Major Upgrade Underpins Pre-Feasibility Study At FerrAus Limited (ASX:FRS) Pilbara Project

Perth, June 16, 2010 AEST (ABN Newswire) - FerrAus Limited (ASX:FRS) (PINK:FRRAF) announces a 116% increase in its measured and indicated resources at its FerrAus Pilbara Project in Western Australia.

The resource total for the Project has now reached 297.2 million tonnes, up 7% on the previous resource statement (4 March 2010).

Snowden Mining Industry Consultants (Snowden) have verified the new resource estimate for the Davidson Creek Area. There is no change to the Robertson Range Area resource estimates.

In addition to the upgrade for the estimated resource total for material above 55% Fe cut-off, Snowden has provided an update for the mineral resources estimate of medium grade material (between 50% and 55 % Fe) in the Inferred Category, at Davidson Creek to 86.5 million tonnes, up 25% on the previous resource statement.

Chief Executive Officer, Mike Amundsen, said that this resource upgrade was another critical step to underpin the PFS and the pathway to allow FerrAus Pilbara Project to make its first shipment of iron ore in fourth quarter of calendar 2013.

"The infill drilling program has been very successful in enhancing the overall confidence of our resource base necessary to support the PFS with 75% of the total high grade ore (>55%Fe) resource base now classified as Measured and Indicated.

"These good results confirm the extent and continuity of the mineralisation and builds on what is already a substantial resource.

"The Pre-Feasibility Study is due for completion in the next few months and each resource upgrade provides greater certainty that we will be able to achieve the 15 million tonnes per annum production target."

"Results from recent drilling at Mirrin Mirrin are currently being processed and we aim to announce a further resource upgrade within the next month. "We are aiming to prove up a total resource of 400 million* tonnes by the end of this calendar year with continuing exploration drilling of the many targets yet to be tested." Mr Amundsen said. (*Please note that this is a corporate objective and that depending on future drilling and development, this target may or may not be achieved.)

Following completion of the Pre-Feasibility Study, FerrAus intends to move immediately to initiate its Definitive Feasibility Study which is scheduled to be finalised early in 2011.

For the complete FerrAus announcement including FerrAus Pilbara Project Iron Ore Resource Inventory June 2010, please view the following link:

http://www.abnnewswire.net/media/en/docs/63088-ASX-FRS-494409.pdf

Contact

Gareth Widger Investor / Media Contact Mob: +61-4-1991-8272 Email: info@ferraus.com Web: www.ferraus.com