Europa Metals Regulatory News (EUZ)

Australia enquiries:

UK enquiries:

Ferrum Crescent Limited

Tom Revy T: +61 8 9367 5681

Managing Director

Ferrum Crescent Limited

Laurence Read (UK representative)

T: +44 7557672432

RFC Ambrian Limited (Nominated Adviser)

Andrew Thomson/Oliver Morse

T: +61 8 9480 2500

Beaufort Securities (Broker)

Tim Chandler

T: +44 (0)20 7382 8300

South Africa enquiries:

Bravura Capital (Pty) Ltd

Doné HattinghT (direct): +27 11 459 5037

Borehole ID

X

Y

Z

Depth From (m)

Depth To (m)

Intersection Thickness (m)

True Thickness (m) estimate

Zone

Fe Grade%

SiO2

Grade%

Al2O3

Grade%

Borehole EOH (m)

FCL099

79400.262

2571114.846

974.458

95

139

44

41.6

C

36.7

41.7

1.0

144

FCL100

79400.891

2570997.549

974.345

147

156

9

8.5

C

39.7

37.8

2.0

158

FCL101

79478.709

2570882.196

974.516

65

83

18

17.0

D

27.3

46.5

5.4

140

FCL101

79478.709

2570882.196

974.516

88

117

29

27.4

D

34.3

41.2

2.6

140

FCL101

79478.709

2570882.196

974.516

124

132

8

7.6

D

27.2

48.1

4.2

140

FCL102

79527.605

2570800.775

974.396

68

79

11

10.4

D

24.2

46.3

5.9

90

FCL103

79395.469

2570793.083

973.632

102

104

2

1.9

D

28.8

38.3

6.6

114

FCL104

79310.959

2570701.221

972.645

5

7

2

1.9

E

22.4

53.7

7.2

208

FCL104

79310.959

2570701.221

972.645

11

15

4

3.8

E

23.7

54.6

3.9

208

FCL104

79310.959

2570701.221

972.645

143

146

3

2.8

D

26.5

42.4

4.9

208

FCL104

79310.959

2570701.221

972.645

164

175

11

10.4

D

34.3

39.3

2.9

208

FCL104

79310.959

2570701.221

972.645

186

199

13

12.3

D

35.8

42.2

1.6

208

FCL105

79405.672

2570695.276

973.082

122

125

3

2.8

D

28.8

41.9

4.2

170

FCL106

79510.067

2570689.619

973.621

90

94

4

3.8

D

25.5

44.6

6.3

150

FCL107

79524.725

2571093.633

975.486

82

87

5

4.7

D

36.8

41.3

1.4

100

FCL108

79514.464

2571201.667

975.671

36

45

9

8.6

D

36.9

39.8

2.0

122

FCL108

79514.464

2571201.667

975.671

75

117

42

39.7

C

30.5

46.8

3.5

122

Section 1: Sampling techniques and Data

Sampling techniques

Nature and quality of sampling (eg: cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

Sampling was by means of ten vertical, RC boreholes which were sampled at 1m intervals, where magnetite mineralisation was identified using a hand held magnetic susceptibility meter.

Appendix 2

Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

Sample representivity was ensured by sample splitting using a 1-inch riffle splitter to obtain two representative sub-samples, the Primary and Library samples

Appendix 2

Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

Reverse Circulation drilling was used to obtain 1m samples from an original 40kg sample collected from the cyclone, which was split down to a 5kg sample, to send to the laboratory for analysis.

Appendix 2

Drilling techniques

Drill type (eg. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka etc.) and details (eg. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.

RC drilling method with casing rods of 165mm and drilling rods of 133mm in diameter was used.

4.1

Appendix 2

Drill sample recovery

Method of recording and assessing core and chip sample recoveries and results assessed.

Samples were collected from the cyclone and directly into a plastic bag. Each bag was weighed in order to monitor sample recovery. The weight was recorded in kilograms.

Appendix 2

Measures taken to maximise sample recovery and ensure representative nature of the samples.

With the exception of surficial rubble, the sample recovery through the mineralised zones was acceptable.

Appendix 2

Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

Due to the generally high sample recovery, this relationship was not investigated.

N/A

Logging

Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

Detailed lithological logging and magnetic susceptibility measurements were completed on all chip tray material by a field geologist. Detailed logging coupled with the Exploration Results formed the basis for a revised structural interpretation of Zone D and the newly discovered Zone E.

4.3

Appendix 2

Appendix 4

Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

All geological information was logged in acceptable detail, and stored in an MS Access database. This included lithological and magnetic susceptibility information. Chip tray photography was completed.

Appendix 2

The total length and percentage of the relevant intersections logged.

1396m of chip logging was completed, which is equivalent to 100% of logging of the drilled material.

Appendix 2

Appendix 4

Sub-sampling techniques and sample preparation

If core, whether cut or sawn and whether quarter, half or all core taken.

No core was cut as this was an RC drilling programme and not a diamond core drilling programme.

N/A

If non-core, whether riffled, tube sampled, rotary split etc. and whether sampled wet or dry.

A 40kg dry sample collected from the cyclone was split down to a required 5kg sample, using a 1 inch riffle splitter.

Appendix 2

For all sample types, the nature, quality and appropriateness of the sample preparation technique.

The sampling standard procedures applied are considered acceptable for the magnetite mineralisation. The initial 40kg sample collected from the cyclone was split to obtain two representative sub-samples

Appendix 2

Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

A 1 inch riffle splitter was used to obtain two representative sub-samples. The same procedure of splitting the 40kg sample three times to archive a 5kg sample was applied for every single field sample collected.

Appendix 2

Appendix 3

Measures taken to ensure that the sampling is representative of the in situ material collected.

A geologist was present on site to ensure that all the protocols and procedures pertaining to RC sampling were followed and to ensure that no sample swopping or mislabeling was done.

Appendix 2

Whether sample sizes are appropriate to the grain size of the material being sampled.

Sample sizes were appropriate to the grain size of the material being sampled. 5kg of material per sample was collected and submitted to the laboratory for analysis. This was sufficient material for analysis by XRF.

Appendix 2

Quality of assay data and laboratory tests

The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

432 samples, primary, along with quality control samples were submitted to SGS Laboratory Services (Johannesburg) for analysis. Sample analysis was by X-Ray Fluorescence (XRF)

Appendix 2

Appendix 3

For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

No non-laboratory techniques have been applied.

N/A

Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Appropriate standards, blanks and duplicates were inserted in the sample stream. These constituted 10% of the 432 samples submitted. The Mineral Corporation has reviewed the results from these control samples and considers the accuracy and reliability of the analyses to be acceptable for exploration results.

4.2

Appendix 2

Appendix 3

Verification of sampling and assaying

The verification of significant intersections by either independent or alternative company personnel.

The borehole data location was verified by means of surveying of the borehole collars in the field by an independent qualified surveyor from Survey House (Johannesburg).

Appendix 2

Appendix 6

The use of twinned holes

This is an ongoing exploration programme. No twinning was deemed to be required during this phase of drilling.

N/A

Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

Exploration data is well documented and the data entry and validation for Phase 4 drilling campaign is considered to be acceptable. The Mineral Corporation supervised the exploration programme and considers the database to be acceptable.

Appendix 2

Discuss any adjustment to assay data.

The only adjustments made to assay data were the appropriate conversions from oxide to elemental concentrations.

N/A

Location of data points

Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

All ten RC boreholes were surveyed by a registered surveyor from Survey House, Johannesburg. Boreholes were surveyed using differential Geographic Positioning System.

Appendix 2

Appendix 6

Specification of the grid system used.

The co-ordinate system applied for the survey was the South African Local Grid, WGS1984, Lo29.

4.1

4.3

Quality and adequacy of topographic control.

The differential GPS uses real time kinematic techniques with results in X, Y and Z in 20mm accuracy. This is deemed adequate as a control of topography.

Appendix 2

Appendix 6

Data spacing and distribution.

Data spacing for reporting of Exploration Results.

Borehole spacing is on an approximate 100m x 100m grid. A borehole location plan was generated.

4.1

4.3

Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

The data spacing and distribution is deemed sufficient to establish the degree of geological continuity. This was evident during the structural interpretation where geological continuity was observed.

4.3

Whether sample compositing has been applied

Sample compositing of the 1m sample intervals was completed across the full width of the various zones of mineralisation intersections.

4.3

Appendix 4

Orientation of data in relation to geological structures

Whether the orientation of sampling achieves unbiased sampling of possible and the extent to which this is known, considering the deposit type.

The samples are in the form of chips and not core material which can be orientated to archive unbiased sampling. During sample riffle-splitting, sample homogeneity is introduced, which eliminates unbiased sampling.

N/A

If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

All boreholes were drilled vertically. There is no indication that the drilling orientation could have introduced a sampling bias, considering that this is a bulk commodity.

4.1

4.3

Sample security

The measures taken to ensure sample security.

Samples were collected by a geologist on site and stored in a locked core facility until being collected for delivery to the laboratory by an exploration logistics company. As the commodity being drilled is a bulk product and not a precious metal, no additional sample security was undertaken.

Appendix 2

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No external audits or reviews for this phase of work. Previous phases have been audited.

N/A

Section 2: Reporting of Exploration Results

Mineral tenement and land tenure status

Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

The Mineral Corporation has not concluded a legal due diligence on the mineral title, and the following summary is based on information provided by Ferrum Crescent Limited: The Project is covered by a Mining Right that was executed on 10 October 2012. The Mining Right is valid for 30 years commencing 10 October 2012 to 9 October 2042.

N/A

The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

The Mineral Corporation has not concluded a legal due diligence on the mineral title, and the following summary is based on information provided by Ferrum Crescent Limited: The Project is covered by a Mining Right that was executed on 10 October 2012. The Mining Right is valid for 30 years commencing 10 October 2012 to 9 October 2042.

N/A

Exploration done by other parties

Acknowledgment and appraisal of exploration by other parties.

Iscor Limited conducted exploration activities in the 1980s and 1990s. Iscor's exploration data assisted in the interpretation of Ferrum's current Phase 4 drilling.

1

5

Geology.

Deposit type, geological setting and style of mineralisation.

The Project area is situated within the Mount Dowe Group of the Beit Bridge Complex, in the Central Zone of the LMB. The Archaean LMB is believed to have been formed during the collision of the granite-greenstone terrain of the Kaapvaal and Zimbabwe Cratons.

Magnetite mineralisation is identified in five mineralised zones, which are interpreted to be the result of the duplication by folding of one or more magnetite-bearing layers.

2

3

4.3

5

Drill hole

Information

A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

· easting and northing of the drill hole collar

· elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar

· dip and azimuth of the hole

· down hole length and

· interception depth hole length.

Ten vertical boreholes were drilled and collar surveyed. A drill summary detailing the collar positions, date of drilling, the number of samples collected, the end of borehole depths and mineralisation intersection depths is provided.

4.1

4.3

Appendix 4

If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case

This information has not been excluded.

N/A

Data aggregation methods.

In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually material and should be stated.

An Fe grade of more than 16% Fe is considered as mineralised, on the basis of the current Mineral Resource cut-off grade. Barren zones of a maximum of 4m have been included in the intersection. True thicknesses have been calculated assuming a mineralisation dip of 19° to the northeast

4.3

Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

Not applicable to this grade distribution.

N/A

The assumptions used for any reporting of metal equivalent values should be clearly stated.

No metal equivalent values were considered.

N/A

Relationship between mineralisation widths and intercept lengths

These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

True thicknesses have been calculated assuming a mineralisation dip of 19° to the northeast

4.1

4.3

If it is not known and only the down-hole lengths are reported, there should be a clear statement to this effect (eg. 'downhole length, true width not known').

Downhole lengths and approximate true thicknesses/widths have been reported.

4.1

4.3

Diagrams.

Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

Plans and sections of the interpretive geological model are provided. These formed the basis of the conclusions and recommendations to Ferrum.

4.3

Appendix 4

Balanced reporting

Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practised to avoid misleading reporting of Exploration Results.

Comprehensive reporting of all exploration results was completed. Strip logs for all ten boreholes showing mineralisation intersections and Fe grade were produced, these were accompanied by interpretive cross sections.

4

Appendix 4

Appendix 5

Other substantive exploration data

Other exploration data, if meaningful and material, should be reported including (but not . limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

Lithological observations from previous phases of drilling have been included and formed part of the structural interpretation

4.3

Further work

The nature and scale of planned further work (eg. tests for lateral extensions or depth extensions or large-scale step-out drilling).

The Mineral Corporation has concluded that while Zone D does not warrant re-prioritisation as an area which mining could start, Zone D (and Zone E to the north) offer Ferrum the opportunity for future exploration. The Mineral Corporation recommends that Ferrum proceeds with the current conceptual mine plan which focuses on mining over Zones A, B or C.

6

Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

A figure has been included, showing an area of potential future exploration.

Figure 9