OREANDA-NEWS. January 22, 2008. Ukraine's Ferrexpo company has reported its operational results for the year 2007.

Highlights.

Operational efficiency improvements demonstrated in first three quarters of the year continued in Q4 2007.

Total pellet production in FY 2007 increased by 6%, with production of pellets from produced ore up 8%.

Production of iron ore in Q4 2007 increased by 2% compared to the equivalent period in 2006.

Seasonality and an increased focus on stripping works for the northern extension of our open pit mine contributed to slight decline in Q4 2007 iron ore volumes compared to Q3 2007.

Iron ore concentrate output in FY 2007 was up 10%, in line with growth in FY 2007 iron ore production.

Focus was on pellet production from own produced ore in 2007, as third party iron ore concentratemarket remains tight.

Moves to increase production of higher quality (65% Fe) pellets continued, with this product now constituting 44% of total pellet production in Q4 2007, and 40% in FY 2007.

Production of 65% Fe pellets was up 23% in Q4 2007 compared to Q4 2006, and up 19% in FY 2007.

Average achieved price of pellets on a DAF/FOB basis in Q4 2007 decreased by 0.5% compared to Q3 2007, due to changes in sales mix.

Average achieved price on a DAF/FOB basis for FY 2007 rose by 20.3% compared to FY 2006.

Viktor Lotous, Chief Operating Officer of Ferrexpo, stated: “I am proud to say that Ferrexpo has significantly improved operational efficiency and production output in 2007. We were determined to satisfy our commitments to our customers in the face of the increasingly strong market demand for iron ore pellets, and we have succeeded, managing to increase the volumes of both ore mined and pellets produced over the year. In particular, the significant increase in higher quality 65% Fe pellets in response to market demand for this product is of note. Our ambitious production targets were reached through a combination of investment in more efficient equipment together with being able to successfully increase the efficiency of utilisation for existing machinery. This is a result of the implementation in 2007 of initiatives from our ongoing Business Improvement Programme which has also enabled us to manage cost growth despite high inflation in Ukraine.”

Ferrexpo is a Swiss headquartered resources company with assets in Ukraine, principally involved in the production and export of iron ore pellets, used in producing steel. Current output is over 9 million tonnes, approximately 85% of which is exported to steelmakers around the world. The Group is currently undertaking a significant growth programme and listed on the main market of the London Stock Exchangein June 2007 under the ticker FXPO.