From Crytek Seoul.
UPDATE: Eurogamer has just received the official press release on Warface.
Warface, co-developed by Crytek Seoul, is a free-to-play PC-exclusive military shooter set in the near future. It offers a “cinematic experience with next gen visuals, AI and physics”.
It is indeed based on CryENGINE 3. There’s a “constantly updated extensive” player versus environment universe, with multiplayer and co-op missions. There’s a full set of class-based player versus player, too.