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CENTAURUS METALS LIMITED Capital/Financing Update 2011

Mar 3, 2011

64715_rns_2011-03-03_731b2a82-08ff-4836-8e29-f5dde2a46eb2.pdf

Capital/Financing Update

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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NT
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4 March 2011

POSIT I VE TRENCHIN G RESU L TS ENHANCE J A MBRE I RO PR O JECT R ESOURCE U PGRADE D R ILLING CAMPAIGN UND E RWAY – FOUR DRILL RI G S ON SITE

Int e rnational ir o n ore company Centa u rus Metals Limited (A S X Code: CTM ) is pleas e d to report encouragi n g res u lts from a r ecent trenc h ing progra m at its flag s hip Jambreiro Iron Ore Project in t he State of Minas Gerais, sou t h‐east Braz i l which has c onfirmed both the gra d e and friabl e nature of the ore.

The trenching p rogram – w hich compr i sed a total of 32 trenc h es for 1,50 0 metres (s e e Figure 2 f or location of tre n ches ) – was successful i n defining t h e ore conta c ts over mo s t of the cur r ent resour c e base at Ja m breiro (JO R C co m pliant Infer r ed Mineral Resource of 77Mt grading 29.5% Fe ), as well as extendin g the ore c o ntacts to t h e sou t h east whe r e drilling has not yet be e n undertak e n nor a res o urce defined.

Hig h lights of th e trenching a ssay results include:

Trench
ID
Trench
Interval
F
e%
SiO2%
Al2O3%
P%*
Trench
Interval
F
e%
SiO2%
Al2O3%
P%*
TR 0001 34.00 3
5.7
44.0
2.8
0.027
TR 0006
36.00
3
3.8
48.2
1.9
0.015
TR 0007 64.00 3
3.6
45.9
3.7
0.021
TR 0012
14.00
3
5.5
44.5
3.0
0.020
TR 0014 48.00 3
5.3
45.0
2.6
0.017
TR 0022
36.00
3
4.1
48.9
1.3
0.021
TR 0024 10.00 3
8.1
39.9
3.2
0.024
TR 0025
40.00
3
3.3
48.7
2.6
0.022
*20%
cut‐off; continuo
us intervals

The results hav e confirmed the highly friable natur e of Jambre i ro ore at surface, the c o mparativel y higher gra d e nat u re of this f r iable ore a n d the location of the footwall and h angingwall contacts fo r each prospect within t h e Pro j ect area.

Wit h the trenc h ing progra m targeting the footwall and hangin g wall contac t s of the pr o spect area s at Jambrei r o, mo s t trenches w ere often c o mmencing or finishing i n mineralis a tion. TR007, which retu r ned a continuous inter v al of 64 metres at an average grade of 33.6% Fe , w a s the only trench which intersecte d the footw a ll contact a n d hangingwall co n tact in the s ame trench . This interv a l demonstrates particu l arly well th e continuou s nature of t h e fria b le surface m ineralisation found wit h in the 1.1 k i lometre Tigre Prospect.

Tre n ch TR0014 , which returned an average grade of 35.3% Fe over a c o ntinuous i n terval of 4 8 metres, has ide n tified the e xtension o f the hangingwall contact to the south east of the cur r ent resour c e limits. T h is hangingwall co n tact is 78 m etres fro m the footw a ll contact f ound in trench TR001 5 ( 12m at 29.4% Fe ). T h e cur r ent drill program will te s t the exten s ion of the c u rrent reso u rce limits to the south e a st.

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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The trenching w ork has sig n ificantly enhanced the definition o f drill target s for the cu r rent round of explorati o n and resource u p grade drilling. Three diamond rigs and one R C rig are cur r ently on si t e and are underway on a 5,0 0 0 metre resource upgrade and expl o ration drill p rogram.

‐ENDS‐

Released By: Nic h olas Read Rea d Corporate Mb: (+61) 419 92 9 046 Tel: (+61‐8) 9388 1474

On behalf of: Mr D arren Gord o n Ma n aging Direct o r Cen t aurus Metal s Ltd Tel: (+61‐8) 9420 4000

Competent Person’s Statement

The i n formation in this report that rel a tes to Explorati o n Results and Mineral Resources for the Jambreiro Iron Ore Proje c t is based on information compiled by R o ger Fitzharding e who is a Member of the Aust r alasia Institute o f Mining and M etallurgy and Volodymyr Myad z el who is a Member of Australian Institute of Geoscien t ists. Roger Fit z hardinge is a p e rmanent empl o yee of Centaur u s Metals Limit e d and Volodym y r Myadzel is t h e Senior Resou r ce Geol o gist of BNA Con s ultoria e Sistem a s Limited, independent resourc e consultants engaged by Centaur u s Metals.

Roge r Fitzhardinge and Volodymyr Myadzel have s ufficient experi e nce which is r e levant to the s tyle of mineralization and typ e of deposit un d er consideration and to t he activity which they are unde r taking to qualif y as a Competen t Person as defined in the 2004 Edition of the ‘Australasian Code f or Reporting of Explorat i on Results, Min e ral Resources a n d Ore Reserve’. Roger Fitzhardi n ge and Volody m yr Myadzel con s ent to the inclusion in the report of the m atters based on their informatio n in the form an d context in whic h it appears.

Figure 1 – Photos Showing Trenching across the Ore Zone at Tigre Prospect, Jambreiro.

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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Figure 2 – Map of the Jambreiro Iron Ore Project Showing Trench Locations

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* A number o_ _f trenches retu_ _r ned results wi_ _t h no significant iron minerali_ _s ation intersection. In some o_ _f these cases o_ _n ly transporte_ _d soil cover wa_ _s encountered. Only where th_ _e in situ contac_ _t s were expose_ _d was the surface interpretati_ _o n adjusted ac_ _c** ordingly.

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AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT

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Table 1 – Jambreiro Trench Program Assay Results March 2011

Hole ID Trench
Interval
Fe% **SiO2% ** **Al2O3% ** **Al2O3% ** P% Coo
rdinates
Coo
rdinates
East North mRL
TR 0001 34.00 35.7 44.0 2.8 0
.027
7
22502
7944938 972
TR 0002 12.00 25.7 58.0 2.9 0
.034
7
22442
7944980 960
TR 0003 26.00 28.7 53.8 3.0 0
.022
7
22491
7944982 964
TR 0004 16.00 33.3 45.3 3.9 0
.039
7
22221
7945130 923
TR 0005 No Sign
ificant Interse
ction
7
22221
7945133 927
TR 0006 36.00 33.8 48.2 1.9 0
.015
7
22258
7945140 921
TR 0007 64.00 33.6 45.9 3.7 0
.021
7
22282
7945077 930
TR 0008 No Sign
ificant Interse
ction
7
22509
7945031 948
TR 0009 14.00 30.2 49.7 4.1 0
.045
7
22379
7945013 949
TR 0010 No Sign
ificant Interse
ction
7
22440
7945111 924
TR 0011 10.00 27.8 45.0 9.9 0
.021
7
22549
7945008 951
TR 0012 14.00 35.5 44.5 3.0 0
.020
7
22577
7944987 947
TR 0013 10.00 21.9 61.6 4.8 0
.021
7
22681
7944708 1013
TR 0013 7.00 22.7 58.3 5.8 0
.018
7
22681
7944708 1013
TR 0014 48.00 35.3 45.0 2.6 0
.017
7
22712
7944653 1019
TR 0015 12.00 29.4 49.1 5.7 0
.024
7
22773
7944704 993
TR 0016 6.00 28.3 52.2 4.4 0
.019
7
22731
7944774 986
TR 0017 8.00 20.7 60.3 5.7 0
.039
7
21955
7945392 843
TR 0018 No Sign
ificant Interse
ction
7
22101
7945318 893
TR 0019 30.00 30.0 51.9 2.7 0
.030
7
21926
7945306 851
TR 0020 26.00 27.7 52.7 4.3 0
.036
7
22320
7946077 876
TR 0021 52.00 28.1 51.4 5.0 0
.043
7
22271
7946151 890
TR 0021 6.00 27.2 54.7 3.3 0
.03
7
22533
7946017 916
TR 0022 36.00 34.1 48.9 1.3 0
.021
7
22533
7946017 916
TR 0023 No Sign
ificant Interse
ction
7
22501
7945877 926
TR 0024 10.00 38.1 39.9 3.2 0
.024
7
22543
7945984 925
TR 0025 40.00 33.3 48.7 2.6 0
.022
7
22369
7946081 892
TR 0026 No Sign
ificant Interse
ction
7
22459
7946208 919
TR 0027 10.00 30.6 49.9 4.0 0
.037
7
22261
7946221 927
TR 0028 No Sign
ificant Interse
ction
7
22204
7946272 947
TR 0029 9.00 32.7 50.6 1.7 0
.018
7
22216
7946252 936
TR 0030 No Sign
ificant Interse
ction
7
22671
7945866 949
TR 0031 No Sign
ificant Interse
ction
7
22708
7945844 969
TR 0032 No Sign
ificant Interse
ction
7
22759
7945812 977

20 % Fe cut‐off; contin_ _u* ous intervals

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