Acts
The Companies Acts 1985 and 2006

AGM
The Annual General Meeting of the Company to be held on Tuesday 19 May 2009

Articles
The Articles of Association of the Company

Audit Committee
The Audit Committee of the Company’s Board

Benchmark price
International seaborne traded iron ore benchmark price agreed between the major iron or producers and specific Western European or British steel producers for a given year

BIP
Business Improvement Programme

Board
The Board of Directors of the Company

bt
Billion tonnes

Capital employed
The aggregate of equity attributable to shareholders, minority interests and borrowings

CFR
Delivery including cost and freight

C1 costs
Cash costs per ton of pellets, ex-works, excluding administrative and distribution costs

CIF
Delivery including cost, insurance and freight

CIS
The Commonwealth of Independent States

Combined Code
The Combined Code on Corporate Governance published by the Financial Reporting Council in June 2006

Company
Ferrexpo plc, a public company incorporated in England and Wales with limited liability

CPI
Consumer Price Index

CSR
Corporate Safety and Social Responsibility

CSR Committee
The Corporate Safety and Social Responsibility Committee of the Board of the Company

DAF
Delivery at frontier

DFS
Definitive Feasibility Study

Directors
The directors of the Company

Dragline excavators
Heavy excavators used to excavate material. A dragline consists of a large bucket which is suspended from a boom

EBITDA
Earnings before interest, tax, depreciation and amortisation

EBT
Employee Benefit Trust

EMP
Environmental Management Programme

EPS
Earnings per share

Executive Committee
The executive committee of the Company’s Board

Executive Directors
The executive directors of the Company

Fe
Iron

Ferrexpo
Ferrexpo plc

Ferrexpo AG Group
Ferrexpo AG and its subsidiaries including FPM

Fevamotinico S.a.r.l.
A company incorporated with limited liability in Luxembourg

FOB
Delivered free on board

FPM
Ferrexpo Poltava Mine, formally Ferrexpo Poltava GOK Corporation, a company incorporated under the laws of Ukraine

FTSE 250
Financial Times Stock Exchange top 250 companies

GPL
Gorishne, Plavninskoye and Lavrikovskoye mine

Group
The Company and its subsidiaries including Ferrexpo AG

Growth markets
Those markets that offer to add new and significant tonnage expansion potential

HSE
Health, safety and environmental

IAS
International Accounting Standards

IASB
International Accounting Standards Board

IFRS
International Financial Reporting Standards, as adopted by the EU

IPO
Initial Public Offering

Iron ore concentrate
Product of the flotation process with an enriched iron content

Iron ore sinter fines
Fine ground iron ore

Iron ore pellets
Dried and hardened agglomerate of iron ore concentrate, whose physical properties are well suited for transportation and downstream processing in a blast furnace

JORC
Australasian Joint Ore Reserves Committee – the internationally accepted code for ore classification

KPI
Key Performance Indicator

kt
Thousand tonnes

LIBOR
The London Inter Bank Offered Rate

LLC
Limited Liability Company

LTIFR
Lost-Time Injury Frequency Rate

LTIP
Long term incentive plan

m³
Cubic metre

Majority shareholder
Fevamotinico S.a.r.l., The Minco Trust and Kostyantin Zhevago (together)

mm
Millimetre

mt
Million tonnes

mtpa
Million tonnes per annum

Natural markets
Relatively new markets in regions where the Group believes it has a competitive advantage which is yet to be exploited

Nominations Committee
The Nominations Committee of the Company’s Board

Non-executive Directors
Non-executive directors of the Company

NOPAT
Net operating profit after tax

OHSAS 18001
International Safety Standard ‘Occupational Health & Safety Management System Specification’

Ordinary Shares
Ordinary shares of 10 pence each in the Company

Ore
A mineral or mineral aggregate containing precious or useful minerals in such quantities, grade and chemical combination as to make extraction economic

PPI
Ukrainian Producer Price Index

Probable reserves
Those measured and/or indicated mineral resources which are not yet ‘proved’, but of which detailed technical and economic studies have demonstrated that extraction can be justified at the time of the determination and under specific economic conditions

Proved reserves
Measured mineral resources of which detailed technical and economic studies have demonstrated that extraction can be justified at the time

There are no terms for this letter.

Regulations
The Directors’ Remuneration Report Regulations

Relationship Agreement
The relationship agreement entered into among Fevamotinico S.a.r.l., Kostyantin Zhevago, The Minco Trust and the Company

Remuneration Committee
The Remuneration Committee of the Company’s Board

Reserves
Those parts of mineral resources for which sufficient information is available to enable detailed or conceptual mine planning and for which such planning has been undertaken. Reserves are classified as either proved or probable

$/t
US dollars per tonne

Sinter
A porous aggregate charged directly to the blast furnace which is normally produced by firing relatively coarser fine iron ore, other materials, and coke breeze as the heat source

Spot price
The current price of a metal for immediate delivery

Sterling/£
Pound sterling, the currency of the United Kingdom

STIP
Short term incentive plan

Tailings
The waste material produced from ore after economically recoverable metals or minerals have been extracted. Changes in metal prices and improvements in technology can sometimes make the tailings economic to process at a later date

TIS-Ruda
Ukrainian port facility on the Black Sea

Tolling
The process by which a customer supplies concentrate to a smelter and the smelter invoices the customer the smelting charge, and possibly a refining charge, and then returns the metal to the customer

Ton
A US short ton, equal to 0.9072 metric tonnes

Tonne or t
Metric tonne

TSF
Tailings Storage Facility

Traditional markets
Markets that the Group has supplied historically and in which it enjoys a competitive advantage based on its location. These include Austria, Ukraine, Poland, Slovakia, Bulgaria and Russia

TSR
Total Shareholder Return. The total return earned on a share over a period of time, measured as the dividend per share plus capital gain, divided by initial share price

Underlying earnings
An alternative measure which the Directors believe provided a clearer picture of the underlying financial performance of the Group’s operations. Underlying earnings is presented as profit attributable to equity shareholders before adjusted items. Adjusted items are those items of financial performance that the Group believes should be separately disclosed on the face of the income statement to assist in the understanding of the underlying financial performance achieved by the Group. Adjusted items that relate to the operating performance of the Group include impairment charges and reversals and other exceptional items. Non-operating adjusting items include profits and losses of investments and businesses, IPO costs, and non-operating foreign exchange gains and losses

UAH
Ukrainian hryvnia, the currency of Ukraine

Ukr SEPRO
The quality certification system in Ukraine, regulated by law to ensure conformity with safety and environmental standards

US$ or Dollars
United States dollars, the currency of the United States of America

USS
United States Steel Corporation

VAT
Value Added Tax

Value in use
The implied value of a material to an end user to use one material relative to other options, e.g. comparing the performance of several types of iron ore pellets in a blast furnace; or taking into account the delivered cost of a material and rates relative to other competitive materials on a quality and landed cost adjusted basis

WMS
Wet magnetic separation

There are no terms for this letter.

YGOK
The name of a separate management company formed temporarily to administer the three major growth projects

There are no terms for this letter.