Brockman Mining Limited — M&A Activity 2011

Mar 31, 2011

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1 April 2011

SHAREHOLDER UPDATE – WAH NAM TAKEOVER OFFER

Dear Shareholder

I would like to take this opportunity to update you on some recent developments in relation to Brockman and the current takeover offer from Wah Nam.

Firstly, the Board continues to urge that you DO NOT ACCEPT the Wah Nam takeover offer by simply disregarding all documents you receive from Wah Nam. In this regard, I would ask that you consider the following points:

� UNDERVALUED

• The implied price of the Wah Nam offer represents a 12.1% DISCOUNT to the current Brockman share price, as at 31 March 2011 .

• Since the launch of the bid, Wah Nam securities have fallen from A$0.218 to A$0.176 (as at 31 March 2011) – a drop of 23%.

• The LIQUIDITY of Wah Nam’s shares remains a concern with a trading volume on the Australian Securities Exchange during the month of March 2011 of just 403,681 shares (total) or A$0.07 million.

� UNCERTAIN AND UNCLEAR

• As at 31 December 2010, Wah Nam had cash of only A$17 million (HK$135.6 million), compared with Brockman’s strong cash position of A$74 million.

• Wah Nam has not demonstrated an ability or plan to source the funding required to develop the Marillana Project, or their proposed rail and port infrastructure.

• The offer remains HIGHLY CONDITIONAL .

• The offer has only received acceptances of 5.16% (with 4.87% arising from a single transaction) in the four months that the bid has been open.

• The major accepting shareholder is believed to be a company registered in Hong Kong which the Board has been concerned about for some time.

• It is difficult to understand why any shareholder would accept the bid whilst the offer is still highly conditional and at a time when the offer is trading at a significant discount to the current Brockman share price.

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

� NEW INFORMATION

Wah Nam released its 2010 Annual Report on 31 March 2011 and we make the following observations:

• the results affirm Brockman Board’s concerns that, if you accept Wah Nam’s offer, you will only be gaining exposure to Wah Nam’s loss-making Damajianshan mine in China, its marginally profitable limousine and airport shuttle business and its investment business in exchange for the dilution of your interest in Brockman;

• Wah Nam continues to write down the recoverable value of the Damajianshan mine and Wah Nam’s tenure over the mine beyond September 2012 remains uncertain; and

• as at 31 December 2010, Wah Nam’s stake in Brockman and FerrAus represented 56.9% of Wah Nam’s total assets. That means that most of Wah Nam’s value is based on the value of Brockman and FerrAus.

BROCKMAN MOVING FORWARD

Turning now to our own activities, Brockman is continuing to progress negotiations with Fortescue Metals Group (“FMG”) regarding an agreement to provide an end-to-end rail haulage, port access and marketing services for the Marillana Project in Western Australia.

In Wah Nam’s Bidder’s Statement and subsequent communications with Brockman shareholders, Wah Nam has indicated that, if its bid is successful, it is likely to procure funds for the development of the Marillana Project and progress the development of the North West Infrastructure (“NWI”) Group’s port.

In light of our negotiations with FMG and Wah Nam’s recent statements, we have written to Wah Nam seeking confirmation of any concrete proposal by Wah Nam for the development of the Marillana Project or the NWI Group’s port.

Wah Nam has not provided any substantive response to Brockman’s letter that would demonstrate it is able to fund the development of the Marillana Project or the NWI Group’s port.

The Board will keep the market updated of any material developments in relation to the FMG negotiations.

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 8 9415 4216 (for calls made from outside Australia).

Yours sincerely

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BARRY CUSACK Chairman

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