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FERRUM CRESCENT LIMITED - Commencement of Toral Lead-Zinc Exploration Project Work Programme

Release Date: 10/11/2016 09:37
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Commencement of Toral Lead-Zinc Exploration Project Work Programme

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


10 November 2016
                                  Ferrum Crescent Limited
             (“Ferrum Crescent”, the “Company” or the “Group”)(ASX, AIM, JSE: FCR)

       Commencement of Toral Lead-Zinc Exploration Project Work Programme

Ferrum Crescent, the ASX, AIM and JSE quoted metals project developer, announces that further
to its acquisition on 23 September 2016 of GoldQuest Iberica, S.L. (“GoldQuest”), which owns
100% of the Toral lead-zinc exploration project located in the province of León in Spain (“Toral
Project”), it has now commenced a simple, cost-effective and highly-focussed work programme.
This programme includes re-interpretation of significant foreign and historic geological and
exploration data available in respect of the Toral Project, including data contained in a NI 43-101
Technical Report prepared by Micon International Co. Limited in respect of the Toral Project on 14
April 2011 and amended on 30 April 2012 (the “NI 43-101 Report”).

In the period since completion of the acquisition, the Company has had the opportunity to further
consider the NI 43-101 Report and has further developed and refined its planned work programme
for 2016 and 2017. The 2016/2017 work programme includes:
-   structured reinterpretation and analysis of the original foreign and historic geological and
    exploration data;
-   re-mapping of the main Toral Project area applying re-interpreted geological understanding of
    the regional controls on mineralisation;
-   in-fill surveys over the main prospect area where detailed soil geochemistry has not previously
    been conducted and extensions of the grid where the fringes of the existing survey data
    continued to display anomalous values;
-   structural mapping of the existing adits, outcrop and the nearby mineralisation occurrences in
    order to gauge the balance between local (not fully tested) and regional (well documented)
    controls on mineralisation;
-   re-logging of historical drill-core and re-assaying of areas where incomplete assays were taken
    previously in order to seek to identify potential new shallow high grade targets;
-   creation of a revised geological model incorporating existing and new geological data
    (geochemistry, structural interpretation, assays, logs, maps); and
-   generation of a highly targeted drill plan, focused on high-grade near-surface ore shoots linking
    known surface occurrences and known high-grade mineralisation at depth, for testing in 2017.
    The drill plan design will also test:
           -     a number of cross-cutting and intersecting fault zones that are apparent in geological
                 maps and geochemical surveys; and

           -     the main mineralised zone for the possibility of structural repetition and the potential for
                 multiple sub-parallel zones of mineralisation.

The work programme is being undertaken by the Company with a view to defining the economic
and geological characteristics of the project including the definition of a JORC compliant resource
estimate in respect of the Toral Project.

Justin Tooth, Executive Chairman of Ferrum Crescent, commented:
“The Toral Project represents an exciting low-cost acquisition in a mining-friendly jurisdiction which
has the potential to become a significant asset for Ferrum Crescent and I look forward to updating
the market in due course on the progress of our work programme.”

Additional information on the Toral Project
The Toral Project has been extensively explored by its previous owners Portex Minerals Inc. and
Lundin Mining S.L. and the 2,024ha of mineral right contains extensive zinc mineralisation. Located in
north-west Spain, approximately 400km north-west of Madrid, the project’s licence area hosts road,
rail and power infrastructure and is situated in a known historic mining jurisdiction.

Foreign Estimate of Mineral Resources
As noted above, there is an existing NI 43-101 Report that has been prepared in respect of the Toral
Project which estimated that the project has a NI 43-101 compliant Inferred and Indicated foreign
resource estimate of 8.71Mt at an economic cut-off grade of 7% Pb + Zn (the “Foreign Estimate”,
please refer to Table 1).

Micon International Co. Limited was commissioned by GoldQuest Mining Corporation on 14 April
2011 to prepare an independent Technical Report on the Toral Project suitable for reporting purposes
under the standards of Canada’s National Instrument 43-101. The Technical Report was reissued at
the request of Portex Minerals Inc. on 30 April 2012. The Foreign Estimate was prepared in
compliance with the Canadian Institute of Mining, Metallurgy, and Petroleum Standards on Mineral
Resources and Reserves (“CIM Standards”) and utilised data from diamond drilling completed by
Lundin Mining S.L. in 2007 and 2008, and assay data from older Peñarroya/Adaro diamond drill
holes. Surpac mining software was used for mineral resources modelling. Mineral resources were
reported based upon their potential for economic extraction.
   
Table 1: Foreign Estimate of Mineral Resources as at 1 February 2011, Cut-Off Grade of 7% Pb + Zn
                                 (NI 43-101 Mineral Resources Estimate)

                              Indicated                                                           Inferred
 Mt             Pb         Zn       Cu      Ag      (Pb + Zn)          Mt        Pb           Zn       Cu      Ag       (Pb + Zn)
               (%)        (%)       (%)    (g/t)       (%)                       (%)         (%)       (%)    (g/t)        (%)
4.04       5.30           6.50     0.11     41         11.8        4.67          4.44       5.40      0.14     32           9.8
                              Indicated                                                           Inferred
  Pb (t)             Zn (t)      Cu (t)   Ag (t)    (Pb + Zn)           Pb (t)           Zn t)      Cu (t)   Ag (t)     (Pb + Zn)
                                                        (t)                                                                 (t)
214,416          262,562         4,285    165        476,978           207,316          252,348     6,447     149        459,664

Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101 Technical Report prepared by Micon International Co Limited,
30 April 2012


The mineral resources presented in Table 1 above are not mineral reserves as they have not been
subject to adequate economic studies to demonstrate their economic viability.


Pursuant to the requirements of ASX Listing Rule 5.12.9, Ferrum Crescent provides the
following cautionary statement:
The Foreign Estimate of mineralisation reported by Micon International Co. Limited and included in
this announcement is not compliant with the Australasian Code for Reporting of Exploration Results,
Mineral Resources and Ore Reserves (2012 JORC Code) and is a ‘Foreign Estimate’ for the
purposes of the ASX Listing Rules.

A Competent Person (as defined under the ASX Listing Rules) has not yet carried out sufficient
work to classify the Foreign Estimate as a Mineral Resource or Ore Reserve in accordance with
the 2012 JORC Code and it is uncertain that following evaluation and/or further exploration work
that the Foreign Estimate will be able to be reported as mineral resources in accordance with the
2012 JORC Code.

Please refer to the information provided in Appendix A to this announcement in accordance with
ASX Listing Rule 5.12.


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

Ferrum Crescent Limited
Justin Tooth, Executive Chairman
Grant Button, Director and Company Secretary                         T: +61 8 9474 2995

UK enquiries:
Laurence Read (UK representative)                                    T: +44 7557 672 432

Strand Hanson Limited (Nominated Adviser)
Rory Murphy/Matthew Chandler                                         T: +44 (0)20 7409 3494

Beaufort Securities Limited (Broker)
Elliot Hance                                                         T: +44 (0)20 7382 8300

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

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 (‘MAR’).


Extract: NI 43-101 Technical Report in respect of the Toral Project
The following information has been selectively extracted from the NI 43-101 Technical Report prepared in respect of the
Toral Project to enable an understanding of the reliability of the Foreign Estimate set out above.
1. Description of the Project
   The Toral zinc-lead-silver permit is located near Ponferrada in the west of the province of León, Autonomous Community
   of Castile and León, Spain approximately 400 km northwest of Madrid.
                                       
Location of the Toral Zinc-Lead-Silver Permit Area
Please refer to www.ferrumcrescent.com/ for graph


2.   Historic Work
         -   Between 1975 and 1985, the Adaro/Peñarroya joint venture carried out exploration on the four separate
             licences which now correspond, approximately, to the Toral permit area. Over a period of nine years, a
             topographical survey, geological mapping, a hydrogeological study and more than 40,000m of diamond drilling
             (62 holes and 41 wedges) were carried out.
         -   Lundin Mining S.L. (Lundin) acquired the Toral investigation permit no. 15.199 in 2007 and commenced
             exploration in April 2007. Lundin compiled the information collected by the previous licence holders including:
                 o a review of the available geological maps, plans, sections and assays;
                 o surveying old workings, old drill pads, and drill hole locations; and,
                 o a study of the existing Peñarroya/Adaro drill holes, description, photography.
             In addition, samples of drill core were sent to ALS Chemex in Canada in order to validate the reliability of the
             existing assays and exploration information was digitised. The results of Lundin’s preliminary work confirmed
             the mineral potential of the Toral area. However, it was apparent that the continuity and the thickness of the
             mineralisation were insufficiently detailed.
             Consequently, an exploration programme was designed to add information to the data set for a better
             understanding of the deposit. In 2007 to 2009, seven diamond holes for a total of 4,523.7m were drilled for the
             purpose of confirming the continuity of the mineralisation in the San Jose area of the Toral permit and also to
             test the possibility of an extension of the mineralisation in depth (see section 6 below).

         -   GoldQuest acquired Lundin, including the Toral permit, in January 2010. During 2011 and 2012, GoldQuest
             conducted systematic geological mapping and soil sampling.


3.   Geology
     The Toral permit is located in the West Asturian Leonese Zone (WALZ), one of the tectonostratigraphic units in
     the Variscan (or Hercynian) Orogen of the north-western portion of the Iberian Peninsula. Within the WALZ, the
     permit area is located in the domain of the Mondoñedo Mantle.
     The most significant mineralisation is found in the upper carbonate layers of the Vegadeo Formation, at the
     contact between the Vegadeo Formation and the younger Los Cabos Series. The mineralisation comprises
     sulphides interbedded in limestones and dolomites, within a silicified facies, and in chloritic breccias. The
     mineralisation is epigenetic and formed during a metamorphic episode within the Hercynian Orogeny. The
     sulphide mineral assemblage comprises sphalerite, galena, pyrite and chalcopyrite.
     The Toral deposit is steeply-dipping and has a sheet-like structure. Zinc and lead occur in coarse-grained
     sulphide minerals although the pyrite content is relatively low.
4.   Mineralisation
     The stratabound mineralisation of the Upper Vegadeo Formation (the Middle and Upper Members) occurs along
     the contact between the massive limestone and the overlying shale and minor sandstone of the Cabos Series.
     Although three types of mineralisation have been identified (Tornos et al., 1996), “silica”, “carbonate” and
     “chloritic breccias”, the silica type, associated with silicification, is volumetrically more important.
     The upper contact of the Vegadeo Formation with the overlying Los Cabos Series at Toral is marked by
     discontinuous zinc-lead sulphide mineralisation. The main metallic minerals are sphalerite, galena, pyrite and
     chalcopyrite. Gangue minerals consist of quartz, calcite, dolomite, muscovite and chlorite. Chemical analyses
     show that this area is characterised by high concentration of zinc, lead and silver and low concentrations of
     copper and gold.
     The sulphide minerals occur in a variety of settings:
         -   as clots within silicified limestone;
         -   lining drusy quartz cavities in silicified limestone/dolomite;
         -   cements within brittle breccias; and,
         -   along stylolites in milky quartz veins.
     The first two types of occurrence are interpreted as original (diagenetic), whereas the brittle breccias and
     tylolites are later. Stylolites are typical of low grade metamorphism and commonly contain accumulations of
     graphitic material.
     Upper Member Mineralisation
     This type of mineralisation is spread over a strike length of more than 40km in the Vegadeo Formation and
     occurs on both flanks of the Caurel-Toral anticline and related fold structures (Tornos et al., 1996). Its common
     stratigraphic position is within the upper metres of the dolomitised layers of the middle and Upper Members of
     the Vegadeo limestone units. Four styles of mineralisation have been identified based on morphology, internal
     structure, the mineralogy or the alteration type of the host rock:
         -     Silica mineralisation: replacement of the carbonates by epigenetic silicification, sharp contact between
               the Vegadeo Formation and Los Cabos Series, and abrupt contact, irregular towards the base;
         -     Chloritic breccia: limestone fragments cemented with calcite, chlorite and sulphide minerals, within the
               Vegadeo/Los Cabos units;
         -     Carbonate mineralisation: fragments of shale and carbonate rocks, cemented by carbonate or sulphide
               disseminations with dolomite; and,
         -     Late remobilisation: vein or breccia morphology, superposed on the previous fractures or associated
               with discordant fractures.
     It is suggested that the mineralisation of the Upper Vegadeo Formation, is late-Hercynian, originating from the
     movement of fluids of deep origin mobilised by the compression induced during the Hercynian Orogeny. Fluid
     inclusions are formed by reaction with carbonate aqueous fluid, at a temperature of 200ºC, with low salinity,
     flowing preferentially along the contact between carbonates of the Vegadeo Formation and pelite of the Los
     Cabos Series. Sulphur isotope analysis suggests a predominant source of mineralisation in the limestones. The
     imbalance of the fluids with the carbonates leads to a replacement with silica and precipitation of sulphides.
     Carbonate mineralisation represents an intermediate stage of this process, while the chloritic breccia could be
     related to the generation of overpressure zones during the latter stages of the Hercynian Orogeny.
     The diagenetic mineralisation of the Lower Member of the Vegadeo Formation pre-dates the Hercynian
     mineralisation. Pelitic rocks may have been the source of zinc and lead.

5.   Deposit Types
     The Vegadeo Formation hosts abundant zinc-lead mineralisation. The principal zone of mineralisation occurs in
     the Upper Member as stratabound deposits and discordant replacement associated with pervasive epigenetic
     silicification and minor hydrothermal breccias. Mineralisation is interpreted to have formed by reaction of the
     host carbonates with low salinity fluids circulating along major lithological contacts or extensional faults.
     Mineralisation in the Upper Member is associated with the contact between the Vegadeo limestone and the
     lowest units of the Los Cabos Series. In general, it appears that the earliest mineralisation phase is relatively
     enriched with sphalerite, while the galena and chalcopyrite characterise the later phases. The associated
     silicification occurs along stratification and lamination planes, or in favour of fractures. A dolomitisation process
     also appears to have accompanied the silicification. Minor stratiform showings occur in the sub-tidal limestones
     of the Lower Member and are interpreted to be related to diagenetic processes for which the sulphur was
     provided from the reduction of interbedded sulphates. The genesis is similar to the Mississippi Valley-Type
     (MVT).
     While, generally, the carbonate-hosted zinc-lead deposits of the WALZ share some of the characteristics of
     Mississippi Valley-Type (MVT) deposits, they differ from the majority in being situated within an orogenic belt
     (Tornos et al., 1996) and, also, in having characteristics associated with sedimentary exhalative (SEDEX)
     deposits.

6.   2010/2011 Exploration
     During 2010 and 2011, GoldQuest conducted systematic geological mapping and soil sampling in two separate
     zones across the permit area, Zone 1 and Zone 2. The latest geological map produced by GoldQuest is displayed in
     Figure 1.

     Zone 1 of Toral was investigated with a geochemistry grid of 100m by 25m on 17 lines. For Zone 2 a grid of 200m
     by 25m on 14 lines was used, with an additional grid of 100m by 25m of 8 lines along the anomalous zones in the
     area of the MF1 fault zone. The total number of soil and rock samples collected was 2,686. The soil samples were
     analysed by ALS-Chemex by ICP-41 for 35 elements including Pb, Zn, Cu, Ag, Hg, As, Cd, Ba, Co, S, Ca, Fe, Mg
     and Mn.
     
     There is a secondary anomaly parallel to the main anomaly, located higher in elevation. This secondary anomaly is
     related to a reverse fault, which appeared in the old surface drill holes of the 1970´s, and warrants further study. The
     geological mapping identified the reverse fault as a thrust, which could be responsible for the repetition of the
     mineralised horizon (for example in lines 18 and 19 in Zone 2). The shear zone (S-1) shifts the mineralised horizon
     that appears at surface (lines 5 and 6) and in outcrops between lines 1 and 4.
     
     The other faults oriented N60E (SJF, SJF2 and SJF3), which cut the shear zone (S-1) and the mineralised zone,
     delimit the area where the major anomaly is widest, both for soil and rock samples, and for all major elements
     analysed. The distance between these faults is 550m. The rest of the anomalies are related to faults and tectonic
     contacts. Notably an additional anomalous area was discovered in Zone 2 where line 24 intersects with fault SJF5
     (Figure 1, Figure 2 (Map B) and Figure 3 (Map B)).

7.   Drilling
     During 2007 and 2008 Lundin undertook a drilling programme at Toral. Seven holes were drilled by Lundin to
     confirm the continuity of the mineralisation in the San Jose area and also to test the possibility of an extension of the
     mineralisation at depth.
     The samples were prepared in a Lundin laboratory in Sweden and were then sent to the ALS Chemex laboratory in
     Vancouver, Canada for analysis. The samples were analysed for 47 elements by ICP, including Pb, Zn, Cu and Ag.
     The laboratory is ISO17025 compliant.
     The programme was designed to confirm the widths and grades of mineralisation in the previously compiled
     database and to obtain confirmatory data to allow the preparation of a CIM Standards-compliant mineral resource
     estimate.
     The sulphide zones returned zinc and lead mineralisation as anticipated and appear to be consistent with the grade
     indicated by the historic drilling. The significant intersections are summarised in Table 2. There were insufficient
     holes or data to draw firm conclusions as to the validity of the historic drilling and no holes were twinned. However,
     the grades and thicknesses reported are consistent with those anticipated from the historic data. The Lundin drilling
     also demonstrated that the deposit extends to depth.
                             
Table 2: Visual Mineralised Intervals from 2007 to 2008 Drilling
                  Visual Mineralised
                                                             Mineralisation
                       Interval
                                                                                                      Mineralised Interval
      Hole ID                                           True Thickness
                                         Thickness                                                       Description
                  From         To                          Estimate           Zn (%)    Pb (%)
                                            (m)
                                                              (m)
        TOR                                                                                         Gray limestone, sphalerite
                  711.6       713.3          0.5               0.1            13.95      6.64
        7001                                                                                                and galena

        TOR       485.3       487.8          1.25              0.68            1.00      0.88       Gray silicified limestone,


        7002                                                                                             galena sphalerite, pyrite
                                                                                                           Silicified limestone,
        TOR
                    370        372.1           1.62               1.43           1.60        1.18        sphalerite and galena in
        7003
                                                                                                                quartz vein

                                                                                                        Gray limestone, sphalerite
                  410.25      411.25           0.77               0.51           4.84        0.48
                                                                                                                and galena
        TOR
        7004                                                                                            Silicified limestone, galena,
                  425.25      427.55           2.23               1.46           5.19        4.95       sphalerite and chalcopyrite
                                                                                                                     traces
        TOR                                                                                                 Silicified limestone,
                   391.4       395.9           0.87               0.83           8.29        6.12
        7005                                                                                               sphalerite and galena
                                               0.82               0.50           4.00        0.59          Light gray and white
        TOR
                   924.4      929.05                                                                     dolomite, sphalerite and
        7006                                   0.87               0.54            3.4        1.57        galena Dolomitic breccia
     
     Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101 Technical Report prepared by Micon International Co
     Limited, 30 April 2012
     
     From the analysis of the information obtained during this campaign, and comparison with the previous data in
     sections and in three dimensions; as well as the comparison with other sites, principally the Antonina and Rubiales
     mines, it was concluded that the mineralisation is structurally controlled. Although the contact between Los Cabos
     Series and Vegadeo Formation is always more or less mineralised, the major concentrations occur in areas
     between the faults of the “Sil” and “San Jose” types.

8.   Sample Preparation and Analysis
     Peñarroya/Adaro Exploration Work
     During the 1975-1985 exploration campaigns, the samples were analysed by Peñarroya. Since Lundin did not
     have complete information on the sample preparation and analysis of the exploration samples, and because
     some of the assay data were missing, the majority of the Peñarroya/Adaro core samples stored in the IGME
     facility in Cordoba have been sent in 2006 to Chemex laboratory in Canada for multi-elements analysis.
     Lundin Exploration Work
     During the 2007 campaign, the selected samples were processed in Villalba, Provincia de Lugo, where the
     mining and metallurgical company Outokumpu operated a sample preparation facility.
     The half-core was sampled and crushed to 0.35 cm using a jaw crusher. If the sample was wet, it was oven-
     dried for two hours. The sample was crushed again to a size of 0.15 cm, using a cylinder crusher. A maximum
     of 2 kg of the crushed sample was then reduced to 400 microns in a vibration mill. A 100-g sample was sent for
     analysis.
     The prepared samples were sent to ALS Minerals, ALS Chemex Canada Ltd. laboratory in Vancouver, Canada
     for analysis. The samples were analysed for 47 elements by ICP, including Pb, Zn, Cu and Ag.
     The ALS Minerals, ALS Canada Ltd. laboratory is independent of GoldQuest and Portex, and is ISO17025
     compliant.
     It is Micon’s opinion that the sample preparation procedures and analytical procedures used by GoldQuest are
     appropriate for assessing the mineralisation of the Toral deposit.

9.   Data Verification
     Drilling and Analysis Procedure Verification
     A site visit was made to the project by Stanley C. Bartlett, M.Sc., PGeo. in June 2010. During the site visit Micon
     inspected outcrops, the soil sampling grid, some old adits and a number of drilling sites. Micon reviewed all aspects
     geological mapping and soil and rock chip sampling with the local geologists responsible for the work. No drilling
     was underway at the time of its site visit and, therefore, Micon was unable to observe drilling procedures whilst on-
     site.

     At the facilities of Sondeos y Perforaciones Industriales del Bierzo, S. A., located at San Román de Bembibre,
     where the drill core is stored, drill core was reviewed and logging and sampling methods were discussed with
     geologists and technicians responsible for the work. Micon’s examination of the core indicates that it has been
     stored appropriately with basic procedures for box identification and core marking correctly observed.

     Following the 2010 site visit, a programme of further exploration was agreed. The work included additional
     geological mapping and interpretation of the geology, particularly focusing on the structural interpretation. Micon
     communicated with GoldQuest geologists prior to the commencement of the work and at the conclusion of the work
     and reviewed GoldQuest’s interpretation of the data. Micon accepted the GoldQuest data and incorporated it into
     the mineral resource estimate. GoldQuest also provided Micon with copies of assay certificates for the 2006 re-
     assay of the Peñarroya/Adaro cores and for the 2007 to 2008 assays on core drilled by Lundin.

     Micon concluded that all aspects of the exploration activities and data collection were to a high standard with one
     exception: the lack of independent certified standards for assay quality control.
     Verification of the Peñarroya/Adaro core analysis
     The pulp rejects of mineralised Peñarroya/Adaro core samples stored at the IGME facility in Cordoba were sent by
     Lundin in 2006 to the ALS Chemex laboratory in Vancouver, Canada, for multi-element analysis.

     The GoldQuest database contains assay results for a total of 806 samples: 742 Peñarroya/Adaro samples and 64
     Lundin samples. Among these are 112 samples which were not re-assayed by Lundin and all but three have been
     retained in the assay database. Out of these 109 samples with old assays, 80 have a Ag assay, 108 have a Zn
     assay, 108 have a Pb assay and 30 have a Cu assay.

     In order to validate the 109 old samples that remain in the assay database but which were not re-assayed by
     Lundin, a comparison of the historical and verification assay results for Zn, Pb, Ag and Cu has been undertaken by
     Micon. These 109 samples represent 13.6% of the assay database [109/(806-3)=13.57]. A total of 113 samples
     have been compared for Cu, 415 for Zn, 422 for Pb and 210 for Ag. These samples cover the grade range of the
     109 samples for these elements. The statistics on the data are summarised in Table 3.

                          Table 3: Statistics of the Peñarroya/Adaro Assay and ALX Chemex Re-assay for Zn, Pb, CU and Ag

                                    Grade (% Zn)                Grade (% Pb)                      Grade (% Cu)               Grade (% Ag)
Parameter                       Historical                   Historical                      Historical                   Historical
                                                   Chemex                      Chemex                           Chemex                    Chemex
                               Laboratory                   Laboratory                      Laboratory                   Laboratory

Mean                              2.11               1.99      1.84               1.71           0.126           0.122     24.20           22.90
Standard Deviation                4.51               4.18      4.25               3.95           0.31            0.30      38.00           37.00

Correlation Coefficient                    0.97                         0.98                             0.99                      0.92
Number of Samples                          415                          422                              113                       210
            Positive
                                     188 (45.3%)                  167 (39.6%)                      43 (38.1%)                 62 (29.5%)
            variance
No. of
            Negative
Pairs*                               209 (50.4%)                  238 (56.4%)                      57 (50.4%)                 107 (51.0%)
            variance
            No variance                 18 (4.3%)                     17 (4.0%)                    13 (11.5%)                 41 (19.5%)
Bias**                           2.8%                          3.6%                              1.8%                       2.7%

*Positive variance: number of pairs with Chemex laboratory assay higher than Peñarroya laboratory assay; negative variance: number of
pairs with Chemex laboratory assay lower than Peñarroya laboratory assay; no variance: number of pairs with identical assays for the two
laboratories**Bias of Peñarroya Laboratory against the average of the two laboratories

Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101 Technical Report prepared by Micon International Co Limited, 30
April 2012

                                     Table 4: Repartition of the Samples in Error Categories

                                                                           Error Category
                                         Element
                                                            < 10%         < 20%          < 50%      > 50%
                                                   < 0.1    20%           35%            76%            24%

                                Pb (%)            >= 0.1    71%           85%            92%             8%
                                                    All     53%           67%            86%            14%
                                                   < 0.1    24%           38%            65%            35%

                                Zn (%)            >= 0.1    69%           85%            93%             7%
                                                    All     52%           67%            83%            17%

                                                  < 0.03    20%           24%            62%            38%
                                Cu (%)            >= 0.03   70%           92%            97%             3%
                                                    All     36%           46%            73%            27%
                                                    <5      41%           41%            51%            31%
                                Ag (g/t)
                                                    >= 5    38%           61%            82%            18%

                                          All          39%         54%         72%         22%
                                       < cut-off       26%         35%         64%         32%
                          All
                                      >= cut-off       62%         80%         91%          9%
                       Elements
                                          All          45%         59%         79%         20%

                       Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101
                       Technical Report prepared by Micon International Co Limited, 30 April 2012


    Correlation plots were generated to assess the correlation between the original assay and the repeat assay result.
    The analysis shows that there is a slight positive bias between the historical assays and the average of the two sets
    of results. As the bias is very low (between and 1.8% and 3.6%), and the proportion of positive and negative pairs is
    not strongly out of balance, Micon considers this bias to be insignificant. There is a good correlation between the
    sets of data for the four elements, as shown by high correlation coefficients between 0.92 and 0.99. For all
    elements, only 59% of the pairs have a difference that is less than 20% of the original value. As would be expected,
    the higher relative differences between assays are found in low grade samples since the precision of analysis is
    generally lower as it approaches the detection limit. Of the samples with original assays greater than the selected
    cut-off grades (0.1% Pb, 0.1% Zn, 0.03 Cu and 5 g/t Ag), the proportion of pairs with a difference that is less than
    20% reaches 80%. Most of the samples fall within the acceptable error range of 20%.
    Micon has concluded that the results of the comparison between historical assays and reassays are satisfactory
    and, therefore, the 109 historical samples that have not been reassayed can be used in the database for mineral
    resource estimation.

10. Mineral Resources Estimate
    The Toral mineral resource estimate was prepared in compliance with the CIM Standards. The mineral resource
    estimate utilised assay data from diamond drilling completed by Lundin in 2007-2008, and mainly assay data
    from older Peñarroya/Adaro diamond drill holes. Surpac mining software was used for mineral resource
    modelling.
    Database
    The database used to estimate the mineral resources of the Toral deposit contains 86 diamond drilling holes,
    including 79 holes (45,951.0m) drilled by Peñarroya/Adaro and 7 holes (9,727.60m) drilled by Lundin, and 23
    trenches (560m). The database contains geological logging for the trenches but no assay information.
    Specific Gravity
    The average specific gravity used for resource calculation is 3.0 g/cm3.
    Mineralised Wireframes
    GoldQuest geological model of Zone 1 of the Toral deposit (sections III to XVIII) was sent to Micon in January
    2011, including a model of the mineralisation and some of the faults used in the interpretation of the
    mineralisation, built in Recmin software.
    GoldQuest’s interpretation is based on geological mapping achieved by Peñarroya/Adaro and GoldQuest and
    on the Peñarroya/Adaro and Lundin drill holes. The interpretation work continued in 2011 for the areas around
    Zones 1 and 2.
    The model of the mineralisation sent by GoldQuest was not a valid triangulation file (it contained an important
    number of self-intersection triangles) and did not include the samples, as the sections were not snapped on the
    drill holes.
    Micon created a three-dimensional wireframe solid model for the mineralised zone, following the interpretation
    and the parameters of GoldQuest (cut-off grade of 1 % [Pb/2+Zn] and a minimum vein width of 1m) but
    including the mineralised intervals and extended on both sides of Zone 1 towards west (sections I and II) and
    east (from section XVIII).
    The frequency distributions of lead, zinc, copper and silver sample populations were examined to identify the
    presence of extreme high-grade outlier populations. Outlier values may result from sampling errors and can
    exert an undue influence during block grade interpolation. They can result in over-estimation of block grades
    and lead to poor reconciliation of expected and actual metal production. The methodology employed for
    establishing the outlier limit was to examine the distribution of the sample population.
    The selection of outlier values was based on the deviation of the grade distribution from a straight line in the
    probability plot. There were no outliers identified by Micon for lead, zinc and copper. Based on the plot and the
    above analyses, Micon identified silver samples above 200 g/t Ag, as outliers. There are four silver assays
    greater than the specified outlier values. Those grades were reduced to the respective top-cutting value in the
    assay database.
    Within the wireframes, the sample length is variable with a minimum of 0.1m and a maximum of 2.9m.
    Considering the distribution of the sample length, Micon decided to composite all samples to 1m.

    The composites were made using a best-fit algorithm that allowed the composite length to be varied within a
    given tolerance of 0.2m, in order to minimise the loss of data but maintain a consistent composite length. The
    total length of the raw samples is 291.3m, and the total length of the composite samples is 286m, which
    corresponds to an acceptable loss of 1.8%. The length-weighted average grade of the top-cut samples and the
    average of the composite samples for each element are the same or very close for the samples and the
    composites, which confirms that there is no change in average grade due to compositing.

Toral Block Model
The Toral block model utilised regular-shaped blocks measuring (X) 50m by (Y) 5m by (Z) 50m. This block size
was the most appropriate considering the morphology of the mineralisation and the distribution of sample
information. To better estimate the volume within the mineralisation, a partial percentage within the wireframe
was calculated for each block.

A three pass estimation procedure was used for the interpolation. The first pass used a spherical ellipse with a
100 m radius to provide an accurate local grade estimate for the blocks that are closest to the sample data. A
minimum requirement of 5 informing samples was applied. The second estimation pass used a 200 m radius. A
minimum requirement of 4 informing samples was applied for the second pass. The third estimation pass was
used to estimate a grade for all blocks that did not receive a grade from the first two estimation passes as they
lie too far from the sample data. A large ellipse with a 400m radius was used with a minimum of one informing
sample. For silver since there are fewer informing samples, a larger ellipse of 450m radius was used. A
maximum of 12 informing samples was used for all estimation passes. All blocks were flagged in the block
model according to the passes to be considered separately during classification.

Grade interpolation for lead, zinc, copper and silver was performed using Inverse Distance cubed (ID3).

All the composite samples were declustered to a volume equivalent to the block size of the mineral resource
model. Average composite grades were imported into the block model to allow a direct comparison of
composite grade and estimated grade. This provides insight into the accuracy of local estimates. The scatter
plots show an overall good correlation between the composite sample data and the estimated grade. The high
correlation coefficients of 0.90 for Lead and 0.78 for zinc confirm the good correlation.

Mineral Resources Estimate
Mineral resources were estimated in accordance with the definitions contained in the CIM Standards on Mineral
Resources and Reserves Definitions and Guidelines that were prepared by the CIM Standing Committee on
Reserve Definitions and adopted by the CIM Council on 27 November 2010. Micon classified resource blocks
in the block model based largely upon the drilling density and the distance of the block centre from the nearest
sample data. Resource blocks estimated during the first pass were assigned to the Indicated category and
resource blocks estimated during the second pass were assigned to the Inferred category. The resource blocks
estimated during the third pass were not assigned to any category, because they are located too far from
informing data.
Mineral resources were reported based upon their potential for economic extraction. An economic cut-off grade
of 7 % Pb + Zn was used to define the Foreign Estimate, comprising Foreign Indicated Mineral Resources
estimated at 4.04 Mt at 11.8 Pb + Zn (%) and Foreign Inferred Mineral Resources estimated at 4.67 Mt at 9.8
Pb+ Zn (%) (see Table 1). It was Micon’s opinion that there were no known environmental, permitting, legal,
title, taxation, socio-economic, marketing or political issues exist that would adversely affect the mineral
resources presented above.

FOR ALL FIGURES PLEASE REFER TO www.ferrumcrescent.com/

Figure 1: 2010 Geological Map produced by GoldQuest


                                                 Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101
                                                 Technical Report prepared by Micon International Co Limited, 30 April 2012

Figure 2: Geochemical Map of Zone 1 and 2 Displaying Zinc Isolines - Map A


                                                 Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101
                                                 Technical Report prepared by Micon International Co Limited, 30 April 2012

Figure 2: Geochemical Map of Zone 1 and 2 Displaying Zinc Isolines - Map B




                                                 Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101
                                                 Technical Report prepared by Micon International Co Limited, 30 April 2012


Figure 3: Geochemical Map of Zone 1 and 2 Displaying Lead Isolines - Map A




                                                 Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101
                                                 Technical Report prepared by Micon International Co Limited, 30 April 2012

Figure 3: Geochemical Map of Zone 1 and 2 Displaying Lead Isolines - Map B




                                                 Source: Toral Zinc-Lead Silver Project, Mineral Resource Estimate NI 43-101
                                                 Technical Report prepared by Micon International Co Limited, 30 April 2012


Competent Person’s Statements
The information in this announcement that relates to “exploration results” and “foreign estimates” for the Toral Project is based on information
reviewed by Mr Juki Laurikko. Mr Laurikko is a member of the European Federation of Geologists which is a Recognised Professional Organisation
for the purposes of the 2012 JORC Code. Mr Laurikko has sufficient experience that is relevant to the style of mineralisation and type of deposits
under consideration and to the activity which he is undertaking to qualify as a Competent Person under the ASX Listing Rules and qualified person
under the AIM Rules for Companies. Mr Laurikko is an employee of Ferrum Crescent Limited and consents to the inclusion in this announcement of
the exploration results and “foreign estimates” for the Toral Project in the form and context in which it appears. Mr Laurikko confirms that the
information contained in this announcement that relates to the reporting of foreign exploration results and estimates of mineralisation (including
the information in Appendix A) is an accurate representation of the available data and studies for the Toral Project and confirms that he is not aware
of any new information or data that materially affects the “exploration results” and “foreign estimates” contained in the NI 43-101 Report and that
all material assumptions and technical parameters underpinning the estimates in the NI 43-101 Report.

The Competent Person who prepared the NI 43-101 in respect of the Toral Project was an employee of Micon International Co. Limited who was not
engaged by Ferrum Crescent Limited and, therefore, was not available to Ferrum Crescent Limited to provide a competent person sign-off in respect
of this announcement.

Forward Looking Statements
This announcement contains ‘forward-looking information’ that is based on the Company’s expectations, estimates and projections as of the date
on which the statements were made. This forward-looking information includes, among other things, statements with respect to pre-feasibility and
definitive feasibility studies, the Company’s business strategy, plans, development, objectives, performance, outlook, growth, cash flow,
projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses. Generally, this forward-looking
information can be identified by the use of forward-looking terminology such as ‘outlook’, ‘anticipate’, ‘project’, ‘target’, ‘likely’, ‘anticipate’,
‘believe’, ‘estimate’, ‘expect’, ‘intend’, ‘may’, ‘would’, ‘could’, ‘should’, ‘scheduled’, ‘will’, ‘plan’, ‘forecast’, ‘evolv e’ and similar expressions. Persons
reading this news announcement are cautioned that such statements are only predictions, and that the Company’s actual future results or
performance may be materially different.

Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actua l results,
level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information.
Forward-looking information is developed based on assumptions about such risks, uncertainties and other factors set out herein.

Readers should not place undue reliance on such forward-looking information. The Company disclaims any intent or obligations to update or revise
any forward-looking statements whether as a result of new information, estimates or options, future events or results or otherwise, unless required
to do so by law.
                                APPENDIX A: Foreign Estimate of Mineralisation

Pursuant to ASX Listing Rule 5.12, an entity reporting foreign estimates in relation to a material mining project must
include all relevant information in a market announcement.
The Company’s responses to each of the requirements under ASX Listing Rule 5.12 are as follows:

ASX Listing      ASX Listing Rule Requirement               Company Response
Rule
Reference
5.12.1           The source and date of the historical      The source of the Foreign Estimate is the Toral Zinc-Lead-Silver
                 estimates or foreign estimates.            Project, Mineral Resource Estimate, NI 43-101 Technical Report
                                                            prepared by Micon International Co. Limited (Micon) on behalf of
                                                            GoldQuest Mining Corporation on 14 April 2011 and subsequently
                                                            amended and reissued on behalf of Portex Minerals Inc. on 30 April
                                                            2012 (the Technical Report). The Technical Report was made
                                                            available on SEDAR by both GoldQuest Mining Corporation in 2011
                                                            and Portex Minerals in 2012.
5.12.2           Whether the historical estimates or        Micon prepared the Technical Report in accordance with the
                 foreign estimates use categories of        requirements of Canadian National Instrument (NI) 43-101. This
                 mineralisation other than those            Technical Report and the Foreign Estimate contained therein were
                 defined in Appendix 5A (JORC Code)         prepared for the Toral deposit under the Canadian Institute of
                 and if so, an explanation of the           Mining, Metallurgy and Petroleum Standards on Mineral Resources
                 differences.                               and Reserves (CIM Standards).
                                                            It is the opinion of the Competent Person identified in this release
                                                            there are no material differences in resource classification categories
                                                            between NI 43-101 (including CIM Standards) and the JORC Code.
5.12.3           The relevance and materiality of the       The Foreign Estimate demonstrates the presence of an extensive
                 historical estimates or foreign            body of zinc mineralisation at Toral.
                 estimates to the entity.
                                                            The project is a material mining project for Ferrum Crescent and
                                                            therefore the reporting of the Foreign Estimate is relevant in the
                                                            absence of a current Mineral Resource estimate under the JORC
                                                            Code.
5.12.4           The reliability of the historical          Our review of the sampling methods applied and the assay protocols
                 estimates or foreign estimates,            utilised indicate a systematic approach with acceptable quality
                 including by reference to any of the       control and quality assurance protocols being applied and provide
                 criteria in Table 1 of Appendix 5A (JORC   confidence as to the reliability of the data. Please see sections 6, 7, 8
                 Code) which are relevant to                and 9 of the extract from the Technical Report.
                 understanding the reliability of the
                 historical estimates or foreign
                 estimates.
5.12.5           To the extent known, a summary of the      The three-dimensional geological model is based mainly on the
                 work programmes on which the               historical geological property database compiled by the previous
                 historical estimates or foreign            owners of the Toral property, Peñarroya España S.A (Peñarroya) and
                 estimates are based and a summary of       Empresa Nacional ADARO de Investigaciones Mineras, S.A, (Adaro),
                 the key assumptions, mining and            and which includes more than 40,000m of diamond drilling. In
                 processing parameters and methods          addition, the database includes the results of drilling carried out by
                 used to prepare the historical             Lundin Mining S.L. (Lundin) in the period 2007 to 2008.
                 estimates or foreign estimates.
                                                            Exploration on the property commenced in 1975, on four licences,
                                                            San José, Santa Bárbara, Carmina Segunda and Berciana the area of
                                                            which corresponds approximately to the permit held by Ferrum
                                                            Crescent. As noted above, Adaro and Peñarroya, through a joint
                                                            venture, conducted a 40,000-m exploration drilling campaign over a
                                                            9-year period. A feasibility study was conducted in 1985, but
                                                            unfavourable market conditions stalled the project.
                                                            
                                                            In 2006, Lundin acquired the Toral investigation permit No. 15.199 in
                                                            2007. The permit allowed for exploration for lead, zinc, silver and
                                                            limestone, over a period of three years. On 15 January 2010,
                                                            GoldQuest completed the acquisition of all issued and outstanding
                                                            shares of Lundin, including the Toral property, from its parent
                                                            company Lundin Mining Corporation.
                                                           
                                                            The Foreign Estimate was prepared in compliance with the CIM
                                                            Standards. The Foreign Estimate utilised assay data from diamond
                                                            drilling completed by Lundin in 2007-2008, and mainly assay data
                                                            from older Peñarroya/Adaro diamond drill holes. Surpac mining
                                                            software was used for mineral resource modelling.
                                                   
                                                            The database used to calculate the Foreign Estimate in respect of the
                                                            Toral deposit contains 86 diamond drilling holes, including 79 holes
                                                            (45,951.0m) drilled by Peñarroya/Adaro and 7 holes (9727.60m)
                                                            drilled by Lundin, and 23 trenches (560m). The database contains
                                                            geological logging for the trenches but no assay information. The
                                                            average specific gravity used for resource calculation is 3.0 g/cm3.
                                                   
                                                            Outlier values based on deviation of the grade distribution form a
                                                            straight line in the probability plot were not identified by Micon for
                                                            lead, zinc or copper. However, four silver assays returned statistically
                                                            high values and these have been but to 200g/t Au as outliers. Within
                                                            the wire frames, Micon decided to composite tall samples to 1m.
                                                           
                                                            The Toral block model utilised regular-shaped blocks measuring (X)
                                                            50m by (Y) 5m by (Z) 50m. This block size was the most appropriate
                                                            considering the morphology of the mineralisation and the distribution
                                                            of sample information.

5.12.6    Any more recent estimates or data                 To the best of Ferrum Crescent’s knowledge, no additional recent
          relevant to the reported mineralisation           estimates to the reported mineralisation exist.
          available to the entity.
5.12.7    The evaluation and/or exploration                 Upon acquisition of the Toral Project, Ferrum Crescent was provided
          work that needs to be completed to                with the current Project database. The database is considered to be
          verify the historical estimates or                of sufficient quality to carry out project assessments.
          foreign estimates as mineral resources
                                                            No further exploration work is considered necessary to verify the
          or ore reserves in accordance with
                                                            Foreign Estimate, however Ferrum Crescent intends to undertake
          Appendix 5A (2012 JORC Code).
                                                            evaluation of the existing data and limited structural, geological and
                                                            metallurgical studies prior to preparing any mineral resource estimate
                                                            in respect of the Toral Project in accordance with the 2012 JORC
                                                            Code.
5.12.8    The proposed timing of any evaluation             Ferrum Crescent anticipates completing the evaluation and additional
          and/or exploration work that the entity           exploration work of the Toral Project during 2017.
          intends to undertake and a comment                The work programme will be funded from existing cash resources and
          on how the entity intends to fund that            future equity capital raisings.
          work.
5.12.10   A statement by a named competent                  Please refer to the statement by Mr Juki Laurikko contained in this
          person or persons that the information            release.
          in the market announcement provided
          under rules 5.12.2 to 5.12.7 is an
          accurate representation of the
          available data and studies for the
          material mining project. The statement
          must include the information referred
          to in rule 5.22(b) and (c).

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