Investment in Ferrum Resources Limited

For Immediate Release: 3 June 2011 Emerging Metals ("EML" or the "Company") Investment in Ferrum Resources Limited Emerging Metals Limited (AIM: EML) is pleased to announce that it has subscribed for 26,228,570 new ordinary shares ("Subscription") in the capital of Ferrum Resources Limited ("Ferrum") (the "New Ferrum Shares") at a price of US$0.305 per share for an aggregate consideration of US$7,999,713.85 (US$7,247,213.85 net of repayment of an existing US$752,500 loan from the Company to Ferrum) pursuant to the option agreement with Ferrum announced on 10 May 2011. The New Ferrum Shares represent 37.23 per cent. of Ferrum's enlarged issued share capital. In accordance with the terms of the option agreement, Jim Mellon and Denham Eke are to be appointed to the board of Ferrum with Mr Mellon assuming the interim role of Chairman. The Company has in addition advanced to Ferrum US$7,000,000 as bridging finance (the "Bridging Loan") for a proposed acquisition by Ferrum of 63.5 per cent. of the issued share capital of a Guernsey registered company with Iron Ore licenses in Cameroon (the "Cameroon Acquisition"). The Bridging Loan, which is secured against assets of Ferrum, is immediately repayable together with interest (charged at a rate of 9 per cent. per annum) on 31 December 2011 (unless agreed otherwise in writing by the parties). The Company will make a further announcement regarding the Cameroon Acquisition in due course. Completion of the Cameroon Acquisition is subject to Ferrum's ongoing due diligence and the Company is currently subject to confidentiality obligations in this respect. Concurrent with advancing the Bridging Loan, the Company has today entered into an option agreement with the holders of all the remaining issued Ferrum ordinary shares (the "Ferrum Option") giving the Company the right, but not the obligation, to acquire all the issued shares of Ferrum not already owned by the Company for a consideration of US$0.305 per share, to be satisfied by the issue of 7.16 new ordinary shares in Emerging Metals at an effective issue price of 2.6369 pence per share (the "Consideration Shares") for each Ferrum share acquired. In addition, subject to exercise of the Ferrum Option by EML, holders of options over 8 million unissued shares of Ferrum, each with an exercise price of GBP0.35, shall be granted options over new shares in EML on substantially the same look through terms as their existing option entitlement, in consideration of the waiver of their rights to acquire shares in Ferrum. In aggregate, if the Ferrum Option is exercised, EML will issue 316,574,266 new ordinary shares based on the current issued share capital of Ferrum and will grant warrants over a further 57,280,000 new ordinary shares, each for a term of five years and with an exercise price per share of 4.88 pence. The Ferrum Option was granted in consideration of a payment to each of the Ferrum shareholders of GBP1.00 and is exercisable for a period of 180 days from the date of grant (unless agreed otherwise in writing by the parties). Since the acquisition of a controlling stake in a company with a trading activity would represent a fundamental change in the Company's business, any exercise of the Ferrum Option will be conditional, amongst other things, on the approval of Emerging Metals' shareholders as well as on admission of the Consideration Shares to trading on AIM. A further announcement will be made should the Company decide to exercise the Ferrum Option. EML's directors Stephen Dattels and Jim Mellon are indirectly interested in 11,666,667 and 285,714 Ferrum ordinary shares respectively with Stephen Dattels indirectly holding an option to acquire a further 1,500,000 Ferrum ordinary shares at a price of GBP0.35 per share. These interests would, assuming exercise of the option indirectly held by Stephen Dattels and no other Ferrum share issues, amount to approximately 18.70 per cent. of Ferrum's issued ordinary share capital after the Subscription. Stephen Dattels, Co Chairman of Emerging Metals, said: "The Bridging Loan (together with the Subscription) provides Ferrum with sufficient capital to pursue its proposed Cameroon Acquisition, which we regard as a hugely exciting opportunity. In addition, we remain very excited about Ferrum's prospects for its early stage iron ore interests in Sierra Leone, together with the potential grant of an exploration license for its more advanced Topa iron ore deposit in the CAR. The Subscription ensures EML shall participate in the potential upside from all of Ferrum's existing and potential assets (which the Directors believe will generate significant shareholder value), whilst the Ferrum Option gives EML the right, at its discretion, to acquire 100 per cent. of the issued shares of Ferrum if the directors consider this to be in the best interests of the Company and its shareholders." For further information Emerging Metals Religare Capital Evolution GTH Communications Limited Limited Securities Limited Denham Eke Peter Romil Patel Toby Hall Trevelyan-Clark Tim Redfern Christian Pickel Emily Staples +44 (0) 1624 639396 +44 (0) 20 7444 +44 (0)20 7071 4300 +44 (0) 20 3103 0800 3902 Further details on Ferrum Ferrum is a private British Virgin Islands company established in January 2010. The company aims to become a major international iron ore mining and exploration group. Ferrum currently holds one reconnaissance permit in Guinea and a 75 per cent. interest in five exploration licenses in Sierra Leone. Ferrum has also applied for two iron ore exploration permits for the Topa Iron Ore Project in the Central African Republic in which it holds a 75 per cent. interest, with the other 25 per cent. interest held by AXMIN Inc.. From incorporation to 31 December 2010, Ferrum made losses of £913,000 and as at that date had net assets of £581,000.

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