CENTAURUS METALS LIMITED — Capital/Financing Update 2012

Apr 16, 2012

AUSTRALIAN SECURITIES EXCHANGE ANNOUNCEMENT & MEDIA RELEASE

17 April 2012

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STRONG DRILLING RESULTS TO UNDERPIN FEASIBILITY STUDY ON JAMBREIRO IRON ORE PROJECT

RESOURCE UPGRADE DUE NEXT MONTH AS CENTAURUS PUSHES TOWARDS FIRST PRODUCTION IN LATE 2013

International iron ore company Centaurus Metals Limited (ASX Code: CTM ) is pleased to report that the Bankable Feasibility Study on its 100 per cent-owned Jambreiro Iron Ore Project in Brazil has been strengthened by outstanding results from the recently completed RC in-fill drilling campaign.

The results, which are the first received from the in-fill program, highlight the quality and consistency of the key Tigre and Cruzeiro deposits. These deposits will be the basis of Jambreiro’s initial development ahead of production at the end of next year.

The current JORC Resource estimate at Jambreiro stands at 116.5 million tonnes grading 26.8% Fe (Measured, Indicated and Inferred). The in-fill program has strengthened the Company’s confidence in the resource and will lead to an up-grade of the resource by the end of May. This upgrade will focus primarily on upgrading the respective categories of the resource, rather than increasing the overall quantity.

This revised resource will form the basis of the Bankable Feasibility Study (BFS), which is underway.

Recently completed pilot plant testwork has shown that the friable itabirite ore, with a head grade consistent with the overall Resource base, can be upgraded to a 65.6% Fe product with low impurities (2.8% SiO2, 0.9% Al2O3 and 0.01% P) using a simple magnetic separation process.

The first results from the in-fill program include a continuous interval of 106.0 metres at 30.7% Fe from 27.0 metres in drill hole JBR-RC-12-0114. This intersection represents the widest continuous interval recorded to date at the project.

The in-fill drilling program focussed on the mineralisation which will underpin the first four years of production from the Tigre and Cruzeiro Deposits.

The Tigre Deposit

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

• 106.0 metres @ 30.7% Fe, 3.6% Al2O3 and 0.03% P from 27.0 metres in Hole JBR-RC-12-0114

• 87.0 metres @ 32.3% Fe, 4.3% Al2O3 and 0.04% P from 23.0 metres in Hole JBR-RC-12-0118

• 59.0 metres @ 32.9% Fe, 3.8% Al2O3 and 0.03% P from 15.0 metres in Hole JBR-RC-12-0121

• 55.0 metres @ 34.2% Fe, 1.9% Al2O3 and 0.03% P from surface in Hole JBR-RC-12-0120

• 53.0 metres @ 32.7% Fe, 4.0% Al2O3 and 0.03% P from 49.0 metres in Hole JBR-RC-12-0122

• 45.0 metres @ 35.5% Fe, 2.8% Al2O3 and 0.04% P from 15.0 metres in Hole JBR-RC-12-0137

• 38.0 metres @ 36.9% Fe, 3.5% Al2O3 and 0.02% P from surface in Hole JBR-RC-12-0138

• 33.0 metres @ 39.6% Fe, 2.9% Al2O3 and 0.05% P from 24.0 metres in Hole JBR-RC-12-0123

• 30.0 metres @ 38.5% Fe, 2.6% Al2O3 and 0.04% P from 7.0 metres in Hole JBR-RC-12-0140

• 22.0 metres @ 38.8% Fe, 3.2% Al2O3 and 0.03% P from surface in Hole JBR-RC-12-0136

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Many holes contain particularly wide intersections of a higher grade nature than seen in previous drilling. Drill holes JBR-RC-12-0114 (106.0m at 30.7% Fe) and JBR-RC-12-0118 (87.0m at 32.3% Fe) in particular demonstrate excellent continuity of wide and relatively high-grade friable ore from near surface in the heart of the Tigre Deposit.

The southern extension of the Tigre Deposit continues to deliver higher grade friable mineralisation from surface, demonstrated in drill holes JBR-RC-12-0138 (38.0m at 36.9% Fe) and JBR-RC-12-0136 (22.0m at 38.8% Fe). This zone continues to present the best start up option for mining, with higher grades of ore at or near surface with favourable strip ratios.

The Cruzeiro Deposit

Highlights of the recent results from the Cruzeiro Deposit (Figure 1) include the following continuous intervals ( see attached Appendix B for a full list of recent drilling intersections from the Cruzeiro Deposit ):

• 30.0 metres @ 33.9% Fe, 2.3% Al2O3 and 0.02% P from surface in Hole JBR-RC-12-0127

• 27.0 metres @ 36.0% Fe, 3.3% Al2O3 and 0.03% P from 4.0 metres in Hole JBR-RC-12-0128  24.0 metres @ 33.3% Fe, 5.1% Al2O3 and 0.07% P from 6.0 metres in Hole JBR-RC-12-0125  22.0 metres @ 32.7% Fe, 1.5% Al2O3 and 0.01% P from surface in Hole JBR-RC-12-0126

Results from the Cruzeiro Deposit continue to highlight the shallow, relatively high-grade nature of the deposit. The mineralisation at Cruzeiro dips sub-parallel to the natural surface and when combined with the southern extension of the Tigre Deposit will provide excellent low strip ratio material for the planned startup of mining.

Resource and BFS Study Up-date

All resource drilling at the Jambreiro Project was completed in March. The drilling will convert the majority of the mineralisation earmarked for the first four years of production into JORC Measured Resources, comprehensively covering the estimated two-year project payback period.

All drill samples have now been submitted to the Intertek laboratory with results expected by early May. The Company is well advanced in the data validation and geological interpretation of the deposits at Jambreiro and the new JORC Resource estimate is on schedule to be completed by the end of May.

A comprehensive program of metallurgical sampling was undertaken at the start of the year with samples covering the quarter-by-quarter current mining sequence for the first four years of production. Following the successful initial pilot plant program referred to above, a significantly larger sample of Jambreiro ore is now being prepared for an extended pilot plant test work program.

The new JORC Resource base will form the platform for a new JORC Ore Reserve estimate and mine planning that will feed into the Jambreiro BFS which is underway and due for completion in September 2012.

A diamond rig has been mobilized to the Jambreiro Project to start the geotechnical drill program required as part of the BFS. Centaurus has engaged WALM Engenharia e Tecnologia Ambiental Ltda to supervise the geotechnical drilling and provide input into the BFS on geotechnical, water and waste management matters. WALM is a Brazilian based engineering group with extensive experience in engineering, design and execution studies of several mines in the Iron Quadrangle region of Brazil that have similar characteristics to the Jambreiro project.

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Centaurus’ Managing Director, Mr Darren Gordon, said the latest results were outstanding and would further strengthen the economics of the Jambreiro Project.

“ The widths and grade of mineralisation coming from the friable ore are particularly encouraging and provide great confidence that we have a resource base that will form the foundation of a long life mining operation,” Mr Gordon said.

“The pilot plant work has shown that we can produce a high-grade sinter product from the Jambreiro ore that will be highly sought after in the domestic steel industry in Brazil. The BFS that is underway is expected to confirm the strong economics that were delivered in the Pre-Feasibility completed in November last year.”

-ENDS-

Released By: Paul Armstrong Read Corporate Mb: (+61) 421 619 084 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.

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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 – Tigre Deposit - New RC Hole Results – April 2012

			DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- TIGRE DEPOSIT- 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-12-000109
JBR-RC-12-000109	722021	794	5328	865	-60	30	110	NO SIGNIFICANT INTERSECTION
JBR-RC-12-000110								12.00	23.00	11.00	34.11	48.99	1.81	0.04
JBR-RC-12-000110								36.00	50.00	14.00	35.68	46.65	1.50	0.05
JBR-RC-12-000110	721998	794	5287	867	-60	30	50	Downhole composite		25.00	34.99	47.68	1.64	0.05
JBR-RC-12-000111
JBR-RC-12-000111	721975	794	5246	866	-60	30	50	NO SIGNIFICANT INTERSECTION
JBR-RC-12-000112								6.00	18.00	12.00	28.05	52.58	4.74	0.03
JBR-RC-12-000112	722102	794	5066	894	-60	30	50	Downhole composite		12.00	28.05	52.58	4.74	0.03
JBR-RC-12-000113								1.00	22.00	21.00	25.66	56.95	4.07	0.03
JBR-RC-12-000113	722076	794	5024	891	-60	30	30	Downhole composite		21.00	25.66	56.95	4.07	0.03
JBR-RC-12-000114								0.00 7.00		7.00	28.84	48.79	5.91	0.04
JBR-RC-12-000114								27.00	133.00	106.00	30.73	50.42	3.63	0.03
JBR-RC-12-000114	722153	794	5151	901	-60	30	140	Downhole composite		113.00	30.62	50.32	3.77	0.03
JBR-RC-12-000115
JBR-RC-12-000115	722179	794	5194	901	-60	30	30	NO SIGNIFICANT INTERSECTION
JBR-RC-12-000116								0.00	18.00	18.00	33.05	46.56	3.66	0.04
JBR-RC-12-000116	722127	794	5109	899	-60	30	30	Downhole composite		18.00	33.05	46.56	3.66	0.04
JBR-RC-12-000117 JBR-RC-12-000117 JBR-RC-12-000117								0.00 8.00 10.00 18.00 19.00 29.00		8.00 8.00 10.00	24.80 30.88 22.29	54.42 53.75 60.26	6.02 1.65 5.41	0.04 0.02 0.02
JBR-RC-12-000117	722050	794	4981	887	-60	30	45	Downhole composite		26.00	25.70	56.46	4.44	0.03
JBR-RC-12-000118								23.00	110.00	87.00	32.29	46.46	4.30	0.04
JBR-RC-12-000118	722321	794	5059	935	-60	40	110	Downhole composite		87.00	32.29	46.46	4.30	0.04
JBR-RC-12-000119 JBR-RC-12-000119								0.00 4.00 18.00 23.00		4.00 5.00	30.65 21.58	45.12 61.80	7.25 5.04	0.03 0.02
JBR-RC-12-000119	722345	794	5105	929	-60	40	40	Downhole composite		9.00	25.61	54.39	6.02	0.02
JBR-RC-12-000120								0.00	55.00	55.00	34.18	48.40	1.88	0.03
JBR-RC-12-000120	722520	794	4990	957	-60	30	55	Downhole composite		55.00	34.18	48.40	1.88	0.03
JBR-RC-12-000121 JBR-RC-12-000121 JBR-RC-12-000121								15.00 74.00 77.00 81.00 85.00 98.00		59.00 4.00 13.00	32.95 29.84 35.62	47.54 54.10 40.25	3.78 1.97 5.60	0.03 0.04 0.05
JBR-RC-12-000121	722488	794	4949	972	-70	35	100	Downhole composite		76.00	33.25	46.63	3.99	0.04
JBR-RC-12-000122 JBR-RC-12-000122 JBR-RC-12-000122 JBR-RC-12-000122								23.00 26.00 30.00 43.00 49.00 102.00 108.00 112.00		3.00 13.00 53.00 4.00	26.01 30.53 32.66 24.47	61.16 52.40 47.93 55.95	1.59 3.04 4.01 6.16	0.01 0.02 0.03 0.07
JBR-RC-12-000122	722588	794	4783	1013	-60	50	120	Downhole composite		73.00	31.56	49.71	3.85	0.03
JBR-RC-12-000123 JBR-RC-12-000123								0.00 16.00 24.00 57.00		16.00 33.00	32.39 39.60	46.82 38.90	4.77 2.94	0.02 0.05
JBR-RC-12-000123	722625	794	4816	1004	-60	50	90	Downhole composite		49.00	37.25	41.49	3.54	0.04
JBR-RC-12-000135								25.00 30.00		5.00	26.98	54.42	4.84	0.03
JBR-RC-12-000135	721939	794	5181	864	-60	30	45	Downhole composite		5.00	26.98	54.42	4.84	0.03
JBR-RC-12-000136								0.00 22.00		22.00	38.76	39.74	3.19	0.03
JBR-RC-12-000136	722760	794	4589	1008	-60	60	50	Downhole composite		22.00	38.76	39.74	3.19	0.03
JBR-RC-12-000137 JBR-RC-12-000137								0.00 3.00 15.00 60.00		3.00 45.00	21.77 35.55	56.82 45.35	8.15 2.78	0.04 0.04
JBR-RC-12-000137	722690	794	4560	984	-60	60	75	Downhole composite		48.00	34.69	46.06	3.12	0.04
JBR-RC-12-000138								0.00 38.00		38.00	36.86	42.57	3.53	0.02
JBR-RC-12-000138	722795	794	4463	987	-60	60	50	Downhole composite		38.00	36.86	42.57	3.53	0.02
JBR-RC-12-000140 JBR-RC-12-000140 JBR-RC-12-000140								0.00 3.00 7.00 37.00 43.00 50.00		3.00 30.00 7.00	31.04 38.52 24.36	50.30 40.56 60.55	3.47 2.56 3.63	0.08 0.04 0.01
JBR-RC-12-000140	722751	794	4441	962	-60	60	60	Downhole composite		40.00	35.48	44.79	2.81	0.04

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& MEDIA RELEASE

Appendix B – Jambreiro Iron Ore Project – Cruzeiro Deposit - New RC Hole Results – April 2012

			DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC	DOWN-HOLE INTERSECTIONS- CRUZEIRO DEPOSIT- JAMBREIRO- RC
Hole ID	SAD East	SA	**D North **	mRL	Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width(m)	Fe%	SiO2%	Al2O3%	P%
JBR-RC-12-000124 JBR-RC-12-000124								0.00 16.00 24.00 27.00		16.00 3.00	34.58 30.55	48.55 51.98	1.50 3.07	0.02 0.04
JBR-RC-12-000124	723056	79	44903	964	-80	70	40	Downhole composite		19.00	33.95	49.09	1.75	0.02
JBR-RC-12-000125 JBR-RC-12-000125								6.00 30.00 34.00 49.00		24.00 15.00	33.31 29.92	43.82 52.59	5.06 2.96	0.07 0.04
JBR-RC-12-000125	723010	79	44885	952	-80	70	65	Downhole composite		39.00	32.01	47.19	4.25	0.06
JBR-RC-12-000126 JBR-RC-12-000126								0.00 22.00 36.00 40.00		22.00 4.00	32.73 20.77	51.23 35.00	1.54 21.72	0.01 0.10
JBR-RC-12-000126	723017	79	45027	951	-60	75	50	Downhole composite		26.00	30.89	48.73	4.65	0.03
JBR-RC-12-000127								0.00 30.00		30.00	33.92	48.35	2.31	0.02
JBR-RC-12-000127	722969	79	45016	945	-60	75	50	Downhole composite		30.00	33.92	48.35	2.31	0.02
JBR-RC-12-000128 JBR-RC-12-000128								4.00 31.00 39.00 44.00		27.00 5.00	36.00 24.24	42.66 52.25	3.34 5.29	0.03 0.03
JBR-RC-12-000128	722918	79	45004	927	-60	75	65	Downhole composite		32.00	34.16	44.15	3.65	0.03
JBR-RC-12-000129
JBR-RC-12-000129	723018	79	45165	927	-60	75	20	NO SIGNIFICANT INTERSECTION
JBR-RC-12-000130								0.00 6.00		6.00	28.55	55.58	2.58	0.02
JBR-RC-12-000130	722970	79	45151	923	-60	75	30	Downhole composite		6.00	28.55	55.58	2.58	0.02
JBR-RC-12-000131								0.00 15.00		15.00	31.33	52.53	1.93	0.03
JBR-RC-12-000131	722920	79	45137	915	-60	75	45	Downhole composite		15.00	31.33	52.53	1.93	0.03
JBR-RC-12-000132								8.00 21.00		13.00	31.25	53.28	1.40	0.02
JBR-RC-12-000132	722872	79	45123	901	-60	75	35	Downhole composite		13.00	31.25	53.28	1.40	0.02
JBR-RC-12-000133
JBR-RC-12-000133	722936	79	45266	890	-90	0	13	NO SIGNIFICANT INTERSECTION
JBR-RC-12-000134
JBR-RC-12-000134	722890	79	45252	883	-90	0	15	NO SIGNIFICANT INTERSECTION

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

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