Quarterly Activities and Cashflow Report

30 April 2013

Ferrum Crescent Limited

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

Quarterly Activities and Cashflow Report

For the period ended 31 March 2013

Ferrum Crescent Limited, the ASX, AIM and JSE quoted iron ore developer in Northern South Africa, today announces its quarterly results for the three month period ending 31 March 2013.

HIGHLIGHTS:

Moonlight Iron Ore Project - Process Engineering Agreement Signed:

Ferrum enters into agreement with Danieli & C. Officine Meccaniche S.p.A. ("Danieli"), one of the largest three suppliers of plant and equipment to the metals industry worldwide, for the Italian based group to act as process engineer in the Bankable Feasibility Study ("BFS") and in that capacity to supply process engineering and other associated technical services including:

o Beneficiation Plant ("BP") design at the proposed Moonlight open pit mine location comprising crushing, grinding and beneficiation and tailings storage

o Pelletising Plant ("PP") design, to produce direct reduction ("DR") grade pellet at a railhead for further conveyance

o Laboratory testing and process work on Moonlight iron ore to define and confirm the most suitable process configuration of the BP and PP to produce high quality DR grade pellet (based on metallurgical testwork). 

Ø Additional engineering providers will be secured by Ferrum Crescent for other components of the BFS (such as mine design).

Ø Analysis by Ferrum Crescent of final pellet plant location and related infrastructure near completion.

Commenting today Ed Nealon, Chairman, said: "The period saw Ferrum Crescent reach an agreement with Danieli, a major equipment and services supplier to the steel industry, to undertake all beneficiation and plant design components for the Moonlight project BFS underway in South Africa. When combined with the offtake agreement with Duferco SA and the significant work the team has carried out since receiving our final mining licences, Ferrum is significantly closer to achieving its aim of developing an open pit mine at Moonlight."

Corporate:

Ø Cash as at 31 March 2013 is approximately A$1.2m

Process Engineering Agreement

As announced on 27 February 2013, the Company signed an agreement with Danieli, one of the largest three suppliers of plant and equipment to the metals industry worldwide, for the Italian based group to fulfil the process engineering and associated technical services to be used for the BFS in process at the Moonlight Iron Ore Project in South Africa. Danieli will carry out the role of process engineer in the BFS and develop a full process engineering analysis and final study for the beneficiation plant and the pelletising plant build. It is anticipated that Moonlight will be developed as an open-pit mine (using contract miners) with on-site concentrate production. A slurry concentrate pipeline is to be built to transport concentrate from beneficiation to the pelletising plant near existing railhead at Thabazimbi (230km), with return water to Moonlight. The pelletising plant to produce 6Mtpa of iron ore oxide pellets for international and domestic markets is planned with a production of both direct reduction and blast furnace grade.

Ferrum Crescent has sufficient confidence that the various upgrades to infrastructure that have been announced by the South African government and by its statutory enterprises such as Transnet and Eskom will allow Ferrum Crescent to export its product through Richards Bay and enable production by 2018. These upgrades to rail and port in particular are strategically necessary to unlock the value of the Waterberg Region, where the country's most significant remaining coal reserves are situated. For this reason, rail, power, water and port facilities are all being upgraded as a matter of national priority. Initial scoping financial models of the entire project indicate an attractive business case which encourages the Company to progress completion of the BFS over the next 12 to 18 month period.

Corporate

On 08 August 2012, shareholders approved the Ferrum Crescent Director and Senior Management Fee and Remuneration Sacrifice Share Plan (the "Plan") whereby Directors and Senior Managers of the Company who are eligible to be offered shares without prospectus disclosure may elect to sacrifice part or all of their directors' fees or executive remuneration to acquire shares in the Company. The purpose of the Plan is to help align the interests of Directors and Senior Managers with those of shareholders by encouraging Director and Senior Manager share ownership and (where such shares are newly issued) preserve cash in the Company. Further details may be found in the Notice of General Meeting dated 29 June 2012.

Under the terms of the Plan, the entitlement to shares for participating Directors and Senior Managers accrues on a monthly basis, with the cash value of shares to be acquired determined at the end of each month. Directors and Senior Managers will acquire shares so accrued on dates to be determined by the Board from time to time but generally no later than once yearly in arrears. As at the date of this report, the Directors and Senior Managers who have elected to participate in the plan are Edward Nealon (as to 100% of his fees), Robert Hair (as to 77.27% of his fees), Grant Button (as to 100% of his fees) and Andrew Nealon (as to 100% of his fees) and they have accrued the following shares since the last entitlement issue of 14 December 2012:

·; Figures are accurate assuming accrued shares are issued on or before 30 April 2013

The shares accrued by participating Directors and Senior Managers detailed above have not yet been issued to the respective participants. The Company intends providing such shares during a period that accords with the Company's share trading and other policies and provided that such participating Directors and Senior Managers are not in possession of inside information.

In addition, on 27 March 2013 Executive Chairman Edward Nealon purchased 1,000,000 shares in the Company at a price of AUD 0.017 per share. Following the purchase, Edward Nealon has a direct interest in 6,434,532 ordinary shares representing 1.96% of the total issued share capital.

For more information, please visit www.ferrumcrescent.com or contact:

Competent Persons' Statement:

The information that relates to Exploration Results and Mineral Resources in the report of which this statement is a summary, is based on information compiled by Stewart Nupen, who is registered with the South African Council for Natural Scientific Professionals (Reg. No. 400174/07) and is a member of the Geological Society of South Africa. Mr Nupen is employed by The Mineral Corporation, which provides technical advisory services to the mining and minerals industry. Mr Nupen 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 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Nupen consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Consolidated statement of cash flows

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities

Non-cash financing and investing activities

Financing facilities available

Add notes as necessary for an understanding of the position.

Estimated cash outflows for next quarter

Reconciliation of cash

Changes in interests in mining tenements

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Actor other standards acceptable to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

30 April 2013

Sign here: ............................................................ Date: ............................

(Company secretary)

Print name: Andrew Nealon................... .............

Notes

1 The quarterly report provides a basis for informing the market how the entity's activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2 The "Nature of interest" (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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