Ferrexpo GroupProgress through volatile times

Kostyantin Zhevago - CEO

Credit Suisse Global Metals & Mining Conference 23 September 2009

Disclaimer

This document is being supplied to you solely for your information and does not constitute or form part of any offer or invitation or inducement to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company or any other securities, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the securities of the Company. No information made available to you in connection with this document may be passed on, copied, reproduced, in whole or in part, or otherwise disseminated, directly or indirectly, to any other person.

Some of the information in this document is still in draft form and is subject to verification, finalisation and change. Neither the Company nor its affiliates nor advisers are under an obligation to correct, update or keep current the information contained in this document or to publicly announce the result of any revision to the statements made herein except where they would be required to do so under applicable law.

No reliance may be placed for any purpose whatsoever on the information contained in this document. No representation or warranty, expressed or implied, is given by or on behalf of the Company or any of the Company's directors, officers or employees or any other person as to the accuracy or completeness of the information or opinions contained in this document and no liability whatsoever is accepted by the Company or any of the Company's members, directors, officers or employees nor any other person for any loss howsoever arising, directly or indirectly, from any use of such information or opinions otherwise arising in connection therewith.

This presentation and its contents are confidential. By reviewing and/or attending this presentation you are deemed to accept that you are under a duty of confidentiality in relation to the contents of this presentation. You agree that you will not at any time have any discussion, correspondence or contact concerning the information in this document with any of the directors or employees of the Company or its subsidiaries nor with any of their customers or suppliers, or any governmental or regulatory body without the prior written consent of the Company.

Certain statements, beliefs and opinions in this document and any materials distributed in connection with this document are forward-looking. The statements typically contain words such as "anticipate", "assume", "believe", "estimate", "expect", "plan", "intend" and words of similar substance. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could actual results or events to differ materially from those expressed or implied by the forward-looking statements. These risk, uncertainties and assumptions could adversely affect the outcome and financial effects of the plans and events described herein. Statements contained in the document regarding past trends or activities should not be taken as a representation or warranty (express or implied) that such trends or activities will continue in the future. No statement in this document is intended to be a profit forecast. You should not place reliance on forward-looking statements, which speak only as of the date of this document.

You should not base any behaviour in relation to financial instruments related to the Company's securities or any other securities and investments on information until after it is made publicly available by the Company or any of their respective advisers. Any dealing or encouraging others to deal on the basis of such information may amount to insider dealing under the Criminal Justice Act 1993 and to market abuse under the Financial Services and Markets Act 2000.

2

GROWTH

INVESTMENT CASE

RECENT PERFORMANCE AND OUTLOOK

Agenda

INTRODUCTION

Ferrexpo – a Snapshot

> UK-incorporated plc

> Full Main Board LSE listing since June 2007 - FTSE

250 member

> UK Corporate Governance in place - independent

Board

> Swiss headquarters (marketing & finance) – Swiss

tax domicile

> Ukrainian mining operations

Corporate outlineKey facts

> Produce exclusively iron ore pellets

> 44% of production is high-quality 65% Fe pellets –

remainder is 62% Fe pellets

> Produced 9.0mt in both 2007 & 2008

> Processing plant capacity of 12mtpa

> Approximately 6.5 billion tonnes of JORC resources

> Average ore grade c. 30% Fe

> Further c. 14 billion tonnes of resources classified

under Soviet GKZ Code

> Primarily an export business

> Supplies customers in Central and Eastern Europe

and Asia

> Operating for 30 years

> Very large iron ore resource – largest in Europe

> Location ‘on the doorstep of Europe’ - proximity to key

customers

– Continuous rail ‘just in time’ delivery service to

many customers

– Lowest cost of supply to key customers

> Very strong customer relationships in Traditional

(Europe) and Growth (Asia) markets

Competitive advantages Growth

> Major capital projects on hold due to downturn

> Plans to double then quadruple production remain

a priority

> Focus now on efficiency of existing operations and

product quality

3

World Class Resources

14,000

20,500

3,2034,178

11,968

15,202

6,583

0

5,000

10,000

15,000

20,000

25,000

Ferrexpo Vale Rio Tinto BHP

Billiton

Fortescue Kumba

JORC GKZ Unspecified

0

20

40

60

80

100

120

Russia Ukraine Sweden Kazakhstan

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000Production Resources Column 4

U.S. Geological Survey, Mineral Commodity Summaries, January 2009 1) RioTinto, Fortescue & Kumba: Total attributable resources, Annual

Report 2007

2) BHPBilliton: Total resources, Annual Report 2008

3) Vale: Approximation based on information on company website

Iron ore mining companies – resource comparison Production and resources in and near Europe

mt mt mt

4

5

Ideal Location

Ferrexpo is beneficially situated close to its core markets

Canada

South

Africa

India

China

Europe &

Middle East

6

Flexible Marketing Strategy

3.0%

4.5%

11.8%

54.0%

26.8%Ukraine

Traditional Markets

Natural Markets

Growth Markets

India

Market Mix by Sales Volume

H1 2009

14.5%

67.1%

2.2%

16.2%

Ukraine

Traditional Markets

Natural Markets

Growth Markets

H1 2008

14.5%

67.1%

2.2%

16.2%

12.0%

Ukraine Europe/Traditional Markets Turkey China India

7

GROWTH

INVESTMENT CASE

RECENT PERFORMANCE AND OUTLOOK

Agenda

INTRODUCTION

Strong Production and Sales Performance

2.3 2.3

2.5

1.9 1.9

2.22.1

2.3

1.9

1.7

2.52.5

45.8%

51.9%

42.0% 41.5%42.8%

52.9%

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Q1 Q2 Q3 Q4 Q1 Q2

30.0%

35.0%

40.0%

45.0%

50.0%

55.0%Pellets Produced Pellets Sold % 65% Fe Pellets Produced

Production stable and quality improved

mt %

> Continuing operational improvement

– Record production in the first 10 months of 2008 – deliberate decrease thereafter

– 8.5% increase in production of 65% Fe pellets over 2008, 4.3% increase in H1 2009

> Record price settlements (in excess of the Benchmark) for the 2008/2009 contract year

> All 2008 and H1 2009 production sold

2008 2009

8

51.6

74.3

61.8

72.3

124.6

65.6

22.7

29.9 29.3

31.8

42.4

34.1

0

20

40

60

80

100

120

140

2004 2005 2006 2007 2008 2009

Average Achieved Price (FOB) C1 Costs

Maintaining Margins

Achieved Prices vs Cash Production Costs (US$/t)

Ferrexpo is managing factors within its control to ensure continued positive margins

1) 2009 data are YTD averages weighted by sales volume to end August 2009

1

1

9

76

142 147

126

7759

c.71 c.71

12

186180

159

76 7569

95

0

25

50

75

100

125

150

175

200

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Sales Price (DAF/FOB) Implied 2009 Benchmark (DAF/FOB) MB CFR China Fines Spot

Achieved Prices – Likely Upside

Dollar per tonne average achieved prices (on a DAF/FOB basis) by quarter

US$/t

2008 2009

?

2008

Benchmark

Settlement

2009 Vale Pellet

Settlement – ‘Implied

Benchmark’

Ferrexpo achieved prices likely to trend upwards to the Vale ‘implied benchmark’ in H2 2009

(July + Aug average)

2

1. ‘Implied Benchmark’ calculated using Vale reduction of 48.3% applied to actual Ferrexpo contract average (i.e. adjusted for Fe content and quality)

2. Expressed as a quarterly average, except Q3 2009, which is the July 2009 average

1

10

40.9

0.5

1.70.21.2

0.9

2.3

0.0 0.5 34.5

H1 2

008

Die

sel F

uel

Ele

ctr

icity

Grindin

g M

edia

Spare

s &

Main

tenance

Labour

Natu

ral G

as

Oth

er

Costs

Explo

siv

es

H1 2

009

11

Costs Breakdown

1 C1 costs are total cash costs of production of pellets from produced concentrate, ex-works

C1 Costs1 by input ($/t) – H1 2009

Other

10%

Electricity

27%

Natural Gas

13%

Diesel Fuel

8%Explosives

3%

Labour

13%

Spares &

Maintenance

16%

Grinding Media

10%

Total: $34.5

C1 Costs waterfall H1 2008 – H1 2009 ($/t)

Energy-related costs comprise 51% of Ferrexpo’s cash costs of production

Ukrainian Economic Environment Improving

• IMF third tranche released

• IMF approval of economic conditions / policies

• Now over $10bn released

• Consumer confidence improving

• Steel industry capacity utilisation increasing

• Ferrexpo supplying IUD again

• Hyrvnia exchange rate broadly stable

12

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

Jan-0

8

Feb-0

8

Mar-

08

Apr-

08

May-0

8

Jun-0

8

Jul-08

Aug-0

8

Sep-0

8

Oct-

08

Nov-0

8

Dec-0

8

Jan-0

9

Feb-0

9

Mar-

09

Apr-

09

May-0

9

Jun-0

9

Jul-09

China European Union Turkey CIS

Steel Restocking – A Positive Trend

Monthly Crude Steel Production (% YoY)

Steel restocking trend moving from China to Ferrexpo’s core markets

Source: World Steel Association

13

India – Starting to Realise Potential

Ferrexpo has started to supply north-western India

0

250

500

750

1,000

1,250

1,500

China - 2002 India - 2009

0.05

0.14

0

250

500

750

1,000

1,250

1,500

China - 2002 India - 2009

0.00

0.05

0.10

0.15

0.20

Population

Apparent Steel Consumption

Per Capital Steel Consumption

Source: World Steel Association, Nationmaster.com, World Bank, Economist Intelligence Unit, Ferrexpo analysis

GDP in China in 2002 vs India in 2009 (US$bn) Steel Consumption – Significant Upside

mm t / capita

14

15

GROWTH

INVESTMENT CASE

RECENT PERFORMANCE AND OUTLOOK

Agenda

INTRODUCTION

Substantial Potential for Brownfield Growth

Gorishne – Plavnikoe 2,718mt

Galeshchinskoe 325mt

Lavrikovskoe 986mt

Belanovskoe 1,664mt

Yeristovskoe 861mt

Brovarskoe

KharchenkovskoeVasilyvskoe

Manuylovskoe

Current mining

operations

c.14bnt

Source: Ferrexpo plc

Growth projects remain a priority

Dnieper River

50

km

35 36

12

1228

16

15

23

43

0

25

50

75

100

125

150

H1 2007 H1 2008 H1 2009

GPL Sustaining GPL Development

YBG Development Railcars & Logistics

Area Infrastucture & Utilities

53.443.2

131.2

• Pre-export financing facility with US$244 million

outstanding

• Net debt at 30 June 2009 was US$222 million –

in line with 2008 year-end

• Cash of US$75 million as at period end (Y/E

2008: US$87.8 million)

• Dividend decision in October

Capital Expenditure and Debt Position

16

Advanced Pipeline of Growth Projects

Indicative estimates only

Source: Ferrexpo plc

Growth projects largely on hold – but remain a priority

Dnieper River

50km

≤$250$250-$750

$750+

GPL Concentrator

Upgrade

GPL Mine

Expansion

North

Yeristovskoye

Mine

Yeristovskoye

Concentrator

Yeristovskoye

Pelletising Plant

Belanovskoye

Concentrator

Belanovskoye

Mine

Belanovskoye

Pelletising Plant

Mining

Beneficiation

Pelletising

Underway

Option under consideration

Licence maintenance

1-3 years 4-6 years 7-10 years

17

18

GROWTH

INVESTMENT CASE

RECENT PERFORMANCE AND OUTLOOK

Agenda

INTRODUCTION

Established and Producing for 30 Years

19

20

2010 and Beyond

Strategy

> Maintain full production

> Reduce costs

> Remain flexible

> Remain profitable

What’s next?

> Outlook for global iron ore remains uncertain, but is improving

> Returning to portfolio of long term contract customers

> Increasing market share in Traditional markets

> Opening new markets

> Refocusing on growth

Compelling investment case

The only pure play iron ore company in the FTSE UK indices

One of the largest iron ore resources in the world

Capacity to accelerate growth when prudent

Strong strategic marketing capability and customer relationships

Location, location, location

21