Australian Securities

Exchange Code: FEL

Ordinary Shares:

115,521,575

Unlisted Options:

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

Board of Directors:

Tony Sage

Non-Executive Chairman

Kim Bischoff

Managing Director

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:

Kim Bischoff

Managing Director

Tel: +61 (8) 9380 9555

Corporate Office:

18 Oxford Close 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

Fe Limited is an Australian domiciled

mineral resources exploration and

development company.

Fe Limited ABN: 31 112 731 638

ASX Announcement 19 May 2011

felimited.com.au

FE DEFINES EXPLORATION TARGET OF 1.0 – 1.4 BILLION TONNES1 AT MT IDA IRON ORE PROJECT

HIGHLIGHTS

Rockchip sampling and mapping confirms banded iron formation at Fe Limited’s Mt Ida Iron Ore Project with grades from 35 to 64% Fe at surface.

Exploration target of 1.1 - 1.4 billion tonnes of banded iron formation at 30 - 37% Fe1 estimated for Mt Ida based on geophysical modeling, constrained by historic and recent exploration data.

Drilling is scheduled to commence at Mt Ida in the September quarter of 2011.

Australian mineral resources explorer, Fe Limited (ASX: FEL) (“Fe” or the “Company”), is pleased to announce the results of initial exploration from its recently acquired Mt Ida Iron Ore Project (“Mt Ida” or “Project”) in the Yilgarn Iron Province of Western Australia (refer Figure 1). Geological Mapping and Sampling A program of geological mapping and geochemical sampling has commenced over exploration licences E26/644 and E29/561 (the “Core Tenements”), which cover the principal targets for iron ore at Mt Ida. Geological mapping has located several outcrops confirming the occurrence of banded iron formation units (“BIF”) at Mt Ida. The easternmost and larger unit, referred to as the Eastern BIF, extends over both exploration licences with 2 breaks interpreted to be due to faulting in the north and south (refer Figure 2). There are 2 smaller units referred to as the Western BIF units, located approximately 800m west of the Eastern BIF. Outcrops demonstrate that both these units dip from 30 to 50 degrees to the east. Results for the first batch of 17 rockchip geochemical samples collected on E29/561 have been received. These returned grades from 35 to 64% Fe (average 51% Fe) with low phosphorus and sulphur (averages 0.09 and 0.06% respectively). For details of the rockchip sample locations and results refer to Table 1 and Figure 3.

1 The estimates of exploration target sizes mentioned in this release should not be

misunderstood or misconstrued as estimates of Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

ASX Announcement 19 May 2011 Page 2 of 7

This initial mapping and sampling data has confirmed the occurrence of in-situ enriched and weathered BIF at surface. Some outcrops of cemented pisolitic iron stone were observed in the hanging-wall of the Eastern BIF. Review of historical open-file exploration information showed a series of 18 inclined RAB holes (average depth of 48m) drilled on 4 traverses on E29/561 (refer Figure 3) in 1996. Whilst these holes were drilled and assayed for a gold exploration program, they showed logged intersections of banded iron formation and clearly located the footwall of the Eastern BIF dipping moderately to the east. By reference to the above, and to publically released exploration drilling data to the north and southwest along strike, four (4) types of iron mineralisation are identified at Mt Ida. These are:

1) in-situ enriched hematite-goethite (refer Figure 4);

2) transported enriched hematite-goethite (types 1. and 2. represent potential DSO targets);

3) in situ weathered and enriched BIF to depths of from 30-60m below surface (oxide BIF); and

4) magnetite BIF, which underlays the oxide BIF. Geophysics The Company acquired modern high resolution airborne geophysical survey data covering the Core Tenements at Mt Ida. Data processing, interpretation and modeling of magnetic anomalies representing BIF were completed by Perth-based independent geophysical consultants, Core Geophysics, in consultation with Company geologists. The airborne geophysical survey data shows a prominent linear magnetic anomaly corresponding to the Eastern BIF at Mt Ida and 2 smaller linear anomalies in the foot-wall of the Eastern BIF. Exploration Target A range of target size models for the magnetic anomalies at Mt Ida, constrained by the existing geological information, were developed by Core Geophysics to assess the best fit with the surveyed airborne magnetic data. The principal input variables were dip, width, strike length, magnetic susceptibility and depth below surface. The best fit models comprised a series of tabular bodies dipping approximately 40 degrees to the east. The average modeled thickness for the Eastern BIF was 118m over an aggregate strike of 6.8km to a depth of 300m below surface. The average thickness for the Western BIF units was 57m over an aggregate strike of 1.5km to a depth of 250m below surface. These models are consistent with geological interpretation of the recent mapping and the contemporary and historic drilling information in the district. The geological mapping and geophysical modeling also identified possible DSO targets at the structural breaks and in the hanging-wall region of the Eastern BIF that require follow-up geological mapping, sampling and scout drilling. Target Size Based on the geological data and geophysical modeling, a total exploration target size was estimated for the Eastern and Western BIF units at Mt Ida of 1.1 to 1.4 billion tonnes with a grade of 30 to 37% Fe2. This

estimate comprises 0.17 to 0.23 billion tonnes of oxide BIF at 35 to 45% Fe, and 0.9 to 1.2 billion tonnes of magnetite BIF at 30 to 35% Fe.

2 The estimates of exploration target sizes mentioned in this release should not be misunderstood or misconstrued as estimates of

Mineral Resources. The estimates of exploration target sizes are conceptual in nature and there has been insufficient results received from drilling completed to date to estimate a Mineral Resource compliant with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.

ASX Announcement 19 May 2011 Page 3 of 7

Further Work The geological mapping and sampling program at Mt Ida will be completed in the June quarter 2011. A program of work has been lodged with the Department of Mines and Petroleum for an initial program of drilling at Mt Ida on 800m spaced traverses focused on testing the prospective Eastern BIF plus DSO targets. This drilling is planned to start in the September quarter 2011 subject to funding and receipt of regulatory approvals. About the Mt Ida Iron Ore Project Mt Ida is approximately 80km northwest of the operational railway at Menzies, which offers access to existing port facilities at Esperance. Esperance port is expanding facilities in the near future to increase capacity from the current 11.5Mtpa to approximately 32Mtpa. The Project was acquired by Fe in March 2011 and comprises the rights to explore and mine for iron ore on a group of 71 licences covering approximately 370km2 in the emerging Yilgarn Iron Province. The principal targets are located on licences E29/561 and E29/644 where the Company holds 100% and 85% respectively of the rights to explore for and mine iron ore. These tenements are prospective for detrital and in-situ DSO iron mineralisation and for large magnetite BIF deposits. The Project area covers part of the Mt Ida - Mt Bevan BIF, which is also currently being explored and evaluated by Jupiter Mines Limited (“Jupiter”) and Legacy Iron Ore Limited (“Legacy”) (refer Figure 2). Jupiter3 recently released positive results from scoping studies based on mining operations to produce

1.5Mtpa of DSO hematite-goethite and 10Mtpa of magnetite concentrate for its Mt Mason Hematite and Mt Ida Magnetite Projects respectively. Legacy4 has announced an overall exploration target of 1.0 - 1.5Bt grading

30%-40% to the north of Mt Ida and has recently completed a 5,000m RC drilling program. Fe Limited Managing Director, Kim Bischoff, said “these initial exploration findings justify our belief that the Mt Ida Iron Ore Project has excellent iron ore potential in a district with significant exploration underway and that benefits from existing and nearby infrastructure in the emerging Yilgarn Iron Province of Western Australia”. Yours faithfully FE LIMITED Kim Bischoff Managing Director Competent Person The information in this report that relates to Exploration Results is based on information compiled by Mr. T. Deane who is a Member of the Australasian Institute of Mining & Metallurgy. Mr. Deane is employed as Exploration Manager by Fe Limited, and has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Deane consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

3 Refer ASX releases 15 March 2011 and 12 May 2011 by Jupiter Mines (ASX: JMS).

4 Refer to ASX release 2 May 2011 by Legacy Iron Limited (ASX: LCY).

ASX Announcement 19 May 2011 Page 4 of 7

Figure 1: Project Location

ASX Announcement 19 May 2011 Page 5 of 7

Figure 2: Mt Ida District (on TMI geophysics).

ASX Announcement 19 May 2011 Page 6 of 7

Figure 3: Rock Chip Samples and Historic Drill Holes.

ASX Announcement 19 May 2011 Page 7 of 7

Table 1: Mt Ida Rockchip Geochemistry Results

Sample Easting Northing % Fe % SiO2 % Al2O3 % P % S % LOI

MIR01 248561 6769221 50.8 6.9 7.1 0.37 0.09 11.7

MIR02 248493 6769169 48.0 26.7 1.3 0.06 0.04 2.97

MIR03 250096 6768220 52.8 13.3 5.5 0.05 0.07 5.12

MIR04 250056 6768193 39.1 36.2 2.8 0.07 0.04 4.6

MIR05 249388 6767287 64.3 2.4 0.9 0.05 0.05 4.1

MIR06 249767 6767514 52.6 7.4 5.5 0.04 0.12 10.92

MIR07 250523 6766039 55.7 13.7 2.1 0.06 0.07 3.95

MIR08 250496 6766045 55.7 11.8 3.4 0.04 0.07 4.3

MIR09 250653 6766001 42.5 34.6 0.6 0.07 0.03 3.66

MIR10 250633 6766001 52.1 12.5 3.9 0.17 0.06 8.35

MIR11 249676 6768997 57.5 7.6 3.1 0.05 0.11 6.48

MIR12 249735 6769030 55.9 10.9 4.3 0.04 0.09 4.22

MIR13 249797 6769160 44.4 29.8 0.6 0.18 0.02 5.5

MIR14 249776 6769148 37.6 42.9 0.6 0.03 0.03 2.56

MIR15 249592 6769221 61.2 5.9 2.1 0.06 0.09 3.74

MIR16 249240 6770233 35.4 46.7 0.6 0.08 0.02 2.27

MIR17 249181 6770218 58.6 6.9 2.5 0.08 0.04 6.34 Notes: Assay results by Ultra Trace Limited, Perth, Australia.

Analyses by XRF technique (Fe detection limit = 0.01%Fe). Samples locations by GPS (MGA94 - Zone51J).

Figure 4: Enriched weathered BIF outcrop at Mt Ida (location of sample MIR05).