Diamond drill hole CR12-16 intersected 94.4 metres grading 52.1% Fe including a higher grading interval of 36 metres grading 56.4% Fe. Hole CR12-17, located 200 metres west of Hole CR12-16 along strike, intersected 59.3 metres grading 52.4% Fe. Both holes intersected banded iron ore mineralization from surface.

These holes were successful in extending known mineralization along strike to the west by approximately 1,000 metres from drill hole CR12-15 which intersected 50.8% Fe across 92.8 metres (See Press Release November 15, 2012).

Drilling to date has tested the deposit along 2,700 metres of strike at Cerro Rojo and mineralization remains open at depth and along strike.

“These are the best results to date from our drill program at Cerro Rojo and underscore the potential we see for supporting an open pit iron ore mining operation”, Nick Tintor President and CEO commented. “These results show improving grades along strike towards the west in an area we will follow up on next year,” he added.

Results from drill holes CR12-16 to CR12-19 are listed in the table below.

Mineralization at Cerro Rojo occurs as a massive-banded hematite-magnetite iron formation overlying a Proterozoic basement sedimentary sequence.

Ferrum continues to focus on outlining iron ore resources which will be amenable to open pit mining.

A detailed drill hole location map, including a compilation of surface geology, iron ore sample data from surface outcrops and results from previous drill holes are available for review on the Company’s website at: www.ferrumamericas.com.

43-101 Study

Ferrum has engaged P&E Mining Consultants Inc. (“P&E”) working in collaboration with Paul Pitman, P. Geo., to prepare a NI 43-101 compliant resource estimate for the Cerro Rojo project. A field visit was completed last month by a representative of P&E and the Company anticipates receiving a final report early in the New Year.

Beneficiation Test Work Program

Ferrum has engaged Mintrex Pty. Ltd., an Australian-based metallurgical and process design engineering consultancy with expertise in iron ore beneficiation. The first sample of drill core has been shipped to Mintrex as part of an initial beneficiation test program. Results from this program are expected in the first quarter of 2013.

Quality Control-Quality Assurance

Sample preparation is being carried out at ALS Minerals lab in Oruro, Bolivia. ALS is a multinational company which operates to ISO 9001 quality assurance standards. All samples are HQ core and vary in length from 1.5 to 4 metres. When received at ALS laboratory in Bolivia, the sample is logged in the tracking system, weighed, dried and finely crushed to better than 70% passing a 2 millimetres (Tyler 9 mesh, US Std. No.10) screen. A split of up to 250 grams is taken and pulverized to better than 85% passing a 75 micron (Tyler 200 mesh, US Std. No. 200) screen. These pulps are sent to ALS Chemex Lima and grades are reported as total Fe%. Assays are completed using the “High Grade/Ores Method” and XRF analysis. The QA/QC program included the insertion of systematic standards, blanks and duplicate samples within every sample batch submitted to ALS. In addition, ALS inserts its own duplicate samples. The results from these control samples indicate an acceptable consistency of analysis.

Community Relations

Ferrum continues to enjoy 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.

The regional centre of Puerto Suarez has also generously provided the use of the town’s road graders and other heavy equipment for site preparation.

Logistics

Cerro Rojo is located approximately 55 kilometres from Puerto Suarez which is located on the Hidrovia river system, the Mississippi of Latin America according to The World Bank¹. Large barge convoys are currently used to transport iron ore down river to off load sites in Argentina.

Vale and MMX, both operating in the Corumba-Urucum Iron Ore District 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.

Cerro Rojo Project

Cerro Rojo is a large Neoproterozoic banded iron formation 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 kilometres and has been mapped for more than 1,000 metres along its dip slope.

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

About Ferrum Americas Mining

Ferrum Americas is focused on developing low capital expenditure iron ore projects in the Americas which are characterized by access to logistics and transportation to markets and relatively simple beneficiation processing requirements.

The Company is also currently evaluating additional iron ore projects in neighbouring jurisdictions which meet the objectives listed above, including proximity to logistics and markets and requiring relatively small capital expenditure requirements to be brought to production.

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

Mr. Alain Vachon, P.Geo., the Company’s Qualified Person as defined by National Instrument 43-101, has reviewed and approved the contents of this press release.

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.

To view the map associated with this press release, please visit the following link:http://media3.marketwire.com/docs/DrillHolePlanMapDec2012.pdf.