1. Offtake Agreement: This is a legally binding contract between...

1. Offtake Agreement: This is a legally binding contract between Novana Oy (a subsidiary of Recycling Industries Scandinavia AB or RISAB, which is part-owned by Neometals) and Glencore. Under this agreement, Glencore is obligated to purchase 100% of the vanadium products produced by Novana from the Vanadium Recovery Project (VRP1) for an initial period of 5 years, starting from 1st January 2026 or earlier with a 12-months' notice.

2. VRP1's Vanadium Products: These products include high-purity, carbon-neutral vanadium pentoxide (V2O5) and possibly others like ferrovanadium. These are in demand for various applications, including the vanadium redox flow battery sector.

3. Terms of the Agreement: Glencore will purchase all vanadium bearing products produced by Novana. The agreement will automatically extend in 2-year increments unless either party elects not to renew. The price for the products is tied to a prevailing market-publication.

4. Technical Expertise: Glencore, with its deep operational experience in vanadium from the Rhovan Mine in South Africa, will also provide technical expertise and advice for the VRP1 project through a joint steering committee.

5. Significance: Neometals regards this agreement as a significant milestone as it removes the volume risk on offtake - a key requirement for securing project finance. The agreement is "take or pay", which means Glencore must either take the product from Novana or pay a penalty. This provides a certain level of revenue assurance for Neometals and its partners.

In summary, the announcement is about a deal between Neometals' subsidiary and Glencore, where Glencore commits to buying all vanadium products produced by VRP1, providing a guaranteed market for these products and reducing the financial risk associated with the project.