Europa Metals Regulatory News (EUZ)

30 July 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 30 June 2015

Highlights

Moonlight Iron Project Bankable Feasibility Study ("BFS"):

· The Moonlight Iron Project ("Moonlight" or "Project") involves the proposed future mining and beneficiation of the Moonlight Deposit to produce a high grade concentrate for transport to a pellet manufacturing facility at or near the town of Thabazimbi in Limpopo Province, South Africa for the production of direct reduction ("DR") and blast furnace grade iron pellets for export and domestic sale

· Marketing study instigated relating to the identification of potential South African offtakers for products from the Project

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

· Project on schedule to benefit from new regional/national infrastructure developments

· Full assessment of domestic supply options will position Ferrum Crescent as an economic development partner to the Republic of South Africa

· Planned 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, negotiations and agreements to be concluded with infrastructure providers

Corporate:

· Private placing completed in May 2015 to raise GBP0.5 million (AU$0.97 million) before expenses

· Memorandum of understanding ("MOU") entered into with Principle Monarchy Investments (Proprietary) Limited ("PMI"), whereby PMI may acquire up to 39% of the Project's holding company by way of a 3 tranche subscription for ZAR142 million, subject to the achievement of key milestones

· PMI is a BEE controlled South African company with extensive commercial interests in South Africa ("BEE" is the term used within South Africa to describe entities that meet relevant regulatory criteria as being controlled by historically disadvantaged South Africans)

· First ZAR2m interim funding payment from PMI expected to be received shortly, whereupon the MOU will become legally binding

· Cash balance at the end of the quarter: AU$1.029 million

Ferrum Crescent, the ASX, AIM and JSE quoted DR grade pellet project developer, today submits its quarterly activities and cashflow report for the period ending 30 June 2015.

During the quarter, the Company entered into an MOU with PMI, under which PMI may acquire up to 39% of Ferrum Iron Ore (Pty) Ltd ("FIO"), the Group's Project holding company for ZAR142 million. Under the terms of the MOU, payment of the first subscription tranche of ZAR30 million must be made by 1 December 2015. In the meantime, PMI is required to make interim payments to FIO of ZAR2 million per month, so that FIO's operational team can continue work on the BFS in close consultation with PMI. Such interim payments are to continue until payment of the first subscription tranche of ZAR30 million, with the monthly payments to be credited towards this first tranche.

Receipt of the first ZAR2 million interim payment from PMI is expected shortly. Upon receipt, the MOU will become legally binding, and the parties will thereafter complete a new shareholders' agreement for FIO.

Commenting today Tom Revy, Managing Director, said:

"Following recommencement of the BFS at Moonlight in Q4 2014, we have confirmed the location for open pit mining operations during the first 10 years of the mine's life and have begun advanced pit design work. Utilising the recent drilling data, we continue to progress the economic model for both the mine and the associated DR pellet complex to be situated at the Thabazimbi railhead.

"I cannot overemphasise the significance of securing a partner such as PMI for this Project. In particular, PMI brings commercial and economic strength to Moonlight - through their links with major engineering groups and South African institutions - and we are increasingly doing more to align the Project with the infrastructure plans of the South African and Limpopo governments and seek to address the aspirations and interests of such authorities and those of the local communities and municipalities. We will, of course, make sure that we can provide end product to users within South Africa, and to this end we have commissioned a thorough South African market survey to ensure that domestic needs are met. Overall, we continue to endeavour to maximise the value of Moonlight for the benefit of all stakeholders."

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

Appendix 5B:

http://www.rns-pdf.londonstockexchange.com/rns/4990U_-2015-7-29.pdf

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 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 '90s, 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:

Ø JORC (2012) compliant Mineral Resource;

Ø Historical drilling, drilling by the Group, geological modelling and a 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 with low deleterious elements (DR grade pellets for use in direct reduction iron/electric arc steel-making processes);

Ø Low stripping ratio; slurry pipeline planned to a pellet plant located at a rail head (Thabazimbi); export through Richards Bay;

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

Ø Independent valuation by The Mineral Corporation completed in June 2014;

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

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

Ø Richards Bay port expansion for iron ore products.