Fe Limited ASX Announcement 6 December 2010 FOLLOW UP DRILLING AT MT ELVIRE IRON ORE PROJECT
HIGHLIGHTS - 1,200m Reverse Circulation (RC) drilling program commenced at Camelback Prospect, Mt Elvire following previous encouraging results - Sold one of two freehold land titles delivering $900K. - Completion of the second sale due in approximately one week to deliver $1.1M - ongoing rehabilitation of mine environs nearing completion. Iron Ore focused Australian resources explorer, Fe Limited (ASX:FEL) ("Fe" or the "Company"), is pleased to announce commencement of a follow up 1,200m RC drilling program at its wholly owned Mt Elvire Iron Ore Project, located in the Yilgarn Province and sale of two freehold land titles at Gympie, with completion of the first delivering $900K and completion of the second, due in approximately one week, to deliver $1.1M to the Company. Mount Elvire Iron Ore Project. Following the highly successful maiden drilling program completed in August, the Company has commenced a 1,200m RC drilling program targeting extensions to the Iron Crescent Prospect (see Company announcement dated 11 October 2010 for full results), and first pass drilling of the Camelback Prospect located approximately 7kms to the east of Iron Crescent.

Camelback comprises outcropping mineralisation over a strike length of 2.5kms, with extensions to the south west apparent from geophysical data interpretation. Sampling at Camelback has returned rock chip assay results of up to 60%Fe. The drilling program is not as comprehensive as the Company intended, due to limited drill rig availability.

Best results from the previous drilling program (see Company announcement to the ASX dated 11 October 2010) include: 15m @ 61.3% Fe from 13m; 19m @ 61% Fe from 5m; 48m @ 41.4% Fe; 68m @ 39.1% Fe; 100m @ 32.5% Fe; 120m @ 32% Fe from 37m; 96m @ 33.6% Fe from surface; 72m @33.7% Fe from 93m, and 52m @ 40.5% Fe from surface. The Mt Elvire Iron Ore Project is located 50 kms north of Cliff Natural Resources Mt Jackson/Windarling DSO iron ore mines and 30kms WNW of Macarthur Minerals Lake Giles Project, in the Yilgarn Province of Western Australia.

McArthur Minerals recently announced a JORC compliant Inferred Mineral Resource estimate for their Lake Giles project of 1,117Mt at 28.7% Fe. The Company has previously announced an 180Mt-200Mt Exploration Target* for the Mt Elvire Project. Gympie Mine Site. The Company has completed the sale of one freehold land title at the closed Gympie Mine.

The sale has delivered $900K to the Company, after costs. Completion of the second block is due in a week and will deliver $1.1M after costs. Rehabilitation is continuing, with capping of 2 shafts completed and the remainder planned in the coming weeks.

Closure of the decline is anticipated early in 2011, after successful specifications re-engineering, resulting in significantly reduced costs.

Completion of all rehabilitation works for imminent relinquishment of remaining mining licenses is progressing well and anticipated to be finalised by Q2 2011. The Company advises that Mr Simon McDonald has resigned as Non Executive Director of Fe Ltd.

Mr McDonald will remain actively involved with Fe as a financial consultant.

The Board would like to thank Mr McDonald for his contribution as Non Executive Director.
* In accordance with Clause 18 of the JORC Code, the Company wishes to state that the potential quantity and grade of the Exploration Target is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource and that it is uncertain if further exploration will result in the determination of a Mineral Resource. To download a full copy of this announcement please visit: http://esp.gewru.com/download/files/12414/1284699/20101206%20-%20FOLLOW%20UP%20DRILLING%20AT%20MT%20ELVIRE%20IRON.pdf Mark Gwynne Executive Director Fe Limited Tel: 08 9380 9555 David Tasker Professional Public Relations Tel: 08 93388 0944/ 0433 112 936 18 Oxford Close LEEDERVILLE WA 6007 PO Box 144 WEST PERTH WA 6872 Tel: +61 8 9380 9555 Fax: +61 8 9380 9666
--------------------------------------------------------------------------- This email was sent by David Tasker, Professional Public Relations, 588 Hay Street, SUBIACO WA 6008 to Unsubscribe: http://esp.gewru.com/forms/u/41a369c/12414/1785159296.html ---------------------------------------------------------------------------