FEM

Ferrum Americas Mining Inc., (TSX VENTURE:FEM) ("Ferrum" or the "Company") is
pleased to announce that a 4,000-m drilling program has started on the Company's
Cerro Rojo iron ore project located in eastern Bolivia, approximately 55 km west
of Puerto Suarez and the Hidrovia River system near Corumba, Brazil. The Corumba
iron ore district hosts a number of world class iron ore deposits including
Vale's Corumba mine and the large El Mutun deposit in Bolivia.


2012 Program 

Ferrum's program is designed to further define the Cerro Rojo iron ore deposit
along strike, which has been mapped for more than 4 km and along its dip slope
which has been mapped for more than 1,000 m. A detailed drill hole location map,
including a compilation of surface geology and iron ore sample data from surface
outcrops, is available for review on the Company's website at:
www.ferrumamericas.com.


First hole CR-01 has been completed and the core shipped for assay to ALS
Minerals lab in Oruro, Bolivia for sample preparation and analysis. ALS is a
multinational company which operates to ISO 9001 quality assurance standards.


Key objectives for the balance of this year include:



--  Define a maiden NI 43-101 compliant resource estimate by the first
    quarter of 2013. 
--  Advance metallurgical test work. 
--  Complete preliminary logistics analysis of the rail and river barge
    potential for low cost shipping of iron ore products to market. 
--  Initiate baseline environmental studies in preparation for an
    Environmental Impact Assessment and future feasibility analysis.



Community Relations

Ferrum enjoys unprecedented community support in the Puerto Suarez region of
Bolivia. Considerable support was received from the communities near Cerro Rojo,
in particular Yacuses, which took a proactive approach in supporting Ferrum's
permit applications. This included letters of support and requests to meet with
government officials to support our project. 


Bolivia has recently been hurt by a spate of conflicts between mining companies,
local cooperative miners and communities primarily in the altiplano areas of
western Bolivia. In several of these cases, this has resulted in the government
forcing foreign companies to terminate their holdings and to turn the projects
back to the government in an effort to appease protestors.


"This is a very regional issue which has also occurred in parts of Peru," Nick
Tintor, President and CEO of Ferrum said. "In our case, Cerro Rojo and iron ore
in particular, are not amenable to small scale mining activity so the issue of
private local miners on our project does not exist. Unlike many jurisdictions
around the world, the communities around Puerto Suarez such as Yacuses, have
shown a remarkable level of support for our company and our project," he added.


Cerro Rojo Project

Cerro Rojo is a large Neoproterozoic banded iron formation deposit which is part
of the regional iron ore trend extending into Bolivia from the world class
Corumba-Urucum iron ore fields located 75 kilometres to the east in Brazil.
Cerro Rojo strikes for more than 4 km and has been mapped for more than 1,000 m
along its dip slope. Surface sampling of outcrop suggests grades average in
excess of 50% Fe according to reports prepared by Rio Tinto in 1999 and verified
by Ferrum.


Preliminary metallurgical test work completed by Ferrum generated excellent
results suggesting iron ore from Cerro Rojo will liberate well and can be
upgraded to produce a product of attractive iron grade. The test work shows that
an excellent quality iron concentrate can be produced at a relatively course
grind size and with a high mass yield. (See Press Release date January 19, 2012
for complete details of the metallurgical test work).


Logistics

Cerro Rojo is located approximately 55 km from Puerto Suarez which is located on
the Hidrovia river system, the Mississippi of Latin America according to The
World Bank (1). Large barge convoys are already used to transport iron ore down
river to off load sites in Argentina.


Vale and MMX, both operating in the Corumba-Urucum iron ore fields in Brazil
across from Puerto Suarez, are currently shipping more than 8 million tonnes of
iron ore annually utilizing barge tug convoys on the Hidrovia.




(1) "Strengthening Bolivia's Competitiveness-Export Diversification and     
    Inclusive Growth" A World Bank Country Study, 2009, The World Bank.     



About Ferrum Americas Mining

Ferrum Americas has rights to acquire a 98% interest in the Cerro Rojo iron ore
project in Bolivia. Located 600 km east of Santa Cruz and approximately 55 km
from Puerto Suarez and the Hidrovia river system near Corumba, Brazil, Cerro
Rojo is a large banded iron formation striking for more than 4 km and grading in
excess of 50% Fe, according to reports prepared by Rio Tinto in 1999 and
verified by Ferrum.


Ferrum Americas is planning an aggressive exploration and development program
for 2012 designed to advance Cerro Rojo and surrounding iron ore projects
towards feasibility and production.


Forward Looking Statements

This news release may contain forward-looking statements that are based on
Ferrum Americas Mining Inc.'s expectations, estimates and projections regarding
its business and the economic environment in which it operates. These statements
are not guarantees of future performance and involve risks and uncertainties
that are difficult to control or predict. Therefore, actual outcomes and results
may differ materially from those expressed in these forward-looking statements
and readers should not place undue reliance on such statements. Statements speak
only as of the date on which they are made, and the Company undertakes no
obligation to update them publicly to reflect new information or the occurrence
of future events or circumstances, unless otherwise required to do so by law.

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