FERREXPO PLC

1 FERREXPO PLC 2017 ANNUAL REPORT & ACCOUNTS. WELCOME TO FERREXPO . FERREXPO is an iron ore pellet producer with mining and processing operations in Ukraine and sales offices around the world. The Group has had a premium listing FERREXPO is the largest exporter of on the Main Market of the London iron ore pellets in the Former Soviet Stock Exchange since its IPO in June Union (the FSU ) and currently the 2007 and it is currently a constituent third largest supplier of blast furnace of the FTSE 250 Index and the pellets to the global steel industry. FTSE4 Good Index. See pages 12 16. Our long life resource base and well invested production process enables us to be a low cost producer of a high-quality iron ore product. This, combined with our established logistical infrastructure, allows us to deliver to our diversified, global customer base.

2 See pages 2 7. FERREXPO plc 2017 Annual Report & Accounts 1. CONTENTS GROUP PERFORMANCE 2017. STR ATEGIC REPORT. STRATEGIC REPORT. LOST-TIME INJURY FREQUENCY R ATE TOTA L PRODUCTION. Welcome to FERREXPO IFC. Group Performance 2017 01. FERREXPO 's Business Model 02. A Long Life Resource 04. Well Invested Production Process 05 Group LTIFR in line with 2016 (2016: ) 95% of production of 65% Fe pellets High Quality Product 06 1 fatality during the year (2016: 2) (2016: total production , 94% of Low Cost Producer 06 production 65% Fe pellets). Established Logistics 07. High Quality Customer Base 07. Chairman's Statement 08. Market Review 12 RE V ENUE. +21%. Performance Review 18. Strategic Framework 28. Key Performance Indicators 30.

3 Risk Management 32. CORPOR ATE GOVERNANCE. Principal Risks 34. Viability Statement 40 US$ (2016: US$986M). A Responsible Business 41. UNDERLYING EBITDA A PROFIT FOR THE Y E A R. +47% +108%. CORPOR ATE GOVERNANCE. Board of Directors 50. Executive Committee 52. Corporate Governance Report 53. Nominations Committee Report Audit Committee Report 59. 61. US$551M (2016: US$375M) US$394M (2016: US$189M). Relations with Shareholders 66. Remuneration Report 67. Directors' Report 82 UNDERLYING DILU TED EP S A DILU TED EP S. +109% +110%. FINANCIAL STATEMENTS. Statement of Directors' Responsibilities 86. FINANCIAL STATEMENTS. Independent Auditor's Report (2016: ) (2016: ). to the Members of FERREXPO plc 88. Consolidated Income Statement 96.

4 Consolidated Statement NE T DEBT NE T CASH FLOW FROM. of Comprehensive Income 97 TO EBITDA A OPER ATING ACTIVITIE S. < +6%. Consolidated Statement of Financial Position 98. Consolidated Statement of Cash Flows 99. Consolidated Statement of Changes in Equity 100. Notes to the Consolidated Financial Statements 101. (2016: ) US$353M (2016: US$332M). Parent Company Statement of Financial Position 145. Notes to the Parent Company INTERIM A ND FIN A L DIVIDEND. +100%. Financial Statements 146. Additional Disclosures 149. Alternative Performance Measures 150. Glossary 153. Shareholder Information IBC. + = (2016 interim and final dividend: ). SPECIA L DIVIDEND (INTERIM & FIN A L) A LTERN ATIV E PERFORM A NCE. +200%. ME ASURE S.

5 Words with the symbol A are defined in the Alternative Performance Measures section of the Annual Report on pages 150 152. (2016: ). FERREXPO plc 2017 Annual Report & Accounts 2 STR ATEGIC REPORT. FERREXPO 'S BUSINESS MODEL. HOW WE ADD VALUE. LONG LIFE IRON ORE MAGNETITE DEPOSIT IN UKRAINE. Fe content MAGNETITE IRON ORE CAN BE UPGRADED AND ENRICHED. THROUGH A CAPITAL INTENSIVE PROCESS. OTHER KEY INPUTS FOR ESTABLISHMENT OF: PRODUCTION PROCESS: MINE. SKILLED LABOUR FORCE PROCESSING PLANT. RELIABLE SUPPLY OF PELLETISING PLANT. WATER, ELECTRICITY. AND GAS FERREXPO HAS INVESTED. OVER US$ SINCE. 2007. HIGH QUALITY 65% FE IRON ORE PRODUCT. (IN THE FORM OF PELLETS). CENTRAL EUROPE GLOBAL LOGISTICS. WESTERN EUROPE CAPABILITY.

6 NORTH EAST ASIA REGIONAL MARKETING. CHINA & SOUTH EAST ASIA OFFICES. TURKEY, MIDDLE EAST & INDIA. FERREXPO SELLS PELLETS TO A DIVERSIFIED GLOBAL. CUSTOMER BASE CONSISTING OF THE BEST STEEL MILLS. IN THE WORLD WHO ARE CRISIS RESISTANT . FERREXPO plc 2017 Annual Report & Accounts 3. STRATEGIC REPORT. WELL INVESTED. CORPOR ATE GOVERNANCE. PRODUCTION PROCESS. LOW COST COMPETITIVE PRODUCER. CASH GENERATIVE THROUGHOUT. THE COMMODITIES CYCLE. FINANCIAL STATEMENTS. CASH UTILISED TO ENSURE: SUSTAINABLE STAKEHOLDER RELATIONSHIPS. 1 STRONG BALANCE SHEET TO LONG-TERM CUSTOMER RELATIONSHIPS. WITHSTAND INHERENT RISK, STABLE EMPLOYER THROUGHOUT THE. OPERATING IN AN EMERGING. COMMODITIES CYCLE. MARKET AND A VOLATILE. COMMODITIES INDUSTRY REGULAR PAYMENT OF TAXES TO LOCAL AND.

7 CENTRAL GOVERNMENT AUTHORITIES. 2 CONTINUED DEVELOPMENT. OF OPERATIONS AND RELIABLE PARTNER AND CONSUMER OF NATIONAL. IMPROVEMENT TO PRODUCT LOGISTICS AND ENERGY INFRASTRUCTURE. ENCOURAGE AND SUPPORT LOCAL SUPPLIERS. 3 CONSISTENT DIVIDENDS. TO SHAREHOLDERS KEY FINANCIAL CONTRIBUTOR TOWARDS. COMMUNITY PROJECTS. POSITIVE CONTRIBUTION TO UKRAINE'S TRADE. BALANCE GROUP EXPORTS REPRESENT OF THE COUNTRY'S EXPORT REVENUE. LONG-TERM SHARE PRICE APPRECIATION TO. SHAREHOLDERS AND CONSISTENT DIVIDENDS. FERREXPO plc 2017 Annual Report & Accounts 4 STR ATEGIC REPORT. FERREXPO AT A GLANCE. A LONG LIFE RESOURCE. FERREXPO 's significant resource base is situated along a single ore body, which allows for efficient expansion through brownfield developments.

8 BROVARKIVSKE MANUILIVSKE VASYLIVSKE BILANIVSKE GORISHNE-PLAVNINSKE- LAVRYKIVSKE ( GPL ). GALESCHYNSKE. JORC CLASSIFIED RESOURCES. CLASSIFIED RESOURCES. KHARCHENKIVSKE ZARUDENSKE YERYSTIVSKE. JORC Reserve Statements as at 1 January 20181 Proved Fe total Fe magnetic Probable Fe total Fe magnetic Deposit MT % % MT % %. Gorishne-Plavninske-Lavrykivske ( GPL ) 180 27 17 523 30 22. Yerystivske 207 34 27 416 32 25. JORC Reserves 387 31 22 939 31 23. JORC Resource Statements as at 1 January 2018 . Measured Fe total Fe mag Indicated Fe total Fe mag Inferred Fe total Fe mag Deposit MT % % MT % % MT % %. Gorishne-Plavninske-Lavrykivske ( GPL ) 323 30 20 1,653 31 23 1,445 31 23. Yerystivske 212 34 27 556 33 26 364 30 23. Bilanivske 336 31 24 1,149 31 23 217 30 21.

9 Galeschynske 268 55 58 55 . JORC Resources 871 31 23 3,626 33 22 2,084 31 22. 1 The reserve estimates for the GPL deposits were calculated based on a review conducted by SRK in March 2008 less the volume of ore mined from the GPL deposit between 2008 and 31 December 2017. 2 The reserve estimates are based on a report by SRK (UK) dated 15 June 2007. The mineral resource estimate for Yerystivske has been depleted in line with the volume of ore mined between September 2013 and 31 December 2017. FERREXPO plc 2017 Annual Report & Accounts 5. WELL INVESTED PRODUCTION PROCESS. +US$ STRATEGIC REPORT. Capital Investment (US$ Million). 430. 378. 276 278. CORPOR ATE GOVERNANCE. 232. 167. 105 103. 86. 65. 48. 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017.

10 Overview of FERREXPO 's operations in Ukraine Since 2007, FERREXPO has invested to upgrade and modernise its processing facilities, developed a new open pit mine (the first in the CIS. since Independence) and completed a quality upgrade programme to enhance the quality of its pellets. FINANCIAL STATEMENTS. ORE EXTRACTION CRUSHING BENEFICIATION PELLETISING. Open cut, hard rock iron The ore is crushed and The ore is ground to produce Four kiln grate units heat ore mining, using truck screened before entering concentrate which is then and form the pellet feed into and shovel. Average Fe one of two crushing plants. upgraded to 67% Fe content. pellets of around 16mm. content of 28%. Waste material is removed to the tailings storage area.