CUFE LTD — Capital/Financing Update 2012

Jul 26, 2012

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ASX Announcement

27 July 2012

Australian Securities Exchange Code: FEL

FURTHER UPDATE – GYMPIE ELDORADO MINE DIVESTMENT

Ordinary Shares: 115,521,575

Unlisted Options: 18,500,000 ($0.12 exp. 31 Dec 2012) 375,000 ($0.15 exp. 23 Mar 2014)

Board of Directors: Tony Sage Non-Executive Chairman

Mark Gwynne Executive Director

Paul Kelly Non-Executive Director Eloise von Puttkammer Company Secretary Key Projects & Interests: Mt Ida Iron Ore Project Mt Elvire Iron Ore Project Crossroads, Bardoc and Grafters Gold Projects Kalgoorlie Regional Gold Project Kalgoorlie Regional Nickel Project

Fe Limited Contact: Tony Sage Non-Executive Chairman Tel: +61 (8) 9380 9555

Corporate Office: 32 Harrogate St, West Leederville, Western Australia 6007 Australia Telephone +61 8 9380 9555 Facsimile +61 8 9380 9666

Australian Enquiries: Professional Public Relations David Tasker Tel: +61 8 9388 0944 Mob: +61 433 112 936 Email: david.tasker@ppr.com.au

Australian mineral resources explorer, Fe Limited (ASX: FEL) (“Fe” or the “Company”), provides this announcement by way of update of the conditional sale agreement for the sale of all the shares in Gympie Eldorado Mining Pty Ltd (“GEM”) to BRI Microfine Pty Ltd (“BRI”) (refer ASX announcements dated 29 April 2011 and 3 October 2011) (“Transaction”).

GEM is the holder of mining leases that contain three tailings storage facilities covering approximately 22 hectares and associated remaining assets and infrastructure at the Gympie Eldorado Mine, located in southeast Queensland.

The Company has received confirmation from BRI that it has completed a capital raising to fund the Transaction and BRI anticipates payment of the $50,000 deposit (“Deposit”) within 10 business days of this announcement with final payment and refund of environmental bonds, totaling $2.28M within 28 days of payment of the Deposit.

Fe looks forward to receipt of the Deposit and completion of the Transaction.

Yours faithfully FE LIMITED

Mark Gwynne Executive Director

Fe Limited is an Australian domiciled mineral resources exploration and development company.

Fe Limited ABN: 31 112 731 638

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felimited.com.au