🕐30.10.14 - 09:54 Uhr

FERREX - ENVIRONMENTAL PERMIT GRANTED NAYEGA MANGANESE TOGO MINING DEVELOPMENT PROJECT



Ferrex plc / Index: AIM / Epic: FRX / Sector: Mining 30 October 2014 Ferrex plc (Ferrex or the Company) Nayega Manganese Environmental Permit Granted Exploration Permits Extended Ferrex plc, the AIM quoted manganese and iron-ore development company focused in Africa, is pleased to announce that the Environmental Permit at the Nayega Manganese Project (Nayega or the Project) has been granted.

The Project is located in northern Togo held through Societe Generale de Mines (SGM). The Environmental Permit sets the conditions for the operation of the mine and is major milestone with regards to the granting of the mining permit, which is expected by the end of the year.

The Environmental Permit is based on a comprehensive Environmental Impact Assessment (EIA) and community consultation. In addition, the Company has received extensions on its Prospecting Permits after relinquishing 50% of the 92,000Ha area as per the mining code.

These permits have been renewed for two years and are renewable for one more period of two years subsequent to this.

The Company is applying for additional ground in the area to maximise the possibilities of further exploration success.

This follows positive results from recent pit sampling which is focussed on increasing the current JORC Code compliant resource of 11.0Mt @ 13.1% Mn (please see the press release dated 16 October 2014).

These results confirmed a number of exciting targets which have the potential to add substantial value to Nayega.
Ferrex Managing Director Mr.

Dave Reeves said, "I am delighted to announce that the Environmental Permit has been granted for the Nayega Manganese Project and thank all involved in securing this.

The renewal of the Exploration Permits also shows the support that the Company has in Togo and allows us to continue the ongoing exploration programme that is defining new manganese mineralisation outside the main Nayega deposit.

We continue to focus on finalising the Definitive Feasibility Study and securing the Mining Permit before the end of this quarter and look forward to providing updates in respect to this over the coming months."
Competent Person Statement
Information in this release that relates to exploration results is based on information compiled by Ferrex Exploration Manager Mr Mark Styles.

Mr Styles is a qualified geologist, a member of the Australian Institute of Geoscientists and is a Competent Person as defined in the Australasian Code for Reporting of Exploration Results.

Mr Styles consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.
The information in this report that relates to Mineral Resources has been compiled by Mr Lynn Widenbar.

Mr Widenbar, who is a Member of the Australasian Institute of Mining and Metallurgy, is a full time employee of Widenbar and Associates and produced the Mineral Resource Estimate based on data and geological information supplied by Ferrex.

Mr Widenbar has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves.

Mr Widenbar consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.
Caution Regarding Forward Looking Statements: Information included in this release constitutes forward-looking statements.

There can be no assurance that ongoing exploration will identify mineralisation that will prove to be economic, that anticipated metallurgical recoveries will be achieved, that future evaluation work will confirm the viability of deposits that may be identified or that required regulatory approvals will be obtained.
**ENDS**
For further information and the full Admission document visit www.ferrexplc.com or contact the following: Dave Reeves Ferrex plc + 61 (0) 420 372 740 finnCap
+44 (0)20 7220 0500 Elizabeth Johnson / Joanna Weaving Broking
Matthew Robinson / Ben Thompson Corporate Finance
Felicity Edwards/ Elisabeth Cowell St Brides Media and Finance Ltd +44 (0) 20 7236 1177
Notes Ferrex plc is an AIM quoted, leading manganese and iron-ore exploration and development company in Africa.

The Company is focussed on advancing low capex deposits, which benefit from proximal established infrastructure, up the development curve and into production.

Ferrex has a solid portfolio of assets including three primary projects: Nayega Manganese Project in Togo (Nayega), Mebaga Iron Ore Project in Gabon (Mebaga), and Malelane Iron Ore Project in South Africa (Malelane). At Nayega, Ferrex is currently conducting a Bankable Feasibility Study and expects award of the mining permit in 2014.

A Scoping Study indicates that Nayega could produce 250,000 tonnes per year of manganese concentrate at 38% with an initial capital expenditure of under $15m.

A Scoping study on a ferro manganese plant in Togo has also been concluded and shows a lowest quartile operation with robust economics.

The company is focussed on bringing the mine into production on grant of the mining permit whilst advancing the ferro manganese studies. In parallel with this, Ferrex is focussed on proving up resources at its Mebaga concession in Gabon.

A recent review has lead to the estimation of an exploration target comprising 90 to 150Mt @ 35 to 65% Fe (oxide target) and 550 to 900Mt @ 25% to 40% Fe (primary target) for Mebaga.

The Oxide target will incorporate both DSO* and bBSO* material.

Ferrex has recently completed an initial drill programme at Mebaga that has intersected significant widths of DSO and bBSO mineralisation. The Company also holds the Malelane Iron Ore concession in eastern South Africa.

A Scoping Study on Malelane has demonstrated its potential to produce 1.8Mtpa of beneficiated ore per year, with initial capital expenditure of $139m, a payback of 1.9 years, a Net Present Value of US$523m (10% discount rate) and a 16.6 year life-of-mine. Ferrex has 934M shares on issue on a fully diluted basis.

The Directors have subscribed for and purchased approximately 28% of the issued share capital of the Company and are thus aligned with shareholders interests.
Felicity [cid:image002.png@01CECBDD.61F8A860] Felicity Edwards St Brides Media & Finance Ltd 3 St Michaels Alley, London, EC3V 9DS www.stbridesmedia.co.uk Tel: 0207 236 1177 | Mob: 07748843871 | Twitter: @StBrides1



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