Europa Metals Regulatory News (EUZ)

31 October 2013

Ferrum Crescent Limited

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

Quarterly Activities and Cashflow Report

For the period ended 30 September 2013

Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in northern South Africa, today announces its quarterly results for the three month period ending 30 September 2013.

HIGHLIGHTS:

Moonlight Iron Ore Project:

Ø Ferrum Crescent signs conditional, legally binding letter of intent with Anvwar Asian Investment ("AAI") to progress Moonlight BFS development

o US$10m to acquire 35% shareholding in Ferrum Iron Ore (Pty) Ltd, which holds the mining right over the three farms that contain the Moonlight Deposit

o US$3.5m additional funds to contribute to BFS costs

o First BFS payment scheduled by end of year

o AAI representative Anvwar Al Balushi will be invited to join the Ferrum Iron Ore Board and Moonlight Iron Ore Project steering committee

Corporate:

Ø Ferrum Crescent after the end of the quarter successfully raises GBP 873,600 (AU$1.5m) before costs

o 48 million shares (3,386,844 of which are subject to shareholder approval) to be issued at GBP 0.0182 (AU$0.0315) per share ("Placement Shares")

o Proceeds to be used by the Company to fund corporate activities and to carry out the feasibility study and mining right activities pending the AAI investment

o Funds from the private placement to be received in two tranches, with the second tranche representing subscriptions by two directors of the Company and requiring shareholder approval

Ø Cash as at 30 September 2013 was approximately AUD$639,000

Ø Annual General Meeting of shareholders convened at 4:30pm (Perth time) on Friday 29th November 2013 at The Lake Monger Room, The Boulevard Centre, 99 The Boulevard, Floreat WA 6014

Commenting today Ed Nealon, Chairman, said: "Our agreement with AAI is designed to bring a new partner into Moonlight and progress the iron ore project to the development stage. Our intention is to complete the Bankable Feasibility Study at Moonlight with our process engineering partners, Danieli. Moonlight is located in northern South Africa, near existing infrastructure, and represents a new source of high-grade iron ore product for domestic and international markets."

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

During the quarter, Ferrum Crescent, the ASX, AIM and JSE quoted iron ore developer, announced it had signed a legally binding letter of intent ("Agreement") with Anvwar Asian Investment ("AAI") to facilitate the completion of the Company's bankable feasibility study ("BFS") at the Moonlight Iron Ore Project in northern South Africa. Under the Agreement, AAI will pay US$10m to Ferrum Crescent in return for a 35% shareholding in Ferrum Iron Ore Pty Ltd., which holds the mining right over the three farms that contain the Moonlight Deposit. AAI will also contribute US$3.5m to the on-going costs of the BFS. The Agreement is subject to the fulfilment of certain conditions precedent regarding confirmation due diligence and the receipt of applicable regulatory approvals.

The Ferrum Crescent interest in the Moonlight Iron Ore Project is held through the Group's direct and indirect shareholding in Ferrum Iron Ore (formerly named Turquoise Moon Trading), the shares of which are currently held as to 74% by Ferrum South Africa (Pty) Ltd (formerly named Nelesco) and as to 26% by Mkhombi Investments (Pty) Ltd. Subject to the conditions precedent and following the investment, the shares of Ferrum Iron Ore will be held 39% by Ferrum South Africa (Pty) Ltd, 26% by Mkhombi Investments (Pty) Ltd and 35% by AAI.

AAI is an Oman based investment company chaired by Mr Anvwar Al Balushi, who will be invited to join the Ferrum Iron Ore board and Moonlight Project steering committee upon completion of the Agreement. The Moonlight Project provides AAI with potential exposure to an iron ore project capable of producing high-grade pellet product, located within 200km of established rail hubs. Ferrum Crescent has already undertaken extensive metallurgical testwork as part of the Moonlight BFS and earlier this year appointed DANIELI C. Officine MeccanicheS. p.A. ("Danieli"), a global leader in engineering services and equipment supply, as the process engineer for the BFS.

Under the Agreement, subject to the satisfaction or waiver of the conditions precedent, an initial acquisition payment of US$1 million will be made to Ferrum Crescent by the end of November 2013, with the remaining US$9 million to be paid to the Company during Q1 2014. Funds received under the Agreement will be used by the Company to progress the Moonlight BFS and for working capital requirements. The additional US$3.5m AAI contributions to the BFS costs will be made in prearranged tranches as work progresses.

Corporate

Subsequent to the reporting period, the Company announced that it had received applications to subscribe for 48 million fully paid ordinary shares and raise up to GBP 873,600. The placement shares will rank equally with existing fully paid ordinary shares from allotment.

The placement is being conducted in two tranches. The first tranche comprised 44,613,156 shares to raise approximately GBP 811,959. The second tranche, comprising 3,386,844 shares to raise approximately GBP 61,641, is subject to shareholder approval, as these subscribers will be Mr Ed Nealon and Mr Robert Hair who are Directors and hence related parties under the provisions of the Corporations Act 2001.

The first tranche of the Placement Shares were admitted to trading on the Australian Securities Exchange Limited, the AIM market of the London Stock Exchange and on the JSE Limited on 8 October 2013. Shareholder approval for the second tranche will be sought at the Company's annual general meeting.

Mr Robert Hair has indicated that he will subscribe for 480,769 Placement Shares and Mr Ed Nealon has indicated that he will subscribe for 2,906,075 Placement Shares.

Funds received under the share placements will be used as working capital, including for the funding of corporate costs and for feasibility and mining right activities.

Receipt of the proceeds of the issue means that the Company remains fully funded, pending completion of the agreement with Anvwar Asian Investment, to facilitate completion of the Company's bankable feasibility study for the Moonlight Iron Ore Project.

Following the first tranche of the placement, the number of ordinary shares on issue is 372,814,541 and following the second tranche of the placement, the number of ordinary shares on issue will be 376,201,385 shares.