International Ferro Metals (IFM) aims to be one of the world’s low cost ferrochrome producers through the use of latest mining technology and integrated mine and processing plants.

IFL announces that it has raised £22.2 million (ZAR284 million) (before expenses) through the placing by Numis Securities Limited ("Numis Securities") of 50,364,367 new ordinary shares (the "Placing Shares") with certain existing shareholders including Jiuquan Iron & Steel Group Company Ltd ("JISCO") and new institutional investors at 44 pence per share (the "Placing").

Highlights

• £22.2 million raised (before expenses)
• 50,364,367 new ordinary shares representing 9.99% of the total number of existing shares placed at 44 pence per share
• New equity issued to certain existing shareholders (including JISCO) and new institutional investors
• Proceeds will be used principally to fund investment in the Clean Development Mechanism ("CDM") compliant electricity co-generation plant (the "Plant" or "Project")
• The Plant is expected to generate an average of about 13.7 MW, being c.11% of IFL’s overall electricity requirements, thereby reducing costs
• The Plant will displace c.144,000 tonnes of carbon dioxide equivalent per annum
• Possible annual Certified Emission Reductions ("CER" or "Carbon Credit") income of approximately EUR1.4 million per annum at current prices
• The Plant will allow IFL to achieve 100% production capacity (up from the Eskom constrained 90%) using proven technology

David Kovarsky, Chief Executive of International Ferro Metals commented "We are delighted to announce a share placing across a broad base of new and existing shareholders. The success of the placing illustrates support for the Company, the ferrochrome market and the proposed co-generation project. By investing in the co-generation facility, IFL will achieve a significant reduction in carbon dioxide emissions. The plant will produce c.11% of overall power requirements and allow for re-instatement of the 10% ferrochrome production capacity lost as a result of Eskom’s restrictions, thus allowing us to take advantage of strong demand from the Chinese market."

For further information please visit www.ifml.com or contact:

About International Ferro Metals:
International Ferro Metals produces ferrochrome, the essential ingredient in stainless steel, from its integrated chromite mine and ferrochrome processing operations in South Africa.  International Ferro Metals is listed on the London Stock Exchange under the symbol IFL.

Forward Looking Statements
This announcement contains certain forward looking statements which by their nature, contain risk and uncertainty because they relate to future events and depend on circumstances that occur in the future.  There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward looking statements.

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