Half-year Report

16 March 2018

Ferrum Crescent Limited

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

Results for the Half-Year Ended 31 December 2017

FCR, the European lead-zinc explorer, announces its unaudited results for the half-year ended 31 December 2017.

The Company's full half-year report, with images, can be found at the link below:

http://www.rns-pdf.londonstockexchange.com/rns/9979H_-2018-3-16.pdf

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

Ferrum Crescent Limited

Daniel Smith, Non-Executive Director and Company Secretary (Australia)

T: +61 8 9486 4036

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

Bravura Capital (Pty) Ltd (JSE Sponsor)

Melanie De Nysschen

T (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.

Review and results of operations

Operating Results

During the half-year 1 July 2017 to 31 December 2017, the Group recorded a net loss after tax of AUD 712,548 (1 July 2016 to 31 December 2016: net loss of AUD 688,661).

Spanish lead-zinc portfolio

The Company announced in July 2017 that the 1,046.9 metres exploration drill programme at its wholly owned Toral Project, located in the province of León, Spain, to determine the presence of near surface mineralisation had returned core containing visible lead-zinc from every one of the 6 drill holes completed. The Assays from the holes were sent to laboratories, where the results confirmed the presence of lead-zinc anomalies at the intersections in all 6 holes in September 2017.

The results of the key intersections encountered (all widths given along the core) are as below:

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

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

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

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

· Hole TOR 17013 3 metres grading at 6.03%Pb, 5.49%Zn (11.52% combined Pb/Zn).

The tables below contain the Toral Project Drilling Results:

Table 11: Drill-hole information

Table 2: Significant Intercepts1

1 The above tables can be viewed in the Company's market announcement of 7 September 2017

In October 2017, the Company announced a revised exploration strategy for the Toral project. The new strategy is led by newly appointed Executive Director - Myles Campion, and Executive Director - Laurence Read. Working directly with the independent resource consultancy, Addison Mining Services Limited (AMS), by December 2017, the Company completed data location checks, data collection and analytical review procedures, including check sampling for the purpose of verification and validation of the project's new database for use in the preparation of a JORC 2012 compliant resource estimation. Quality control data assessment and check sample analytical results were still pending at the end of the period.

During the site audit, AMS conducted review, observation and discussion on geological setting, structural architecture and controls on mineralisation. Work was underway during December 2017 for the development of a new deposit model, based on FCR's views at the time on controls and mechanisms of mineral deposition incorporating the identification and interpretation of thrust repeat and parallel mineralisation zone development.

Data Verification

Following the review of mineralised intersections and associated multi-element data, and the previous 2013 NI43-101 resource model at Toral, the presence of precious metals has been identified as being part of the mineralised system, typical of a carbonate hosted, structurally controlled Pb-Zn deposit of this nature. Silver grades have been historically recorded but at the period end, had not been verified through normal Quality Assurance/Quality Control procedures. Accordingly, the Company, in association with AMS, undertook further data verification and analysis in order to verify the silver (Ag) grades present within the Toral system. FCR intended to incorporate the silver data sets into the JORC (2012) resource estimate following agreement with AMS. If the silver data could be verified and is of sufficient certainty to be reported on under JORC (2012), then the resource could be expanded and remodelled with completion expected in early 2018.

The Company announced on the 22 November 2017 that following a formal application to the Director General of Mines in the Province of León, the exploration licence in respect to Toral had been renewed for a further 3 year term to November 2020.

The Moonlight project - South Africa

During June 2017, the Company entered into a legally binding agreement for the sale of Batavia Ltd ("Batavia"), its wholly-owned Mauritian subsidiary which was 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. The Board had decided to terminate all activities and expenditures in South Africa due to the depressed iron ore market and the project's high capital cost and infrastructure requirements.

Competent person's statement

The information above that relates to Exploration Results is 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.

Corporate

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. The placement was completed on 14 September 2017.

On 26 September 2017, the Company announced that Mr Justin Tooth, Executive Chairman has resigned from the Board of Directors of the Company with immediate effect, in order to pursue his other business interests. Additionally, Mr Laurence Read, previously a Non-executive Director, become an Executive Director.

Following a comprehensive operational review subsequent to the Board changes in September 2017, the Company announced that the Board believed it is possible to pursue a strategy to build value at the Toral lead-zinc asset for a cost lower than originally planned, and therefore, the full A$2.7million which the Board originally envisaged would be required to be raised in a placing, may not be required. As a result, the Board decided to withdraw Resolution 1, seeking shareholder approval to raise up to A$2.7million by way of private placement, from the upcoming general meeting held on 18 October 2017.

On 17 October 2017 the Company announced the appointment of Mr Myles Campion as an Executive Director. Mr Campion has a comprehensive background in all technical and financial facets of the resources sector, specialising internationally in resource evaluation and project assessment. This follows a 10-year career as an exploration and mine site geologist in Australia covering base metals and gold. He holds a BSc (Hons) in Geology from University of Wales College, Cardiff and an MSc (MinEx) from the Royal School of Mines in London, and also holds a Graduate Diploma of Business (Finance). Mr Campion's financial experience ranges from Australian and UK equities research through to project and debt financing in London, covering the entire spectrum of mining companies with an extensive knowledge of the global resources market covering the three main bourses, the Toronto Stock Exchange, AIM and the ASX. This knowledge was applied effectively as a Fund Manager at Oceanic Asset Management, where he successfully managed the Australian Natural Resources Fund, an Open Ended Investment Company (OEIC) traded in London.

At a General Meeting held on 18 October 2017, shareholders approved resolution 2 relating to the ratification of a previous capital raising.

On 2 November 2017, the Company announced that it had raised £185,250 before expenses through a placement via Beaufort Securities of 370,499,858 new ordinary shares of no par value each in the capital of the Company at a price of 0.05 pence per new ordinary share together with the issue of 185,249,929 options (the "Placing Options") exercisable at a price of 0.075 pence per new ordinary share for a period of thirty months from the date of issue. In addition to the abovementioned issue of 185,249,929 Placing Options, the Company had agreed to issue a further 50,000,000 options to Beaufort Securities Limited, exercisable at a price of 0.075 pence per new ordinary share, for a period of thirty months from their date of issue (the "Broker Options"). The issue of both the Placing Options and the Broker Options is subject to shareholder approval at a General Meeting of the Company.

Events subsequent to reporting date

On 12 January 2018, the Company announced the appointment of Mr Colin Bird as a Non-Executive Director and Chairman of the Company. Mr Bird is a chartered mining engineer with extensive multi-commodity mine management experience in Africa, Europe, Latin America and the Middle East. Mr Bird's operational and corporate experience, includes the development of the Jubilee Metals Group production portfolio, concentrating on Platinum Group Metals in South Africa, in addition to the successful sale of Kiwara plc. Kiwara plc was sold to First Quantum Minerals (TSX: FM) for US$260 million in November 2009, whilst its project was undertaking infill drilling at the Kalumbila copper-nickel deposit in north-western Zambia.

On 16 January 2018, the Company announced the resignation of Mr Grant Button as Company Secretary and the appointment of Mr Daniel Smith as a Non-Executive Director and Company Secretary. Mr Smith is a member of the Australian Institute of Company Directors and the Governance Institute of Australia and has over 10 years' primary and secondary capital markets expertise. As a director of Minerva Corporate, he has advised on, and been involved in, over a dozen IPOs, RTOs and capital raisings on both the ASX and NSX. His key focus is on corporate governance and compliance, commercial due diligence and transaction structuring, as well as ongoing investor and stakeholder engagement. Mr Smith is also currently Company Secretary for Taruga Gold Limited and Love Group Global Limited, both listed on the ASX. He holds a BA in International Relations from Curtin University, Western Australia.

The Company advised the change of its Australian Principal and Registered office address, as well as its mailing and contact details on 23 January 2018.

On 1 February 2018 the Company announced the resignation of Mr Grant Button as a Non-Executive Director.

On 30 January 2018 and 6 February 2018, the Company released to the market a Maiden Inferred Mineral Resource estimate completed in accordance with JORC (2012) in respect of the Toral Project, Spain. A new block model combined with an initial digital geological model has increased the level of understanding of the mineralogical and geological controls at Toral, and the Company is therefore confident of being able to enhance and potentially expand the resource going forwards, subject to undertaking additional drilling and exploration activities.

Maiden JORC Resource, Toral Project

The Inferred source for the Toral Pb-Zn-Ag mineralisation located on the Toral property has been estimated at various cut-offs (see Table 3 below). The Company reviewed the new model with AMS, and concluded that a 4% cut-off was appropriate utilising estimated mining parameters typical for similar types of projects and mineralogy, and a historical three-year trailing average for metal prices.

Zn Price Used: US$ 2,400/t US$c/lb1.09Pb Price Used: US$ 2,400/t US$c/lb0.91Ag Price Used: US$ 17/oz

The maiden resource successfully identified potentially economic mineralisation ranging from surface to approximately 1,100m below surface. The block model currently extends for a strike length of 3,300m and is still open to the east long strike and also at depth where it has not yet been closed off.

Table 3: Summary of Inferred mineral resources for the Toral property reported at a 4.0% Zn equivalent

The Company announced on 9 February 2018 the expiry of 2,000,000 unlisted options exercisable at GBP0.0075 and 3,000,000 unlisted options exercisable at GBP0.002 on or before 2 February 2018, which had lapsed unexercised.

On 6 March 2018, the Company announced that Peterhouse Corporate Finance Limited is now sole broker to the Company, pursuant to the AIM Rules, following an announcement made on 2 March 2018 regarding Beaufort Securities Limited ("BSL") and Beaufort Asset Clearing Services Limited ("BACSL") being placed into administration and that the Financial Conduct Authority (the "FCA") has imposed requirements on BSL and BACSL to cease all regulatory activity. BSL was a joint broker to the Company, however due to the requirements imposed by the FCA, BSL will no longer be able to provide broking services to the Company.

Competent Persons Statement

The Toral maiden resource estimate was prepared by Mr. J.N. Hogg, MSc. MAIG Principal Geologist for AMS, who is an independent Competent Person within the meaning of the JORC (2012) code. The maiden resource estimate was aided by Mr R. J. Siddle, MSc, MAIG under the guidance of the competent person. Mr. Hogg has reviewed and verified the technical information that forms the basis of and has been used in the preparation of the current mineral resource estimate and this news release, including all analytical data, diamond drill hole logs, QA/QC data, density measurements, and sampling, diamond drilling and analytical techniques. Mr Hogg consents to the inclusion in the report of the matters based on the information, in the form and context in which it appears.

Consolidated Statement of Profit or Loss and Other Comprehensive Income

(Loss) per share attributable to the ordinary equity

holders of the Company

Consolidated Statement of Financial Position

As at 31 December 2017

Consolidated Statement of Changes in Equity

For the half-year from 1 July 2017 to 31 December 2017

Consolidated Statement of Cash Flows

For the period 1 July 2017 to 31 December 2017