X0306 4 2012-10-02 0001428205 Armour Residential REIT, Inc. ARR 0001303087 Zimmer Jeffrey J 3001 OCEAN DRIVE SUITE 201 VERO BEACH FL 32963 1 1 Co-CEO, President & CFO Common Stock, par value $0.001 per share 2012-10-02 4 M 0 9204 A 31864 D See Remarks. On October 2, 2012, the reporting person elected to redeem 2,449 shares out of 4,876 shares of vested phantom stock previously granted under ARMOUR Residential REIT, Inc.'s 2009 Stock Incentive Plan into 2,449 shares of ARMOUR common stock. The reporting person also elected to redeem the remaining 2,427 shares of vested phantom stock, but immediately forfeited those shares to pay income taxes on the vesting grant. The 4,876 shares are part of, and relate to, phantom stock vesting over a 5-year period, which was reported on Form 4s filed by the reporting person on April 4, 2011 and April 3, 2012. In addition, on October 2, 2012, the reporting person elected to redeem 6,755 shares out of 13,451 shares of vested phantom stock into 6,755 shares of ARMOUR common stock. The reporting person also elected to redeem the remaining 6,696 shares of vested phantom stock, but immediately forfeited those shares to pay income taxes on the vesting grant. The 13,451 shares are part of, and relate to, phantom stock vesting over a 5-year period, which was reported on a Form 4 filed by the reporting person on April 11, 2012. /s/ Jeffrey J. Zimmer 2012-10-04