X0306 4 2013-10-02 0001428205 Armour Residential REIT, Inc. ARR 0001024240 STATON DANIEL C 6800 BROKEN SOUND PARKWAY BOCA RATON FL 33487 1 1 Chairman of the Board Common Stock, par value $0.001 per share 2013-10-02 4 M 0 251 A 218790 D Common Stock, par value $0.001 per share 2013-10-02 4 A 0 3928 A 222718 D Common Stock, par value $0.001 per share 1756793 I See Footnote. Common Stock, par value $0.001 per share 75075 I See Footnote On October 2, 2013, the reporting person elected to redeem 251 shares of vested phantom stock previously granted under ARMOUR Residential REIT, Inc.'s Amended and Restated 2009 Stock Incentive Compensation Plan into 251 shares of ARMOUR's common stock and received 3,928 shares of ARMOUR common stock pursuant to quarterly compensation paid for the reporting person's service on ARMOUR's board of directors. Commencing with the end of the first quarter of 2013, the reporting person will receive up to $16,500 of the reporting person's total quarterly compensation for 2013 (or $66,000 on an annual basis), paid in stock. The 3,928 shares of stock represent the reporting person's election of stock compensation for the past quarter. 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. Represents shares owned indirectly through Staton Bell Blank Check LLC ("SBBC"). The reporting person is a member of SBBC and is deemed to beneficially own 50% of the shares owned by SBBC and has a pecuniary interest therein. Mr. Bell may be deemed the beneficial owner of 75,075 shares, representing 50% of the 150,150 shares directly owned by SBBC. /s/ Daniel C. Staton 2013-10-03