Europa Metals Regulatory News (EUZ)

29 April 2015

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 31 March 2015

Highlights

Moonlight Iron Project BFS:

· Zones A, B and C confirmed as phase 1 development areas for first 10 year mine life design following Q4 2014-Q1 2015 drilling programme

o 10 reverse circulation holes with a combined 1,396 metres

o All holes intersected magnetic zones across various depths

o Final area drilling complete over Area D

o Infill drilling now to be allocated to primary mining development on Zones A, B and C.

o New zone of mineralisation, Zone E offers future exploration potential

· Planning ongoing with infrastructure suppliers (power, water, rail and port)

· Next BFS phases:

o Full Ore Reserve, in terms of JORC (2012), to be established - Infill drilling over Zones A, B and C for advanced mine design work and metallurgical analysis

o Decision to be made on whether bulk sampling is needed

o Final beneficiation and pelletiser designs/costings to be completed

o In the final phase, infrastructure negotiations and agreements to be concluded.

Corporate:

· Discussions progressing with potential development parties

o Consequently Investment agreement with Anvwar Asian Investments formally terminated

o Internal RSA steel supply route under evaluation with parties

o Investment agreement with Anvwar Asian Investments formally terminated

· Changes during the quarter result in the appointment on 23 March 2015 of Beaufort Securities as Ferrum Crescent's AIM broker

· Strand Hanson Limited appointed on 3 March 2015 as Ferrum Crescent financial adviser

· 10 million options granted to Ferrum Crescent advisers during the quarter with an exercise price of GBP0.0075 (for 4 million options) and GBP0.02 (for 6 million options), all with an exercise period of 3 years

· Cash balance at the end of the quarter: AUD$592,000

Ferrum Crescent, the direct reduction iron (DRI) pellet project developer, today submits its quarterly activities and cashflow report for the period ending 31 March 2015.

The period saw the final confirmation of where the Phase 1 mine development work will be located for the first 10 years of mine life at Moonlight. Following analysis of the 10 reverse circulation ("RC") drill holes, the first 10 year development model will be based on Zones A, B and C and further infill drilling will commence next to establish a JORC (2012) Ore Reserve and for advanced beneficiation work to be undertaken as part of the DRI plant design process. The success of infill drilling will also determine whether bulk sampling is necessary to complete the full mine design and plant costings.

Following completion of all mine plan and plant design the last stage of the Moonlight BFS can be entered into, utilising the stand-alone project economics to complete all infrastructure agreements for power, water and transportation.

Commenting today Tom Revy, MD, said: "Since recommencing the BFS at the Moonlight project in the last quarter of 2014 we have confirmed the location for open pit mining during the first 10 years of mine life and have begun advanced pit design work. Using the recent drilling data we shall continue to progress the economic model of both the mine and the DRI pellet complex to be situated at the Thabazimbi railhead. Our recent work is also assisting us in negotiations with development parties and related infrastructure groups. I look forward to updating the market shortly on both operational and corporate progress."

For more information concerning the drilling results, please read the Exploration Results report summary from The Mineral Corporation that was released on 1 April 2015 and may be viewed on the Company's website, www.ferrumcrescent.com. For more information on the Company, please visit that website or contact:

Appendix 5B:

http://www.rns-pdf.londonstockexchange.com/rns/6184L_-2015-4-28.pdf 

The information that relates to Exploration Results in the report of which this statement is a summary, is based on information compiled by Andisani Netshilinganedza and Stewart Nupen, who are registered with the South African Council for Natural Scientific Professionals (Andisani Netshilinganedza: Reg. No. 400051/13 and Stewart Nupen: Reg. No. 400174/07) and are members of the Geological Society of South Africa.

Mrs. Netshilinganedza and Mr. Nupen are employed by The Mineral Corporation, which provides technical advisory services to the mining and minerals industry. Mrs. Netshilinganedza and Mr. Nupen have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as Competent Persons as defined in the 2012 Edition of the 'Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves'. Mrs. Netshilinganedza and Mr. Nupen consent to the inclusion in this statement of the matters based on this information in the form and context in which it appears.

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 Moonlight Iron Project or "Moonlight" or the "Project" is based) is a magnetite deposit located on the farms Moonlight, Gouda Fontein and Julietta and is the main operational focus for the Company. Iscor, which explored the Project in the 1980s and '90s, reported mineralisation, capable of producing a concentrate grading 68.7% iron. At the time, Iscor concluded that the deposit, which was described as 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 of Moonlight material, undertaken since by Ferrum, suggest that Iscor's 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 the industry standard (P80 of 75 - 125 microns).

Key features of the Project are:

Ø JORC (2012) compliant Mineral Resource;

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

Ø 30 year Mining Right granted;

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

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

Ø Low stripping ratio; slurry pipeline>pellet plant at rail head (Thabazimbi); export through Richards Bay;

Ø Duferco offtake partner (4.5 Mtpa plus first right on 1.5 Mtpa if not sold domestically);

Ø Independent valuation 2014 - The Mineral Corporation's independent valuation of the Project released to the market on 11 June 2014;

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

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

Ø Richards Bay port expansion for iron ore products.