Verde and Ergon Sign MOU to Advance Commercialization of Low-Carbon Road Materials

Rhea-AI Summary

Verde Resources (OTCQB: VRDR) has signed a Memorandum of Understanding with Ergon Asphalt & Emulsions to advance their strategic partnership in sustainable road construction. The collaboration builds on their February 2025 project that utilized Verde's proprietary emulsifying agent, which reduces greenhouse gas emissions by 20% in asphalt production and enables biochar integration. The technology achieved a milestone in April by generating the first-ever Carbon Removal Credits from asphalt production. The MOU aims to establish exclusive commercial terms for the U.S. market and validate Verde's technology at Ergon's Paragon testing lab. This partnership combines Verde's innovative low-carbon technology with Ergon's industry leadership to revolutionize sustainable infrastructure development while maintaining performance standards.

Positive

• Proprietary emulsifying agent reduces greenhouse gas emissions by at least 20% compared to conventional binders
• First company to generate Carbon Removal Credits from asphalt production and installation
• Partnership with industry leader Ergon enhances market credibility and distribution potential
• Technology maintains high performance while improving environmental impact
• Potential exclusive agreement for the U.S. market in development

Negative

• MOU is non-binding and final commercial terms are still pending
• Technology still requires validation at Ergon's testing lab
• Limited to U.S. market exclusivity, potentially restricting global expansion

ST. LOUIS, June 4, 2025 /PRNewswire/ -- Verde Resources Inc. (OTCQB: VRDR), a leader in sustainable road construction technologies, announced today that its wholly owned subsidiary, Verde Renewables Inc., has signed a Memorandum of Understanding (MOU) with Ergon Asphalt & Emulsions, Inc., a trusted industry pioneer in asphalt innovation and supply. This marks a major milestone in their growing strategic alliance.

The MOU builds on the companies' February 2025 announcement detailing their collaboration to produce a specialized emulsion used in the cold mix biochar-asphalt surface material deployed at the National Center for Asphalt Technology (NCAT) test track.

That groundbreaking achievement was made possible by Verde's proprietary emulsifying agent, specifically engineered to enable low-temperature emulsion production with at least 20% fewer greenhouse gas emissions than conventional binders. This innovation also allows for the seamless integration of biochar, a carbon-sequestering material, and facilitates a bonding mechanism with aggregates, resulting in a high-performance Biochar-Asphalt surface course that sets a new benchmark for both durability and environmental impact. In April, this formulation enabled Verde to make history by generating the world's first Carbon Removal Credits from asphalt production and installation, based on the NCAT proof-of-concept project.

With this MOU, Verde and Ergon are advancing their partnership to the next level. The companies are now working toward finalizing the commercial terms of an exclusive agreement for the U.S. market while simultaneously initiating a rapid validation of Verde's technology at Paragon, Ergon's state-of-the-art asphalt and materials testing lab.

"When you think of the best and most respected name in asphalt, you think of Ergon," said Eric Bava, Chief Operating Officer of Verde Resources. "This partnership is about more than innovation. It's about equipping Ergon, along with its partners, contractors, customers, and broader ecosystem, with practical tools to reduce Scope emissions and further solidify their leadership in sustainable infrastructure."

This partnership will be a key step in Verde's mission to turn sustainability into a competitive advantage, while delivering practical, profitable, and environmentally responsible solutions without compromising performance.

"We want to be on the leading edge of sustainable road materials, and the technologies Verde is bringing to the table make that possible," said Larry Tomkins, Senior Vice President of Sales & Marketing at Ergon Asphalt & Emulsions. "This next phase is about accelerating adoption and delivering meaningful change in how roads are built—without sacrificing quality or reliability. We're excited to build on the strong relationship we've developed and look forward to what's ahead with Verde."

With shared momentum and a clear path forward, Verde and Ergon are poised to usher in a new era of modern, low-carbon infrastructure by commercializing a validated technology that aligns sound economics with environmental responsibility at scale.

About Verde Resources Inc.:

Verde Resources Inc. (OTCQB: VRDR) is a leader in sustainable infrastructure, specializing in innovative and cost-effective solutions to help the industry seamlessly #TransitionToZero^™. By integrating proprietary technologies with sustainable practices, Verde is at the forefront of creating low-carbon materials for infrastructure worldwide.

About Ergon Asphalt & Emulsions, Inc.:

Ergon Asphalt & Emulsions, Inc., a subsidiary of Ergon, Inc., is a leading provider of high-performance asphalt products and technologies. With decades of experience, Ergon specializes in delivering advanced emulsions, polymer modified asphalts, and other solutions that enhance pavement performance and sustainability. Through its state-of-the-art facilities and dedicated technical expertise, Ergon is committed to driving innovation in the asphalt industry.

This press release includes forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially. While Verde believes these statements are based on reasonable assumptions, they rely on current information and inherently uncertain future projections. Additional risks and uncertainties are outlined in Verde's SEC filings, which may further impact actual outcomes in this press release.

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SOURCE Verde Resources Inc.

FAQ

What is the significance of Verde Resources' MOU with Ergon Asphalt & Emulsions?

The MOU advances their partnership to commercialize low-carbon road materials, with plans for an exclusive U.S. market agreement and technology validation at Ergon's Paragon testing lab.

How much does Verde's technology reduce greenhouse gas emissions in asphalt production?

Verde's proprietary emulsifying agent reduces greenhouse gas emissions by at least 20% compared to conventional binders in asphalt production.

What makes Verde Resources' (VRDR) asphalt technology innovative?

Verde's technology uses a proprietary emulsifying agent that enables low-temperature production, integrates biochar for carbon sequestration, and creates a high-performance Biochar-Asphalt surface course.

When did Verde Resources achieve its Carbon Removal Credits milestone?

In April 2025, Verde became the first company to generate Carbon Removal Credits from asphalt production and installation, based on their NCAT proof-of-concept project.

What is the current status of Verde Resources' partnership with Ergon?

The companies have signed an MOU and are working to finalize commercial terms for an exclusive U.S. market agreement while validating Verde's technology at Ergon's Paragon testing lab.