process the Company's magnetite ore into marketable products: high purity iron, vanadium in slag and titanium in slag.

Following a rapid and efficient refurbishment project at the smelter and establishment of all necessary infrastructure at the mine, the Company was able to announce in early December 2022 that mining activities had commenced and that the smelter's first furnace (of three) would be in operation within weeks, materially ahead of schedule.

We remain committed to operating responsibly, working closely with stakeholders and local communities at grassroots level to improve standards of living. Our local communities have been fully involved in the process to establish the mining area and have provided all necessary consents. As part of our Social Labour Plan (approved by the Department of Mineral Resources ("DMR") in South Africa) we have undertaken to implement water supply schemes, electrification upgrades and roads and stormwater infrastructure to the municipalities of our mining communities. In addition Ironveld has committed to provide training, bursaries and employment to the members of the various host communities.

Giles Clarke

Chairman

28 December 2022

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