22 September 2017

INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2017

Zanaga Iron Ore Company Limited ("ZIOC" or the "Company") (AIM: ZIOC) is pleased to announce its unaudited interim results for the six months ended 30 June 2017.

Highlights

·   As reported in the Company's annual report dated 28 June 2017, investigations commenced into assessing the opportunity for a small scale early production start-up project

·   Additional cost reductions implemented at the Zanaga Project, as well as across ZIOC's corporate costs, to align the cost base with current market conditions

·   Cash balance of US$4.4m as at 30 June 2017 and US$4.2m at 31 August 2017

Clifford Elphick, Non-Executive Chairman of ZIOC, commented:

"The global iron ore market continues to demonstrate better than expected fundamentals from a demand perspective, particularly in relation to pricing for higher quality products. However, we remain concerned by the continuing build up in Chinese iron ore port stocks which may have a negative effect on iron ore pricing through the end of the year if Chinese steel mill consumption slows.

The Project team is actively investigating the potential for the early development of a small-scale, low capex, low opex project utilising road and potentially rail transportation solutions as well as existing port infrastructure. We intend to be in a position to provide more detail on the outcomes of this study work by the end of this year."

Copies of the unaudited interim results for the six months ended 30 June 2016 are available on the Company's website at www.zanagairon.com.

For further information, please contact:

Zanaga Iron Ore

Corporate Development and                        Andrew Trahar

Investor Relations Manager                           +44 20 7399 1105

Liberum Capital Limited

Nominated Adviser, Financial                      Richard Crawley

Adviser and Corporate Broker                      and Neil Elliot

                                                                                   +44 20 3100 2000

About us:

Zanaga Iron Ore Company Limited (AIM ticker: ZIOC) is the owner of 50% less one share in the Zanaga Iron Ore Project based in the Republic of Congo (Congo Brazzaville) through its investment in associate. The Zanaga Iron Ore Project is one of the largest iron ore deposits in Africa and has the potential to become a world-class iron ore producer.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) No 596/2014.

Business Review - Operations

Cash Reserves and Project Funding

Similar to the Funding Agreement for 2016 project expenditure, Glencore and ZIOC agreed a 2017 Project Work Programme and Budget for the Project of US$1.4m plus US$0.3m of discretionary spend dependent on certain workstreams requiring capital. ZIOC agreed to contribute towards the work programme and budget an amount comprising US$0.7m plus 49.99% of all discretionary items approved jointly with Glencore. Ignoring any entitlement to savings, ZIOC's potential contribution to the Project in 2017 is US$0.9m in total.

We are pleased to report that the Project's activities are currently running in line with the 2017 budget forecast.

As at 30 June 2017, we had cash reserves of US$4.4m and continue to take a very prudent approach to the management of the business.

Permitting

The application for the Environmental Permit for the Project's first phase of development has been lodged with the Republic of Congo ("RoC") Ministry of Environment and the Project team believes that this is likely to be received during the second half of the 2017 fiscal year.

Early stage Pellet Project opportunity

As reported in the Company's annual results published on 28 June 2017, the Project team commenced the process of actively investigating the potential for the early development of a small-scale, low capex, low opex project utilising road and potentially rail transportation solutions as well as existing port infrastructure. The objective of the Project team is to determine the feasibility of a project that demonstrates attractive economics even in a low iron ore price environment. We intend to be in a position to provide more detail on the outcomes of this study work by the end of this year.

Iron Ore Market

Iron ore prices continue to trade at a higher range than the market expected to see in this period of 2017. We remain particularly encouraged by current record price premiums being paid for higher quality products and maintain our view that this is a structural shift for the industry, rather than a cyclical occurrence.

On the supply side, we expect substantial production expansions to enter the market in the second half of the year, with only a small number of these acting as replacement projects for mines entering the final phases of their lives.  It is difficult to forecast the net new tonnage expected to enter the seaborne market in the next few months, but guidance from the major iron ore mining companies indicates that these tonnages will continue to provide net overall increases in global seaborne supply. This should result in a reduction in benchmark iron ore prices, but Zanaga does not expect a significant contraction of the attractive price premiums being achieved by high quality products - the product market on which we are focused.

From a demand perspective, we are pleased to see robust consumption of high quality iron ore products, but are concerned by the continuing build up in Chinese iron ore port stocks which may have a negative effect on iron ore pricing through the end of the year if Chinese steel mill consumption slows.

Outlook and next steps

The global iron ore market continues to demonstrate better than expected fundamentals from a demand perspective, particularly in relation to pricing for higher quality products.

The project team remains encouraged by improving iron ore market conditions for premium products. Port and power arrangements remain under constant review and progress is being made on securing the environmental permit.

We look forward to providing further information to shareholders towards the end of the year.