Ferro Announces $1,000,000 Private Placement

TORONTO, ONTARIO--(Marketwire - Dec. 6, 2012) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES

Ferro Iron Ore Corp. (TSX VENTURE:RRO) reports that it intends to complete a non-brokered private placement financing for gross proceeds of up to $1,000,000.

In connection with the private placement, Ferro will sell up to 4,000,000 common shares (the "Shares") at a price of $0.25 per Share for gross proceeds of $1,000,000.

Pursuant to the terms of the previously announced proposed business combination for Mongolian exploration license No. 14491X (the "Mongolian Exploration License"), parties related to the shareholders of Continent Treasure Limited (CTL) will subscribe for $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 four 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 (ATL), as described in the press release dated November 6, 2012. The intended work program includes a National Instrument 43-101 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 $1.85 million, which will include an additional $500,000 from parties related to the shareholders of CTL.

The proposed business combinations are being supported by Forbes & Manhattan (F&M), 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. F&M is headquartered in Toronto, Ontario, Canada with offices, operations and assets across the globe including Ulaanbaatar, Mongolia. Neither the company nor F&M is state owned.

The proposed business combinations are conditional upon, among other things: (i) receiving all necessary regulatory and third party approvals and authorizations; (ii) completion of the private placement financing; and (iii) delivery by CTL to Ferro of the Technical Report prepared in compliance with National Instrument 43-101 of the Canadian Securities Administrators.

About Ferro Iron Ore Corp.:

As announced on November 6, 2012, Ferro Iron Ore Corp. (formally, Galena Capital Corp.) recently secured the right to acquire a highly prospective Mongolian Iron ore exploration license (No. 14491X) (the "Exploration License"). The Exploration License is located in North Central Mongila in the heart of a proven mineralization corridor contiguous to the largest operating iron mine (Uruu Gol Mine) in the country with rail, road, power and water in very close proximity. It is along strike with other significant exploration projects including the Haranga Bayantsogt, Tumur Tolgoi and Tumurtei deposits. The licensed area is roughly 1000km from steel mills in Northern China accessible by the railway, with surplus capacity, running in front of the property. Although the company awaits completion of a 43-101 technical report, two historical diamond drill holes show significant iron intercepts including 59% Fe over 55.2 metres from 10.8 metres below surface. There is also surface exposure of branded iron skarn in trenching. The company looks to supply inland steel mills in northern China currently utilizing either very high cost domestic ores or expensive imported ores railed hundreds of kilometers from port given the significant grade and logistics cost advantages.

ON BEHALF OF FERRO IRON ORE CORP.

Mark Lotz, Director and CFO

Regulatory Statements

This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes, but is not limited to, statements with respect to the terms of the financing, the planned use of proceeds, and receipt of all regulatory approvals. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of exploration activities; regulatory risks; risks inherent in foreign operations; and other risks of the oil and gas industry. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.