CENTAURUS METALS LIMITED — Capital/Financing Update 2011

Sep 15, 2011

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

16 September 2011

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CENTAURUS ON TRACK FOR JAMBREIRO RESOURCE UPGRADE FOLLOWING FURTHER STRONG DRILL RESULTS

ALL RESULTS RECEIVED FROM RECENT DRILLING – RESOURCE UPGRADE EXPECTED BY END OF SEPTEMBER

International iron ore company Centaurus Metals Limited (ASX Code: CTM ) is pleased to report that the final batch of results from recently completed drilling at its flagship Jambreiro Iron Ore Project have provided further support for the quality and consistency of mineralisation, paving the way for a resource upgrade and advancement of a future mining operation.

Resource estimation work is well underway with an upgrade of the current JORC Resource estimate (combined Measured, Indicated and Inferred) of 70.6 million tonnes at an average grade 28.0% Fe on track to be completed by the end of September 2011.

The Tigre Deposit

Highlights of the recent results from the Tigre Deposit ( Figure 1 ) include the following continuous intervals ( see attached Appendices A & B for a full list of recent drilling intersections from the Jambreiro Project ):

• 45.5 metres @ 27.9% Fe, 1.6% Al2O3 and 0.05% P from 89.1 metres in Hole JBR-DD-11-0050

• 53.8 metres @ 29.1% Fe, 1.4% Al2O3 and 0.04% P from 78.6 metres in Hole JBR-DD-11-0051  54.1 metres @ 26.2% Fe, 2.3% Al2O3 and 0.06% P from 121.2 metres in Hole JBR-DD-11-0052

These results will allow some of the existing resource, currently classified as Inferred but within the current pit design, to be upgraded to the Indicated category ahead of the completion of Pre-Feasibility Study work.

The South East Extension Zone

Highlights of the recent results from the South East Extension Zone of the Tigre Deposit ( Figure 1 ) include the following continuous intervals:

• 43.0 metres @ 30.4% Fe, 0.7% Al2O3 and 0.06% P from 37.0 metres in Hole JBR-DD-11-0045

• 11.2 metres @ 41.1% Fe, 3.8% Al2O3 and 0.03% P from surface in Hole JBR-DD-11-0049  36.0 metres @ 29.8% Fe, 2.3% Al2O3 and 0.05% P from 44.0 metres in Hole JBR-RC-11-0098  17.0 metres @ 34.5% Fe, 4.4% Al2O3 and 0.05% P from 10.0 metres in Hole JBR-RC-11-0099  13.0 metres @ 42.8% Fe, 3.9% Al2O3 and 0.03% P from surface in Hole JBR-RC-11-0100

These new results further confirm the friable nature of the mineralisation in the South East Extension Zone and clearly demonstrate the extension of the Tigre Resource into this Zone. The results also provide further support for the South East Extension Zone Exploration Target[1 ] of 20-30 million tonnes at a grade of 28-33% Fe , which is expected to be converted to resource and added to the existing Tigre Resource estimate (Measured, Indicated and Inferred Resource of 61.2Mt grading 27.7% Fe ) by the end of September 2011.

1 Note: It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information above relating to the exploration target should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resources have not been used in this context. The potential quantity and grade range is conceptual in nature, since there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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Existing beneficiation test work results on friable itabirite mineralisation of similar grade to the Exploration Target has shown that a high grade (+65% Fe) hematite product can be produced at a mass recovery of approximately 45% to 50%.

The mineralised zone in the South East Extension Zone is generally of a higher grade nature when compared to the main Tigre Deposit and dips sub-parallel to the natural surface making it an ideal area for the start of future mining activities.

The Cruzeiro, Galo & Coelho Prospects

Drilling of the Cruzeiro, Galo and Coelho Prospects at Jambreiro is also now complete. Highlights of the final results include the following continuous intervals:

Cruzeiro Prospect

• 27.8 metres @ 32.8% Fe, 1.43% Al2O3 and 0.03% P from 23.8 metres in Hole JBR-DD-11-0040

• 34.1 metres @ 33.4% Fe, 3.4% Al2O3 and 0.05% P from 6.9 metres in Hole JBR-DD-11-0042

• 28.5 metres @ 28.8% Fe, 0.8% Al2O3 and 0.05% P from 32.4 metres in Hole JBR-DD-11-0046

Galo Prospect

• 15.0 metres @ 34.5% Fe, 2.9% Al2O3 and 0.01% P from 11.0 metres in Hole JBR-RC-11-0094

• 37.0 metres @ 29.5% Fe, 7.0% Al2O3 and 0.06% P from 13.0 metres in Hole JBR-RC-11-0095

Coelho Prospect

• 16.0 metres @ 31.8% Fe, 1.6% Al2O3 and 0.02% P from surface in Hole JBR-RC-11-0074

New results continue to confirm the continuity of friable mineralisation at the Cruzeiro Prospect with consistent widths of 30-35 metres in the main zone of the Prospect. The Galo Prospect returned an exciting intersection with one of the final drill holes delivering 37 metres at a grade of 29.5% Fe. The mineralisation of both the Cruzeiro and Galo Prospects dip sub-parallel to the natural surface and is friable from surface, which allows both prospects to be considered as shallow open pit options in a future mining operation.

Resource & Pre-Feasibility Study Up-date

As all final assay data has now been received and Centaurus is well advanced with the process of data validation and geological interpretation, the JORC Resource estimate is on schedule to be completed by the end of September.

Based on the assay results from the South East Extension Zone, it is expected that the Company will be able to significantly increase the overall Resource base at Jambreiro with this new resource forming the platform for the Pre-Feasibility study which is due in November.

Centaurus’ Managing Director Mr Darren Gordon, said: “ With the receipt of all outstanding assay data for the Project, we can now progress the finalisation of the Resource upgrade ahead of new pit optimisation and mine scheduling work for the Pre-Feasibility Study to be delivered by mid-November. All of the Prospects at Jambreiro host a large proportion of friable mineralisation, which will provide the Project with significant operational benefits at the start of future mining activities due to low operating costs”.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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-ENDS-

Released By: Nicholas Read Read Corporate Mb: (+61) 419 929 046 Tel: (+61-8) 9388 1474

On behalf of:

Mr Darren Gordon Managing Director Centaurus Metals Ltd Tel: (+61-8) 9420 4000

Competent Person’s Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Roger Fitzhardinge who is a Member of the Australasia Institute of Mining and Metallurgy and Volodymyr Myadzel who is a Member of Australian Institute of Geoscientists. Roger Fitzhardinge is a permanent employee of Centaurus Metals Limited and Volodymyr Myadzel is the Senior Resource Geologist of BNA Consultoria e Sistemas Limited, independent resource consultants engaged by Centaurus Metals.

Roger Fitzhardinge and Volodymyr Myadzel have sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve’. Roger Fitzhardinge and Volodymyr Myadzel consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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& MEDIA RELEASE

Figure 1 – Jambreiro Prospect Map with Recent Results

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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& MEDIA RELEASE

Appendix A – Jambreiro Iron Ore Project - New Diamond Drill Hole Results – September 2011

					DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH	DOWN-HOLE INTERSECTIONS- JAMBREIRO- DDH
Hole ID	SAD East	SAD North	mRL		Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width(m)	Fe%	SiO2%	Al2O3%	P%
JBR-DD-11-00037 JBR-DD-11-00037								0.00 47.00	10.00 58.00	10.00 11.00	29.35 30.60	48.88 54.21	5.80 1.40	0.02 0.02
JBR-DD-11-00037	722315	7944003	906		-70	60	76.20	Downhole composite		21.00	30.00	51.67	3.50	0.02
JBR-DD-11-00038								67.00	76.85	9.85	24.17	57.24	3.03	0.13
JBR-DD-11-00038	722959	7944757	966		-70	56	110.00	Downhole composite		9.85	24.17	57.24	3.03	0.13
JBR-DD-11-00039								30.00	43.25	13.25	33.72	40.66	6.30	0.05
JBR-DD-11-00039	722653	7945718	925		-70	50	60.20	Downhole composite		13.25	33.72	40.66	6.30	0.05
JBR-DD-11-00040								23.80	51.65	27.85	32.82	49.95	1.43	0.03
JBR-DD-11-00040	722914	7944945	926		-60	75	64.25	Downhole composite		27.85	32.82	49.95	1.43	0.03
JBR-DD-11-00041								21.35	25.30	3.95	28.25	47.77	7.16	0.04
JBR-DD-11-00041	722009	7945100	884		-60	30	95.95	Downhole composite		3.95	28.25	47.77	7.16	0.04
JBR-DD-11-00042								6.95	41.00	34.05	33.43	46.36	3.36	0.05
JBR-DD-11-00042	722978	7944955	955		-60	75	85.00	Downhole composite		34.05	33.43	46.36	3.36	0.05
JBR-DD-11-00044 JBR-DD-11-00044								3.10 22.16	12.97 25.72	9.87 3.56	26.59 24.58	50.61 33.46	6.69 6.76	0.03 0.02
JBR-DD-11-00044	722860	7945190	894		-60	75	71.15	Downhole composite		13.43	26.06	46.07	6.71	0.03
JBR-DD-11-00045								37.00	80.00	43.00	30.39	49.42	0.74	0.06
JBR-DD-11-00045	722821	7944156	947		-80	60	112.95	Downhole composite		43.00	30.39	49.42	0.74	0.06
JBR-DD-11-00046								32.41	60.94	28.53	28.78	56.25	0.77	0.05
JBR-DD-11-00046	722852	7945053	906		-70	75	73.70	Downhole composite		28.53	28.78	56.25	0.77	0.05
JBR-DD-11-00047 JBR-DD-11-00047								0.00 125.00	5.00 128.00	5.00 3.00	20.27 27.01	49.05 51.13	13.13 1.33	0.06 0.06
JBR-DD-11-00047	722720	7944293	918		-80	60	163.70	Downhole composite		8.00	22.80	49.83	8.70	0.06
JBR-DD-11-00048								123.45	147.21	23.76	29.77	51.77	1.19	0.05
JBR-DD-11-00048	722334	7944875	943		-60	30	170.00	Downhole composite		23.76	29.77	51.77	1.19	0.05
JBR-DD-11-00049								0.00	11.20	11.20	41.07	34.33	3.79	0.03
JBR-DD-11-00049	722881	7944077	920		-80	60	40.20	Downhole composite		11.20	41.07	34.33	3.79	0.03
JBR-DD-11-00050								89.12	134.60	45.48	27.88	48.36	1.56	0.05
JBR-DD-11-00050	722567	7944659	1008		-70	30	161.40	Downhole composite		45.48	27.88	48.36	1.56	0.05
JBR-DD-11-00051								78.55	132.37	53.82	29.08	48.81	1.37	0.04
JBR-DD-11-00051	722623	7944581	999		-70	60	150.00	Downhole composite		53.82	29.08	48.81	1.37	0.04
JBR-DD-11-00052¹ JBR-DD-11-00052¹								121.20 180.12	175.30 187.80	54.10 7.68	26.22 24.76	49.51 58.18	2.34 3.82	0.06 0.05
JBR-DD-11-00052¹	722335	7944877	943		-70	30	200.80	Downhole composite		61.78	26.04	50.58	2.53	0.06

Intervals calculated using a 20% Fe cut-off grade with 3 metre minimum mining width All samples were analysed using an XRF fusion method with LOI at 1000[0] C 1 Drill hole JBR-DD-11-00052 is a re-drill of drill hole JBR-DD-11-00048.

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

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Appendix B – Jambreiro Iron Ore Project - New RC Drill Hole Results – September 2011

				DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC
Hole ID	SAD East	**SAD North **	mRL	Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width(m)	Fe%	SiO2%	Al2O3%	P%
JBR-RC-11-00072							29.00	37.00	8.00	29.10	39.58	10.52	0.06
JBR-RC-11-00072	721972	7946388	931	-70	50	60.00	Downhole composite		8.00	29.10	39.58	10.52	0.06
JBR-RC-11-00073							0.00	19.00	19.00	31.16	65.89	5.10	0.03
JBR-RC-11-00073	722168	7944979	905	-60	30	50.00	Downhole composite		19.00	31.16	65.89	5.10	0.03
JBR-RC-11-00074							0.00	16.00	16.00	31.78	51.67	1.65	0.02
JBR-RC-11-00074	722465	7943893	919	-60	60	60.00	Downhole composite		16.00	31.78	51.67	1.65	0.02
JBR-RC-11-00075	722152	7944366	852	-90	0	20.00	NO SIGNIFICANT INTERSECTION
JBR-RC-11-00076							0.00	13.00	13.00	25.11	53.48	6.12	0.02
JBR-RC-11-00076	722040	7946462	958	-70	50	30.00	Downhole composite		13.00	25.11	53.48	6.12	0.02
JBR-RC-11-00077							1.00	14.00	13.00	30.40	46.86	5.60	0.02
JBR-RC-11-00077	722082	7946493	969	-90	0	30.00	Downhole composite		13.00	30.40	46.86	5.60	0.02
JBR-RC-11-00078	721845	7945220	850	-60	30	100.00	NO SIGNIFICANT INTERSECTION
JBR-RC-11-00079 JBR-RC-11-00079							16.00 26.00	23.00 36.00	7.00 10.00	28.09 24.20	54.08 56.89	3.42 5.56	0.03 0.02
JBR-RC-11-00079	721980	7945060	881	-70	30	80.00	Downhole composite		17.00	25.80	55.73	4.68	0.02
JBR-RC-11-00080	722066	7944657	1000	-90	0	100.00	NO SIGNIFICANT INTERSECTION
JBR-RC-11-00081							0.00	13.00	13.00	24.65	60.49	3.13	0.03
JBR-RC-11-00081	722245	7944575	918	-90	0	140.00	Downhole composite		13.00	24.65	60.49	3.13	0.03
JBR-RC-11-00082							0.00	9.00	9.00	24.02	48.10	10.78	0.03
JBR-RC-11-00082	722840	7944866	946	-70	50	60.00	Downhole composite		9.00	24.02	48.10	10.78	0.03
JBR-RC-11-00083							0.00	15.00	15.00	30.40	53.23	2.16	0.02
JBR-RC-11-00083	722992	7945094	943	-70	75	80.00	Downhole composite		15.00	30.40	53.23	2.16	0.02
JBR-RC-11-00093							74.00 86.00		12.00	23.91	54.17	5.39	0.06
JBR-RC-11-00093	722810	7945030	903	-70	75	110.00	Downhole composite		12.00	23.91	54.17	5.39	0.06
JBR-RC-11-00094							11.00	26.00	15.00	34.49	45.55	2.92	0.01
JBR-RC-11-00094	722770	7945814	972	-70	50	80.00	Downhole composite		15.00	34.49	45.55	2.92	0.01
JBR-RC-11-00095 JBR-RC-11-00095							0.00 13.00	10.00 50.00	10.00 37.00	29.06 29.49	43.41 46.13	9.00 6.98	0.04 0.06
JBR-RC-11-00095	722417	7946019	886	-60	50	80.00	Downhole composite		47.00	29.40	45.55	7.41	0.06
JBR-RC-11-00098							44.00 80.00		36.00	29.77	46.10	2.30	0.05
JBR-RC-11-00098	722986	7944416	969	-70	60	100.00	Downhole composite		36.00	29.77	46.10	2.30	0.05
JBR-RC-11-00099							10.00	27.00	17.00	34.49	45.91	4.38	0.05
JBR-RC-11-00099	723029	7944437	953	-70	60	80.00	Downhole composite		17.00	34.49	45.91	4.38	0.05
JBR-RC-11-00100							0.00	13.00	13.00	42.82	31.58	3.96	0.03
JBR-RC-11-00100	722978	7944128	935	-80	60	55.00	Downhole composite		13.00	42.82	31.58	3.96	0.03
JBR-RC-11-00101							0.00	6.00	6.00	21.52	53.06	9.49	0.03
JBR-RC-11-00101	722864	7945305	877	-70	75	80.00	Downhole composite		6.00	21.52	53.06	9.49	0.03
JBR-RC-11-00102	721647	7945760	908	-70	50	100.00	NO SIGNIFICANT INTERSECTION
JBR-RC-11-00103	721673	7945852	910	-90	0	70.00	NO SIGNIFICANT INTERSECTION

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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& MEDIA RELEASE

Appendix B – Jambreiro Iron Ore Project - New RC Drill Hole Results – September 2011 (continued)

				DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- JAMBREIRO- RC
Hole ID	SAD East	**SAD North **	mRL	Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width(m)	Fe%	SiO2%	Al2O3%	P%
JBR-RC-11-00104	720885	7943903	879	-90	0	100.00	NO SIGNIFICANT INTERSECTION
JBR-RC-11-00105	722194	7944347	857	-90	0	64.00	NO SIGNIFICANT INTERSECTION
JBR-RC-11-00106							7.00	25.00	18.00	25.23	58.18	3.70	0.03
JBR-RC-11-00106	722144	7944932	900	-80	30	60.00	Downhole composite		18.00	25.23	58.18	3.70	0.03
JBR-RC-11-00107							50.00	55.00	5.00	23.97	59.35	4.30	0.04
JBR-RC-11-00107	721819	7945172	841	-80	30	80.00	Downhole composite		5.00	23.97	59.35	4.30	0.04
JBR-RC-11-00108 JBR-RC-11-00108							0.00 38.00	3.00 47.00	3.00 9.00	22.75 22.94	57.42 62.92	5.25 2.91	0.03 0.03
JBR-RC-11-00108	721954	7945016	875	-80	30	100.00	Downhole composite		12.00	22.89	61.55	3.49	0.03

Intervals calculated using a 20% Fe cut-off grade with 3 metre minimum mining width All samples were analysed using an XRF fusion method with LOI at 1000[0] C