Ferrexpo Regulatory News (FXPO)

Not for distribution, directly or indirectly, in or into the United States (except to qualified institutional buyers, as defined in Rule 144A under the U.S. Securities Act of 1933, as amended), Australia, Canada, Japan or any other jurisdiction where to do so would be unlawful.

30 January 2013

Ferrexpo plc

("Ferrexpo", the "Group" or the "Company")

Unaudited Nine Month Results to 30 September 2012

Ferrexpo plc, a major iron ore pellet producer and member of the FTSE 250, today announces that it has mandated Morgan Stanley and Credit Suisse to arrange a series of fixed income investor meetings commencing on Thursday, 31 January 2013 in anticipation of a potential USD-denominated senior unsecured Reg S / 144A Eurobond issue (the "Notes Offering"). Placement of the Notes Offering will be dependent on market conditions.

As part of the fixed income investor meetings, Ferrexpo will be presenting financial information from its unaudited interim financial statements for the nine month period to 30 September 2012, as described below. As such, this release is to inform the market of these financial results. Ferrexpo will report its full year results for the period ended 31 December 2012 on 13 March 2013.

The proceeds of the expected Notes Offering, if issued, will be used for general corporate purposes, to reduce reliance on secured lending and to add further liquidity. This is consistent with the Group's strategy to maintain prudent financial ratios enabling it to develop its substantial iron ore reserves through the economic cycle. For the nine months to September 2012, the Group had a net debt to LTM EBITDA ratio of below 1 times.

Highlights for the nine months ended 30 September 2012 are presented below:

Financial

·; Turnover of US$1,082.6 million (9M 2011: US$1,313.8 million)

·; Net profit before taxation of US$228.8 million (9M 2011: US$533.6 million)

·; EBITDA of US$328.8 million (9M 2011: US$612.3 million)

·; Group consolidated shareholder equity of US$1,545.8 million (9M 2011: US$1,265.8 million)

·; Group Net financial indebtedness of US$337.8 million (9M 2011:US$16.4 million)

·; Cash and cash equivalents of US$673.9 million (9M 2011: US$543.2 million)

Sales and Marketing

§ Average benchmark China CFR 62% Fe fines price was US$131 per tonne (9M 2011: US$177 per tonne)

§ Sales volumes were 7.0 million tonnes of pellets (9M 2011: 7.2 million tonnes of pellets)

§ Lower prices were partially mitigated through reduced freight rates to seaborne markets

§ Growth markets accounted for 42% of sales up from 36% of sales for the prior year period

Operations

§ 6.9 million tonnes of pellet production, from own ore(9M 2011: 6.7 million tonnes)

§ C1 cash cost of US$59.9 per tonne (9M 2011: US$49.4 per tonne)

§ C1 cash cost impacted by stable exchange rate between Ukrainian hryvnia and US dollar and local inflation including electricity tariff and gas price increases

Growth Projects

§ Growth projects progressed as planned on budget and schedule

§ First ore achieved at FYM in July 2012, commercial production expected in 2013

§ FYM mining license renewed for 20 years to 2032

§ 37% increase in capital investment for the period to US$324 million (9M 2011: US$236 million)

VAT

§ Net VAT outstanding as of 30 September 2012 was US$269.6 million (9M 2011: US$149.7 million)

§ A US$15.9 million discount has been recorded to reflect the time value of money for VAT and the expectation that a portion of VAT will be recovered after more than one year

Key financial information is summarised in the table below

US$'000 unless otherwise stated

1 EBITDA - the Group calculates EBITDA as profit from continuing operations before tax and finance plus depreciation and amortisation and non-recurring exceptional items included in other income and other expenses, and the net of gains and losses from disposal of investments, property, plant and equipment.

Notes to Editors:

Ferrexpo is a Swiss headquartered iron ore company with assets in Ukraine. It is principally involved in the production and export of high quality iron ore pellets, which are used in the manufacture of steel. Ferrexpo's resource base is one of the largest iron ore deposits in the world. Its current producing asset, FPM, produced approximately 10 million tonnes of iron ore pellets in 2012 making it the largest exporter of pellets in the CIS. The Company has a diversified customer base supplying steel mills in Austria, Slovakia, Czech Republic, Germany and other European states, as well as in China, India, Japan, Taiwan and South Korea. Ferrexpo is listed on the main market of the London Stock Exchange under the ticker FXPO. For further information, please visit www.ferrexpo.com

The information contained herein is not for publication or distribution, directly or indirectly, in or into the United States of America. The materials do not constitute an offer of securities for sale in the United States of America, nor may the securities be offered or sold in the United States of America absent registration or an exemption from registration as provided in the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act), and the rules and regulations thereunder. There is no intention to register any portion of the offering in the United States of America or to conduct a public offering of securities in the United States of America and the securities will only be offered for sale in the United States of America to "qualified institutional buyers" (QIBs) as defined in and in reliance upon Rule 144A under the U.S. Securities Act and will only be offered for sale outside the United States of America to persons other than U.S. persons under Regulation S under the U.S. Securities Act.

The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction. The offering and the distribution of this communication and other information referred to herein may be restricted by law and persons into whose possession this communication or such other information comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

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Interim Consolidated Income Statements

Interim Consolidated Statement of Comprehensive Income

Interim Consolidated Statement of Financial Position

The financial statements were approved by the Board of Directors on 24 January 2013.

Kostyantin Zhevago Christopher Mawe

Chief Executive Officer Chief Financial Officer

Interim Consolidated Statement of Cash Flows

Interim Consolidated Statement of Changes in Equity

Notes to the Interim Condensed Consolidated Financial Statements

Note 1: Corporate information

Organisation and operation

Ferrexpo plc (the 'Company') is incorporated in the United Kingdom with registered office at 2-4 King Street, London, SW1Y 6QL, UK. Ferrexpo plc and its subsidiaries (the 'Group') operate two mines and a processing plant near Kremenchuk in Ukraine, an interest in a port in Odessa and sales and marketing activities in Switzerland, Dubai and Kiev. The Group also owns a logistics group located in Austria which operates a fleet of vessels operating on the Rhine and Danube waterways. The Group's operations are vertically integrated from iron ore mining through to iron ore concentrate and pellet production and subsequent logistics. The Group's mineral properties lie within the Kremenchuk Magnetic Anomaly and are currently being exploited at the Gorishne-Plavninsky and Lavrikovsky ('GPL') and Yeristovo deposits.

The majority shareholder of the Group is Fevamotinico S.a.r.l. ('Fevamotinico'), a company ultimately owned by The Minco Trust, of which Kostyantin Zhevago, the Group's Chief Executive Officer, is a beneficiary. At the time this report was published, Fevamotinico held 51.0% (30 September 2011: 51.0%; 31 December 2011: 51.0%) of Ferrexpo plc's issued share capital. The Group's operations are largely conducted through Ferrexpo plc's principal subsidiary, OJSC Ferrexpo Poltava Mining and logistics for Western Europe are managed through the Helogistics subsidiaries.

The Group comprises of Ferrexpo plc and its consolidated subsidiaries as set out below:

1 The Group's interest in these entities is held through Ferrexpo AG.

2 Ferrexpo AG was the holding company of the Group until, as a result of the pre-IPO restructuring, Ferrexpo plc became the holding company on 24 May 2007.

3 The Group's interest in these entities is held through OJSC Ferrexpo Poltava Mining.

4 The Group's interest in this entity is held through both Ferrexpo AG and Ferrexpo Service Limited.

5 The Group's interest in these entities is held through Ferrexpo AG.

6 Both subsidiaries were incorporated in March 2011. The Group's interest in Ferrexpo Middle East FZE is held by Ferrexpo AG whereas Ferrexpo Singapore PTE Ltd is a subsidiary of Ferrexpo Middle East FZE.

7 The subsidiaries were incorporated in April and December 2011 and the Group's interest is held through Helogistics Holding GmbH.

8 The subsidiaries were incorporated on 14 July 2011.

9 The company was acquired in October 2011 and its interest is held through Helogistics Holding GmbH.

10The company was incorporated in December 2012 and the Group's interest is held through Ferrexpo Services Limited.

Note 2: Summary of significant accounting policies

At 30 September 2012, the Group also holds through OJSC Ferrexpo Poltava Mining an interest of 48.6% (30 September 2011: 48.6%; 31 December 2011: 48.6%) in TIS Ruda, a Ukrainian port located on the Black Sea. As this is an associate, it is accounted for using the equity method of accounting.

Basis of preparation

The interim condensed consolidated financial statements for the nine month period ended 30 September 2012 have been prepared in accordance with International Accounting Standard ('IAS') 34 Interim Financial Reporting. The interim condensed consolidated financial statements do not include all of the information and disclosures required in the annual financial statements, and should be read in conjunction with the Group's annual financial statements as at 31 December 2011.The interim condensed consolidated financial statements do not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the full year is based on the statutory accounts for the financial year ended 31 December 2011. A copy of the statutory accounts for that year, which were prepared in accordance with International Financial Reporting Standards ('IFRS') issued by the International Accounting Standard Board ('IASB'), as adopted by the European Union as they apply to financial statements of the Group for the year ended 31 December 2011, has been delivered to the Register of Companies. The auditors' report under section 495 of the Companies Act 2006 in relation to those accounts was unqualified and did not contain a statement under 498(2) or 498(3) of the Companies Act 2006.

Financing and going concern

At the period end, the Group's main debt facilities comprised a US$500 million Eurobond which is due for repayment on 7 April 2016 and a US$420 million revolving pre-export finance facility including a commitment amortisation over a 24 month period from September 2014 to August 2016. The Group is of the view that it can generate sufficient cash flows to fully repay the borrowings as they fall due in compliance with the terms and conditions of the loan facility and Eurobond terms and conditions.

The Group faces several risks to its business and strategy, which are included in the Principal Risks section of published Interim Report 2012 and these financial statements should be read in conjunction with this report.

The Directors are of the view that the Group is a going concern and the interim consolidated financial statements have been drawn up on this basis.

Changes in accounting policies

The accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial statements are the same as those followed in the preparation of the Group's annual financial statements for the year ended 31 December 2011 except for the adoption of new amendments to IFRSs effective as of 1 January 2012, noted below:

IAS 12 Income taxes - recovery of underlying assets

The amendment to the standard was issued in December 2010 and became effective for financial years beginning on or after 1 January 2012.The amendment provides an exception to the general principle of measuring deferred taxes for investment properties measured at fair value and introduces a rebuttable presumption that the carrying amount of such assets will be recovered entirely through sale. The adoption of this amended standard did not have an impact on the financial position or performance of the Group.

IFRS 1 First-time adoption of IFRS - severe hyperinflation and removal of fixed dates for first time adopters

The amendments were issued in December 2010 and became effective for annual periods beginning on or after 1 July 2011. The amendments to IFRS 1 provide guidance for entities emerging from severe hyperinflation and replace the date of prospective application of the de-recognition of financial assets and liabilities of '1 January 2004' with 'the date of transition to IFRS'. Both amendments did not have an impact on the financial position or performance of the Group.

IFRS 7 Financial instruments: disclosures - transfer of financial assets

The amendment to IFRS became effective for financial years beginning on or after 1 July 2011. The amendment requires the disclosure of information that enables the users of the financial statements to understand the relationship between transferred financial assets that are not de-recognised in their entirety and the associated liabilities as well as, in the case of fully de-recognised financial assets in which the entity retains continuing involvement, information to evaluate the nature of, and associated risks with continuing involvement in the derecognized financial assets. The application of this amendment did not have impact on the financial statements of the Group.

Seasonality

The Group's operations are not affected by seasonality.

Note 3: Segment information

The Group is managed as a single entity which produces, develops and markets its principal product, iron ore pellets, for sale to the metallurgical industry. While the revenue generated by the Group is analysed, there are no separate measures of profit reported to the Group's Chief Operating Decision-Maker ('CODM'). In accordance with IFRS 8 Operating Segments, the Group presents its results in a single segment which are disclosed in the income statement for the Group. The management monitors the operating result of the Group based on a number of measures including EBITDA, C1 costs and the net financial indebtedness.

EBITDA

The Group calculates EBITDA as profit from continuing operations before tax and finance plus depreciation and amortisation and non-recurring exceptional items included in other income and other expenses, share based payment expenses and the net of gains and losses from disposal of investments and property, plant and equipment. The Group presents EBITDA because it believes that EBITDA is a useful measure for evaluating its ability to generate cash and its operating performance.

C1 costs

C1 costs represent the cash costs of production of iron ore pellets from own ore divided by production volume of own ore, and excludes non-cash costs such as depreciation, pension costs and inventory movements, costs of purchased ore and concentrate and production cost of gravel.

 Net financial indebtedness

Net financial indebtedness as defined by the Group comprises cash and cash equivalents, term deposits, interest bearing loans and borrowings.

Note 4: Revenue

Revenue consisted of the following:

Export sales of iron ore pellets and concentrate by geographical destination were as follows:

 During the period ended 30 September 2012 sales made to three customers accounted for approximately 47.7% of the revenues from export sales of ore pellets(30 September 2011: 57.8%; 31 December 2011: 50.2%).

Sales made to two customers individually amounted to more than 10% of total sales. These are disclosed below:

Note 5: Cost of sales

Cost of sales consisted of the following:

 Note 6: Selling and distribution expenses

Selling and distribution expenses consisted of the following:

Note 7: General and administrative expenses

General and administrative expenses consisted of the following:

Note 8: Foreign exchange gains and losses

Operating foreign exchange gains and losses are those items that are directly related to the production and sale of pellets (e.g. trade receivables, trade payables on operating expenditure). Non-operating gains and losses are those associated with the Group's financing and treasury activities and with local income tax payables.

Note 9: Write-offs and impairment losses

Impairment losses relate to adjustments made against the carrying value of assets where this is higher than the recoverable amount.

Write-offs and impairment losses for the nine month period ended 30 September 2012 consisted of the following:

The impairment of the available-for-sale financial assets is related to the investment in VostokRuda LLC.

Note 10: Earnings per share and dividends paid and proposed

Basic EPS is calculated by dividing the net profit for the period attributable to ordinary equity shareholders of Ferrexpo plc by the weighted average number of ordinary shares.

Diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares in issue on the assumption of conversion of all potentially dilutive ordinary shares. All share awards are potentially dilutive and have been considered in the calculation of diluted earnings per share.

The calculation of the basic and diluted earnings per share is based on the following data:

The basic number of ordinary shares is calculated by subtracting the shares held in treasury from the total number of ordinary shares in issue.

'Underlying earnings' is an alternative earnings measure, which the directors believe provides a clearer picture of the underlying financial performance of the Group's operations. Underlying earnings exclude adjusted items and is calculated after non-controlling interest have been deducted from these items. The calculation of underlying earnings per share is based on the following earnings data:

Adjusted items are those items of financial performance that the Group believes should be separately disclosed on the face of the income statement to assist in the understanding of the underlying financial performance achieved by the Group. Adjusted items that relate to the operating performance of the Group include impairment charges and reversals and other exceptional items. Non-operating adjusted items include gains and losses on disposal of investments and businesses and non-operating foreign exchange gains and losses.

Note 11: Property, plant and equipment

During the nine months period ended 30 September 2012, the Group acquired property, plant and equipment with a cost of US$374,422thousand (30 September 2011: US$242,515 thousand; 31 December 2011: US$334,666 thousand) and disposed of property, plant and equipment with original costs of US$8,814 thousand (30 September 2011: US$3,428 thousand; 31 December 2011: US$5,796 thousand).

Note 12: Other taxes recoverable and prepaid

VAT receivable is as a result of VAT paid on domestic Ukrainian purchases of goods, capital equipment and services and on the import of goods, capital equipment and services into Ukraine to the extent that this cannot be offset on VAT paid on domestic sales. Ferrexpo currently has limited domestic sales and exports the majority of its products. As a result, VAT has to be recovered from the Government tax authority and Ferrexpo is reliant on the normal functioning of this system.

During the nine months period ended 30 September 2012, FPM received VAT refunds in respect of 2011 and 2012 amounting to US$39,585 thousand and paid Ukrainian VAT amounting to US$166,019 thousand, including US$61,050 thousand in respect of capital expenditure. As a result the gross recoverable balance increased by US$109,940 thousand to US$281,429 thousand (UAH2,249 million).

Management expects this amount to be fully recovered in local currency. However, the exact timing of recovery and method of settlement is subject to uncertainties, along with the prevailing exchange rate to the US Dollar at the time of repayment. In the past, VAT has been recovered in cash and by the issuance of domestic local currency bonds. An alternative method of settlement could be to offset amounts recoverable against current and future corporate profit tax. A financial loss could result, for example from the issuance of bonds which trade at a discount at the time of issue; continued late repayment as a result of Government fiscal constraints diminishing the present value of the receivable, or the conversion to US Dollar of local currency received at a different exchange rate to that recorded at the time of payment.

Management has considered these uncertainties including potential continued International Monetary Fund support for the Ukrainian national budget, domestic economic and budgetary constraints, and current discussions with fiscal authorities in making an estimate of the timing of recovery of the VAT due. Management concluded that a large portion of the VAT is likely to be repaid considerably beyond the settlement terms which will result in additional funding costs for the Group. As a result, an estimated discount of US$15,900 thousand has been recorded to reflect this uncertainty and its effect is included in finance expense. The discount was calculated on the basis that VAT refunds will continue to be limited to an amount which is double monthly corporation tax payments, which has been our recent experience. Based on current management estimates, US$174,537 thousand of VAT is expected to be recovered within one year of the period end, with the remainder, amounting to US$91,008 thousand, net of the associated discount to reflect the time value of money, recoverable after more than one year of the period end.

Further information on the Ukrainian VAT situation is provided in the risk section on page 23 of the Interim Report for the period ended 30 June 2012.

Note 13: Cash and cash equivalents

As at 30 September 2012 the Group held cash and cash equivalents of US$673,913 thousand (30 September 2011: US$543,188 thousand; 31 December 2011: US$890,154 thousand).

Note 14: Share capital and reserves

The share capital of Ferrexpo plc at 30 September 2012 was 613,967,956 (30 September 2011: 613,967,956; 31 December 2011: 613,967,956) ordinary shares at par value of £0.10 paid for cash, resulting in share capital of US$121,628 thousand which is unchanged since the Group's Initial Public Offering in June 2007.

This balance includes 25,343,814 shares (30 September 2011: 25,343,814 shares; 31 December 2011: 25,343,814 shares) which are held in treasury, resulting from a share buyback that was undertaken in September 2008, and 3,504,523 shares held in the employee benefit trust reserve (30 September 2011: 3,744,658 shares; 31 December 2011: 3,744,658 shares).

As at 30 September 2012 other reserves attributable to equity shareholders of Ferrexpo plc comprised:

For the nine months period ended 30 September 2011: