FERRUM CRESCENT LIMITED - Trading update

Trading update

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: AU000000FCR2
(“Ferrum Crescent” or the “Company”)


FINAL INVESTMENT AGREEMENT SIGNED WITH ANVWAR ASIAN INVESTMENT (“AAI “)

 Highlights
     - US$10m for 35% of Moonlight Iron Ore Project Agreed
             - US$28M implied valuation of Ferrum Crescent by AAI
     - US$500,000 to be received immediately and a further US$500,000 to be paid before 30
         April 2014
     - Shares (in subsidiary) allocated but held in trust pending full payment (must be complete
         at conclusion of the Bankable Feasibility Study (“BFS”) or by 31st December 2015 to retain
         interest)
     - Upon receipt of first US$1m Ferrum Crescent to recommence BFS activities

Ferrum Crescent, the ASX, AIM and JSE quoted iron ore developer, today announces that it has
signed a final investment agreement with AAI to progress the BFS at the Moonlight Iron Ore Project
(“Moonlight” or the “Project”) located in the Limpopo Province of South Africa. A total sum of
US$10m will be paid to the Company in return for the granting of a 35% interest in the subsidiary
company holding the Moonlight assets.

The first payment of US$500,000 must be paid to Ferrum Iron Ore (Pty) Limited (“FIO”), the 100%
owner of the Moonlight Project, pursuant to existing approvals from the Reserve Bank of South
Africa as loan funds as soon as practicable, with these funds to be released from AAI’s bank by 24th
March 2014. The second payment of US$500,000 is scheduled for payment to FIO by 30th April 2014.

AAI will hold 35% of the shareholding in FIO (“AAI Shares”). The subscription price for the AAI Shares
will be the South African Rand equivalent of US$10 million (Subscription Price), and the AAI Shares
will be allotted but held in trust pending payment in full of the US$10 million. It is also acknowledged
and agreed that, unless mutually agreed between FIO and AAI, the AAI Shares must be fully paid by
the payment to FIO of the South African Rand equivalent of the Subscription Price by the completion
of the BFS or by 31st December 2015 at the latest.

In the event that the AAI Shares have not been fully paid by 31st December 2015 (or an amended
date, if applicable), then the (partly paid) AAI Shares are to be cancelled in accordance with
applicable legislation, and fully paid FIO shares are to be allotted and issued to AAI, the number of
such shares to be calculated by reference to the percentage of the Subscription Price that has been
paid. By way of example, in the event that 10% of the Subscription Price has been paid by that date,
then the (10% partly paid) AAI Shares would be cancelled and fully paid FIO shares equal to 3.5% of
FIO shares on issue would be allotted and issued to AAI.
Key differences from the original letter of intent is that there is no fixed payment schedule up to 31st
December 2015 cut-off and no fixed expenditure contribution from AAI in addition to the US$10m
payment.

Following receipt of the first 2 payment tranches equating to US$1m the Company will recommence
the BFS under the supervision of recently appointed Managing Director, Tom Revy.

Commenting today Tom Revy said: “I believe the recommencement of the BFS is the first step
towards realising the true value of the Project to Ferrum Crescent investors. The investment by AAI
directly into the Project clearly highlights the undervalued position of the Company.”

Ed Nealon, Chairman, added: “Today’s agreement is the definitive arrangement between the Omani
based AAI group and ourselves. We receive funds upfront with our partners allotting more
investment as the BFS progresses. I now look forward to progressing key elements of the BFS at
Moonlight under the supervision of Tom Revy.”

For more information, please visit www.ferrumcrescent.com or contact:

Australia and Company enquiries:
Ferrum Crescent Limited
Ed Nealon T: +61 8 9380 9653
Executive Chairman

Tom Revy T: +61 8 9380 9653
Managing Director

UK enquiries:
Pareto Securities Ltd (Broker)
Guy Wilkes T: +44 (0) 20 7786 4370

RFC Ambrian Limited (Nominated Adviser)
Sarah Wharry/Stuart Laing
T: +44 (0) 20 3440 6800

Ferrum Crescent Limited
Laurence Read (UK representative)
T: +44 7557672432

South Africa enquiries
Sasfin Capital
Leonard Eiser T: +27 11 809 7500

18 January 2014
Johannesburg

Sponsor
Sasfin Capital (a division of Sasfin Bank Limited)

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