Annual Financial Report

29 September 2017

Ferrum Crescent Limited

("FCR", the "Company" or the "Group")(ASX, AIM, JSE: FCR)

Final Results for the Year Ended 30 June 2017

FCR, the lead-zinc exploration company, announces its final results for the year ended 30 June 2017.

A pdf copy of the full Annual Report and Accounts is attached here: http://www.rns-pdf.londonstockexchange.com/rns/2592S_-2017-9-29.pdf and will be posted to Shareholders in due course.

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

Ferrum Crescent Limited

Grant Button, Chairman (Australia)

T: +61 8 9474 2995

Laurence Read, Executive Director (UK)

T: + 44 (0)20 3289 9923

Strand Hanson Limited (Nominated Adviser)

Rory Murphy / Matthew Chandler

T: +44 (0)20 7409 3494

Peterhouse Corporate Finance Limited (Broker)

Lucy Williams / Duncan Vasey / Heena Karani

T: +44 (0)20 7469 0930

Beaufort Securities Limited (Broker)

Elliot Hance

T: +44 (0)20 7382 8300

Bravura Capital (Pty) Ltd (JSE Sponsor)

Melanie De NysschenT (direct): +27 11 459 5052

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014.

Extracts from the Company's audited Report and Accounts are set out below:

Introduction to the Group

Ferrum Crescent Limited ("Ferrum", "FCR" or the "Company") is an Australian company listed on the Australian Securities Exchange (ASX: FCR) and on the JSE Limited (JSE: FCR) and quoted on the AIM market of the London Stock Exchange plc (AIM: FCR). During the year, the Company undertook operational restructuring which, post period led to the divestment of its South African iron ore operations, and now sees the Company focused on Spanish lead-zinc operations.

In carrying out its operations during the reporting period, the Group incurred a loss after income tax for the period from 1 July 2016 to 30 June 2017 of $11,286,803 (2016: loss of $1,573,533). The loss includes a loss of $9,262,484 on the sale of Batavia Limited. The Group had net assets of $1,570,393 (2016: $718,659) as set out in the Statement of Financial Position.

Review of operations and activities

Spanish lead-zinc portfolio

During September 2016, the Company advanced its refocus towards lead-zinc exploration through the exercise of an option on a lead-zinc portfolio located in north-western Spain. The Toral lead-zinc asset located in the Leon province has over 44,000 metres of historic drilling.

The Company has undertaken internal soil geochemistry and channel sampling at the Toral lead-zinc asset (As announced on 23 February 2017), the key highlights of which are set out below:

· Results from 575 soil samples, 108 rock chip samples, 23 channel samples.

· Channel sampling identified various mineralisation styles near surface, including:

o 0.9m @ 10.5% Zn & 2.5% Pb average achieved on main structure within Adit 49; and

o 1.2% Cu, 6.5% Zn & 13.5% Pb returned from a 1.2m channel sample in Adit 54.

· Soil sampling identified distinct, continuous zinc-‐in-‐soil 2 kilometre anomaly, approximately 150 metres wide, including peak zinc-‐in-‐soil values of 1.4% zinc. 

· New mineralising styles identified, associated with:

o Shear-related structural repetition and multiple structures sub-parallel to the main shear;

o Cross-cutting faults associated with soil anomalies and sulphide mineralisation; and

· Various zones of alteration associated with soil anomalies, including dolomitisation, calcitic and chloritic alteration and zones of hydrothermal brecciation. 

· Formulation of a drill programme plan generated to intersect shallow untested targets within main anomalous area.

Please refer to the company's announcement dated 23 February 2017 for further information.

The Company has undertaken a drilling programme which, post-period, returned positive lead-zinc results at the Toral lead-zinc asset (as announced 7 September 2017). The key highlights of the drilling programme are set out below:

· All of the 1,046.9m drilled occurred within 200 metres of the surface.

· Intersection of lead-zinc anomalies in all six drill holes.

· Key intersections encountered (all widths given along the core):

o Hole TOR17009 1 metre grading at 1.22%Pb, 9.77%Zn (10.99% combined Pb/Zn);

o Hole TOR17012 3 metres grading at 0.64%Pb, 6.46%Zn (7.10% combined Pb/Zn);

o Hole TOR17012 1 metre grading at 0.67%Pb, 16.10%Zn (16.77% combined Pb/Zn);

o Hole TOR17013 1 metre grading at 6.51%Pb, 6.50%Zn (13.01% combined Pb/Zn); and

o Hole TOR17013 3 metres grading at 6.03%Pb, 5.49%Zn (11.52% combined Pb/Zn).

Outlook

The Company is now reviewing all data and looking to develop a next stage of exploration at Toral to unlock value from the significant drilling information held at the project.

Competent Person's Statement 

The information set out in section 2 above relates to Exploration Results which are based on information compiled by Mr Juki Laurikko who is a Member of the European Federation of Geologists which is a Recognised Professional Organisation for the purposes of the 2012 JORC Code. Mr Laurikko is a Technical Consultant to the Company, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ''Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves''. Mr Laurikko consents to the inclusion in this announcement of the matters based on his information in the form and context in which they appear. Mr Laurikko has also reviewed and approved the technical information in his capacity as a qualified person under the AIM Rules. 

The Moonlight project

The Moonlight Deposit (upon which the Moonlight Project is based) is a magnetite deposit located on the farms Moonlight, Gouda Fontein and Julietta in Limpopo Province in the north of South Africa.

In June 2017, the Company entered into a legally binding agreement for the sale of Batavia Ltd ("Batavia"), its wholly-owned Mauritian subsidiary which is the investment holding company for all the Group's South African assets, including the Moonlight iron ore project in Limpopo Province, northern South Africa (the ""Moonlight Project""), to NPSPL Africa Holdings Limited and its BEE partner, Ngwenya Capital (Pty) Limited (together, the "Purchasers"). The Company no longer holds any interest in this project.

Corporate

July 2016

£374,453 raised before expenses through a placement of 187,226,485 new ordinary shares of no par value each in the capital of the Company at a price of 0.20 pence per new ordinary share.

Issued 66,874,816 new ordinary shares issued of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 66,874,816 options exercisable at a price of 0.165 pence per share.

August 2016

Issued 44,797,543 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 44,797,543 options exercisable at a price of 0.165 pence per share.

September 2016

Ferrum Crescent acquired 100 per cent. of the share capital of GoldQuest Iberica, S.L. (""GoldQuest"") further to the exercise of its option. Consideration comprised £326,500 in cash and the issue of 100 million new ordinary shares in the capital of Ferrum Crescent.

In connection with the Acquisition process, the Vendor, Crestgate, Lundin Mining Corporation (""Lundin"") and others, entered into an assignment and restatement agreement (the ""Assignment Agreement"") with respect to certain residual historic rights held by Lundin and its subsidiary over the Toral licence area.

Pursuant to the Assignment Agreement, the Vendor is required to:

i) make a one-off payment of US$2.5 million to Lundin at such time as a decision is made to proceed with the construction of a mine on the Toral licence area;

ii) make a further one-off payment of US$5 million to Lundin following commencement of commercial production (as defined in the agreement) on the Toral licence area; and

iii) pay Lundin's subsidiary a 1.5 per cent. net smelter return royalty upon commencement of commercial production on the Toral licence area.

The Vendor's abovementioned obligations to Lundin under the Assignment Agreement are guaranteed by Crestgate and pursuant to the terms of the SPA will be assumed by the Company within twelve months of completion.

Issued 5,381,907 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 5,381,907 options exercisable at a price of 0.165 pence per share.

October 2016

Issued 181,560,288 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 181,560,288 options exercisable at a price of 0.165 pence per share.

November 2016

Issued 769,231 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 769,231 options exercisable at a price of 0.165 pence per share.

December 2016

Issued 3,205,088 new ordinary shares of no par value each in the capital of the Company as a result of the exercise of, in aggregate, 3,205,088 options exercisable at a price of 0.165 pence per share.

£550,000 raised before expenses through a placement of 275,218,025 new ordinary shares of no par value each in the capital of the Company at a price of 0.20 pence per new ordinary share.

January 2017

Mr Klaus Borowski resigns from the Board of Directors of the Company as a non-executive director. Laurence Read joins the board of directors as a non-executive director.

February 2017

The agreement with Business Venture Investments No. 1709 (Proprietary) Limited (""BVI"") for the Moonlight iron ore projects terminates due to non-completion of specified work streams within a stated period by BVI.

April 2017

Company announces proposed wind-down and hand back of Moonlight assets in lieu of a credible development partner being secured.

June 2017

£225,521 raised before expenses through a placement of 322,173,789 new ordinary shares of no par value each in the capital of the Company at a price of 0.07 pence per new ordinary share.

Significant events after the reporting date

There are subsequent events to report, as follows:

On 8 September 2017, the Company announced that it had conditionally raised in aggregate, GBP193,304 (approximately AU$321,590) before expenses through a placement via Peterhouse Corporate Finance Limited, as agent to the Company, of 214,782,526 new ordinary shares of no par value each in the capital of the Company at a price of 0.09 pence per new ordinary share. Following admission, the total issued ordinary share capital of the Company was 2,684,781,581 ordinary shares.

On 26 September 2017, the Company announced that Mr Justin Tooth, Executive Chairman, had resigned from the Board of Directors of the Company with immediate effect, in order to pursue his other business interests. Mr Grant Button, previously a non-executive director of the Company and the Company secretary, will assume the role of non-executive Chairman with immediate effect. Mr Laurence Read, previously a non-executive director, will become an executive director, with immediate effect.

Likely developments and expected results

The Group will continue to carry out its business plans, by:

· Conducting its planned initial zinc exploration work programme on the Iberian Projects in Spain;

· Seeking further strategic acquisition opportunities within the exploration and mining industry to enter potentially into additional advanced projects that will add value to the Group; and

· Continuing to meet its statutory commitments relating to its exploration tenements and carrying out exploration of its exploration tenements in accordance with its stated strategy, whilst carefully conserving the Group's cash reserves in order to be able to take advantage of value adding opportunities.

There can be no guarantee either that further exploration of the Group's tenements will result in exploration success or that any potential additional strategic acquisition considered by the Directors to be likely to add value to the Group will become available to the Group.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 30 June 2017

The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the accompanying notes in the full Report and Accounts.

Consolidated Statement of Financial Position

As at 30 June 2017

This Consolidated Statement of Financial Position is to be read in conjunction with the accompanying notes in the full Report and Accounts.

Consolidated Statement of Cash Flows

For the year ended 30 June 2017

The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes in the full Report and Accounts which can be accessed via the following link: http://www.rns-pdf.londonstockexchange.com/rns/2592S_-2017-9-29.pdf