FerrAus Limited (ASX:FRS) Quarterly Activities Report for Period Ending 31 March 2010

Perth, May 3, 2010 AEST (ABN Newswire) - During the period FerrAus Limited (ASX:FRS) announced the completion of a positive Scoping Study that indicates a potential A$1.1 billion Net Present Value (NPV) for a project ramping up to 15Mtpa.

The Scoping Study found that the NPV of the FerrAus Pilbara Project, using an 8 per cent real after tax discount rate, ranges from A$880 million to A$1.1 billion, with indicative after tax margins of near 20%.

The range for the Internal Rate of Return (IRR) is 21% to 30%, with a payback period of 6 to 8 years and the development capital cost estimates for different scenarios range from A$600 million to A$1 billion, including capital for train rolling stock and railroad construction to existing infrastructure, as well as allowances for EPCM and contingency.

Highlights for the period:

- Mirrin Mirrin drill results confirm discovery of substantial iron mineralisation. Significant intercepts of up to 76m @ 60.3% Fe with additional potential for detrital ore
- Positive Scoping Study completed based on a 15Mtpa iron ore project
- All iron ore areas now described as the "FerrAus Pilbara Project"
- Upgrade of high grade resource (+55% Fe) up 15% from 166.6 Mt to 191.3 Mt
- Upgrade of medium grade resource (between 50 and 55% Fe) now reported as 85.6 Mt
- Metallurgical work supports beneficiation of medium grade material
- FerrAus intends to spin-out gold and base metal tenements into newly incorporated Lawson Gold
- Lawson Gold intends to raise funds by way of an IPO and list on the ASX
- FerrAus intends to provide shareholders with a priority allocation in the IPO

For the full quarterly report, please visit:
http://www.abnnewswire.net/media/en/docs/62786-ASX-FRS-489748.pdf

Contact

Investor / Media Contact: Gareth Widger Mob: +61-4-1991-8272