21 January 2016

    International Ferro Metals Limited

                               ("IFL" or the "Company")                            

           Chromite Supply Agreement with Rustenburg Platinum Mines Limited        

    Further to the announcement on 29 December 2015, the Company announces that its
    South African subsidiaries, International Ferro Metals (SA) (Pty) Limited
    ("IFMSA") (in business rescue) and International Ferro Metals SA Holdings (Pty)
    Ltd ("IFMSAH") have entered into a settlement agreement with Rustenburg
    Platinum Mines Limited ("RPM") regarding its interests under a chromite supply
    agreement under which RPM is obliged to supply UG2 chrome ore to IFMSA.

    The terms of the settlement are that RPM will supply IFMSA with 10,000 tonnes
    of UG2 per month for calendar year 2016 at no cost and 7,500 tonnes per month
    from January 2017 to November 2020 at a cost of ZAR170 per tonne. The backlog
    of approximately 57,000 tonnes at the end of December 2015 will be supplied at
    a rate of 10,000 tonnes per month from January 2016, also at no cost. The
    original contract provided for RPM to supply 15,000 tonnes per month until
    November 2020 at no cost.

    The settlement has eliminated the uncertainty surrounding the supply agreement
    and accordingly will assist the asset sale process currently being conducted.
    However it has a material impact on the agreement's value and consequently on
    the value of the assets of IFMSA. As a result, there will be a material impact
    on the purchase consideration to be payable by Samancor for the assets of
    IFMSA. The business rescue practitioner will propose an amendment of the
    business rescue plan to the creditors of IFMSA to take account of the
    settlement agreement reached in respect of the supply agreement and the impact
    of the anticipated price adjustment and resultant distribution to creditors. A
    meeting of creditors will be convened to vote on the proposed amendment to the
    business rescue plan.

    It is not expected that that the timing of the proposed transaction with
    Samancor will be materially impacted.

    Further announcements in relation to the business recue proceedings will be
    released in due course.

                                        - ENDS-                                    

    For further information please visit www.ifml.com or contact:

    International Ferro Metals Limited        Tel: +27 14 574 6302                     

    Chris Jordaan, Chief Executive Officer

    Numis Securities Limited                  Tel: +44 (0) 20 7260 1000                

    James Black / John Prior / Paul Gillam

    About International Ferro Metals:

    International Ferro Metals produces ferrochrome, the essential ingredient in
    stainless steel, from its integrated chromite mine and ferrochrome processing
    operations in South Africa.  International Ferro Metals is listed on the London
    Stock Exchange under the symbol IFL.

    Forward Looking Statements

    This announcement contains certain forward looking statements which by nature,
    contain risk and uncertainty because they relate to future events and depend on
    circumstances that occur in the future.  There are a number of factors that
    could cause actual results or developments to differ materially from those
    expressed or implied by these forward looking statements.