Development capex

Ferrexpo PLC
17 September 2007


Ferrexpo PLC

17 September 2007


FERREXPO PLC - FIRST CAPITAL EXPENDITURE FOR THE YERISTOVSKOE MINE DEVELOPMENT


Ferrexpo plc is pleased to announce that it has signed contracts for the
purchase of six new draglines for use in the development of its Yeristovskoe
iron ore deposit. The draglines have been procured from Novo-Kramatorsky
Mashinostroitelny Zavod Joint Stock Company (NKMZ), a Ukrainian manufacturer.
Delivery of first equipment components is expected in mid March 2008, enabling
stripping operations to commence by September 2008. The contracts and associated
commitments represent an investment of $46 million.


Mike Oppenheimer, Ferrexpo CEO, said:


'This represents a critical first investment in the development of Yeristovskoe
and the implementation of our integrated expansion project at Ferrexpo Poltava
Mining (FPM). The specification and procurement process was managed by Ferrexpo
in conjunction with our mining alliance partner DTP Terrasement, and the
contract was awarded in line with robust procurement policies introduced as part
of our Business Improvement initiatives at FPM. We have been able to achieve
attractive pricing for this crucial equipment, which is indicative of the
procurement opportunities available in Ukraine. This investment will allow us to
continue to execute on our aggressive growth strategy as set out at our IPO.'


For further information, please contact:


Ferrexpo:                         [phone]

Gavin Mackay


Finsbury:                         [phone]

Robin Walker
Alex Simmons


Notes to Editors:


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 over 9 million tonnes, approximately 90% of 
which is exported to steelmakers around the world. The Group is currently 
undertaking a significant growth programme and listed on the main market of 
the London Stock Exchange in June 2007 under the ticker FXPO. For further 
information please visit www.ferrexpo.com.



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