Ferro-Alloy Resources Group

Corporate Information

1 Country of Incorporation

The company was re-domiciled to Guernsey as a Guernsey limited company with company registration number 63449 on 12 April 2017. The Group's main country of operation is Kazakhstan.

2 Constitutional Documents

Copies of the company’s constitutional documents can be downloaded below (click to view):

Articles of Association

Memorandum of Association

3 Exchanges & Trading Platforms

The securities of Ferro-Alloy Resources are traded on the Standard List of the London Stock Exchange.

Its shares have been listed on the Astana International Exchange (AIX) since 8 January 2020.

4 Securities in Issue & Significant Shareholders

The number of fully paid shares in issue is 483,222,238. The percentage of the Company’s shares held in public hands, excluding those held by directors and by shareholders with more than 5%, is 49.1%.

The company is aware of the following significant interests:

Name	Number of ordinary shares	Percentage of voting rights
Andrey Kuznetsov	68,517,333	14.18
Nicholas Bridgen	59,472,133	12.31
Vision Blue Resources	111,071,783	22.99

5 Restrictions on Transfer of Securities

There are no restrictions on the transfer of Ferro-Alloy Resources shares.

6 Published Accounts, Reports & Admission Documents

Financial statements can be found in the Financial Reports section of the Ferro-Alloy website.

Other reports and admission documents can be found in the Investor Materials section.

7 Notifications made in the past 12 months

These can be found in the News & Announcements section of the Ferro-Alloy website.

8 Applicable Corporate Governance Code

General

As a consequence of the Ordinary Shares being admitted to the standard segment of the Official List, the Comply or explain requirements of the UK Corporate Governance Code, published by the Financial Reporting Council (the “Corporate Governance Code”), do not apply to the Company. The Guernsey Corporate Governance Code does not apply to the Company since the Company is not regulated by the Guernsey Financial Services Commission. However, the Board recognises the importance of good corporate governance and has implemented corporate governance practices having consideration to the recommendations and principles of the UK Corporate Governance Code and DTR 7.2 in accordance with the listing rules as far as is appropriate whilst considering the size and nature of the business.

The Board of Directors of the company is responsible for the overall corporate governance of the consolidated Group, guiding and monitoring the business and affairs of the company on behalf of the shareholders by whom they are elected and to whom they are accountable.

Composition of the Board

The number of Directors as specified in the Articles of Incorporation of the Company is a minimum of one and up to a maximum of seven. Having regard to the Company’s stage of development, the directors believe that the size of the current board comprising seven directors, three of whom are executive and four are non-executive, is appropriate. The directors intend that there will always be at least as many non-executive directors as there are executive directors.

Board Committees

The Company has created an audit committee that will be responsible for considering all financial reporting matters and ensuring that they are properly reported and monitored. It is also responsible for the review and assessment of the independence of the external auditors and approval of any non-audit services, review of the external audit strategy and findings, assessment of whether an internal audit function is necessary considering the activities and size of the business and oversight of significant financial reporting matters. The committee it chaired by Mr James Turian and Mr Chris Thomas is a member. Mr Turian has a background in accounting, trust and management and is a director of a firm of accountants in Guernsey which the board considers to be recent and relevant experience to carry out his responsibility as chairman.

The Company has also created a remuneration committee to consider all matters related to salary and benefits of senior staff and executive directors. The remuneration of non-executive directors is a matter for the board as a whole. No director will take part in discussions concerning his own remuneration package. Mr Chris Thomas has been appointed chairman of the committee and Mr James Turian is a member.

The directors are of the opinion that due to the nature and size of the Company and its current board of directors, the functions often carried out by a nomination committee can be more successfully conducted by the full board of directors so no such committee has been created.

Code of conduct

The goal of establishing the Company as a significant mining and processing Company is underpinned by its core values of honesty, integrity, common sense and respect for people.

The Company desires to remain a good corporate citizen in all the jurisdictions within which it operates, and appropriately balance, protect and preserve all stakeholders’ interests. In particular, the Company gives paramount concern to the safety of its employees and the maintenance of high environmental standards.

Shareholder communication

The Board aims to ensure that shareholders and investors have equal access to the Company’s information.

The company aims to promote effective communication with shareholders and encourage effective participation at general meetings through a policy of open disclosure to shareholders, regulatory authorities and the broader community of all material information with respect to the company’s affairs.

Internal control and risk management systems

The Company’s accounting and finance team is small and subject to close control by the executive directors. For this reason the Audit Committee and the Board are of the opinion that it is not appropriate for there to be a separate internal control department or internal audit function but has implemented various procedures and internal controls to provide assurance to directors that accounting and financial risks are adequately controlled. These include:

· The preparation and regular updating of cash flow forecasts, changes to which are closely monitored by executive directors who discuss necessary changes on almost a daily basis

· There is a Kazakhstan group finance manager, employed in a Group services company, to oversee and control the quality of financial reporting of operating companies in Kazakhstan and perform group accounting and financial roles

· Significant contracts require approval by members of the Board

· All Group payments must be authorized by a director and Ferro-Alloy Resources Limited has opened new banking facilities which require two directors’ signatures on all payments

· The board of directors has formed an audit committee

9 Board of Directors

The Board of the company comprises three executive directors and four non-executive directors whose biographical details are given under Company – Leadership in this website.

10 Directors’ Responsibilities

The Board is responsible for approving company policy and strategy. It meets on a regular basis and has a schedule of matters specifically reserved to it for decision. Management supply the Board with appropriate and timely information and the directors are free to seek any further information they consider necessary. All directors have access to advice from the Company Secretary and independent professional advice at the company’s expense.

The directors are also responsible for preparing the company’s accounts in accordance with applicable law and regulations. Company law requires the directors to prepare accounts for each financial year and the directors have elected to prepare the accounts in accordance with United Kingdom Generally Accepted Accounting Practice. The accounts are required by law to give a true and fair view of the state of affairs of the group and of the company and of the profit or loss of the group for that period.

In preparing the company’s accounts, the directors are required to: select suitable accounting policies and then apply them consistently; make judgements and estimates that are reasonable and prudent ; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the accounts ; prepare the accounts on the going concern basis unless it is inappropriate to presume that the group will continue in business The directors are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the group and to enable them to ensure that the accounts comply with the Companies Act 1985. They are also responsible for safeguarding the assets of the group and for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Board is responsible for maintaining a strong system of internal controls to safeguard shareholders’ investment and the Group’s assets. The Directors have established financial controls and reporting procedures which are considered appropriate given the size and structure of the company. These controls are reviewed regularly and adjusted accordingly.

11 Company Advisers

Brokers