Vanadium Resources Limited (ASX: $VR8) update on Steelpoortdrift Vanadium Project

Vanadium Resources Limited (ASX: $VR8) has signed a Memorandum of Understanding (MOU) with Hunan Zhongxin New Materials Technology Co., Ltd. for the supply of 4ktpa of vanadium pentoxide (V2O5) for an initial 5-year term, with an option to extend for a further 5 years. This MOU represents over 100% of the anticipated production from Phase 1 of the Steelpoortdrift Vanadium Project in South Africa.

Executive commentary on the offtake MOU

'We are delighted to be entering into a further offtake MOU with another high-quality industry leader, Zhongxin, which has a production capacity of 13kt of vanadium based high-end alloy materials. With this MOU, VR8 now has over 100% of its Phase 1 production under MOUs. These MOUs play an integral role in the overarching funding process we have implemented, with the aim of securing debt financing and strategic equity investment for our world-class Steelpoortdrift Vanadium Project. We look forward to keeping shareholders updated with further developments as they arise during this pivotal and exciting phase in the Company's operations.'

Summary of the offtake MOU and outlook

Vanadium Resources Limited has successfully secured over 100% of the anticipated production from Phase 1 of the Steelpoortdrift Vanadium Project through a non-binding MOU with Zhongxin. This achievement demonstrates the strong demand for vanadium supply, particularly from China. The Company remains in discussions with various end-users and traders for further offtake agreements, aiming to optimize the projected Net Present Value of the Project for existing shareholders. The MOUs, if progressed into binding agreements, have the potential to significantly impact the Company's financing solutions and overall corporate strategy. With the growing market for vanadium outside its traditional role as a steel additive, VR8 is well positioned to capitalize on the changing demand metrics for vanadium driven by VFBs and specialist alloy products.