Asian Metal: Hello Nick, and thank you for agreeing to do this interview with Asian Metal. I would like to address the results of the mineral resource estimate released in mid-January. Were the results of the recent NI 43-101 mineral resource evaluation in line with what Ferrum had anticipated?

Nick: Yes. We had an internal Rio Tinto report from the late 1990s that was targeting resources of around 250 million tonnes. Our Indicated and Inferred estimates exceed that number. More importantly, at a higher cut-off grade, our in-pit Indicated resources totaled more than 30 million tonnes grading 51.5% Fe and Inferred totaled more than 60 million tonnes of 52% Fe. Those high grades will form the basis for initial mining.

Asian Metal: Did the results alter the company’s plans for development of the project in any way?

Nick: The high grades exceeding 50% Fe have become our focus. Ideally, with simple beneficiation work to produce a +60% product, we see a small CapEx start up project now as opposed to something that was much larger and much more capital intensive. Our strategy is to avoid and mitigate financing risk, so that means focusing on high grades and starting production around 500,000 tonnes of product per year. Cerro Rojo is scalable, and from there can grow.

Asian Metal: Are there future tests planned, and if so, when are the drill programs anticipated to begin?

Nick: We have engaged Mintrex Pty in Australia to carry our beneficiation test work and our first study is expected by late February. We see another round of test work, before we develop an optimal process design. Cerro Rojo is also open for resource expansion, especially along strike to the west. Here we drilled some of our highest grade intersections, and we plan to follow those up later this year. Another exciting target for us is called Cerro Rojo Norte, which is located several hundred meters north of the main Cerro Rojo deposit. It has the potential to more than double our project resources and is also characterized by 50% Fe values in surface grab samples.

Asian Metal: What were some of the main highlights of the mineral resource evaluation?

Nick: The key highlight was the remarkable consistency of the mineralized strata, which correlates extremely well from hole-to-hole and section-to-section. It is very consistent in thickness and grade. Also, within the main 48% Fe deposit envelop, there is a very consistent 51%-52% grading zone, which will be the focus of initial mining.

Asian Metal: Ferrum also has interest in other South American projects located in various countries. Has there been any progress on these properties?

Nick: Our goal is to become a Latin American iron ore producer, and we are continuing with reviews of several interesting iron ore projects in nearby countries, especially along the Pacific Coast. Our focus remains on projects that have good infrastructure and transportation logistics, and as a result, will not require intensive capital investment.

Asian Metal: Nick, thank you for participating in this interview with Asian Metal.

Nick: Thank you.