Fe : Cardinal House Group Awarded Three Worldwide Gaming Licences

200% increase to Exploration Target at Mt Elvire Iron Ore Project in WA, now increases by 200% to 0

ASX Announcement

14 December 2015

Australian Securities Exchange Code: FEL

Ordinary Shares: 219,714,630

Unlisted Options: 3,850,000

Board of Directors: Tony Sage

Non-Executive Chairman

Mark Gwynne

Executive Director

Paul Kelly

Non-Executive Director

Eloise von Puttkammer

Company Secretary

Fe Limited Contact: Mark Gwynne Executive Director Tel: [phone]

Corporate Office:

32 Harrogate St, West Leederville, Western Australia 6007 Australia Telephone [phone]

Facsimile [phone]

Australian Enquiries: Professional Public Relations David Tasker

Tel: [phone]

Mob: [phone]

Email: [e-mail]

Fe Limited is an Australian domiciled mineral resources exploration and development company.

Fe Limited

ABN: 31 112 731 638

Cardinal House Group Awarded Three Worldwide Gaming Licences

Highlights:

• Norfolk Island Gaming Authority grants Cardinal House Group three worldwide gaming licences

  
  

• Licences allow for Interactive Home Gaming, Bookmaking in respect of race meetings and sports betting and conducting worldwide Interactive Lotteries

  
  

• Term of licences is between 8-10 years

  
  

• Granting of licences is a Condition Precedent to the transaction with FEL, which is progressing as planned

Fe Limited ("FEL" or the "Company") is pleased to announce that Cardinal House Group Pty Ltd ("Cardinal House" or "the Licensee") has been awarded three worldwide gaming licences by the Norfolk Island Gaming Authority (the "Authority" or the "Regulator"). These licences will allow Cardinal House to offer a wide range of online gaming and entertainment products to regulated jurisdictions world- wide, with particular focus on the Australian and Asia Pacific regions.

As previously announced, the Company has signed a binding conditional Share Sale Agreement with Cardinal House ("Agreement") to acquire 100% of Cardinal House ("Transaction"). The awarding of a gaming licence from the Department of Gaming of Norfolk Island or the Northern Territory Government, allowing non-restricted access to international gaming markets on terms acceptable to FEL, was a Condition Precedent to the Agreement.

Commenting on the awarding of the licences to Cardinal House, FEL Chairman, Mr Tony Sage said, "The Regulator's approval of the three licences is a valuable achievement and without doubt exceptional news for FEL and its shareholders."

"The Interactive Home Gaming licence facilitates the short term business plan of Cardinal House, and the mid-term product rollout strategy justifies the implementation and usage of alternative licences."

"Cardinal are in final negotiations with regards to its proposed platform and operational systems provider, payment processing and security measures, which form additional requirements of the due diligence process."

felimited.com.au

With confirmation of the gaming licences being granted, FEL and Cardinal House will continue to progress the due diligence process and work towards satisfaction of the remaining Conditions Precedent. The Conditions Precedents are detailed in FEL's ASX announcement dated 12 November 2015. It is anticipated a revised timetable for completion of the Transaction will be announced in the coming weeks.

Licence Details and Terms

The Norfolk Island Gaming Authority under section 7 of the Interactive Gaming Act 1998 and under sections 8 and 19A of the Bookmakers and Betting Exchange Act 1998 has granted Cardinal House, licences to operate and act as follows:

Licence type	Term
Interactive Home Gaming	10 Years
To act as a Bookmaker in respect of race meetings & sports betting and to operate a Betting Exchange	8 Years
Conduct worldwide Interactive Lotteries	10 Years

Renewal of the Licences

The Licensee who seeks to renew the current licence must seek the renewal by submitting the prescribed application three months prior to the expiry of the current licence.

About Cardinal House

Cardinal House, holder of three worldwide gaming licences, is negotiating access to online gaming platform technology, which will underpin its planned future operation in Australia and in international gaming markets.

Subject to negotiating access to this platform and complying with the licence conditions (summarised above), Cardinal House proposes to become an innovative entertainment provider for business and direct customer delivery of online social gaming and gambling, in addition to providing a compliant and fully integrated payment processing system.

Cardinal House's focus is on seeking to acquire an audience of national and international gaming markets where it proposes to offer safe, securely regulated, real money gambling experiences and enriched user entertainment through highly enhanced social gaming networks.

Cardinal House's proposed product range is anticipated to be delivered via platform technologies accessed from third parties, which are currently fully operational in various international jurisdictions. It is proposed to begin with bingo and in future potentially one or more of:

• Fantasy Football;

• Charitable Lotteries;

• Binary options;

• Lotto/Keno;

• Sports betting;

• Virtual sports;

• Live streaming casino;

• eSports betting; and

• Social gaming.

The Asia Pacific represents a large prospective growth market for gaming services and Cardinal House is well placed to take advantage of these opportunities. Cardinal House is currently in B2B partnership negotiations with regional groups who operate across South-East Asia. The partnership agreements may also include the opportunity to deliver over-the-top content (OTT)/video on demand (VOD) and internet protocol TV (IPTV) solutions via multi-level digital platforms.

Yours faithfully FE LIMITED

Tony Sage

Non-Executive Chairman

Important Notice

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which the Company operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside the Company's control.

The Company does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of the Company, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities in the Company. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision. By reviewing or retaining this announcement, you acknowledge and represent that you have read, understood and accepted the terms of this important notice.