Brockman Mining Limited — Capital/Financing Update 2011

Jun 1, 2011

ASX Release: 2 June 2011

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BROCKMAN’S MARILLANA DEVELOPMENT ON TRACK

HIGHLIGHTS

• Key Marillana Project Development activities proceeding on track

• Final metallurgical test-work results are exceeding expectations based upon Definitive Feasibility Study parameters

  • improved beneficiation recoveries indicate upside in final product quality and quantity

• Brockman not affected by recent increases in State Royalties for Iron Ore Fines

• In the absence of a substantial improvement in the offer, the Brockman Board continues to re-iterate DO NOT ACCEPT

Australian iron ore company Brockman Resources Limited (ASX Code: BRM – “Brockman” or “the Company”) is pleased to advise that the advancement of the Marillana Project remains the key focus of the Company with the full commitment of the Brockman team and Board.

In accordance with the theme of statements made by Wah Nam’s Chief Investment Officer, Mr Hendrianto Tee, during the week of 18 May, it is “Business as Usual” at the Brockman office, as the Company continues to progress the detailed Front End Engineering Development (“FEED”) program, the formalisation of a Bankable Feasibility Study (“BFS”), development and execution plans for various project financing methodologies for the mine, rail and port, and the conclusion of the budgetary process for the forthcoming 2011/2012 fiscal year.

Brockman’s Managing Director, Mr Wayne Richards, said that in spite of activity surrounding the Wah Nam offer, the Brockman team remained fully focussed on driving the Marillana Project toward development. “We have been ticking the boxes on key milestones and deliverables for the Project and this will continue to be the case regardless of changes to the Company’s share register,” Mr Richards said.

Key activities being progressed include:

• drafting of long lead items procurement contracts for Project development;

• early contractor involvement processes are being conducted for the pending award of the mining contract and plant construction contracts;

• FEED is currently 55% complete with conclusion anticipated by Q3 CY 2011;

• BFS completion targeting Q4 CY 2011 (subject to a final rail solution being negotiated);

• final environmental, heritage and sterilisation drilling programs for a rail corridor to specific railways within the Pilbara are currently being planned and/or undertaken, along with the relevant State Agreement requisites;

Level 1, 117 Stirling Highway Nedlands WA 6009 PO Box 141 Nedlands WA 6909 Address +61 8 9389 3000 +61 8 9389 3033 Phone Fax brockman@brockman.com.au E-mail www.brockman.com.au Web 73 009 372 150 ABN

• Port Development Programs for the North West Infrastructure (“NWI”) group are focusing on BFS critical path items and activities whilst defining the optimal financing and project execution strategy for the South West Creek infrastructure facilities;

• Early Work Programs at Marillana site scheduled to commence in Q4 CY 2011;

• Marillana’s Final Investment Decision by the Board of Directors scheduled for late Q4 CY 2011; and

• Project financing scheduled for Q1 CY 2012.

Improved Metallurgy Performance from Final Pilot Plant Studies

Initial results from pilot plant beneficiation tests have demonstrated improved mass recoveries, thereby increasing the amount of final product that can be produced from the ore body, and potentially producing greater than 18.5Mtpa (wet) of production, for a constant feed rate.

Brockman has been performing pilot plant beneficiation testwork based on a 150 tonne representative sample of ore from each of starter Pits 1 and 2, which will be reflective of the first six years of plant feed. Initial results are now available for Pit 1 and results to date have exceeded expectations based on the Definitive Feasibility Study (“DFS”) testwork. Final product mass recovery through the pilot plant, which has been configured to replicate the final processing plant design, has improved to over 43%, compared to 41% based on similar grade material in the DFS. This has been achieved whilst retaining product specifications at greater than 61% Fe and combined alumina and silica grades of up to 9.2%. Significantly, mass recovery through the gravity circuit has increased to 74%, with 87% recovery of Fe units. The phosphorous and sulphur levels remain consistently low at <0.08% and <0.02% respectively. Previous sintering tests performed on the beneficiated ore from the DFS metallurgical campaigns demonstrated very good sintering characteristics and high iron unit production rates.

Waste products derived from the simulated plant design testwork program, such as fine and coarse rejects, are being further tested for materials handling, settling characteristics, etc for inclusion in the FEED engineering study.

Recent Increases in State Royalties for Iron Ore Fines – Brockman Not Affected

The Marillana Project produces a beneficiated iron ore product. The State Royalty system applies a reduced royalty rate for beneficiated products to recognise the investment required in processing of these deposits. Consequently the recent change to Western Australian Government iron ore royalties from 5.625% up to 7.5% by 1 July 2013 should not impact on the Marillana Project, which the Company expects should only attract a 5.00% (FOB) royalty .

Wah Nam Offer Update

Wah Nam currently holds 53.2% of the Brockman register, representing a total of approximately 77 million Brockman shares. The Wah Nam offer is “unconditional” and is scheduled to close at 4pm on Wednesday 15 June 2011, unless extended.

All Shareholders who have accepted into the offer have received their respective issuance of Wah Nam shares. It is also apparent that the majority of these new Wah Nam shares have been issued onto the Hong Kong Exchange listing of Wah Nam International Holdings, (HKEx 159 – listing) represented by the placement of 1.34 billion shares to HK 159.

The Wah Nam offer currently represents an offer of approximately A$4.47 equivalent based on the closing price of Wah Nam on the Hong Kong Securities Exchange on 31 May 2011 which is 5% below the Brockman share price of A$4.74 on 10 November 2010 prior to the announcement of the Wah Nam offer and 28% below Brockman’s 12 month high of A$6.25 achieved during April 2011.

The current offer is also representative of a 22% discount to Brockman’s 90 day Volume Weighted Average Price (VWAP) of A$5.74 as at 31 May 2011.

In the absence of a substantial improvement in the offer, the Brockman Board continues to re-iterate DO NOT ACCEPT .

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Further Information

If you have any questions in relation to the Wah Nam offer, please call the Brockman shareholder information line on 1300 134 857 (for calls made from within Australia) or +61 3 9415 4216 (for calls made from outside Australia).

Brockman directors will continue to advise shareholders of any further changes that may result as a consequence of ensuing discussions with Wah Nam.

—ENDS—

Contact:

Company: Wayne Richards Managing Director Brockman Resources Phone: +61 8 9389 3000 www.brockman.com.au

Media: David Brook / David Tasker Professional Public Relations Phone: +61 8 9388 0944 / 0415 096 804 E-mail: david.brook@ppr.com.au

ABOUT BROCKMAN RESOURCES

Brockman is an ASX300 listed Company with its principal project, the Marillana Iron Ore Project, located 100km north-west of Newman in the Pilbara region of Western Australia and lying close to existing rail, road and port infrastructure. The Marillana Project will be one of the most significant hematite projects to be developed within Australia over the forthcoming years.

Brockman has built a portfolio of additional iron ore tenements throughout the Pilbara (predominantly the West Pilbara) to develop a pipeline of future projects and expansions, thereby creating future value enhancement to the Company’s shareholders.

The Marillana Project is forecast to commence commissioning at the mine in early 2014 at an average life-ofmine rate of 18.5 million (wet) tonnes per annum. First ore on ship is targeted soon thereafter.

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