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ASX Announcement - Company update



Phone: +61 8 9277 2600
Web Site: www.ferrowest.com.au
Email:
ASX Code: FWL
12 December 2008

COMPANY UPDATE

Off‐take & Investment Agreements - Yalgoo Iron Project
The Company had previously advised the market that it expected the first of its off‐
take and investment agreements would be executed in early December 2008.

The parties involved in the agreement have requested an extension of time and the
Company will update the market in due course.

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.

 




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