Brockman Mining Limited — Capital/Financing Update 2013

Apr 1, 2013

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BROCKMAN MINING LIMITED 布 萊 克 萬 礦 業 有 限 公 司 *

(incorporated in Bermuda with limited liability)

(SEHK Stock Code: 159)

(ASX Stock Code: BCK)

Brockman Expands Ophthalmia Project following Acquisition of Tenements

Brockman Mining Limited (Brockman) is pleased to announce that its wholly owned subsidiary, Brockman Australia, has entered into a binding agreement for the purchase from Sheffield Resources Limited (Sheffield: ASX code SFX ) of two exploration licences (E47/2280, E47/2291) and a priority application for E47/2594, located adjacent to its Ophthalmia Iron Ore Project (Ophthalmia).

Exploration on the tenements, by Sheffield, has identified Exploration Targets[1] of 20-60 Mt grading 56-60% Fe (as detailed in Sheffield’s ASX release of 1 December 2011). Brockman has recently announced Mineral Resources at Ophthalmia totalling 269Mt grading 59.16% Fe, as detailed in Table 1. The location of the acquired Sheffield tenements, in relation to Brockman’s tenements and deposits, is shown in Figure 1. Several of the targets identified by Sheffield are extensions of mineralisation already identified on Brockman’s tenements, providing potential synergies for the future development of those deposits.

The material terms of the agreement, which may be subject to FIRB approval if necessary, are as follows:

• An upfront cash payment of $1 million.

• A supplementary payment of $0.10/tonne for all JORC compliant Mineral Resources (Measured, Indicated and Inferred categories) defined by Brockman on any or all of the acquired tenements, using a lower cut-off grade of 54% Fe.

• A royalty of 1% FOB of all iron ore produced from the tenements. In addition, a price participation royalty of 5% would be applicable for all revenues received over $120/tonne FOB (CPI indexed) for iron ore sales from the tenements (i.e. an additional 4% on the amount by which the indexed FOB price exceeds $120/tonne).

1 Sheffield has not yet reported Mineral Resources at the tenements and any discussion in relation to targets and Mineral Resources is conceptual in nature. There has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Brockman Australia CEO Russell Tipper said: “The consolidation of these tenements further cements Brockman’s presence in the region and is a logical step in the development of Ophthalmia. As well as the possibility of identifying additional Mineral Resources, the increased Project footprint provides greater flexibility in the location of processing and transportation infrastructure.”

The Ophthalmia Mineral Resources are particularly significant in the context of ongoing feasibility studies into an Independent East Pilbara Railway, being carried out by Brockman, Aurizon and Atlas. Brockman has previously reported that detailed feasibility studies at the 100% owned Marillana Iron Ore Project (Marillana) have demonstrated that that Project can sustain production levels of 17 – 20 Mtpa. As Ophthalmia is located only 80 km to the southeast of Marillana, there is the opportunity to either extend the proposed railway to service Ophthalmia or to truck material from Ophthalmia to Marillana. Either of these options would result in increased tonnages on the proposed independent railway, enhancing its viability.

Table 1: Ophthalmia Mineral Resource (DSO) Summary

Deposit	Class	Tonnes (Mt)	Fe (%)	CaFe (%)*	SiO2 (%)	Al2O3 (%)	S (%)	P (%)	LOI (%)
Kalgan Creek	Indicated	12.5	59.25	62.64	4.02	4.79	0.007	0.20	5.41
	Inferred	39.7	59.07	62.55	4.53	4.55	0.005	0.17	5.56
	Sub Total	52.1	59.11	62.56	4.41	4.60	0.006	0.18	5.52
Coondiner (Pallas and Castor)	Indicated	64.3	58.00	61.55	5.79	4.40	0.009	0.17	5.77
	Inferred	43.7	58.79	62.15	5.33	4.38	0.006	0.18	5.41
	Sub Total	151	58.30	61.77	5.61	4.39	0.008	0.17	5.62
Sirius	Inferred	109	60.03	63.30	4.57	3.78	0.009	0.18	5.16
Total(DSO) - Ophthalmia		269	59.16	62.54	4.96	4.18	0.008	0.17	5.42

*CaFe represents calcined Fe and is calculated by Brockman using the formula CaFe = Fe% / ((100-LOI)/100) ** Tonnes may not add up due to rounding

The Ophthalmia Mineral Resource estimates were previously reported in the ASX announcements made by Brockman Mining dated 15 October 2012 (Coondiner), 4 December 2012 (Kalgan Creek) and 26 February 2013 (Sirius). The Company is not aware of any new information or data that materially affects the information included in those announcements. All material assumptions and technical parameters underpinning the estimates continue to apply and have not materially changed, nor have the Competent Person’s findings been materially modified.

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Figure 1: Map showing location of acquired tenements in relation to Ophthalmia tenements and deposits.

By order of the board of directors of Brockman Mining Limited Chan Kam Kwan, Jason Company Secretary

H ong K ong, 2 Ap r il 20 13

As at the date of this announcement, the board of directors of the Company comprises Mr. Kwai Sze Hoi (Chairman), Mr. Liu Zhengui (Vice Chairman), Mr. Warren Talbot Beckwith and Mr. Ross Stewart Norgard as non-executive directors; Mr. Luk Kin Peter Joseph (Chief Executive Officer), and Mr. Chan Kam Kwan, Jason (Company Secretary) as executive directors; and Mr. Lau Kwok Kuen, Eddie, Mr.Uwe Henke Von Parpart, Mr. Yip Kwok Cheung, Danny and Mr. David Michael Spratt as independent nonexecutive directors.

DEFINITIONS

EFINITIONS
ASX	ASX Limited (trading as the Australian Securities Exchange)
Atlas	Atlas Iron Limited
Aurizon	Aurizon Operations Limited (formerly QR National)
Brockman Australia	Brockman Mining Australia Pty Ltd
FIRB	Foreign Investment Review Board
km	kilometres
m	metres
Mt	Million tonnes
Mtpa	Million tonnes per annum
Q	Quarter (financial)

FURTHER INFORMATION

Russell Tipper Chief Executive Officer, Brockman Australia +61 8 9389 3000 Michelle Manook GM External Affairs, Brockman Australia +61 8 9389 3042

Competent Person’s Statement

The information in this report that relates to Mineral Resources at Ophthalmia is based on information compiled by Mr J Farrell and Mr A Zhang.

Mr J Farrell, who is a Chartered Professional and Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Golder Associates Pty Ltd, produced the Mineral Resource estimates based on the data and geological interpretations provided by Brockman. Mr Farrell has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves. Mr Farrell consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.

Mr A Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman Mining Australia Pty Ltd, provided the geological interpretations and the drill hole data used for the Mineral Resource estimation. Mr Zhang has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the ‘Australasian Code for Reporting of Exploration, Results, Mineral Resource and Ore Reserves. Mr Zhang consents to the inclusion in this report of the matters based on his information in the form and context that the information appears.