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ASX Announcement - Allotment of Shares - Appendix 3B and Section 708A notice



Phone: +61 8 9277 2600 Web Site: www.ferrowest.com.au Email: ASX Code: FWL 5 November, 2008 ALLOTMENT OF SHARES APPENDIX 3B AND SECTION 708A NOTICE Ferrowest Limited is pleased to announce that on the 28th of October 2008 the Company reached agreement for the placement of 2,000,000 ordinary fully paid shares at $0.10 per share to raise an amount of $200,000.

These funds will be used as further working capital pending the funding expected to flow from the anticipated investment and product off‐take agreements previously announced. At the time this agreement was made, just over a week ago, the share price of the Company was $0.06, making the placement at a 66% premium to the market price at that time.

The original paperwork required by the Company to complete the transaction was then delayed in the mail and the Company has only received the necessary documentation today.

The Company is pleased that the sophisticated investor’s faith in the Company has been rewarded by the increase in the share price since the agreement was reached. An Appendix 3B is attached detailing the placement of the shares. Ferrowest Limited gives this notice pursuant to Section 708A (5) of the Corporations Act 2001 (“the Act”). The shares were issued without disclosure to investors under Part 6D.2, in reliance of Section 708A (5) of the Act. Ferrowest Limited, as at the date of this notice, has complied with: (a) the provision of Chapter 2M of the Act as they apply to the Company; and (b) Section 674 of the Act. As at the date of this notice, there is no “excluded information” (as defined in Section 708A (7) and (8) of the Act), required to be disclosed by the Company. Yours sincerely, Brett Manning Managing Director Media inquiries should be directed to: Brett Manning – Managing Director +61 8 9277 2600 The Yalgoo Iron Project - Outline Ferrowest Limited is developing the Yalgoo Iron Project aimed at producing seaborne traded merchant pig iron (96%Fe) from the Yogi magnetite deposit near Yalgoo in the mid west region of Western Australia.

Proposed initial production is 1,000,000 tonnes per annum.

The plan to process the iron ore to pig iron is premised on the ITmk3® technology and excellent existing infrastructure servicing the Project area.

The resulting value added merchant pig iron product will be a relatively high margin, high quality, low volume product for export to quality electric arc furnace steel making plants worldwide. The Western Haematite Prospect – Outline Ferrowest Limited has identified a potential zone of direct shipping ore (“DSO”) grade haematite at its Yogi iron ore deposit 14 km east of Yalgoo in the mid west of Western Australia.

The prospect is to the west of the main magnetite ore body that forms the basis of the Yalgoo Iron Project.

With a surface expression of 2km in length and with varying widths up to 50m wide it has significant potential as a DSO project.

Surface rock chip sampling along the Western Haematite Prospect produced an average grade of 55%Fe.

Exploration of this deposit is currently underway. Phone: +61 8 9277 2600 Web Site: www.ferrowest.com.au Email: Rule 2.7, 3.10.3, 3.10.4, 3.10.5 Appendix 3B New issue announcement, application for quotation of additional securities and agreement Information or documents not available now must be given to ASX as soon as available.

Information and documents given to ASX become ASX’s property and may be made public. Introduced 1/7/96.

Origin: Appendix 5.

Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005. Name of entity FERROWEST LIMITED ABN 14 074 009 091 We (the entity) give ASX the following information. Part 1 - All issues You must complete the relevant sections (attach sheets if there is not enough space). 1 +Class of +securities issued or to be issued Ordinary Shares Fully Paid 2 Number of +securities issued or to be issued (if known) or maximum number which may be issued 2,000,000 ordinary fully paid shares 3 Principal terms of the +securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) Equal with existing fully paid shares 4 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment Yes – Ordinary fully paid shares 5 Issue price or consideration $0.10 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets To fund working capital expenditure. 7 Dates of entering +securities into uncertificated holdings or despatch of certificates 5 November 2008 Number +Class 8 Number and +class of all +securities quoted on ASX (including the securities in clause 2 if applicable) 62,912,323 26,900,561 Ordinary Fully Paid Shares Options exercisable at 25 cents each on or before 1 June 2010 + See chapter 19 for defined terms. Appendix 3B Page 2 1/1/2003 Number +Class 9 Number and +class of all +securities not quoted on ASX (including the securities in clause 2 if applicable) 3,325,000 112,000 84,000 84,000 48,000 36,000 36,000 30,000 22,500 22,500 26,000 19,500 19,500 16,000 12,000 12,000 51,000 38,250 38,250 Options with exercise price of $0.20 on or before 1 January 2011 Employee Options Exercise Price Vesting Date Expiry Date $0.18 Date of grant 21/08/09 $0.18 21/08/08 21/08/10 $0.18 21/08/09 21/08/11 Employee Options Exercise Price Vesting Date Expiry Date $0.185 Date of grant 08/11/09 $0.185 08/11/08 08/11/10 $0.185 08/11/09 08/11/11 Employee Options Exercise Price Vesting Date Expiry Date $0.20 Date of grant 01/08/09 $0.20 23/10/08 01/08/10 $0.20 23/10/09 01/08/11 Employee Options Exercise Price Vesting Date Expiry Date $0.565 19/11/08 19/11/10 $0.565 19/11/09 19/11/11 $0.565 19/11/10 19/11/12 Employee Options Exercise Price Vesting Date Expiry Date $0.205 Date of grant 23/10/09 $0.205 23/10/08 23/10/10 $0.205 23/10/09 23/10/11 Employee Options Exercise Price Vesting Date Expiry Date $0.21 6/08/09 6/08/11 $0.21 6/08/10 6/08/12 $0.21 6/08/11 6/08/13 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests) Not applicable Part 2 - Bonus issue or pro rata issue 11 Is security holder approval required? 12 Is the issue renounceable or non‐ renounceable? 13 Ratio in which the +securities will be offered 14 +Class of +securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has +security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission + See chapter 19 for defined terms. Appendix 3B Page 4 1/1/2003 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do +security holders sell their entitlements in full through a broker? 31 How do +security holders sell part of their entitlements through a broker and accept for the balance? 32 How do +security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date Part 3 - Quotation of securities You need only complete this section if you are applying for quotation of securities 34 Type of securities (tick one) (a) ⌧ Securities described in Part 1 (b) All other securities Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities Entities that have ticked box 34(a) Additional securities forming a new class of securities Tick to indicate you are providing the information or documents 35 If the +securities are +equity securities, the names of the 20 largest holders of the additional +securities, and the number and percentage of additional +securities held by those holders 36 If the +securities are +equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 ‐ 1,000 1,001 ‐ 5,000 5,001 ‐ 10,000 10,001 ‐ 100,000 100,001 and over 37 A copy of any trust deed for the additional +securities + See chapter 19 for defined terms. Appendix 3B Page 6 1/1/2003 Entities that have ticked box 34(b) 38 Number of securities for which +quotation is sought 39 Class of +securities for which quotation is sought 40 Do the +securities rank equally in all respects from the date of allotment with an existing +class of quoted +securities? If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 41 Reason for request for quotation now Example: In the case of restricted securities, end of restriction period (if issued upon conversion of another security, clearly identify that other security) Number +Class 42 Number and +class of all +securities quoted on ASX (including the securities in clause 38) Quotation agreement 1 +Quotation of our additional +securities is in ASX’s absolute discretion.

ASX may quote the +securities on any conditions it decides. 2 We warrant the following to ASX. • The issue of the +securities to be quoted complies with the law and is not for an illegal purpose. • There is no reason why those +securities should not be granted +quotation. • An offer of the +securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act. Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty • Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any +securities to be quoted and that no‐one has any right to return any +securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the +securities be quoted. • If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the +securities be quoted. 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement. 4 We give ASX the information and documents required by this form.

If any information or document not available now, will give it to ASX before +quotation of the +securities begins.

We acknowledge that ASX is relying on the information and documents.

We warrant that they are (will be) true and complete. Sign here: .................

Date: .....05/11/08....... (Director) Print name: ..Brett Manning.. == == == == == + See chapter 19 for defined terms. Appendix 3B Page 8 1/1/2003




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