#United States #St. Louis #Verde Resources #BioAsphalt #Ergon Inc.

Verde Resources Attracts Strategic Investment from Ergon

Verde Resources Inc., a prominent player in the road materials industry, has successfully closed a strategic investment of $2 million from Ergon Asphalt Emulsions, Inc., a leading liquid asphalt marketer in North America. This landmark deal signifies a crucial step forward in Verde's mission to innovate and provide eco-friendly solutions in road construction.

The investment follows a ten-year exclusive licensing agreement between Verde and Ergon, which grants Ergon the commercial rights to Verde's revolutionary emulsion-based carbon-sequestering technology, known as BioAsphalt™, across the United States, Canada, and Mexico. BioAsphalt™ stands out for its ability to utilize 100% recycled asphalt materials in cold-mix applications. This method notably reduces the need for traditional heating processes and solvents, which helps in lowering operational costs, extending paving seasons, and drastically reducing greenhouse gas emissions.

Jack Wong, CEO of Verde Resources, expressed enthusiasm about this partnership, stating, "We’re thrilled to welcome Ergon as a strategic shareholder of Verde. This investment not only strengthens our financial foundation but also reinforces our long-term vision to decarbonize the road construction industry. With Ergon's extensive expertise in the asphalt sector, we are well-positioned to scale our BioAsphalt™ technology across North America."

Ergon, part of the larger Ergon, Inc. enterprise, is a veteran in the asphalt market, employing over 4,000 professionals and serving clients across more than 100 countries. Patrick Nation, President of Ergon Asphalt Emulsions, highlighted the strategic importance of this partnership, emphasizing their commitment to sustainable innovation in the industry. "Our investment in Verde reflects our desire to promote the proprietary BioAsphalt™ technology, which offers an efficient and sustainable solution in our sector, combining quality and performance with sustainable practices."

Verde’s BioAsphalt™ has recently undergone independent testing by the National Center for Asphalt Technology (NCAT), which confirmed that the product not only meets but exceeds established industry standards in performance, durability, and moisture resistance. This validation paves the way for a strong operational and financial foundation for Verde’s commercialization efforts, particularly in collaboration with Ergon.

Verde and Ergon have initiated proactive strategies to engage major customers across Ergon's extensive network, working on large-scale projects to showcase BioAsphalt™ at commercial scale. The prior challenges associated with traditional asphalt, such as heat exposure for workers and environmental waste due to high temperatures in asphalt production, are now being tackled with innovative practices.

Implementing BioAsphalt™ in road construction introduces significant benefits including lowering the carbon footprint, and optimizing resource usage while maintaining quality. To date, a staggering 94% of roads in the U.S. are asphalt-paved—a process that is energy-intensive and can inflict considerable community and environmental burdens. Verde and Ergon are rising to the occasion, providing practical solutions to these enduring issues in infrastructure.

Amidst concerns regarding credibility in voluntary carbon markets, Verde and Ergon showcase their commitment to tangible results rather than empty promises. They aim to embed permanent carbon storage into the road materials prevalent in today’s infrastructure, promising a sustainable and economically viable future for road construction.

As they continue to develop and refine their collaborative plans, Verde and Ergon’s efforts represent a significant shift toward accountability and sustainability in the construction sector. The details of Ergon’s investment are set to be disclosed further in a Form 8-K filing with the U.S. Securities and Exchange Commission, solidifying this partnership's transparency and long-term potential.

About Verde Resources Inc.

Verde Resources Inc. is at the forefront of sustainable infrastructure, specializing in innovative solutions that facilitate a transition toward low-carbon materials for global infrastructure projects. The company aims to drive change across the industry through efficient practices that significantly reduce greenhouse emissions and enhance the utilization of recycled materials.

More information on Verde Resources is available at verderesources.com.

About Ergon Asphalt Emulsions

As a subsidiary of Ergon, Inc., Ergon Asphalt Emulsions is a leader in high-performance asphalt chemistry and technologies, dedicated to enhancing pavement performance and sustainability through innovative products and technical solutions.

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