FERRUM CRESCENT LIMITED - Ferrum - operational summary for 2012

Ferrum - operational summary for 2012

FERRUM CRESCENT LIMITED

(Previously Washington Resources Limited)

(Incorporated and registered in Australia and registered as
an external company in the Republic of South Africa)

(Registration number A.C.N. 097 532 137)

(External company registration number 2011/116305/10)

Share code on the ASX: FCR

Share code on AIM: FCR

Share code on the JSE: FCR          ISIN: AU000000WRL8

("Ferrum Crescent" or "the company" or "the group")

OPERATIONAL SUMMARY 2012

Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron
ore developer in northern South Africa, today announces an
operational summary of work during 2012 progressing
component parts of the Bankable Feasibility Study (“BFS”)
being carried at out the Company’s Moonlight Iron Ore
Project.



2012 – KEY MILESTONES

- New JORC compliant resource at Moonlight Iron Ore Project
of 307.8 million tonnes @ 26.9% Fe.

- 2,827 line km on 50m line spacing was completed with
Interpretation of the results of a high resolution airborne
magnetic survey at Moonlight.

- Survey enhanced assumptions at existing exploration area
and also identified new prospective areas to the south,
east and west of the Moonlight Deposit.

- Moonlight granted Mining Right with licence covering the
farms Moonlight, Julietta and Gouda Fontein, having met all
criteria under South African law including environmental
and social and labour plans.

- Negotiations with Transnet and other infrastructure
suppliers progressed.

MOONLIGHT PROJECT OVERVIEW

The Moonlight Project is currently undertaking a bankable
feasibility study (“BFS”) in relation to the potential
development of a deliverable, low cost magnetite ore
project that produces a high grade, low contaminant iron
pellet, product following beneficiation. The current
established JORC compliant resource is 307.8 million tonnes
Resource, a magnetite ore with metallurgy that demonstrates
capability for high grade product up to 69.7% Fe grade.
Metallurgical testing phases have also shown that the
product is likely to contain extremely low contaminants-
2.05% SiO2, and 0.40% Al2O3, and 0.01% P.



It is anticipated that Moonlight will be developed as a
contract, open-pit mine with onsite concentrate production.
A slurry concentrate pipeline to pelletising plant near
railhead will be created, with return water to Moonlight
(100 - 220km); current preferred sites are at Lephalale and
Thabazimbi. A pelletising plant to produce iron ore pellets
(68.5% Fe) for international and domestic markets is
planned with production at 6Mtpa DRI and BF pellets. With a
high grade, pure product near existing rail infrastructure
and producing steel mills an offtake agreement for initial
production has already been signed with Duferco. It is
expected that production will be a mix of direct reduction
iron (“DRI”) grade and blast furnace grade iron pellets.

STRATEGIC RATIONALE FOR 2012 WORK PROGRAMME

With extensive exploration already complete at Moonlight,
Ferrum has prioritised increasing economic understanding of
the existing mineralisation in order to provide the data
need to complete a BFS study for development of the project
into near-term production. Focussed work was also
undertaken to examine the expansion potential of Moonlight
outside of existing JORC delineation. With long lead times
often involved in procuring relevant licensing for
development the Company also made it a clear objective to
secure a full, granted, mining licence over all the
Moonlight area.
2013

Ferrum Crescent will continue to progress the Moonlight
Iron Ore Project, with the intention of having a BFS
completed by the end of 2013.

Commenting today Ed Nealon, Chairman, said, “2012 saw the
conclusion of an exploration campaign that established our
JORC resource to higher levels of economic certainty and
also identified additional areas for exploration expansion.
Securing our mining licences over all areas of Moonlight
was a significant milestone achieved during 2012. I look
forward to progressing our infrastructure analysis and
process testing working alongside our initial offtake
partners and other parties interested in the near term
viability of a potentially high grade, low impurity
magnetite iron ore product.”



AUSTRALIA AND COMPANY ENQUIRIES:

Ferrum Crescent Limited

Ed Nealon

Executive Chairman

T: +61 8 9380 9653

Bob Hair

Managing Director

T: +61 414 926 302



UK ENQUIRIES:

Ocean Equities Limited (Broker)

Guy Wilkes

T: +44 (0) 20 7786 4370



RFC Ambrian Limited
(Nominated Adviser)

Richard Morrison

T: +44 (0) 20 3440 6800

Jen Boorer

T: +44 (0) 20 3440 6800



Financial PR

Laurence Read (UK representative)

T: +44 7557672432

SOUTH AFRICA ENQUIRIES:

Sasfin Capital

Leonard Eiser

T: +27 11 809 7500



Johannesburg

19 December 2012



Sponsor

Sasfin Capital (a division of Sasfin Bank Limited)

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