Quarterly Activities and Cashflow Report

28 October 2014

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 30 September 2014

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 30 September 2014.

HIGHLIGHTS:

Moonlight Iron Ore Project:

Ø BFS work program planning continues

Ø Advanced stage BEE partner process commenced

Ø Consultation with study managers and engineering partners

o Efficiencies identified for key beneficiation plant costings

Corporate:

Ø Cash as at 30 September 2014 was approximately AU$245,000

Ø Review of independent valuation of the Moonlight Iron Ore Project ("Moonlight") by negotiation partners

Ø BEE negotiations commenced for next round of partnership

Post Period:

Ø Rights issue to raise up to $2.03m announced

Commenting today Tom Revy, Managing Director, said: "Preparation for the recommencement of the Moonlight Bankable Feasibility Study continued during the September Quarter 2014. The Moonlight Iron Ore Project will produce and deliver a premium iron ore product to customers and will be of considerable benefit to Ferrum shareholders, the South African local communities and municipalities as well as to the governments of South Africa and Limpopo and their agencies. South Africa recognises the value that Moonlight will add on a national, provincial, municipal and local level. Our priority remains securing the correct cornerstone investor as we move the Moonlight BFS forward".

Overview

Ferrum Crescent continued its dual strategy of preparing the work-flows that shall complete key components of the Moonlight BFS, while ensuring the Company remains on a solid corporate footing. Operational elements within the quarter included consultation sessions with both study managers and engineering partners to agree technical goals for metallurgical and plant design BFS components. The results of these sessions were constructive with efficiencies identified for the generation of final, signed off, costings for the beneficiation plant.

Discussions have also commenced to secure the next stage of Black Economic Empowerment partnerships in Ferrum Crescent as Moonlight moves forward. Post-period Ferrum has secured funds, through an underwritten Rights Issue, to progress work on the Moonlight BFS while continuing negotiations with potential investment partners in Moonlight. The Company remains highly efficient and is on a sound financial footing to secure the correct partners to advance the development of a high-grade iron ore hub located in an "infrastructure-rich" global region.

Exploration Interests

As at 30 September 2014, the Company held an interest in the following mining Rights ("Rights"):

No licences were acquired or disposed of during the Quarter.

Post Period- Rights Issue

On 9 October 2014, Ferrum Crescent announced that it was undertaking a non-renounceable pro rata rights issue of 2 New Shares for every 3 existing shares in the Company (Shares) held on the Record Date (see further details below), to raise up to approximately A$2,029,881 (before costs, and subject to rounding and currency exchange rates)("Rights Issue").

The Rights Issue is partially underwritten by Patersons Securities Limited to the extent of the first A$860,000, thus ensuring the Company will raise at least that amount from the Rights Issue (before costs and subject to currency exchange rates). 

Funds raised by the Rights Issue will be used to complete key components of the Moonlight BFS underway at Moonlight in Limpopo Province in northern South Africa and for corporate overheads. 

The Directors of the Company consider it to be the correct time to move the Moonlight BFS process significantly forward due to the infrastructure upgrade programmes currently underway in and in support of Limpopo. The Moonlight BFS objectives are to assess the economic viability of extracting iron ore from a low stripping ratio, open pit mine to then be slurried to an existing Transnet rail terminal, where a high-grade pellet can be produced and shipped. Following completed Moonlight BFS metallurgical work, it is expected that Moonlight will produce a pellet product with a 68-70% grade. Moonlight is favourably positioned in comparison with its peers due to the price premium high grade iron ore can demand.

The Company will deploy funds from the Rights Issue to complete final costings for most of the major mining and processing elements. Completion of this phase of work will allow for final negotiations and planning with major infrastructure partners (Transnet Rail, Transnet Port and Eskom) and local communities. The Company (via its local subsidiaries) holds a 30 year mining licence and environmental approvals for mining Moonlight.

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

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 Act or other standards acceptable to ASX (see note 5).

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

Robert Hair Date: 28 October 2014

(Company secretary)

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.