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FERRUM CRESCENT LIMITED - Extension of timetable for completion of BFS Phase 1

Release Date: 14/01/2016 09:00
Code(s): FCR     PDF:  
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Extension of timetable for completion of BFS Phase 1

FERRUM CRESCENT 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
Australian ISIN: AU000000WRL8
South African ISIN: AU000000FCR2


14 January 2016

                                    Ferrum Crescent Limited
        ("Ferrum Crescent", the "Company" or the "Group")(ASX: FCR, AIM: FCR, JSE: FCR)

          Extension of Timetable for Completion of Moonlight Project’s BFS Phase 1

Ferrum Crescent, the ASX, AIM and JSE quoted mining developer announces that further to the
previously announced farm-in and joint venture agreement (the “Agreement”), it has agreed with
Business Venture Investments No. 1709 (Proprietary) Limited (“BVI”) to extend the timetable for
completion of Phase I of the bankable feasibility study (“BFS”) for the Moonlight Iron Project in
Limpopo Province, northern South Africa (the “Project”) by three months to 12 January 2017. This
extension, in order to finalise the appointment of an internationally reputable engineering firm to
manage the BFS, follows a request from BVI, which remains committed and responsible for fully
funding and completing the requisite BFS workstreams, across two phases, to earn up to a 43%
equity interest in the Project’s holding company in accordance with the terms of the Agreement,
details of which were announced by the Company on 14 October 2015.

The Company has also sought and received, via its Managing Director, Mr Tom Revy, assurances
from Ovation Capital, BVI’s investment management house backer and sister company, that BVI will
be proceeding with the BFS for the Project as soon as practicable.

The Company will keep the market informed of material developments going forward as appropriate.

For further information on the Company, please visit www.ferrumcrescent.com or contact:


 Australia enquiries:                          UK enquiries:
 Ferrum Crescent Limited                       Ferrum Crescent Limited
 Tom Revy T: +61 8 9474 2995                   Laurence Read (UK representative)
 Managing Director                             T: +44 7557672432
                                               Strand Hanson Limited (Nominated Adviser)
                                               Rory Murphy/Matthew Chandler
                                               T: +44 20 7409 3494
                                               Beaufort Securities Limited (Broker)
                                               Jon Bellis/Elliot Hance
                                               T: +44 20 7382 300

 South Africa enquiries:                       Bravura Capital (Pty) Ltd (JSE Sponsor)
                                               Doné Hattingh
                                               T (direct): +27 11 459 5037


Notes to Editors:
Ferrum Crescent’s principal project is the Moonlight Iron Project located in Limpopo Province in the
north of South Africa. The Moonlight Deposit (upon which the Project is based) is a magnetite deposit
located on the Moonlight, Gouda Fontein and Julietta farms and is the main operational focus for the
Company. Iscor Limited (“Iscor”), which explored the Project in the 1980s and '90s, reported
mineralisation capable of producing a concentrate grading at 68.7% iron. At that time, Iscor concluded
that the deposit, which was described as being comparable to the world’s best, was easily mineable
due to its low waste-to-ore ratio. The beneficiation attributes of Moonlight ore are extremely
impressive, with low-intensity magnetic separation considered suitable for optimum concentration.

Metallurgical tests on Moonlight material, undertaken since then by Ferrum Crescent, suggest that
Iscor’s historical results are conservative, that good metal recoveries can be achieved, and that the
resulting concentrates have a high iron content and only negligible impurities, at grind sizes
considered to be industry standard (P80 of 75 - 125 microns).

Key features of the Project to date are:

    - JORC (2012) compliant Mineral Resource;

    - Historical drilling, drilling by the Group, geological modelling and a high density geophysical
      survey conducted by the Company in 2012 confirm tonnage upside potential;

    - 30 year Mining Right granted;

    - Environmental licence (EIA) in place for the Moonlight mining area (approved 4 April 2013);

    - Metallurgical test work indicates the potential for high quality concentrate and/or pellets in
      excess of 69% iron with low deleterious elements (DR grade pellets for use in direct reduction
      iron/electric arc steel-making processes);

    - The quality of product that can potentially be produced at Moonlight is a clear differentiator
      against its industry peers, as is the access to infrastructure (port, power and rail);

    - Duferco offtake partner (4.5 Mtpa plus first right over a further 1.5 Mtpa if not sold
      domestically);

    - South Africa currently has a growing demand for high grade iron concentrate and/or pellets
      for its steel industry;

    - Independent valuation by The Mineral Corporation completed in June 2014;

    - BEE compliant South African investment company (BVI) will provide a completed BFS to the
      Group by 2018/19 at no expense to the Group in return for a 39-43% equity position in the
      Project;

    - Located near Kumba railhead at Thabazimbi (Kumba operation depleting in grade), Limpopo
      Province, northern South Africa;

    - New Eskom power plant (4,800MW) commissioning first 800MW module;

    - Richards Bay port expansion for potential export of future iron ore products; and

    - Local community, Ga-Seleka, has an effective 3% carried interest in the Project.

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