CENTAURUS METALS LIMITED — Capital/Financing Update 2014

Aug 25, 2014

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26 August 2014

CANDONGA RESOURCE UPDATE ON TRACK FOLLOWING MORE HIGH-GRADE DIAMOND DRILLING RESULTS

Exploration drilling expanded to include nearby high priority targets

Key Points

• Additional high grade results received from current diamond drilling program: best intersections include 15.1m @ 62.1% Fe, 14.6m @ 61.4% Fe and 9.1m @ 66.8% Fe.

• JORC 2012 Mineral Resource Estimate update on track for completion by the end of August 2014.

• Diamond drilling continuing on high priority exploration targets located close to the existing Mineral Resource which offer potential upside for the Candonga Project.

• Feasibility Study on DSO operation well underway and scheduled for completion by September 2014: production targeted to commence in Q1 2015.

International iron ore company Centaurus Metals Ltd (ASX Code: CTM ) is pleased to report further high-grade results from the second batch of assays received from recent diamond drilling at its 100%-owned Candonga Iron Ore Project in south-east Brazil (Figure 1), with the results to be incorporated into the impending JORC 2012 Mineral Resource update for the project.

Diamond drilling has now been extended to test some neighbouring high priority exploration targets located along strike from the existing high-grade Mineral Resource.

The results from the current batch of assays will enable the Company to finalize the updated Mineral Resource Estimate by the end of August 2014. This updated Mineral Resource will, in turn, underpin the Candonga DSO Feasibility Study which is scheduled for completion by the end of September 2014.

The Feasibility Study will enable Centaurus to make an investment decision on the Candonga Project in Q4 2014 with first production targeted to commence in Q1 2015.

The second batch of assays relate to eight drill holes from the recent resource drill-out program that targeted the limits of the mineralisation to close off sections. Highlights of the results include the following continuous intersections (see Figure 2 for drill-hole locations and Table 2 for a full list of the current drill results):

• 15.1m @ 62.1% Fe, 9.6 SiO2, 0.9% Al2O3 and 0.02% P in drill hole CDG-DD-14-00016 from 3.3m;

• 14.6m @ 61.4% Fe, 11.1 SiO2, 0.6% Al2O3 and 0.03% P in drill hole CDG-DD-14-00014 from 3.0m ;

• 9.1m @ 66.8% Fe, 1.9 SiO2, 1.3% Al2O3 and 0.01% P in drill hole CDG-DD-14-00017 from 2.0m;

• 8.0m @ 63.8% Fe, 6.0 SiO2, 0.9% Al2O3 and 0.03% P in drill hole CDG-DD-14-00013 from 7.2m ;

• 6.0m @ 61.5% Fe, 5.1 SiO2, 4.0% Al2O3 and 0.03% P in drill hole CDG-DD-14-00018 from surface;

• 4.8m @ 63.1% Fe, 4.1 SiO2, 2.3% Al2O3 and 0.04% P in drill hole CDG-DD-14-00011 from 6.9m; and

• 4.1m @ 67.4% Fe, 1.5 SiO2, 0.8% Al2O3 and 0.01% P in drill hole CDG-DD-14-00015 from 4.8m;

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Previous high grade results[1] that will be included in the updated Mineral Resource Estimate include the following continuous intersections (see Figure 2 for drill-hole locations):

• 24.6m @ 64.4% Fe, 5.5 SiO2, 1.2% Al2O3 and 0.03% P in drill hole CDG-DD-14-00007 from surface;

• 20.3m @ 62.3% Fe, 8.8 SiO2, 1.0% Al2O3 and 0.03% P in drill hole CDG-DD-14-00009 from 13.0m ;

• 20.0m @ 66.0% Fe, 4.1 SiO2, 0.5% Al2O3 and 0.04% P in drill hole CDG-DD-14-00006 from 9.3m ;

• 16.4m @ 62.0% Fe, 6.4 SiO2, 2.9% Al2O3 and 0.02% P in drill hole CDG-DD-14-00003 from surface;

• 15.5m @ 62.7% Fe, 4.9 SiO2, 3.1% Al2O3 and 0.03% P in drill hole CDG-DD-14-00010 from surface;

The diamond drill program at Candonga has confirmed the presence of a near-surface, generally flat lying lens of high grade itabirite within a broader zone of friable Itabirite mineralisation that extends up to 30m from surface.

The high grade mineralisation sits immediately below a zone of mineralised colluvium that varies between a depth of 1m and 6m (See Figures 3 and 4).

The current Indicated and Inferred Mineral Resource Estimate stands at 11.9Mt grading 43.0% Fe[2] , which includes 0.9Mt of high grade mineralisation grading 58.6% Fe with low impurities (see Table 1 for a full breakdown of the 2013 Mineral Resource Estimate). The new resource will focus on the high grade mineralisation portion of the global resource.

The geological database and interpretations have been validated and passed on to the Company’s independent resource geologist, BNA Micromine, with the new Mineral Resource Estimate expected to be completed by the end of August.

The Company has recently expanded its drilling program to test a number of high priority near-mine targets directly along strike from the current Mineral Resource. Results from this exploration drilling are expected in the next 2-3 weeks.

Size Classification Test Work

As reported recently, product sizing classification results received to date from diamond drilling samples have demonstrated that the high grade itabirite mineralisation at Candonga delivers 20-25% as a Lump product (+6.3mm) with an average iron grade of 65.7% Fe[3] using a simple dry screening process.

The remaining DSO material is classified as a Sinter Feed product (-6.3mm) with an average iron grade of 65.5% Fe, and with approximately 60% of the Sinter Feed product having a physical sizing of +1mm.

Full results from the current product sizing classification test work program are expected over the next few weeks.

Centaurus’ Managing Director, Mr Darren Gordon, said the Candonga Project was advancing rapidly with the JORC 2012 Mineral Resource Estimate update on track for completion by the end of August, underpinning the recently commenced Feasibility Study.

1 Refer to ASX announcement on 11 August 2014 for full details of the Candonga Diamond Drilling Results.

2 Refer to ASX announcement on 8 August 2013 for full details of the Resource estimate. This Resource Estimate has not been updated to comply with the JORC Code 212 on the basis that the information has not materially changed since last report.

3 Refer to ASX announcement on 18 August 2014 for full details of the classification test work.

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“Once we have finalised the new resource on the high grade Candonga mineralisation, we will start work immediately on mine planning and calculation of an Ore Reserve estimate,” he said. “We have already had five mining contractors on site and we expect to tie down the estimated mining costs over the next couple of weeks.

“All going well, the Feasibility Study will be delivered by the end of September allowing a Final Investment decision to be made in Q4 2014 once the requisite approvals and licences have been secured,” Mr Gordon continued.

“We still have a rig on site and we have taken advantage of this to test some interesting high priority targets located directly along strike from the current resource base.

“If this drilling is successful, we may be able to expand the DSO resource base and therefore extend the life of the Candonga operation,” he said.

-ENDS-

Released by: Nicholas Read Read Corporate M: +61 419 929 046

On behalf of: Darren Gordon Managing Director Centaurus Metals Limited T: +618 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 Micromine Consultoria 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 2012 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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Figure 1 – Candonga Project Location Map

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Figure 2 – Candonga Project Map – Drill Results with Analytical Signal Image– August 2014

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Figure 3 – Candonga Iron Ore Project – Schematic Cross Section 3

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Figure 4 – Candonga Iron Ore Project – Schematic Cross Section 5

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Table 1 – Candonga Project Mineral Resource Estimate – August 2013

Material	JORC Category	Million Tonnes	Fe %	SiO2 %	Al2O3 %	P %	LOI %
High Grade Itabirite	Indicated	0.7	58.4	11.9	2.5	0.03	0.9
	Inferred	0.2	59.7	10.3	2.2	0.03	0.7
	TOTAL	0.9	58.6	11.6	2.4	0.03	0.9
Friable Itabirite	Indicated	3.0	42.3	29.7	4.1	0.09	3.1
	Inferred	5.2	42.2	30.2	4.3	0.07	3.1
	TOTAL	8.2	42.2	30.0	4.2	0.08	3.1
Compact Itabirite	Indicated	-	-	-	-	-	-
	Inferred	2.8	40.1	31.3	4.5	0.08	3.3
	TOTAL	2.8	40.1	31.3	4.5	0.08	3.3
Grand Total	Indicated	3.7	45.5	26.2	3.8	0.08	2.7
	Inferred	8.2	41.8	30.2	4.4	0.08	3.1
	TOTAL	11.9	43.0	29.0	4.2	0.08	3.0
						20% Fe Cut-off

Table 2 – Candonga Project New Diamond Drill Results – August 2014

Hole ID	SAD69 East	SAD69 North	mRL	Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width (m)	Rock Type	Fe%	SiO2%	Al2O3%	P%	LOI%
CDG-DD-14-000011 CDG-DD-14-000011							1.8 6.9	6.9 11.7	5.2 4.8	Friable Itabirite High Grade Itabirite	48.5 63.1	24.0 4.1	1.7 2.3	0.11 0.04	3.85 0.71
CDG-DD-14-000011	722073	7912386	866	-70	210	11.7	Downhole composite		9.9		55.5	14.4	2.0	0.08	2.34
CDG-DD-14-000012 CDG-DD-14-000012							0.0 18.5	4.1 36.3	4.1 17.8	Ferruginous Colluvium Friable Itabirite	57.1 50.9	8.6 24.3	5.6 1.0	0.05 0.04	2.03 -0.02
CDG-DD-14-000012	722155	7912340	895	-60	210	40.8	Downhole composite		21.8		52.0	21.4	1.9	0.04	0.36
CDG-DD-14-000013 CDG-DD-14-000013 CDG-DD-14-000013							2.9 7.2 15.2	7.2 15.2 27.9	4.4 8.0 12.7	Friable Itabirite High Grade Itabirite Friable Itabirite	44.0 63.8 45.2	29.7 6.0 29.1	1.9 0.9 3.3	0.10 0.03 0.04	0.30 0.16 0.24
CDG-DD-14-000013	722082	7912386	866	-90	210	34.7	Downhole composite		25.1		50.9	21.8	2.3	0.05	0.22
CDG-DD-14-000014 CDG-DD-14-000014							0.0 3.0	3.0 17.6	3.0 14.6	Ferruginous Colluvium High Grade Itabirite	51.0 61.4	18.3 11.1	3.5 0.6	0.08 0.03	4.87 0.06
CDG-DD-14-000014	722056	7912352	866	-70	210	24.6	Downhole composite		17.6		59.6	12.3	1.1	0.04	0.88
CDG-DD-14-000015 CDG-DD-14-000015							0.0 4.8	4.8 8.9	4.8 4.1	Ferruginous Colluvium High Grade Itabirite	53.1 67.4	21.8 1.5	1.7 0.8	0.01 0.01	0.44 -1.47
CDG-DD-14-000015	722227	7912229	915	-60	210	14.9	Downhole composite		8.9		59.7	12.5	1.3	0.01	-0.44
CDG-DD-14-000016 CDG-DD-14-000016							0.0 3.3	3.3 18.4	3.3 15.1	Ferruginous Colluvium High Grade Itabirite	49.6 62.1	17.8 9.6	6.9 0.9	0.03 0.02	3.55 -0.06
CDG-DD-14-000016	722165	7912257	909	-90	210	26.4	Downhole composite		18.4		59.9	11.1	2.0	0.02	0.59
CDG-DD-14-000017							2.0	11.1	9.1	High Grade Itabirite	66.8	1.9	1.3	0.01	-1.00
CDG-DD-14-000017	722197	7912230	916	-60	210	17.1	Downhole composite		9.1		66.8	1.9	1.3	0.01	-1.00
CDG-DD-14-000018							0.0	6.0	6.0	Ferruginous Colluvium	61.5	5.1	4.0	0.03	1.12
CDG-DD-14-000018	722107	7912260	899	-90	210	14.4	Downhole composite		6.0		61.5	5.1	4.0	0.03	1.12

Intervals calculated using 20% Fe cut-off with 3m minimum mining width; All samples analysed using XRF fusion method with LOI at 1000 °C

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Table 3 – Historical Candonga Project Drill Results

Hole ID	SAD69 East	SAD69 North	mRL	Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width(m)	Fe%	SiO2%	Al2O3%	P%	LOI%
CDG-DD-10-00001 CDG-DD-10-00001 CDG-RC-10-00002 CDG-RC-10-00002 CDG-RC-10-00003 CDG-RC-13-00001 CDG-RC-13-00001 CDG-RC-13-00002 CDG-RC-13-00003 CDG-RC-13-00004 CDG-RC-13-00004 CDG-RC-13-00004 CDG-RC-13-00005 CDG-RC-13-00006 CDG-RC-13-00007 CDG-RC-13-00008 CDG-RC-13-00008 CDG-RC-13-00009 CDG-RC-13-00009 CDG-RC-13-00010 CDG-RC-13-00010 CDG-RC-13-00011 CDG-RC-13-00012 CDG-RC-13-00013 CDG-RC-13-00013 CDG-RC-13-00015 CDG-RC-13-00015 CDG-RC-13-00017 CDG-RC-13-00017 CDG-RC-13-00018 CDG-RC-13-00020 CDG-RC-13-00021 CDG-RC-13-00022 CDG-RC-13-00024 CDG-DD-14-00002 CDG-DD-14-00002 CDG-DD-14-00002 CDG-DD-14-00003 CDG-DD-14-00003 CDG-DD-14-00004 CDG-DD-14-00004 CDG-DD-14-00006 CDG-DD-14-00006 CDG-DD-14-00006 CDG-DD-14-00007 CDG-DD-14-00007 CDG-DD-14-00008 CDG-DD-14-00008 CDG-DD-14-00008 CDG-DD-14-00009 CDG-DD-14-00009 CDG-DD-14-00009 CDG-DD-14-00009 CDG-DD-14-00010 CDG-DD-14-00010	721685 721685 722155 722155 721715 721712 721712 721744 721810 721828 721828 721828 721929 721872 722012 722062 722062 722136 722136 722178 722178 722241 721580 722266 722266 722619 722619 722764 722764 722744 722821 722999 723066 723030 722202 722202 722202 722143 722143 722171 722171 722088 722088 722088 722131 722131 722074 722074 722074 722102 722102 722102 722102 722113 722113	7912380 7912380 7912234 7912234 7912380 7912332 7912332 7912438 7912312 7912376 7912376 7912376 7912416 7912329 7912261 7912374 7912374 7912216 7912216 7912286 7912286 7912200 7912429 7912237 7912237 7911913 7911913 7911797 7911797 7911737 7911698 7911546 7911632 7911280 7912260 7912260 7912260 7912278 7912278 7912325 7912325 7912344 7912344 7912344 7912313 7912313 7912319 7912319 7912319 7912368 7912368 7912368 7912368 7912286 7912286	854 854 909 909 859 855 855 857 867 874 874 874 886 874 850 861 861 898 898 901 901 909 817 905 905 962 962 962 962 936 929 930 914 886 910 910 910 903 903 899 899 880 880 880 896 896 878 878 878 877 877 877 877 897 897	60 60 -60 -60 -60 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -90 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -60 -90 -90 -90 -60 -60 -60 -60 -70 -70	90 90 30 30 90 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210 210	88.5 88.5 80.0 80.0 53.0 95.0 95.0 80.0 80.0 52.0 52.0 52.0 65.0 58.0 58.0 60.0 60.0 75.0 75.0 60.0 60.0 70.0 60.0 57.0 57.0 67.0 67.0 53.0 53.0 51.0 40.0 50.0 55.0 52.0 35.4 35.4 35.4 40.2 40.2 34.0 34.0 36.4 36.4 36.4 43.0 43.0 25.1 25.1 25.1 40.9 40.9 40.9 40.9 25.1 25.1	3.0 60.0 60.0 88.5 1.0 13.0 0.0 53.0 0.0 5.0 24.0 27.0 0.0 12.0 0.0 58.0 0.0 11.0 14.0 29.0 37.0 42.0 26.0 45.0 0.0 14.0 30.0 54.0 0.0 37.0 0.0 7.0 34.0 56.0 0.0 25.0 0.0 5.0 1.0 27.0 0.0 4.0 4.0 13.0 44.0 56.0 56.0 60.0 0.0 4.0 7.0 25.0 0.0 23.0 0.0 27.0 0.0 4.0 6.0 16.0 0.0 32.0 1.2 8.0 8.0 16.2 16.2 19.4 0.0 6.5 6.5 16.4 0.0 4.7 4.7 10.3 0.0 4.2 4.2 9.3 9.3 29.3 0.0 4.4 10.6 35.1 0.0 4.9 6.1 9.7 9.7 19.2 0.0 6.1 7.0 10.4 13.0 30.0 30.0 33.3 0.0 3.5 3.5 15.5 includes from 13.0m includes from 4.0m includes from 1.0m		57.0 28.7 12.0 10.0 53.0 5.0 3.0 12.0 58.0 11.0 15.0 5.0 19.0 14.0 24.0 37.0 22.0 7.0 22.0 25.0 6.0 5.0 26.0 4.0 9.0 12.0 4.0 4.0 18.0 23.0 27.0 4.0 10.0 32.0 6.8 8.2 3.2 6.5 9.9 4.7 5.6 4.2 5.1 20.0 4.4 24.6 4.9 3.6 9.5 6.1 3.4 17.0 3.3 3.5 12.0	40.0 32.3 60.6 64.2 45.6 36.3 32.1 42.0 45.6 37.4 41.7 22.8 43.9 43.9 37.5 56.5 63.4 32.0 39.4 45.9 62.0 41.1 45.3 48.9 47.3 45.3 29.5 34.7 46.9 39.4 38.6 33.6 37.9 48.4 67.2 46.0 63.3 55.9 65.9 57.8 52.9 44.7 50.6 66.0 57.1 64.4 56.7 49.8 65.5 41.6 63.7 64.2 52.3 59.6 63.7	35.7 44.2 5.6 3.4 27.6 27.9 26.3 22.4 27.4 34.2 27.8 29.7 28.4 25.3 39.5 14.2 7.7 27.5 34.5 21.4 8.4 25.4 13.4 18.2 28.5 31.9 42.0 38.1 28.9 31.9 38.1 35.9 31.8 25.5 2.1 28.3 5.6 12.7 2.3 13.3 21.7 22.4 26.0 4.1 10.0 5.5 13.0 27.1 4.3 24.8 6.4 6.0 23.0 6.6 4.4	1.1 0.7 4.2 2.3 1.5 11.6 14.6 8.5 2.6 7.4 6.6 22.4 4.1 6.0 1.7 2.0 0.6 15.2 3.5 7.7 1.8 8.5 8.6 7.6 2.5 1.3 1.0 7.6 0.8 5.0 1.3 10.5 8.0 1.4 0.7 3.7 1.2 4.7 1.8 2.5 1.5 6.5 0.8 0.5 4.5 1.2 3.4 1.1 0.9 8.8 1.3 1.0 1.2 4.7 2.6	0.07 0.04 0.02 0.02 0.12 0.09 0.07 0.07 0.11 0.04 0.10 0.21 0.13 0.09 0.10 0.06 0.03 0.23 0.10 0.10 0.02 0.19 0.03 0.04 0.04 0.07 0.07 0.05 0.05 0.09 0.05 0.03 0.06 0.08 0.02 0.02 0.04 0.03 0.02 0.02 0.04 0.11 0.03 0.04 0.03 0.03 0.03 0.02 0.03 0.04 0.04 0.03 0.03 0.05 0.02	1.95 1.89 0.11 -0.79 4.38 8.32 7.35 5.47 4.08 4.45 3.80 10.47 3.75 4.73 0.01 1.85 0.45 7.96 2.93 3.38 0.06 5.03 6.89 0.27 0.21 0.21 0.09 0.48 0.25 2.55 1.09 0.58 1.36 2.21 0.14 1.41 -0.74 2.19 0.47 1.05 0.62 5.04 0.37 -0.10 1.57 0.30 1.47 0.66 -0.02 4.56 0.38 -0.09 0.33 2.74 0.60

Intervals calculated using 20% Fe cut-off with 3m minimum mining width; All samples analysed using XRF fusion method with LOI at 1000 °C

Table 4 – Historical Candonga Project Trench Results

Hole ID	SAD69 East	SAD69 North	mRL	Dip	Azi	Final Depth(m)	From (m)	To (m)	Downhole width(m)	Fe%	SiO2%	Al2O3%	P%	LOI%
CDG-TR-11-00001 CDG-TR-11-00002 CDG-TR-11-00003 CDG-TR-11-00004 CDG-TR-11-00004 CDG-TR-11-00005 CDG-TR-11-00006 CDG-TR-11-00006 CDG-TR-13-00007 CDG-TR-13-00007 CDG-TR-13-00008 CDG-TR-13-00009 CDG-TR-13-00009	721733 722139 723033 722220 722220 722401 722108 722108 722212 722212 722168 722091 722091	7912379 7912327 7911435 7912228 7912228 7912424 7912252 7912252 7912249 7912249 7912307 7912313 7912313	861 889 884 913 913 893 898 898 919 919 900 885 885	-9 -5 -11 12 12 0 3 3 9 9 2 -3 -3	250 30 30 260 260 75 65 65 210 210 220 200 200	36.0 30.0 40.0 42.0 42.0 20.0 88.0 88.0 70.0 70.0 86.0 26.0 26.0	0.0 36.0 0.0 30.0 2.0 40.0 0.0 42.0 0.0 20.0 0.0 88.0 0.0 70.0 0.0 86.0 0.0 26.0 includes from 14.0m includes from 16.0m includes from 0.0m includes from 0.0m		36.0 30.0 38.0 42.0 12.0 20.0 88.0 22.0 70.0 52.0 86.0 26.0 12.0	46.6 57.6 39.5 52.2 62.3 40.5 55.8 61.5 64.0 65.6 62.0 57.6 60.2	24.7 10.3 29.3 17.1 7.5 31.5 12.5 5.1 5.1 3.6 6.4 8.7 4.5	4.0 4.1 6.8 4.5 1.6 5.7 4.2 3.6 1.9 1.3 3.0 4.7 5.1	0.08 0.03 0.08 0.04 0.02 0.03 0.03 0.03 0.02 0.02 0.03 0.05 0.04	3.35 1.60 5.17 1.83 -0.58 3.40 1.85 0.77 0.11 -0.23 1.00 3.22 3.04

Intervals calculated using 20% Fe cut-off with 3m minimum mining width; All samples analysed using XRF fusion method with LOI at 1000 °C

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APPENDIX A – TECHNICAL DETAILS OF THE CANDONGA PROJECT, JORC CODE, 2012 EDITION – TABLE 1

SECTION 1 SAMPLING TECHNIQUES AND DATA

Criteria	Commentary
Sampling	• All trenches in the 2013 program were cut down to 2.2m. Continuous cut channels were sampled
techniques	on 2m intervals or to lithological contacts. The 3-5kg samples were split and pulverised to ±50g
	samples for XRF and titration analysis.
	• RC samples were taken at 1m intervals from which 3-5kg samples were split, prepared and analysed
	as above.
	• Diamond samples were taken at maximum 1.3m intervals or to lithological contacts no less than
	0.3m from which ¼ core (3-5kg) was sampled, prepared and analysed as above.
	• The Candonga Project has a regular drill hole spacing of around 40mx25m over the high grade
	itabirite zone, drilling on the other areas is irregular.
	• Field duplicate samples were taken at a set frequency of one every 20 samples (5% of total
	samples) from the splitter to monitor sample representivity.
	• All of the data used for the resource estimation is based on the logging and sampling of historical
	trenches, RC and diamond core drilling and excludes results from the 2014 DD program and the
	2013 trench program which will be included in the forthcoming resource up date.
	• Classification testwork samples from drill core were continuous with the minimum sample interval
	being 1.0m. A ¼ core sample was taken, minimum sample weight was 3.5kg with maximum sample
	weight being 25kg. All sample intervals are described in ASX announcement dated 18/08/14.
	• For classification bulk samples a small excavator was used to target samples of specific lithologies
	(in situ itabirite and mineralised colluvium). Sample weights were between 250-270kg
Drilling	• Historically two diamond holes (HQ) were drilled by Cenibra for a total of 95m in 2007.
techniques	• Centaurus completed 1 diamond drill hole (HQ) for a total of 88m in 2010.
	• RC drilling employed a 5.5” face hammer. Centaurus completed 26 RC holes (5.5”) for a total of
	1,603m in 2010 and 2013.
	• At the date of this announcement Centaurus completed 23 diamond drill holes (HQ) for a total of
	686 of the current program. 6 drill holes have assays pending.
	• Hole depths range from 20 to 95m.
Drill sample	• For diamond drilling, core recoveries were logged and recorded in the database for all Centaurus
recovery	diamond holes. Overall recoveries are >85% and there are no core loss issues or significant sample
	recovery problems.
	• For RC drilling geologists or field assistants recorded sample weights and calculated sample
	recovery during drilling. No significant issues were detected.
	• To ensure adequate sample recovery and representivity a Centaurus geologist or field technician
	was present during drilling and monitored the sampling process.
	• No relationship between sample recovery and grade has been demonstrated. No bias to material
	size has been demonstrated.
Logging	• All trenches and drill holes have been logged geologically and geotechnically to a level of detail
	appropriate to support the Mineral Resource estimate as well as metallurgical and mining study
	support for iron ore.
	• Logging for both forms of drilling is qualitative and quantitative in nature.
	• All Centaurus trenches, RC chip trays and diamond core have been photographed. Historical drilling
	was not photographed.
	• The total length of drilling to the date of this announcement is 2,472m, 100% has been logged. The
	total length of trenches is 438m, 100% has been logged.

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Criteria	Commentary
Sub-sampling	• Diamond Core (HQ) was cut with a specialized sampling tool where friable or using a core saw
techniques	where compact. A quarter core was sampled.
and sample	• RC samples were collected on 1m down hole intervals reduced using a 3-tier riffle splitter reducing
preparation	the sample size to 3-5kg. Sample weight/split analysis shows that on average a 12.5% split ratio was
	achieved.
	• The majority of mineralised samples from RC drilling were dry.
	• All samples were received and prepared by ALS, SGS or Intertek Labs in Belo Horizonte, Brazil as 3-
	5kg samples. They were dried at 105°C until the sample was completely dry (6-12hrs), crushed to
	90% passing 2mm and reduced to 500g via a Jones riffle splitter. The 500g samples were pulverised
	to 95% passing 104µm and split further to 50g aliquots for chemical analysis.
	• Field control sample insertion included field duplicates taken every 25 samples. Results from the
	duplicate samples show the data has an acceptable precision, indicating that the sampling
	technique is appropriate for the deposit.
	• The sample size is considered to be appropriate to correctly represent the mineralisation as well as
	the thickness and consistency of the mineralised intersections.
	• Classification samples for the Candonga DSO Project have been taken from the first 17 holes of the
	2014 diamond program. This announcement refers to samples taken from the first 9 holes, assays
	are pending from the final 8 holes. The remaining drill holes are part of an exploration program.
	• All metallurgical samples were received and prepared at the Centaurus SPF. The samples were
	received naturally dry. After homogenization the sample was crushed to -32mm and water was
	added to simulate 4% and 7% natural moisture.
	• Dry sieve analysis was completed using a screening plant for the following size fractions: -31.5mm, -
	19.0mm and, -6.3mm.
	• The product samples were split to 1kg then pulverised and split further to a 100g aliquots that were
	sent to SGS Geosol for chemical analysis.
Quality of	• All chemical analysis was completed at ALS, SGS or Intertek Labs. Laboratory duplicates were
assay data and	completed every 10-20 samples and standards were completed every 20-25 samples dependent on
laboratory	the laboratory.
tests	• Laboratory control sample insertion included blank samples at the start of every new hole then
	every 50 samples. Standard samples (CRMs from Geostats Australia) are inserted every 20 samples.
	A number of different standards at a range of grades are used to monitor analytical precision of the
	assay results. Field duplicates were inserted every 25 samples.
	• Metal Oxide is determined using XRF analysis. Analysis at ALS was for a 24 element suite while at
	Intertek analysis was for 11 elements. FeO is determined using Titration and LOI using Loss
	Determination by Thermogravimetric analysis.
	• Laboratory procedures are in line with industry standards and are appropriate for iron ore.
	• Acceptable levels of precision have been achieved with all standard assays reporting within 2
	standard deviations of the certified mean grade for the main elements of interest.
	• The ALS, SGS and Intertek labs insert their own standards at set frequencies and monitor the
	precision of the XRF analysis. These results also reported well within the specified 2 standard
	deviations of the mean grades for all main elements. Additionally the labs performed repeat
	analyses of sample pulps at a rate of 1:20 (5% of all samples). These compare very closely with the
	original analysis for all elements.
	• Analysis of field duplicates and lab pulp duplicates have returned an average correlation coefficient
	of over 0.96 confirming that the precision of the samples is within acceptable limits.
	• Centaurus sends a selection of pulps to umpire laboratories (Acme and ALS) for independent
	verification. To date comparison of results between laboratories did not reveal any issues and
	analytical precision was considered acceptable.
	• Centaurus QAQC procedures and results are to industry standard and are of acceptable quality.

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Criteria	Commentary
Verification of	• All significant intersections are verified by alternative Company personnel before release. As part of
sampling and	Resource estimation processes, drill hole data was independently reviewed by BNA Micromine.
assaying	• No twin holes have been completed to date.
	• All primary data is stored in the Centaurus Exploration office (Guanhães, Brazil). All data is entered
	into a Micromine Geobank database which is administrated by a Database Geologist.
	• No adjustments were made to the assay data apart from resetting the below detection level values
	to half of the detection limit.
Location of	• The survey grid system used is SAD-69 23S. This is in line with Brazilian Mines Department
data points	requirements. All survey collars and trenches were surveyed using a Total Station. There were no
	down hole surveys completed.
	• Complete topographical survey pickup of the area was done using a Total Station with pickup
	completed on 10x10m spacing.
	• Drill holes reported in this announcement were surveyed using hand held GPS. Final survey-pick up
	is planned for late August.
Data spacing	• Drill sections run perpendicular to the high grade itabirite mineralisation at spacing between 30-
and	40m. Drill spacing way from the High Grade zone is irregular. Drill holes on section are generally 25-
distribution	30m apart. Due to local topographical constraints the spacing is sometimes not achievable.
	• The data spacing and distribution is considered adequate to establish the degree of geological and
	grade continuity appropriate for the Mineral Resource estimation and classifications applied under
	the JORC 2012 code.
	• No sample compositing has been applied.
Orientation of	• The orientation of the mineralisation is understood and drill holes were designed to intersect the
data in	mineralisation at an appropriate angle. This is demonstrated in the geological cross-sections (see
relation to	Figures 3-4).
geological	• All significant intersections have been reported as downhole widths and not true widths.
structure	• The trenches by nature are oblique to the mineralisation angle and as a result return accentuated
	mineralised interval.
	• No drilling orientation and sampling bias has been recognized at this time and is not considered to
	have introduced a sampling bias.
Sample	• All samples are placed in pre-numbered plastic samples bags and then a sample ticket is placed
security	within the bag as a check. Bags are sealed and placed in larger bags (10 samples per bag) and then
	transported by courier to ALS or Intertek labs in Belo Horizonte. Sample request forms are sent with
	the samples and via email to the labs. Samples are checked at the lab and a work order is generated
	by the lab which is checked against the sample request.
	• All remnant diamond core, RC chip trays, sample rejects and pulps are stored at the Guanhães
	technical office.
Audits or	• As part of the previous Resource estimation process drill hole data was independently reviewed by
reviews	Volodymyr Myadzel the BNA Micromine Senior Resource Geologist and project Competent Person.
	The report finds the sample techniques and data collection and management to be in line with
	current industry standards.

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SECTION 2 REPORTING OF EXPLORATION RESULTS

Criteria	Commentary
Mineral	• The Candonga Project tenement (DNPM 831.629/2004) is 100% owned by Centaurus.
tenement and	• The tenement is part of the Cenibra-Centaurus Agreement. Centaurus will pay a vendor royalty of
land tenure	0.85% of gross revenue on any product sold from the tenement.
status	• All mining projects in Brazil are subject to the CFEM royalty, a government royalty of 2% of revenue
	(less taxes and logistics costs).
	• Landowner royalty is 50% of CFEM royalty.
	• The project is not located within national or state wilderness or historical parks.
	• The Final Exploration Report was submitted on 27 November 2013. An application for a Trial Mining
	License was submitted on 11 April 2014. The licence allows for the mining and dry processing of
	300ktpa of ROM per license.
Exploration	• Cenibra conducted geological mapping and a small diamond drill program in 2007 to satisfy
done by other	Brazilian Mine Department requirements.
parties
Geology	• The Candonga Project is located within the Guanhães Group (Lower Proterozoic) of the Mantiqueira
	Complex. The region is dominated by structurally complex meta-volcanic and meta-sedimentary
	sequences with duplex fault systems and folding ranging from micro folding in outcrop to large
	scale regional deformation.
	• The Itabirite units are part of an iron formation including ferruginous quartzites, quartz mica schists
	and amphibolites within a metasedimentry sequence. This sequence is emplaced in regional
	gneissic basement.
	• The Itabirite mineralisation comprises concentrations of medium - coarse grained friable and
	compact material that have undergone iron enrichment. The mineralisation is composed of quartz,
	hematite, magnetite, goethite, limonite, with minor amphibole (Grunerite), Mica (muscovite) and
	clay minerals.
	• Itabirite thicknesses vary from 5m to up to 40m generally dipping 30-55° to the N-NE. The
	combined strike length of the mapped mineralisation is around 1,500m. Itabirite has been
	intersected at depths up to 88m with friable itabirite intersected up to 60m.
	• There are localised occurrences of high grade itabirite or magnetite lenses (up to 30m thick)
	associated with hydrothermal enrichment along fold axis and fault planes.
Drill hole	• At the date of announcement a total of 52 holes for 2,472m have been completed on the Candonga
Information	Project including 26 diamond holes for a total of 869m and 26 RC holes for a total of 1,603m. From
	the current drilling 17 holes have been announced and 6 holes have assays pending.
	• Refer to Table 2 for full list of significant intersection and drill hole data from recent drilling. Refer
	to Table 3 for full list of historical drilling.
Data	• Continuous sample intervals are calculated via weighted average using a 20% Fe cut-off grade with
aggregation	3 metre minimum mining widths.
methods	• High grade intervals within a continuous sample interval may be reported inclusive. (For example:
	CDG-RC-13-0008 37m @ 56.5% Fe, including 20m @ 63.4% Fe) Further details of the intersections
	can be found in the drill hole results table.
	• No metal equivalents are reported.
Relationship	• The orientation of the mineralisation is well understood and drill holes were designed to intersect
between	the mineralisation at an appropriate angle representing the true widths. Where the true width is
mineralisation	not intersected it is stated and also demonstrated in cross sectional diagrams.
widths and	• The trenches by nature are oblique to the mineralisation angle and as a result return accentuated
intercept	mineralised interval.
lengths

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Criteria	Commentary
Diagrams	• Refer to Figures 1-4.
Balanced	• All new Exploration Results received by the Company to date have been included in this report.
reporting	Historical results can be found in the relevant aforementioned ASX announcements.
Other	• Geological mapping was carried out by Centaurus geologists.
substantive	• Ground magnetics survey was carried out using a G-856 Magnetometer on 50m N-S line spacings
exploration	with measurements every 10m. Interpretation was completed by geophysicists from Intergeo
data	Geosciences.
	• A JORC 2004 Resource estimate has been completed on the Candonga Project. Refer to ASX
	announcement on 8 August 2013 for full details of the estimate.
	• Classification test work has been carried out on the Candonga high grade itabirite mineralisation.
	See ASX announcement on 18 August 2014 for full details of the most recent results.
	• Refer to ASX announcement on 19 January 2012 for full details of the historical trench results
	referenced in this announcement.
Further work	• The Company plans to update the current Candonga Resource estimate to JORC 2012 standards;
	complete characterisation testwork on diamond samples; carryout a comprehensive tender process
	for third party mining and pant operations and complete a Feasibility Study.

SECTION 3 ESTIMATION AND REPORTING OF MINERAL RESOURCES

Not Applicable – There has been no material change to the current JORC 2004 Mineral Resource estimate for the Candonga Project. Refer to ASX announcement on 8 August 2013 for full details of the JORC 2004 Mineral Resource Estimate.