Ferro Announces $1,000,000 Private Placement

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Ferro Iron Ore Corp. (TSX VENTURE:RRO) reports that it intends to complete a
non-brokered private placement financing for gross proceeds of up to $1,000,000.


In connection with the private placement, Ferro will sell up to 4,000,000 common
shares (the "Shares") at a price of $0.25 per Share for gross proceeds of
$1,000,000. 


Pursuant to the terms of the previously announced proposed business combination
for Mongolian exploration license No. 14491X (the "Mongolian Exploration
License"), parties related to the shareholders of Continent Treasure Limited
(CTL) will subscribe for $500,000 of the private placement.


Closing of the financing is subject to receipt of applicable regulatory
approvals including approval of the TSX Venture Exchange. The securities
issuable in connection with the financing will be subject to resale restrictions
for a period of four months plus one day from the closing date. 


The company intends to use the net proceeds of the financing to be used for
completion of exploration work on the Mongolian Exploration License upon closing
of the previously announced business combination of the company with CTL and
Accuracy Trade Limited (ATL), as described in the press release dated November
6, 2012. The intended work program includes a National Instrument 43-101
Technical Report, a detailed geophysical program, trenching, legal and
accounting, plus general and administrative fees to complete this work. 


In connection with the proposed business combinations, the company intends to
complete an additional equity financing to raise approximately $1.85 million,
which will include an additional $500,000 from parties related to the
shareholders of CTL. 


The proposed business combinations are being supported by Forbes & Manhattan
(F&M), which is a leading private merchant bank with a global focus on the
resource-based sectors and most notably known for its development, operation and
subsequent sale of Consolidated Thompson Iron Ore mines. F&M is headquartered in
Toronto, Ontario, Canada with offices, operations and assets across the globe
including Ulaanbaatar, Mongolia. Neither the company nor F&M is state owned.


The proposed business combinations are conditional upon, among other things: (i)
receiving all necessary regulatory and third party approvals and authorizations;
(ii) completion of the private placement financing; and (iii) delivery by CTL to
Ferro of the Technical Report prepared in compliance with National Instrument
43-101 of the Canadian Securities Administrators.


About Ferro Iron Ore Corp.:

As announced on November 6, 2012, Ferro Iron Ore Corp. (formally, Galena Capital
Corp.) recently secured the right to acquire a highly prospective Mongolian Iron
ore exploration license (No. 14491X) (the "Exploration License"). The
Exploration License is located in North Central Mongila in the heart of a proven
mineralization corridor contiguous to the largest operating iron mine (Uruu Gol
Mine) in the country with rail, road, power and water in very close proximity.
It is along strike with other significant exploration projects including the
Haranga Bayantsogt, Tumur Tolgoi and Tumurtei deposits. The licensed area is
roughly 1000km from steel mills in Northern China accessible by the railway,
with surplus capacity, running in front of the property. Although the company
awaits completion of a 43-101 technical report, two historical diamond drill
holes show significant iron intercepts including 59% Fe over 55.2 metres from
10.8 metres below surface. There is also surface exposure of branded iron skarn
in trenching. The company looks to supply inland steel mills in northern China
currently utilizing either very high cost domestic ores or expensive imported
ores railed hundreds of kilometers from port given the significant grade and
logistics cost advantages.


ON BEHALF OF FERRO IRON ORE CORP.

Mark Lotz, Director and CFO

Regulatory Statements

This press release contains "forward looking information" within the meaning of
applicable Canadian securities legislation. Forward looking information
includes, but is not limited to, statements with respect to the terms of the
financing, the planned use of proceeds, and receipt of all regulatory approvals.
Generally, forward looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes", or variations of such
words and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved".
Forward-looking information is subject to known and unknown risks, uncertainties
and other factors that may cause the actual results, level of activity,
performance or achievements of the Company to be materially different from those
expressed or implied by such forward-looking information, including but not
limited to: general business, economic, competitive, geopolitical and social
uncertainties; the actual results of exploration activities; regulatory risks;
risks inherent in foreign operations; and other risks of the oil and gas
industry. Although the Company has attempted to identify important factors that
could cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause results not
to be as anticipated, estimated or intended. There can be no assurance that such
information will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward looking information. The
Company does not undertake to update any forward-looking information, except in
accordance with applicable securities laws.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Ferro Iron Ore Corp.
Mark Lotz
Director and CFO
[phone]
[phone] (FAX)
www.ferroironore.com