Chairman's Address at the 2010 AGM

24 November 2010

International Ferro Metals Limited

("IFL" or the "Company")

Chairman's Address at the 2010 Annual General Meeting of Shareholders

While the global stainless steel industry recovered sharply after the Global Financial Crisis, ferrochrome suppliers followed suit at a slower pace. The Company, along with other South African producers faced industry conditions that were and still are, challenging. In particular, China has emerged as a significant, although relatively high cost producer of ferrochrome.

Notwithstanding this testing period, the Company reduced its loss from ZAR 456 million last year to ZAR 157 million.

This is a creditable achievement, in view of the difficult factors outside our control. The Rand, in which most of our costs are computed, has been and is trading at historically strong levels. It has negated the effect of the modest rise in the ferrochrome price, which is sold in US dollars. Electricity prices surged by 54%, and are due to rise an additional 25% over the ensuing two years and with labour costs having risen significantly.

The Company's response to this has been immediate and vigorous. It has put into place a root and branch cost reduction programme which is being reviewed continuously. Its aim is to push our costs downward into the bottom end of the South African cost curve.

The programme tackles overheads and other fixed costs, together with operational efficiencies in the mine and the smelter. Notwithstanding cost rises in areas where we have no control, the Company achieved an 8% reduction in ferrochrome production costs for the year in exchange adjusted terms, after appreciation of the Rand is taken into account.

Both furnaces were restarted after being shut down in reaction to the collapse in ferrochrome demand at the end of 2008. While certain maintenance issues needed to be addressed, resulting in somewhat lower capacity utilization, operational efficiencies improved markedly.

I am pleased to announce that the Co-generation plant is being commissioned at the present time and is performing well. The plant is redirecting furnace off-gases which should produce about 11% of the Company's electricity needs. It will significantly reduce the carbon footprint of the overall operation, and will qualify for useful carbon credits.

Under the agreement with Rustenburg Platinum Mines ("RPM"), the Company will pay for and build a chrome retreatment plant to extract platinum group metals for RPM and UG2 chrome concentrate for IFL. This ore supply represents approximately 30% of our beneficiated ore requirements and will result in a significant cost saving.

The Company is also pleased to announce that on 23 November the South African Department of Mineral Resources granted the required mining licenses for the Sky Chrome property, which lies adjacent to the existing Lesedi mine. The development of Sky Chrome will ensure that the Company will remain self-sufficient in ore for in excess of 40 years.

The Company takes corporate governance very seriously. To that end John Ballard was appointed to the board as an independent director. The Company now has three independent directors, all of whom serve on committees. In addition, Jannie Muller, the CFO joined the board. On behalf of the Company I welcome them both.

I would like to conclude on a note of reasoned optimism. The world's stainless steel industry is moving ahead strongly, led by China, and is expected to require significantly more ferrochrome. The long term future for our industry is sound. The Company's vigour in attacking production and other costs should stand it in good stead to survive the short term challenges and reap the benefits of improving terms of trade when they come.

- 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.