Acquisition of Helogistics by Ferrexpo plc

London/Wien (OTS) - Ferrexpo today announces that it has entered
into an agreement to acquire 100% of the share capital of Helogistics
Holdings GmbH ("Helogistics") and to acquire the existing bank debt
of Helogistics, which has a face value of Euro72.1 million, for
Euro28.5 million cash. The acquisition of the share capital of
Helogistics and the existing bank debt is subject to regulatory
approval and is expected to be completed around the end of the
calendar year. During 2010 Ferrexpo provided a Euro6 million working
capital loan to a subsidiary of Helogistics, which will remain in
place.

Helogistics is one of the largest inland waterway transportation
companies operating on the Danube River. It employs approximately 600
people; including leasing crews, and operates 253 vessels. It
transports iron ore pellets as well as other bulk cargos along the
Danube and Rhine rivers from the ports of Ismail, Ukraine, and
Rotterdam, the Netherlands, to various locations in Northern, Central
and Eastern Europe. In 2009 and to 30 November 2010, Helogistics has
transported approximately 504 thousand tonnes and 575 thousand tonnes
of Ferrexpo pellets, respectively, to its core customer in Central
Europe.

For the year ended 31 December 2009 Helogistics reported EBITDA of
Euro0.7 million. As of 30 June 2010 the gross assets of the company
were Euro58.8 million and the estimated value of the net assets was
Euro28.5 million.

Michael Abrahams, Chairman of Ferrexpo commented:

"This acquisition adds to Ferrexpo's extensive logistics network
in Northern, Central and Eastern Europe solidifying our presence as
the regional market leader in iron ore pellet supply. It is part of
our strategy to further control the supply chain securing existing
customer relationships and providing access to new European markets
thorough out the Rhine/ Danube River corridor in Europe."

Notes to Editors:

Ferrexpo:

Ferrexpo is a Swiss headquartered resources company with assets in
Ukraine, principally involved in the production and export of iron
ore pellets, used in producing steel. Current output is approximately
9.5 million tonnes, most of which is exported to steelmakers around
the world. The Group is listed on the main market of the London Stock
Exchange under the ticker FXPO. For further information please visit
www.ferrexpo.com.

Helogistics:

Founded in 2007, Helogistics Holding GmbH aims to be the leading
service provider within the inland waterway transportation industry.

As the holding company of Erste Donau-Dampfschiffahrts GmbH and
Mahart Duna Cargo Kft the business activities cover the transport of
commodities as well as semi-finished and ready-made goods along the
3.500 km long waterway between Rotterdam and the Black Sea; in the
dry-bulk goods segment the majority of goods transported are
commodities such as iron ore and grains.

Helogistics is headquartered in Vienna and has branch offices in
Linz, Bratislava, Budapest, Belgrade, Izmail and Constanta. For
further information please visit www.helogistics.at.

Rückfragehinweis:

Ferrexpo:                              
   Ingrid McMahon   +44 207 389 8304
    
   Pelham Bell Pottinger: 
   Charles Vivian   +44 207 861 3126
   James Macfarlane +44 207 861 3864

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