IFL.L Regulatory News (IFL)

15 November 2010

International Ferro Metals Limited

("IFL" or the "Company")

Interim Management Statement to 15 November 2010 and

Production Report for the three months to 30 September 2010

Highlights:

·; Ferrochrome (FeCr) production 53,785 tonnes (t) for the quarter to 30 September 2010, up 5% on the previous quarter and up 46% on the corresponding period last year

·; Sales of 28,891t for the quarter, down 48% on the previous quarter and down 21% on the corresponding period last year due to seasonally suppressed demand in key markets being more pronounced this year

·; FeCr inventory of 42,870t at 30 September 2010 (17,976t as at 30 June 2010) reduced to 31,324t at 31 October 2010

·; Net borrowings of ZAR309 million as at 31 October 2010 (net cash of ZAR47 million as at 30 June 2010) with a working capital facility of ZAR500m

·; Electricity co-generation plant construction completed and commissioning commenced

·; Benchmark European FeCr price of US$1.30/lb for the September 2010 quarter, unchanged from prior quarter

·; Agreement signed with Phoenix Platinum to develop a chrome tailings retreatment plant on IFL's Buffelsfontein property, worth ZAR80m to IFL

Commenting on the operational update, Chief Executive David Kovarsky said:

"We are very pleased to announce the successful commissioning of the electricity co-gen plant and the agreement with Phoenix Platinum for the retreatment of chrome tailings, both of which highlight management's focus on maximising value from the business and reducing costs. Turning to performance, the third quarter is traditionally a weak time of year for ferrochrome demand and this year was no exception. However, since the end of the quarter we have begun to see a strengthening of demand, particularly from China, which will decrease inventory to more normal levels by the end of the year."

Ferrochrome Market Conditions

As expected, the combination of low global ferrochrome inventories and South African production cuts during its high electricity winter tariff months resulted in a stabilisation of the ferrochrome market over the quarter. The Q4 2010 European benchmark price remained unchanged at US$1.30/lb from the previous quarter. The strengthening South African Rand does however continue to impact the Company.

Market commentators predict that stainless steel is heading for a record production year, with estimates at 30.8 million tonnes for calendar 2010. As a result spot ferrochrome prices have started to firm.

Production

Although production improved markedly over the quarter, increasing from 51,331t in the previous quarter to 53,785t for the quarter under review, it was still below nameplate capacity as water leaks at both furnaces have continued to impact operations. The required steps have been taken to remedy the situation. As was previously announced, furnace 2 was shut during the quarter to June 30th 2010 for roof repairs and both furnaces will be shut in November for five days to replace faulty roof panels. It is expected that production will be fully ramped up by the end of December 2010.

The Lesedi underground mining operations continue to meet management's expectations and the mine is now consistently producing 22,000t per month run-of-mine and is expected to continue to increase.

Sales and inventory

Sales for the quarter were 28,891t compared to 55,433t in Q2 2010. Although this quarter generally reflects low volumes in Europe and North America, it was more pronounced this year. Sales in the period since the end of the September quarter have strengthened significantly and several large shipments have been made, with a renewed focus on the Chinese market.

Inventory increased from 17,976t at 30 June 2010 to 42,870t at the end of September 2010, but the recovery in sales in the intervening six weeks has seen inventories sold down to 31,324t at 31 October 2010 and continuing to be reduced. It is anticipated that ferrochrome inventory levels will decrease to less than 25,000t by 31 December 2010. At 30 September 2010 sales of 22,206t had ongoing price exposure, most of which is expected to be settled by the end of calendar 2010.

Cash balance

As at 31 October 2010, the Company had net borrowings of ZAR309 million, against net cash of ZAR47 million at 30 June 2010. The decrease in net cash from ZAR47 million at 30 June 2010 is largely the result of operating cash outflows of ZAR237 million, of which ZAR151 million was the result of increased inventory balances, and capital and UG2 plant expenditure of ZAR107 million.

Electricity co-generation plant

The construction of the electricity co-generation plant has been completed on time and within budget and commissioning of the engines has started. The plant is expected to be fully commissioned within eight weeks.

Agreement with Phoenix Platinum

On 5 November 2010 the Company announced an agreement with Phoenix Platinum Mining (Pty) Ltd ('Phoenix'), a wholly owned subsidiary of Pan African Resources plc, to develop a Chrome Tailings Retreatment Plant (the 'CTRP') to extract primarily the residual Platinum Group Metals and other saleable minerals through the retreatment of the tailings dams and current arisings from IFL's existing chrome operations. The CTRP will be built on IFL's Buffelsfontein property and utilise IFL's existing infrastructure. As reported, IFL will receive an aggregate of ZAR80 million in exchange for its existing 25% Net Profit Interest in the tailings of which ZAR25m was received on 5 November 2010.

Outlook

It is expected that stainless steel production will continue to expand to 33m tonnes in 2011 following record forecast global stainless steel production in 2010 of 30.8m tonnes. Ferrochrome demand should benefit from this increase and therefore the medium term prospects for ferrochrome remains positive.

Other than as detailed above in this Interim Management Statement, there have been no material events or transactions in the period from 1 October 2010 to 15 November 2010.

- ENDS-

For further information please visit www.ifml.com or contact:

About International Ferro Metals:

International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa. International Ferro Metals is listed on the London Stock Exchange under the symbol IFL.

Forward Looking Statements

This announcement contains certain forward looking statements which by nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.