Ferrexpo : Trading update and 4Q 2016 pellet production.

2016 trading summary:

• Record sales volumes of approximately 11.7 MT compared to 11.3 MT in 2015 reflecting strong global demand for the Group's pellets.
• Total 2016 pellet production 11.2 MT compared to 11.7 MT in 2015.
• Lower pellet production in 2016 reflects:
  • An increase of 1.0 MT of higher performance FPP+ pellets (2016 3.3 MT vs. 2.3 MT in 2015)
  • Refurbishment of the travelling grate in the pelletiser
  • A decrease in production from low margin third party concentrate
• The Group's average pellet price in 2016 increased slightly compared to 2015, reflecting a recovery in the 62% Fe iron ore fines price during the year (average 2016 US$58.5 per tonne) compared to 2015 (average US$55.5 per tonne) and a steadily improving pellet premium following lows reached in 1Q 2016.
• The full year average 2016 cash cost of production was approximately US$29 per tonne compared to US$31.9 per tonne in 2015.
• The Group's cash balance as of 31 December 2016 was circa US$145M up US$110M compared to US$35M as of 31 December 2015.
• US$196M of debt was retired during 2016.

Outlook:
In 2016, Ferrexpo successfully focused on reducing its debt levels, and as such enters 2017 with a much improved capital structure. In 2017 the Group expects to benefit from higher pellet premiums while production volumes will continue to reflect better-quality output with total production increasing modestly compared to 2016. Costs remain subject to commodity prices, the Hryvnia exchange rate and inflation levels in Ukraine.

Ferrexpo premium pellets plus (FPP+) contain 65% Fe with enhanced basicity and low temperature disintegration properties compared to FPP pellets.