INTERNATIONAL FERRO METALS LIMITED2008 FULL YEAR RESULTS PRESENTATION

Poised for Growth on Solid Platform

22 September 2008

International Ferro Metals Limited and each of its respective directors, officers and agents believe that

the information contained in this presentation is correct and that any estimates, opinions or conclusions

contained in this presentation are reasonably held or made as at the time of compilation. However, no

warranty is made as to the accuracy or reliability of any estimates, opinions, conclusions or other

DISCLAIMER

warranty is made as to the accuracy or reliability of any estimates, opinions, conclusions or other

information contained in this document. IFM and its directors, officers and agents disclaims all liability

and responsibility for any direct or indirect loss or damage which may be suffered by any recipient

through relying on anything contained in or omitted from this presentation. This presentation is for the

intended recipient. No part of this document may be reproduced without the permission of

International Ferro Metals Limited.

2

POISED FOR GROWTH

• Strong EBITDA and cash flow from stable operations and cost

control

• Strong balance sheet with no debt

• Resources increased to over 45years’ expanded production

• Growth from expanding ferrochrome production (waste-gas power

3

• Growth from expanding ferrochrome production (waste-gas power

generation)

• Growth in chromite production from expanded mining

operations and new ore beneficiation plant

• Growth from staged furnace expansion

• Ramp up of production completed

• Revenue up 944% to ZAR1,919m ($263m)

• Ferrochrome price increased 92% to $1.92/lb in June 2008.

Currently at $2.05/lb.

• Production growth from 49,370 tonnes in 2007 to 205,607

HIGHLIGHTS

• Production growth from 49,370 tonnes in 2007 to 205,607

tonnes in 2008 (including FeCr contained in slag)

• EBITDA ZAR727m ($99.4m)

• Maiden dividend of £0.01 declared (ex dividend date 1 October 2008)

• Increasing cash position of ZAR972m ($122m) at 30 June

2008, no debt

4

• Low cost producer status maintained

• Expansion of Lesedi underground mine at Buffelsfontein

commenced

• Skychrome mining commenced post June 2008

• Commenced waste-gas electricity generation project,

HIGHLIGHTS

• Commenced waste-gas electricity generation project,

commissioning July 2009

• Commenced construction of ore beneficiation plant,

commissioning December 2009

5

• 2nd half year margin of 46% at average published price of $1.57/lb (Q1: $1.21/lb, Q2:1.92/lb)

• No tax payable

• Maiden dividend (interim dividend to be considered)

H1 2008 H2 2008 FY 2008 FY 2007

ZAR’000 ZAR’000 ZAR’000 ZAR’000

Total Revenue 367,252 1,552,144 1,919,396 183,863

FINANCIAL PERFORMANCE

Total Revenue 367,252 1,552,144 1,919,396 183,863

Cost of goods sold ( 349,595) ( 841,331) ( 1,190,926) ( 168,006)

Operating margin 5% 46% 38% 9%

EBITDA 14,520 712,207 726,727 ( 255,285)

PBT ( 23,858) 654,217 630,359 ( 344,269)

Taxation - ( 52,177) ( 52,177) -

Net profit/(loss) after tax ( 23,858) 602,040 578,182 ( 344,269)

Net Operating Cashflow ( 236,234) 487,491 251,257 ( 204,787)

EPS (cents per share) ( 4.54) - 114.05 ( 82.78)

Weighted avg # shares ('000) - - 502,590 412,695

DPS (pence) - 1p 1p -

6

• Cash and trade debtors of ZAR1,435m ($181m) as at 30 June 2008

• Unredeemed Capex of ZAR1,100m

H1 2008 FY 2008 FY 2007

ZAR’000 ZAR’000 ZAR’000

Cash and cash equivalents 341,721 972,190 43,929

Total other current assets 350,963 586,053 319,854

Total current assets 692,684 1,558,243 363,783

BALANCE SHEET

Property, plant & equipment 1,632,301 1,672,281 1,632,388

Other non-current assets 126,427 25,625 124,371

Total non-current assets 1,758,728 1,697,906 1,756,759

Total Assets 2,451,412 3,256,149 2,120,542

Trade and other payables 105,304 213,149 134,406

Other current liabilities 59,440 100,852 44,112

Total current liabilities 164,744 314,001 178,518

Interest bearing loans and borrowings 115,622 92,716 898,631

Deferred tax liability - 50,602 -

Total other non-current liabilities 69,070 27,184 76,403

Total non-current liabilities 184,692 170,502 975,034

Total liabilities 349,436 484,503 1,153,552

Total shareholders’ equity 2,101,976 2,771,646 966,990 7

Mineral Reserves Mineral Resources (Geological Losses Applied)

Tonnage Cr2O3 Cr:Fe Tonnage Cr2O3 Cr:Fe

(kt) (%) ratio (kt) (%) ratio

PROVED: MEASURED:

Lesedi Lesedi

MG3 4,950 34.93 1.25

MG2T 2,173 37.26 1.36

MG2 (1)

6,933 28.05 1.36 MG2B 5,448 38.67 1.37

MG1 3,950 35.61 1.49 MG1 6,182 40.50 1.49

Sky Chrome Sky Chrome

MG2T 323 28.77 1.21

MG2B_2 152 28.73 1.18

MG2B 850 26.96 1.14

MG1 1,022 27.18 1.20

PROBABLE INDICATED

Lesedi Lesedi

RESOURCES INCREASE BY 72%

“Sufficient ore to feed 5

furnaces for over 45 years”

Lesedi Lesedi

MG3 1,220 34.46 1.19

MG2T 580 37.31 1.36

MG2 (1)

2,142 28.03 1.37 MG2B 1,467 38.55 1.38

MG1 831 35.80 1.49 MG1 1,926 40.66 1.49

Sky Chrome Sky Chrome

MG2T 15,082 26.73 1.16

MG2B_2 3,227 30.04 1.22

MG2B 29,410 29.87 1.21

MG1 28,535 34.20 1.40

Proved &

Probable Reserves 13,856 30.66 1.41

Measured &

Indicated Resources 102,546 32.49 1.29

INFERRED

Lesedi

MG3 1,882 34.38 1.18

MG2T 827 37.23 1.36

MG2B 2,004 38.51 1.38

MG1 2,713 40.67 1.50

Sky Chrome

MG2T 2,996 29.31 1.22

MG2B_2 739 28.89 1.20

MG2B 5,888 33.49 1.29

MG1 6,435 36.14 1.44

Inferred Resources 23,482 35.00 1.34

Total Reserves 13,856 30.66 1.41 Total Resources 126,028 32.96 1.30

8

IFM AT BOTTOM OF COST CURVE

9

Chrome Ore

21.6c

33%Electrode Cost

0.8c

1%

Operating Costs

5.0c

8%

Fixed Costs

7.7c

12%

Production Cost 2008 (US65c/lb)(US cents/lb contained Cr)

FERROCHROME PRODUCTION COST

Reductants

20.2c

31%Fluxes

0.5c

1%

Electricity

8.8c

14%

Merril Lynch (June 2008) forecasts the

price of Hard Coking Coal, which is

used to produce coke, to fall by more

that 60% by 2012

Electricity to

increase

between 20-

25% p.a. for the

next three

years (Nersa)

10

• Stainless Steel production forecast to grow by 5.8%

• Ferrochrome demand forecast to grow by 5.1%

STAINLESS STEEL PRODUCTION

11

India

Finland

Kazakhstan Kazakhstan Kazakhstan Kazakhstan

Kazakhstan

Russia Russia Russia Russia

Russia

Turkey Turkey Turkey Turkey

Turkey

Sweden

Sweden Sweden Sweden Sweden

Sweden

MBR Forecast

4,000

5,000

tho

usa

nd

s o

f to

nn

es

Global Increase in FeCr Supply

MBR forecasts only 62% of announced capacity to realise by 2011Announced projects vs MBR Forecast

FERROCHROME SUPPLY IS CONSTRAINED

South Africa

South AfricaSouth Africa South Africa South Africa South Africa South Africa

South Africa

China

China

China China China China China

China

India

India

India India India India India

Finland Finland Finland Finland

Kazakhstan Kazakhstan Kazakhstan Kazakhstan

Russia

Russia

Russia

Turkey

Turkey

Sweden

Sweden

-

1,000

2,000

3,000

2008 2009 2010 2011 2012 2013 2014 2015 12

• Fourth quarter pricing negotiations underway

• MBR, CRU & Heinz Pariser Research forecast prices at or above $2.00/lb until 2011

ForecastHistoric

$ 2.50

$ 3.00

European HC Contract Charge Chrome Price Forecasts(Nominal, $/lb contained Cr)

FERROCHROME PRICE FORECAST

FY 2008

IFM Production Cost $0.65/lb

$ 0.00

$ 0.50

$ 1.00

$ 1.50

$ 2.00

20

07

Q1

20

07

Q2

20

07

Q3

20

07

Q4

20

08

Q1

20

08

Q2

20

08

Q3

20

08

Q4

20

09

Q1

20

09

Q2

20

09

Q3

20

09

Q4

20

10

Q1

20

10

Q2

20

10

Q3

20

10

Q4

20

11

Q1

20

11

Q2

20

11

Q3

20

11

Q4

CRU (Aug08)

MBR (Sep08)

Heinz Pariser (Aug08)

Historic

Average

IFM Cost

CRU New Range

13

• ESKOM confirmed company's preferential status

• Awaiting clarity from ESKOM about timing of expanded

capacity

• Latest deadline for receipt of the advice is October 2008

• DTI, ESKOM and the National Energy Regulator are jointly

ESKOM UPDATE

• DTI, ESKOM and the National Energy Regulator are jointly

deciding which industries will be preferred

14

• Skychrome open pit and underground feasibility completed

• Extraction of ore commenced

• Construction of 1.8m tpa ore beneficiation plant commenced, commissioning

December 2009 (Design and construction by Gravmax)

Capex to achieve 665kt FeCr in the medium term ZAR’million

EXPANSION – PHASE 1

Lesedi MG2 Shaft 65

SkyChrome Open Pit 35

SkyChrome Decline 1 & 2 330

Beneficiation Plant No.2 (1,800,000tpa) 210

Pelletiser No.2 (700,000tpa) 950

Furnaces (3 x 66MVA) 2,300

Infrastructure & other 580

TOTAL 4,470

15

• Waste-gas generation is proven

• Pre-reduction technology is proven

• Pre-heater technology is proven

• Pre-feasibility study has commenced with tests to be

completed by the end of October 2008

TECHNOLOGY INITIATIVES

completed by the end of October 2008

• Capex estimates to be finalised early November 2008

• Pre-reduction plus pre-heaters should have the ability to

increase production by at least 30%

16

• Silicon carbide as super reductant

• Full scale on-site tests will be conducted late 2008

• Silicon carbide could increase production by 10%

TECHNOLOGY INITIATIVES (cont.)

FeCr tonnes

Waste-gas generation 10%

Pre-heating 10%

Pre-reduction 30%

Silicon carbide 10%

17

• Beneficiated Chrome ore (concentrate) price is $330/t FOB (RSA)

• Cost of extraction and beneficiation is ZAR500/t ($67/t) and transport to port is

ZAR450/t ($60/t)

$ 800

$ 900

$/tonne Beneficiated chrome ore prices

CHROME ORE PRICES

South Africa

India

Turkey

$ 0

$ 100

$ 200

$ 300

$ 400

$ 500

$ 600

$ 700

Ja

n-0

3

May-0

3

Se

p-0

3

Ja

n-0

4

May-0

4

Se

p-0

4

Ja

n-0

5

May-0

5

Se

p-0

5

Ja

n-0

6

May-0

6

Se

p-0

6

Ja

n-0

7

May-0

7

Se

p-0

7

Ja

n-0

8

May-0

8

Se

p-0

8

Source: Metal Bulletin Research (Aug 2008) 18

• FeCr production to increase from 232,000 tpa to 267,000tpa

from July 2009 (chrome content 300million lbs - current price $2.05/lb)

• Resources increased to over 45years’ expanded production

• Chrome ore extraction increasing at Buffelsfontein and

Skychrome (current price $330/t beneficiated)

POISED FOR GROWTH ON SOLID PLATFORM

Skychrome (current price $330/t beneficiated)

• Additional beneficiation plant commissioning December 2009

• Feasibility on expanding ferrochrome production with existing

electricity supply underway (Pre-feasibility available early November 2008)

• Company highly cash generative with cash and trade debtors

of ZAR1.4bn ($181m) (at 30 June 2008)

• Demand for FeCr continues to increase

19

ANNEXURES

20

• Located in the Bushveld Complex – the largest ferrochrome producing region in the world

• IFM owns and operates the Lesedi chromite mine which is situated on the western limb of the South African Bushveld Complex

• IFM owns an 80% interest in the nearby Skychrome deposit to enable a 250% increase of initial ferrochrome production

THE BUSHVELD COMPLEX

21

FERROCHROME PROCESS

22

WORLD CHROMITE

23

Other

88kt

1.2% Sweden

120kt

1.6%

Brazil

176kt

2.4%

South Africa

3,428kt

45.8%

FeCr Production by Country 2007(in thousands of tonnes)

FECR PRODUCTION BY COUNTRY

2.4%

Zimbabwe

189kt

2.5%

Finland

242kt

3.2%

Russia

265kt

3.5%

India

775kt

10.4%

Kazakhstan

970kt

13.0%

China

1,232kt

16.5%

Source: Heinz Pariser (June 2008)

24

CHROME ORE USAGE

25

CHROME UNITS FIRST USE

26

Electronics and

appliance, 18%

Architecture, 9%

Water, 2%

Other, 17%

Stainless Steel Consumption by Sector (2007)(91% of Cr Ore consumed in Stainless Steel) Source: MBR

STAINLESS STEEL CONSUMPTION BY SECTOR

Chemical process , 16%

Automotive, 15%Food & Beverage, 13%

Energy, 10%

Architecture, 9%

27

STAINLESS STEEL MELTING PRODUCTION

28

Jisco (PRC owned) CMC Cometals (metals trader listed on NYSE))

Exclusive agency agreement with IFM for sales to Asia

Current guaranteed offtake of 120,000 tpa

Following expansion guaranteed offtake to increase to 300,000 tpa

Exclusive agency agreement for sales to Europe and Americas

Current guaranteed offtake of 50,000 tpa

Following expansion guaranteed offtake to double to 100,000 tpa

600

700

Offtake Agreements and FeCr Production Capacity

OFFTAKE AGREEMENTS

Jisco

JiscoCMC Cometals

CMC Cometals

Uncommitted Capacity

Uncommitted Capacity

-

100

200

300

400

500

600

Current (2 Furnaces) Expansion (5 Furnaces)

Pro

du

ctio

n C

ap

aci

ty (

kt)

29