Ferro Iron Ore Corporation announced that it intends to complete a non brokered private placement financing for gross proceeds of up to USD 1,000,000.

In connection with the private placement, Ferro will sell up to 4,000,000 common shares at a price of USD 0.25 per share for gross proceeds of USD 1,000,000.

Pursuant to the terms of the previously announced proposed business combination for Mongolian exploration license number, parties related to the shareholders of Continent Treasure Limited will subscribe for USD 500,000 of the private placement.

Closing of the financing is subject to receipt of applicable regulatory approvals including approval of the TSX Venture Exchange. The securities issuable in connection with the financing will be subject to resale restrictions for a period of 4 months plus one day from the closing date.

The company intends to use the net proceeds of the financing to be used for completion of exploration work on the Mongolian Exploration License upon closing of the previously announced business combination of the company with CTL and Accuracy Trade Limited, as described in the press release dated November 6th 2012. The intended work program includes a National Instrument 43 to 101 Technical Report, a detailed geophysical program, trenching, legal and accounting, plus general and administrative fees to complete this work.

In connection with the proposed business combinations, the company intends to complete an additional equity financing to raise approximately USD 1.85 million, which will include an additional USD 500,000 from parties related to the shareholders of CTL.

The proposed business combinations are being supported by Forbes & Manhattan, which is a leading private merchant bank with a global focus on the resource based sectors and most notably known for its development, operation and subsequent sale of Consolidated Thompson Iron Ore mines.