CENTAURUS METALS LIMITED — Capital/Financing Update 2011

Aug 24, 2011

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

25 August 2011

MAIDEN DRILLING AT SERRA DA LONTRA SET FOR OCTOBER START FOLLOWING POSITIVE SAMPLING RESULTS

Surface sampling grades of 35-58% Fe returned from two +1km long structures

• Detailed geological mapping further extends the strike length of previously mapped itabirite mineralisation and identifies new mineralised zones within the tenement limits.

• New outcrop sampling results confirm that the surface grade of the mineralisation is between 35% and 58% Fe with low Al2O3 and P.

• Mineralisation expected to beneficiate well to a high grade (+65%) hematite product.

• More than 65 km of grid lines have been opened up in preparation for the start of a ground magnetic survey planned to commence at the end of August.

• Principal landowner agreements signed and environmental studies for drilling licences completed – clearing the way for drilling to commence in October 2011.

International iron ore company Centaurus Metals Ltd. (ASX Code: CTM) is pleased to announce that recently commenced exploration on its newly acquired Serra da Lontra Iron Ore Project in south-east Brazil has returned encouraging results, providing a strong foundation for the first drilling program planned to start in October 2011.

Serra da Lontra, which is located 140 kilometres from the regional export port of Ilhéus , in the State of Bahia, Brazil ( see Figure 1 ) is expected to provide the foundation for an iron ore export business for Centaurus, complementing its existing domestic iron ore development strategy.

Encouraging results have been returned from initial detailed geological mapping and rock chip sampling at Serra da Lontra. Mapping has confirmed that the main itabirite zone, called the Senna Prospect (previously called Serra Pelada), has a strike length of some 1.2 kilometres ( see Figure 2 ) with an estimated true width of between 40 to 55 metres and dipping 40-60° towards the east, sub-parallel to the slope of the ridge.

The Fittipaldi Prospect (previously called Boa Esperança) , located 1.2 kilometres to the northeast of the Senna Prospect, has been extended, through the mapping work, by approximately 600 metres to around 1.1 kilometres of strike length with a second itabirite zone of similar length running in parallel ( see Figure 2 ). Both zones within the Fittipaldi Prospect have estimated true widths of between 30 to 40 metres and dip between 40-60° towards the east.

Systematic outcrop sampling has been undertaken during the mapping process with the results to date confirming that the iron grade of the itabirite ranges between 39% and 55% Fe (with an average grade of 47.2% Fe). Alumina (Al2O3) grades are between 0.50% and 2.00% and Phosphorus (P) grades are between 0.05% and 0.10% ( see Figure 2 ).

The canga, which is located down slope from the primary itabirite outcrops, has to-date also shown iron grades ranging from 35% to 58% Fe (with an average grade of 48.8% Fe). A full table of rock chip sample results is set out in Table 1. Some further assay results are pending. The location of these samples is shown on the map at Figure 2.

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The geological mapping and sampling results received so far provide strong support for the previously announced Exploration Target for the Serra da Lontra Project of 30 to 50 million tonnes of itabirite ore at 35-45% Fe[1] .

Based on the physical nature of the itabirite and the outcrop assay results, the Company is confident that the itabirite mineralisation should beneficiate well to a high grade (+65%) hematite product at a relatively high mass recovery.

The Company’s exploration team has opened over 65 kilometres of survey lines in preparation for a detailed ground magnetic survey over the tenement area, scheduled to commence at the end of August. The survey lines are currently being utilised for the detailed geological mapping. InterGeo, a geophysics specialist from Brasilia, expect to complete the survey and all data processing by the end of September.

The first drill program at the Serra da Lontra Project is planned to start in October. Preliminary drill plans for the Project include 2,500 metres of diamond drilling and 5,000 metres of RC drilling. The award of the drill contract is expected to be made in early September.

The principal landowner agreements have been signed and the environmental studies for the drilling licence have been completed. The application for the drilling licence is expected to be lodged shortly with the State environmental agency and should be approved within four weeks.

Commenting on the exploration progress at Serra da Lontra, Centaurus’ Managing Director, Mr Darren Gordon, said: “We are really excited about the results of the initial exploration activities. The grades of mineralisation identified in the mapping and sampling program provides us with a strong foundation for the first drill program.

“The substantial potential of the area has been clearly demonstrated by this first systematic ground mapping and sampling program, which has already doubled the strike length of one of the key prospect areas. We are hopeful that the upcoming ground magnetic survey can also identify some more drill targets before the October drill campaign gets underway.

“With the port of Ilhéus being just 140 kilometres away by sealed highway, the Serra da Lontra Project offers excellent logistics for development of a 1-2Mtpa export project. We are excited by the iron ore prospects of the Ilhéus region and we are gearing up to make a significant push into the State of Bahia to support the Company’s future export plans.”

-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 is based on information compiled by Geologist Roger Fitzhardinge who is a Member of the Australasia Institute of Mining and Metallurgy and by Geologist Dr Klaus Petersen who is a Member of the Australasia Institute of Mining and Metallurgy and CREA (Conselho Regional de Engenharia e Agronomia). Roger Fitzhardinge and Klaus Petersen are permanent employees of Centaurus Metals Limited.

Roger Fitzhardinge and Dr Klaus Petersen have sufficient experience which is relevant to the style of mineralisation 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 Dr Klaus Petersen consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

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.

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Figure 1 –Location Map Showing Infrastructure in the Immediate Locality of Serra da Lontra.

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Table 1 – Serra da Lontra Project - Outcrop sample Results – August, 2011.

Project	Sample ID	Sample Type	Rock Type	SAD East	SAD North	mRL	Fe%	SiO2%	Al2O3%	P%	LOI
Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra Serra da Lontra	16-RO-1500001 16-RO-1500002 16-RO-1500003 16-RO-1500004 16-RO-1500005 16-RO-1500006 16-RO-1500007 16-RO-1500008 16-RO-1500009 16-RO-1500010 16-RO-1500011 16-RO-1500012 16-RO-1500013 16-RO-1500014 16-RO-1500015 16-RO-1500016 16-RO-1500017 16-RO-1500018 16-RO-1500019 16-RO-1500020 16-RO-1500021 IGU-SLO-CS-01 IGU-SLO-CS-02 IGU-SLO-CS-03 IGU-SLO-CS-04 IGU-SLO-CS-05	Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop Outcrop	Canga Canga Canga Itabirite Itabirite Itabirite Canga Itabirite Canga Canga Canga Itabirite Itabirite Itabirite Itabirite Itabirite Itabirite Canga Canga Itabirite Canga Itabirite Itabirite Itabirite Itabirite Itabirite	388621 388574 388430 388414 388371 388353 388297 388426 388379 388422 388410 388287 389486 389504 389505 388370 388396 388493 388305 388295 388647 389496 389634 388348 388415 388392	8350947 8350905 8350999 8351045 8351161 8351309 8351278 8351323 8351557 8351935 8352020 8352103 8352064 8351914 8352222 8351619 8351101 8352099 8352101 8352119 8351098 8352292 8352200 8351320 8351044 8351121	952 963 970 978 995 992 972 967 949 967 991 1004 778 760 779 939 991 964 1007 1007 914 758 699 967 951 973	53.4 57.1 47.5 46.8 48.3 55.3 50.1 51.5 44.3 53.0 51.6 39.6 43.9 40.6 45.9 52.9 47.3 35.7 37.5 47.6 57.9 43.9 36.7 56.8 43.2 51.0	7.5 9.1 19.3 29.7 25.3 15.7 16.6 17.0 28.7 15.4 18.5 34.2 30.0 35.9 31.6 17.1 27.5 5.7 35.7 23.8 8.7 33.4 44.3 10.8 35.1 22.7	4.5 1.6 3.6 0.5 0.5 0.5 1.6 1.3 1.4 1.2 1.2 1.9 1.0 0.9 0.4 1.9 0.5 26.0 4.3 1.5 2.8 0.4 0.5 1.1 0.4 0.3	0.134 0.052 0.071 0.073 0.224 0.052 0.082 0.261 0.121 0.062 0.207 0.062 0.040 0.049 0.055 0.084 0.048 0.084 0.080 0.062 0.061 0.045 0.053 0.107 0.089 0.108	10.69 6.24 7.79 1.85 4.45 3.69 8.37 5.91 5.63 6.63 4.53 6.27 4.29 4.44 1.87 5.32 3.72 15.75 6.26 6.04 5.34 1.90 -0.76 5.37 2.06 2.64

*All samples were analysed using an XRF fusion method with LOI at 1000 0C

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Figure 2 –Serra da Lontra Iron Ore Project Map – Outcrop sample Results – August, 2011.

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