Drilling Results Report Wide Iron Mineralisation

18 May 2011

Ferrum Crescent Limited

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

Assayed Drilling Results Report Wide Iron Mineralisation, South Africa

Highlights

·; Results from six reverse circulation ("RC") drill holes, Moonlight Iron Ore Project, South Africa

·; Intersection results up to 43m indicate thicker mineralisation than previously modelled

·; Significant intersections of iron mineralisation include*:

- 43m @ 31.34% Fe from 96m downhole in FCL088

- 28m @ 33.97% Fe from 104m downhole in FCL089

- 13m @ 35.43% Fe from surface in FCL087

*Note - full details of assayed intercepts are shown in Table 1.

·; Six further RC holes currently being assayed

·; 11 hole HQ diamond core programme also completed with core currently being assayed

·; Metallurgical test work to begin initially processing core samples to assess DRI production suitability

·; Moonlight exploration designed to:

- Increase existing JORC compliant resource of 74Mt Indicated and 225Mt Inferred category with 30% Fe grade

- Define metallurgical properties of both hematite and magnetite iron ore in order to develop a high grade DRI pellet production facility to supply domestic South African and international steel industry

- Complete comprehensive definitive feasibility study during Q1 2012

Commenting today Vernon Harvey, COO, said: "The results are interesting because they increase our expectations over the intersection widths Moonlight is capable of hosting. From the consideration of resource size and the grades we are seeing the results are very positive with regards to the total potential mineralisation. I look forward to announcing results from the additional RC holes and diamond drilling programme but, as important, will be the metallurgical results from the newly recovered core. Our objective at Ferrum Crescent is to develop a high grade DRI product by beneficiating the existing resource and the metallurgical results will be key to progressing such a production route."

Ed Nealon, Executive Chairman, went on to comment: "The increased widths and consistent grade are very positive signs for the Moonlight resource and we look forwarding to announcing further drilling and metallurgical results over the coming months. We are on schedule to complete our DFS at the Moonlight project during Q1 2012, which will allow us to develop a high grade DRI iron product that can be transported to smelters by utilising existing infrastructure in South Africa."

Ferrum Crescent, the AIM and ASX listed developer of high grade iron products in South Africa, today announces the results from the drilling of six reverse circulation ("RC") drill holes at its Moonlight Iron Ore Project. These holes are part of a 12 hole programme that was completed on 15 March 2011 with iron mineralisation intersected in all holes.

The assayed intervals confirm visual observations of iron mineralisation in the samples. It is significant that intersections of iron mineralisation (hematite and magnetite) were considerably thicker than predicted by the current geological model in this area of the deposit. The current geological model predicted that the total of mineralised intersections would be some 161m in the six holes. Encouragingly, the total of the actual assayed intercepts was 30m greater at 191m.

Significant intersections of iron mineralisation include*:

·; 43m @ 31.34% Fe from 96m downhole in FCL088

·; 28m @ 33.97% Fe from 104m downhole in FCL089

·; 13m @ 35.43% Fe from surface in FCL087

*Note - full details of assayed intercepts are shown in Table 1.

Moonlight contains a JORC compliant resource of 74Mt in the Indicated Resource category and 225Mt in the Inferred Resource category at a grade of 30% Fe.

The RC drilling was planned to provide additional information to allow refinement of the geological model in areas of sparse drilling. The results confirm confidence in the geological model and demonstrate excellent continuity of iron mineralisation. Ferrum expects that an updated resource model will be available during the third quarter of 2011.

 Core drilling

An additional 11 hole HQ diamond core programme was also completed at the Moonlight project on 16 April. Processing of the core is progressing well and expected to be complete in the coming weeks. The first batch of core samples was submitted for assay in mid April, and final assays for the programme should be available by the end of June.

Metallurgical Testwork

The Company is in the process of confirming final details of a comprehensive metallurgical programme that will include comminution and beneficiation studies. The initial phase of this work will use core samples from the current drilling and be directed at the development of a probable flow sheet for the upgrade of iron mineralisation to a product grade of suitable composition for the production of DRI pellets.

Full RC Drilling results from six completed holes

Table 1: Intercepts of iron mineralisation greater than or equal to 5m in width

·; Drilling by reverse circulation using 5.25 inch face sampling hammer.

·; All holes drilled vertical.

·; Mineralisation has a generally flat dip to the north - intersection widths approximate the true width of the mineralisation

·; Samples are collected through a rig mounted cyclone over 1m intervals and geologically logged.

·; All samples are weighed as a check on recovery and representivity.

·; 1m sub samples for assay are split using a single stage Jones type riffle splitter.

·; Assays determined by Fusion XRF, LOI (loss on ignition) determined at 1000C0.

·; Composite intervals have been determined with regard to geological description using a lower cut off grade of 15% Fe and a minimum composite length of 5m.

·; Appropriate quality control methods have been used including standards, blanks and field duplicates

·; Drill holes have been located hand held GPS methods using the South African, Hartbeeshoek94 Lo29 WGS system.

To view Moonlight drill hole plan please click on: www.ferrumcrescent.com/announcement-18-May-2011.php