Europa Metals Regulatory News (EUZ)

31 October 2016

Ferrum Crescent Limited

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

Quarterly Activities and Cashflow Report

For the period ended 30 September 2016

Highlights

Moonlight Iron Project

· Development options under review for potential reduced cost production pathways

· Study initiated on pelletising technology

· Review of product offtake agreements

· Transportation costing review for various product types

· Mining Right Annual Compliance Report completed and filed

· Memorandum of Agreement and co-operation framework signed with Lephalale Local Municipality securing the necessary consents from local stakeholders for progression of the project into future development

Spanish lead-zinc exploration projects

· 100% of the share capital of GoldQuest Iberica, S.L. ("GoldQuest") acquired by Ferrum Crescent following exercise of the Company's exclusive option from TH Crestgate GmBH ("Crestgate") on 22 September 2016

· Toral & Lago lead-zinc exploration assets 100% owned by GoldQuest (the "Spanish Projects")

· Planned exploration work programme developed seeking to reinterpret the historic data package, including historic drill core samples and surface work with processing analysis to then be carried out

Corporate

· £374,453 raised through a share placement with the net proceeds to be utilised for general working capital purposes and the progression of the Spanish Projects. 205,949,134 options, in aggregate, issued in connection with this fundraising entitling the holders to subscribe for new ordinary shares at a price of 0.30 pence per share for a two year period

· 117,054,266 new ordinary shares issued further to the exercise of options at a price of 0.165 pence per share

· £326,500 paid in cash and 100 million new ordinary shares of no par value each in the capital of the Company issued to Crestgate's wholly owned subsidiary, GoldQuest Mining (Spain) Corp., as consideration for the acquisition of 100% of the shares in GoldQuest, further to the exercise of the Company's abovementioned option

· Cash balance at the end of the quarter: A$1,162,000

Post Quarter End:

· A further 181,560,288 options exercised at a price of 0.165 pence per new ordinary share, raising £299,574 gross

Exploration Interests

The following information is provided in accordance with ASX Listing Rule 5.3 for the quarter ended 30 September 2016:

1. Listing of tenements held:

2. Listing of tenements acquired (directly or beneficially) during the quarter:

No tenements were disposed of during the quarter.

Justin Tooth, Executive Chairman of Ferrum Crescent, today commented:

"In the quarter under review we focused on dual elements; we continued to work towards progressing our Moonlight project whilst our exclusive option over promising brownfield lead-zinc assets in Spain required careful evaluation and negotiation. At Moonlight, we have been reviewing and discussing development pathways with potential engineering partners for a possible reduced cost production model.

"Regarding Spain, following two short nil-cost option extensions to ensure that the vendors had addressed the various conditions precedent to the Board's satisfaction, in late September the Company exercised its right to acquire 100% of Goldquest and its promising lead-zinc assets. We are now progressing exploration activities at the Toral project site and have simultaneously begun to reassess the considerable amounts of historical geological data on the asset and prepare it for suitable recodification and release. I look forward to updating the market further in due course."

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

Ferrum Crescent Limited

Justin Tooth, Executive Chairman

Grant Button, 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 HattinghT (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.

APPENDIX 5B:

http://www.rns-pdf.londonstockexchange.com/rns/8076N_-2016-10-30.pdf

Notes to Editors:

Further Information on the Spanish lead-zinc Exploration Projects

Toral Project

The Toral Project has been extensively explored historically by its previous owners Portex Minerals Inc. and Lundin Mining S.L. and the 2,024ha of mineral rights contains extensive high grade zinc mineralisation. Located in north-west Spain, approximately 400km north-west of Madrid, the project's licence area hosts excellent road, rail and power infrastructure and is situated in a known historic mining jurisdiction. The asset also has a pre-existing NI 43-101 resource estimate reported by Micon International Co. Limited on 30 April 2012.  

Lago Project

The Lago Project is located approximately 54km to the north-east of the Toral Project. Historical investigations completed by or on behalf of the Spanish mining firm, Exploracion Minera International Espana S.A. ("EXMINESA"), between 1985 and 1990, indicated that mineralisation at the Lago Project may be similar to that encountered at the Toral Project with vertical, lenticular bodies (probably more than one) approximately 800m long by 300m wide.

2016 Spanish work programme overview

· Analysis and re-interpretation of existing historic data on the Company's Spanish Exploration Projects commenced in September 2016.

· Planned work programme comprises:

o re-mapping of the main Toral Project area applying re-interpreted historical geological understanding of the regional controls on mineralisation;

o in-fill surveys over the main prospect area where detailed soil geochemistry has not previously been conducted;

o 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;

o 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 at the Toral Project;

o creation of a revised geological model incorporating existing and new geological data (geochemistry, structural interpretation, assays, logs, maps); and

o 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.

Further Information on the Moonlight Project, South Africa

Ferrum Crescent's principal project is the Moonlight Iron Project located in Limpopo Province in the north of South Africa. The Moonlight Deposit (upon which the Project is based) is a magnetite deposit located on the Moonlight, Gouda Fontein and Julietta farms and is the main operational focus for the Company. Iscor Limited ("Iscor"), which explored the Project in the 1980s and 1990s, reported mineralisation capable of producing a concentrate grading at 68.7% iron. At that time, Iscor concluded that the deposit, which was described as being comparable to the world's best, was easily mineable due to its low waste-to-ore ratio. The beneficiation attributes of Moonlight ore are extremely impressive, with low-intensity magnetic separation considered suitable for optimum concentration.

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

Key features of the project to date are:

· JORC (2012) compliant Mineral Resource;

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

· 30 year Mining Right granted;

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

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

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

· Duferco offtake partner (4.5 Mtpa plus first right on a further 1.5 Mtpa if not sold domestically). South Africa currently has a growing demand for high grade iron concentrate and/or pellets for its steel industry; 

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

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

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

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

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