IFL.L Regulatory News (IFL)

28 June 2011

International Ferro Metals Limited

("IFL" or the "Company")

Operations Update

In advance of investor meetings with our CEO designate Christiaan Jordaan this week, IFL provides the following update to the market. The production report for the 3 months to 30 June 2011 will be released as scheduled on 19 July 2011, providing an update on mining, smelting, production, sales and the ferrochrome market as usual. The presentation made to investors this week will be available on the company's website from Wednesday morning.

Smelting

The furnace roof upgrade project is on schedule and within the original budget of ZAR40m per furnace. The first furnace was shut down on 1 June to commence the rectification work and the new roof has arrived on site. Installation should be completed by the end of July with the furnace back in production at the beginning of August and full production being achieved from September.

The second furnace is planned for shut down in the beginning of July and the new roof should be installed towards the end of August. Production is on track to commence during the beginning of September and full production reached by October.

Part of the work on the two furnaces is now being phased concurrently rather than sequentially. This will minimise power consumption at a time of seasonally high-cost electricity in South Africa. As a consequence, the company now expects production at around 27,000t -31,000t for the quarter ending September 2011. This guidance is subject to the rectification work and ramp up being completed successfully and without delay.

Sky Chrome Mining

Site establishment at Sky Chrome has been completed and open pit mining operations commenced in mid June. Overburden has been removed and run-of-mine ore production is being stock piled. First delivery of ore to the plant is scheduled for the beginning of July, when it is expected there will be sufficient ore for it to be economic to transport material from the mine to the IFL production facility. Excluding the mining contractors, Sky Chrome will provide employment in its mining operations for one hundred people from the surrounding communities, of which eighty people have already been appointed. An additional one hundred people from the surrounding communities are to be employed over the next three to six months for an agricultural project adjacent to the mining operations.

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 furnace roofs have been replaced which should allow the co-generation plant to operate at full production. While the furnace upgrade project is on-going the co-gen engines are being continually tested with the objective of achieving full co-gen capacity efficiently following the furnace restart.

UG2 Plant

Construction of the UG2 Chrome Re-Treatment Plant ("CRP") at Anglo Platinum's operations is on schedule, with commissioning expected to commence during September. The first feed of chrome concentrate is expected in January 2012.

- 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.