X0306 4 2012-10-02 0001428205 Armour Residential REIT, Inc. ARR 0001024240 STATON DANIEL C 6800 BROKEN SOUND PARKWAY BOCA RATON FL 33487 1 Common Stock, par value $0.001 per share 2012-10-02 4 M 0 251 A 201757 D Common Stock, par value $0.001 per share 1756793 I See Footnote. On October 2, 2012, the reporting person elected to redeem 251 shares of vested phantom stock previously granted under ARMOUR Residential REIT, Inc.'s 2009 Stock Incentive Compensation Plan into 251 shares of ARMOUR's common stock. The vesting schedule for the 251 shares were separately reported on Form 4s filed by the reporting person on April 4, 2011 and April 3, 2012. Represents shares owned indirectly through Blackbeard Capital Domestic REIT Fund, L.P. ("Blackbeard"). The reporting person is a managing member of the limited liability company that serves as the general partner of Blackbeard. Mr. Staton is deemed to beneficially own 50% of the shares owned by Blackbeard and has a pecuniary interest therein. Mr. Staton may be deemed the beneficial owner of 1,756,793 shares, representing 50% of the 3,513,585 shares owned by Blackbeard. /s/ Daniel C. Staton 2012-10-04