International Ferro Metals Limited - Sale of Business

        23 August 2016

                                                                                                                International Ferro Metals Limited

(“IFL” or the “Company”)

Sale of Business Completed

Further to the announcement released by the Company on 24 March 2016, IFL announces that all the conditions to the sale of the business and assets of its South African subsidiary, International Ferro Metals (SA) (Pty) Limited (“IFMSA”) have now been fulfilled. The sale has been completed for a consideration of ZAR300 million with the balance of ZAR10 million payable upon transfer of the immovable properties. The proceeds will be distributed to creditors of IFMSA in accordance with the amended business rescue plan.

The remaining transactions, for which conditions are in the process of being fulfilled, are as follows:

• ZAR140 million for the IFMSA mining right and beneficiation plant; and

• ZAR70 million for IFMSA’s claims against Sky Chrome and IFL’s sale of Sky Chrome’s equity for ZAR100

The outstanding conditions include obtaining regulatory approvals, specifically ministerial approval for the transfer of mining rights, and consents of other parties to certain material contracts, which are usual for transactions of this nature.

The Company reiterates that it is not likely that IFL shareholders would receive any distribution from the conclusion of the business rescue process.

Further announcements in relation to the Business Rescue process will be released in due course.

- ENDS-

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

International Ferro Metals Limited

Jannie Muller, Finance Director       [phone]

Wayne Kernaghan, Company Secretary       [phone]

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 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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