EASTERN IRON PROJECT

Eastern Iron has commissioned a preliminary study of the overall economic potential of Eastern Iron’s Cobar and Main Line projects, NSW, Australia. The study outlined the concepts behind the development of a low capital cost, 1.5 Mtpa direct shipping operation at a specific Eastern Iron deposit within the Cobar project area - the Belah Tank prospect. The design concept proposed that the ore be dry screened and pre-concentrated through magnetic separation before being trucked to a rail siding at Hermidale and railed to the Port of Newcastle.

Eastern Iron provided the initial resource estimates for the Company’s Cobar and Main Line projects located in central New South Wales, Australia. A total of 4,918 samples from 417 aircore holes were used in the resource estimate which has been projected up to 400m laterally from the base of drilling. The current resource estimates for the 13 prospect areas above the 5% Fe cut-off grade is 627 Mt at an iron grade of 10.3%.

Platsearch NL reported that at Horse Creek tenement located in Queensland, Australia it's JV partner Red Metals Red Metal has advised that it intends to withdraw from the JV following disappointing results recorded in recent deep diamond drilling. At Tinman in New South Wales PlatSearch has completed a short (401 metre) shallow aircore program to test the channels for their tin and iron contents. The paleochannels were successfully defined in the drilling and zones of maghemite were intersected. The samples have been sent to the laboratory for analysis. On the Eastern Iron Project located in New South Wales for the foreseeable future there will be no more drilling. Although there are many more kilometres of iron-rich palaeochannels to test, EFE now has sufficient sample from a sufficiently wide range of channel sites to conduct the required metallurgical test work and economic studies.