Interim Results

15 March 2012

Ferrum Crescent Limited

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

Interim results for six month period ended 31 December 2011

Ferrum Crescent Limited today announces its results for the six month period ended 31 December 2011.

HIGHLIGHTS

Moonlight Iron Ore Project

·; JORC compliant resource of 74Mt in the Indicated Resource category and 225Mt in the Inferred Resource category delineated.

·; Appointment of South African geological advisory firm Mineral Corporation Consultancy (Pty) Ltd to carry out an updated JORC compliant resource estimate

·; Mining right application expected to be granted in Q1 2012

·; Positive discussions at high level relating to rail, power, ports and water between the Company, Transnet and other South African infrastructure suppliers

Corporate

·; Successful admission to the Johannesburg Stock Exchange on 11 November 2011

·; Mr Bob Hair appointed as Managing Director

Commenting on the half yearly results, Chairman Ed Nealon said:

"Ferrum Crescent has continued in the past six months to work towards progressing the Definitive Feasibility Study for the Moonlight iron ore project. We are confident that an updated Moonlight resource will be announced by the end of April 2012 whilst planning for a drilling programme to establish a total resource estimate for the deposit of all three farms; Moonlight, Julietta and Gouda Fontein, is well advanced."

Below is a summary of the Half-Yearly Financial Report, to obtain the full copy including the notes please visit the company's website www.ferrumcrescent.com

Review and results of operations

Operating Results

During the half-year 1 July 2011 to 31 December 2011, the Group recorded a net profit after tax of $5,160,255 (1 July 2010 to 31 December 2010: net loss of $3,471,317). As at 30 June 2011, a financial liability was created in the accounting for the BEE share subscription agreement Australian Accounting Standards require this liability, which will be satisfied by the issue of the shares, to be re-measured each reporting period to its fair value. The assessment of fair value is significantly impacted by the market value of the shares to be issued in comparison with the subscription price denominated in RAND. As at 31 December 2011, this liability had decreased as a result of a movement in the underlying Company share price and the AUD/RAND exchange rates.

Principal Activities

Moonlight Iron Ore Project

During the half-year, the Company continued to develop and define the resource potential of the Moonlight Iron Ore Project ("Moonlight" or "the Project") (Ferrum interest approximately 81.5%) in Limpopo Province of South Africa. It is located on three farms (Moonlight, Julietta and Gouda Fontein) and has a JORC compliant resource of 74Mt in the Indicated Resource category and 225Mt in the Inferred Resource category at a grade of 30% iron. Beneficiation testwork of Moonlight mineralisation indicates that a simple process of low intensity magnetic separation is suitable for optimum concentration and that the level of impurities (such as SiO2, and Al2O3) is very low.

To date, the work has focused on various aspects of the project including the pipeline route, plant location and pipeline access at Lephalale and beneficiation processes. The Company has also identified pipeline engineering and mining contractors and received expressions of interest from suppliers of processing plant equipment.

Drilling

During the half year, The Mineral Corporation Consultancy (Pty) Ltd ("The Mineral Corporation") was commissioned to carry out an updated JORC compliant resource estimate taking into account the results of the phase 3 drilling and assays on the Moonlight deposit ("the Report"). Phase 3 consisted of 11 holes totalling 990m of diamond core drilling and 13 holes totalling 1,600m of reverse circulation ("RC") drilling. The Mineral Corporation plans to complete the Report by the end of April 2012 (assuming that no material adjustments to the work programme are required due to unforeseen circumstances).

The proposed drilling at the Julietta and Gouda Fontein farms adjacent to the Moonlight deposit, will seek to confirm the magnetite mineralisation previously drilled by South African Iron and Steel Industrial Corporation ("Iscor"). Iscor was the South African government-owned integrated iron and steel company which is now owned by ArcelorMittal. It is anticipated that around 14,000m of drilling will be carried out, consisting of both RC and core drilling. The purpose of the drilling is to establish a total resource estimate for the deposit on all three farms. Planning for this drilling program is well advanced. It is anticipated that a further report, including the Julietta and Gouda Fontein exploration results and resource estimate, will be completed by the end of calendar year 2012.

Infrastructure

Positive discussions at a high level relating to rail, power, ports and water between the Company, Transnet and other South African infrastructure suppliers were held during the half year. In addition, Ferrum has been and continues discussing such infrastructure needs with other resources companies within the Waterberg region (where the anticipated Moonlight Iron Ore Project is located). These companies, particularly those within the coal mining sector, have similar infrastructure requirements to Ferrum, and initial discussions have led to a potentially more optimal outcome than being contemplated in the ongoing Definitive Feasibility Study ("DFS"). To allow the Board time to consider current infrastructure development programmes planned across Southern Africa, certain DFS activities have been deferred until we are satisfied all logistical options have been received. This means that the full completion of the DFS will be likely delayed from Q4 2012 into 2013.

Mining Right Application

In conjunction with the DFS, supporting plans and studies in order to progress the Group's mining right application were advanced. Under the Mineral and Petroleum Resources Development Act (Act No. 28 of 2002) of South Africa and the National Environmental Management Act (Act 107 of 1998) of South Africa, the Company completed and submitted an environmental impact assessment report within 180 days of the mining right application. The report was submitted during the half year, following the incorporation of comments arising from the public consultation process which was held in August.

The Company's subsidiary, Turquoise Moon Trading 157 (Pty) Ltd ("Turquoise Moon"), has been the holder of Ferrum's interests in both the Moonlight Deposit and the De Loskop prospect. Previously, these were both held under a single prospecting right and mining right application. The Department of Mineral Resources ("DMR") allowed the submission of an amended mining right application with De Loskop excluded from the mining right application, with the result that Turquoise Moon can concentrate wholly on developing Moonlight as a mining project while allowing De Loskop to be treated as a prospecting area. Administratively and practically, due to the distance between the project areas, it was considered advantageous to deal with the two areas separately. The mining right application for the Moonlight deposit, which was submitted in January 2011, is expected to be completed in the near future.

Turquoise Moon's prospecting right under which it held the Moonlight Deposit and the De Loskop prospect expired on 8th March 2012. The Moonlight Deposit is the subject of the mining right application, covering the farms Moonlight, Julietta and Gouda Fontein. In respect of De Loskop, the Group has entered into an agreement with local communities who hold approximately 60% of the area previously the subject of Turquoise Moon's prospecting right, whereby the Group will assist those communities to obtain a preferential prospecting right under the Mineral and Petroleum Resources Development Act and the Group will have a right to "farm into" that area (up to an agreed majority percentage) by the carrying out of prospecting activities.

Corporate

On the 11th November 2011, the Company announced its successful admission to the Johannesburg Stock Exchange Limited ("JSE").

The JSE inward listing was a necessary condition precedent to facilitate the Company's Black Economic Empowerment ("BEE") share exchange and investment at a listed company level, complying with the objectives of the South African Government's Mineral and Petroleum Resources Development Act ("MPRDA") and the revised Mining Charter. Ferrum Crescent's BEE partner, Mkhombi Investments (Pty) Limited ("Mkhombi"), owns a 26% stake in the Company's South African operating subsidiary, Turquoise Moon. Mkhombi is a partner with significant industry experience and also includes two women's organisations and a community trust representing local Limpopo communities affected by the Company's Moonlight Iron Ore Project. Mr Kofi Morna, who is a director of Mkhombi, is also a director of Ferrum Crescent.

The JSE granted the Company a secondary listing of 298,691,705 shares, representing the entire issued ordinary share capital of Ferrum Crescent, in the "Basic Materials - Basic Metals - Industrial Metals & Iron - Iron & Steel" sector under the abbreviated name "Ferrum" and share code "FCR". No funds were raised through the JSE listing process.

During the half-year there were several changes to the composition of the Board and Management of the Company. Mr Bob Van Der Laan resigned as Chief Financial Officer with his duties being covered by Mr Grant Button, Beverley Gardner, Senior Accountant, in South Africa and an accounting firm in Australia.

Mr Bob Hair joined the Board as Managing Director in July 2011 having been an executive member of the Ferrum Crescent team as Joint Company Secretary since January 2010. Mr Hair is a lawyer with over 23 years experience in the resources sector and has extensive international experience in the legal, commercial, financial and organisational aspects of exploration, mining and processing operations. From 2008, Mr Hair was a director of what is now the Company's subsidiary, Ferrum Metals Pty Ltd, and in that capacity was a key member of the team that was responsible for the acquisition of Ferrum Crescent's interest in the Moonlight Iron Ore Project.

Events subsequent to reporting date

Apart from other events to the extent described elsewhere in this Directors' Report, there has not arisen in the interval between the end of the half year and the date of this report any item, transaction or event of a material or unusual nature likely, in the opinion of the Directors of the Company, to affect:

(i) The Company's operations in future financial periods; or

(ii) The results of those operations in future financial periods; or

(iii) The Company's state of affairs in future financial periods.

Ferrum Crescent Limited

ACN 097 532 137

Consolidated Statement of Comprehensive Income

For the half-year from 1 July 2011 to 31 December 2011

Profit / (Loss) per share attributable to the ordinary

equity holders of the Company

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes included in the Half Yearly Report which is available on the Company's website www.ferrumcrescent.com

Ferrum Crescent Limited 

ACN 097 532 137

Consolidated Statement of Financial Position

As at 31 December 2011

(i) These figures have been extracted without adjustment from the Company's 2010 Interim Financial Report and are included in this notification in order to satisfy the Company's obligations under the AIM Rules for Companies. Whilst these figures were reviewed by the auditors at that time, they have not been reviewed or included in the 2011 Interim Financial Report.

The above consolidated statement of financial position should be read in conjunction with the accompanying notes included in the Half Yearly Report which is available on the Company's website www.ferrumcrescent.com.

Ferrum Crescent Limited

ACN 097 532 137

Consolidated Statement of Changes in Equity

For the half-year from 1 July 2011 to 31 December 2011

Ferrum Crescent Limited

ACN 097 532 137

Consolidated Statement of Cash Flows

For the period 1 July 2011 to 31 December 2011

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes included in the Half Yearly Report which is available on the Company's website www.ferrumcrescent.com