IFL.L Regulatory News (IFL)

20 April 2011

International Ferro Metals Limited

("IFL" or the "Company")

Interim Management Statement to 20 April 2011 and

Production Report for the three months to 31 March 2011

Highlights:

·; Ferrochrome ("FeCr") production of 51,446 tonnes ("t") for the quarter to 31 March 2011, up 9% on the previous quarter, but down 5% on the corresponding period last year due to previously announced furnace roof leaks in advance of the rectification and upgrade planned for June to August 2011

·; Sales of 48,420t achieved in the quarter to 31 March 2011, down 35% from the previous quarter and down 24% on the corresponding period, both of which were unusually high due to stockpile liquidation

·; Net borrowings reduced slightly from ZAR216 million at 31 December 2010 to ZAR213 million at 31 March 2011

·; Ongoing successful cost reduction programme resulted in Rand production costs down 10% on the preceding half year

·; Construction by Anglo Platinum of chrome tailings re-treatment plant on schedule to supply UG2 chrome concentrate from January 2012

·; Benchmark European FeCr price increased by 10¢/lb to US$1.35/lb for the June 2011 quarter

Commenting on the update, Chief Executive David Kovarsky said:

"The long-term fundamentals for stainless steel and ferrochrome demand remain strong. We continue to focus on selling into higher value markets, and on ensuring our ongoing cost reduction programme protects our margins. The Company's success in reducing costs this quarter, combined with the future cost savings, is expected to position the Company below the median on the South African cost curve."

Ferrochrome market

During the quarter under review the Company saw healthy demand from Europe, North America and non-Chinese Asian markets. This was due to a pick-up in stainless steel production in all markets. Consequently, the Chinese spot price strengthened and approached the European benchmark price towards the end of the quarter when the benchmark price was being set.

Towards the end of the quarter a number of factors softened the market that led to only a 10¢/lb price increase for the Q2 2011 benchmark price. These factors included the earthquake and tsunami disaster in Japan, events in the Middle East, and Chinese credit tightening. The ferrochrome and chrome ore markets have remained soft but as Japan begins to rebuild the north east of the country and as China enters into its twelfth five year plan, this will underpin the strength of the ferrochrome market in the medium and long term.

As previously announced, the Company has been focusing on maximising sales to high value markets such as Europe, North America, Taiwan and Korea. During the quarter, sales to Europe and North America exceeded sales to Asia, with approximately 28,000t sold to those markets, and approximately 20,000t sold to Asia, mostly to Taiwan. Minimal tonnages were sold into the Chinese markets.

Mining

Mining operations continued to perform well and results were in line with budget. As usual seasonal rains impacted open cast mining, and this was the major reason for mine production of 194,000t for the quarter to 31 March 2011 being less than the previous quarter's 205,000t. Recoveries in the ore beneficiation plant continued its upward trend, with the plant achieving a 64% yield, slightly higher than the previous quarter.

The Sky Chrome open cast contractor has been identified and a letter of intent is expected to be signed within a week. Preparations have commenced for mining and the recruitment of mine labour is about to start. Site establishment is expected to commence within the next three weeks.

Smelting

Production for the quarter ended 31 March 2011 of 51,446t was 9% higher than the quarter to 31 December 2010 of 47,054t. Lower power input into the furnaces resulted in lower roof temperatures being experienced and water leaks reduced considerably. March was a particularly pleasing production month with 19,797t being produced. April has continued to be strong but at slightly lower levels than achieved in March. The Company expects production to continue at levels around 16,000t to 18,000t per month in April and May 2011 and at half that rate during June, July and August when the furnace rectification and upgrade is performed.

The project to rectify the leaks and upgrade the furnaces is on track. The first furnace is scheduled to be shut down at the beginning of June 2011 and both furnaces should be back in production by the beginning of September 2011. The rectification and upgrade should allow the furnaces to achieve the production levels that they were originally designed to achieve. Costs are in line with original estimates of R40m per furnace.

Co-generation plant

As previously announced, the co-generation plant continues to operate at a minimal level. Off-gas consistency is expected to be achieved once the furnaces leaks have been rectified and the furnaces have been upgraded which should allow the co-generation plant to operate at full production.

UG2 Plant

Construction of the UG2 Chrome Re-Treatment Plant ("CRP") at Anglo Platinum's operations is on schedule and the Company is confident that the first feed of chrome concentrate will be received in January 2012. The primary objective of the CRP is to extract chrome concentrate from the UG2 tailings at Anglo Platinum's Waterval section and is expected to significantly reduce IFL's input cost.

Sales and inventory

The Company sold 48,420t of ferrochrome during the March 2011 quarter compared to 74,917t in the previous quarter. The abnormally large sales volume in the December 2010 quarter resulted from the sale of inventory that was built up in order to take advantage of higher ferrochrome prices. The Company continued with its stated programme of reducing its chrome ore stockpile and 106,137t were sold compared to 89,187t in the previous quarter. The ore stockpile has been materially reduced and ore sales are expected to taper off going forward.

Cash

The Company's net borrowings remained largely unchanged at ZAR213 million at 31 March 2011, against net borrowings of ZAR216 million at 31 December 2010.

Cost reduction

Despite relatively low production, the Company's cost reduction initiatives during the quarter proved to be very successful, particularly in reducing the cost of reductant. In Rand terms, production costs over the quarter were 10% below that of the first half of the financial year:

·; reductant cost decreased by 21% because of a significant increase in the use of anthracite

·; ore cost decreased by 5% because of improved beneficiation yields and lower use of bought-in ores;

·; other costs increased by 5%, mainly due to higher maintenance costs

·; although electricity consumption per unit was 11% higher than normal, mainly as a result of the furnace roof leaks, electricity cost decreased by 17% because of lower tariff summer months

Outlook

The medium and long term outlook for stainless steel production remains intact and as Japan begins its reconstruction and China implements its twelfth five year plan, we are positive for the outlook for the ferrochrome market.

The Company's success in reducing costs this quarter combined with the future expected cost savings from improved electricity efficiencies, electricity co-generation, nameplate production volumes being achieved once the furnace roofs have been rebuilt, and cheaper UG2 ore, should position IFL below the median on the South African cost curve.

Other than as detailed above in this Interim Management Statement and the Operational Update released on 18 January 2011, there have been no material events or transactions in the period from 1 April 2011 to 20 April 2011.

- 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.