CENTAURUS METALS LIMITED — Capital/Financing Update 2014

Aug 10, 2014

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11 August 2014

CENTAURUS COMMENCES FEASIBILITY STUDY ON LOW CAPEX DSO OPERATION AT CANDONGA

Mining and Environmental Licence applications lodged for 300,000tpa operation

Key Points

• High grade results received from current diamond drilling program: best intersections include 24.6m @ 64.4% Fe, 20.3m @ 62.3% Fe and 20.0m @ 66.0% Fe.

• Results confirm the geometry of a near-surface, continuous lens of high-grade DSO mineralisation.

• JORC 2012 Mineral Resource update due to be completed by the end of August 2014.

• Feasibility Study commences on DSO operation following lodgement of mining and environmental licences with the Mines Department (DNPM) and Environmental Agency (Supram).

• Feasibility Study to be completed by end of September 2014: first production targeted to commence in Q1 2015.

International iron ore company Centaurus Metals Ltd (ASX Code: CTM ) is pleased to announce that it is commencing a Feasibility Study on a proposed Direct Shipping Ore (DSO) operation at its 100%-owned Candonga Iron Ore Project in south-east Brazil. This follows lodgement of mining and environmental licences which allow extraction of 300,000tpa per licence and receipt of excellent diamond drilling results.

The Feasibility Study is scheduled for completion by the end of September 2014, which will allow an investment decision to be made in Q4 2014. Production is targeted to commence at Candonga in Q1 2015.

The Company has received the first batch of assays from the current diamond drill program at Candonga – which include a number of high-grade intersections – with the results confirming the potential for the Project to host a small-scale DSO operation.

The Company now has sufficient technical information to hand in respect of the high-grade mineralisation at Candonga to facilitate an update of the August 2013 Indicated and Inferred Mineral Resource estimate of 11.9Mt grading 43.0% Fe[1] , 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 underpin the Feasibility Study on a DSO operation with the potential to deliver an early cash flow stream for the Company.

1 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.

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Diamond Drilling

Recent diamond drilling at the Candonga Project, which is located approximately 160km north-east of the city of Belo Horizonte and 80-160km from the Project’s likely customer base (Figure 1), has confirmed the presence of a near-surface and generally flat-lying, continuous lens of high-grade DSO mineralisation that extends up to 30m from surface (See Figures 3 and 4) within a broader zone of Friable Itabirite mineralisation.

The geometry of the high-grade lens has now been confirmed by the current drilling with the drilling also indicating that the amount of waste movement for any future mining operation will be minimal.

Highlights of the results to date include the following continuous intersections (see attached Table 2 for a full list of the current drill results):

• 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 13.0 m ;

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

• 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;

• 9.5m @ 65.5% Fe, 4.3 SiO2, 0.9% Al2O3 and 0.03% P in drill hole CDG-DD-14-00008 from 9.7 m; and

• 6.8m @ 67.2% Fe, 2.1 SiO2, 0.7% Al2O3 and 0.02% P in drill hole CDG-DD-14-00002 from 1.2 m;

The high grade DSO mineralisation will underpin an impending JORC 2012 Mineral Resource update for the Candonga Project, as well as sizing analysis test work and the completion of the Feasibility Study.

The current drilling correlates well along strike with the historical drilling, as demonstrated by drill hole CDG-RC13-00008 (20.0m @ 63.4% Fe) on Section 2, aligning well with drill holes CDG-DD-14-00006 (20m @ 66.0% Fe) on Section 3 (Figure 3) and CDG-DD-14-00007 (24.6m at 64.4% Fe) on Section 5 (Figure 4), which are 50m and 110m along strike, respectively (Figure 2).

The high grade mineralisation sits immediately below a zone of mineralised colluvium that starts at surface and varies in widths between 1m and 6m.

With drilling now finished and results for the second batch of assays pending, the JORC 2012 Mineral Resource update for the Candonga Project is scheduled to be completed by the end of August 2014.

Size Classification Test Work

Product sizing classification results on drill core samples delivered to date demonstrate that the high grade DSO mineralisation at Candonga delivers 15-20% of the mineralisation as a Lump product (+6.3mm) using a dry screening process.

Chemical analysis is pending but grades are expected to be +65% Fe – similar to what was previously seen from the earlier sizing classification test work performed on samples from the 2014 trenching program[2] .

The remaining 80-85% of the DSO material is classified as a Sinter Feed product (-6.3mm) with an expected average iron grade of approximately 65% Fe and with approximately 60% of the Sinter Feed material having a physical sizing of +1mm. The results of the dry screen process of the mineralised colluvium, with a head grade in the range of 55-58% Fe, is producing Lump recoveries of between 20-25% with an expected grade range of around 62-65% Fe (based on results from earlier test work on trench samples).

Full results from the current product sizing classification test work program are dependent on the timely delivery of assay results but the Company expects all assays to be received within the next 2-3 weeks.

2 Refer to ASX announcement on 31 March 2014 for full details of the Classification Test Work on trench samples.

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Feasibility Study

As outlined above, the Company has now commenced a Feasibility Study on the Candonga Project. The study will be based on extraction of the zone of high-grade DSO mineralisation at Candonga and the establishment of a mining operation by Q1 2015 with a low strip ratio and a simple dry crush and screen plant.

The study will focus on minimizing capital expenditure and utilising local third party contractor participation in the mining operations. Construction activity is likely to be limited to site civil works necessary for a mobile dry crushing and screening plant installation.

Local mining contractors have already been contacted and have shown a high level of interest in the project. Contractors are being requested to quote their work on the basis that the quote can be converted into an operating contract arrangement shortly after the completion of the Feasibility Study.

The demand for Lump product remains very strong in the domestic market due to the general undersupply of this product type. Customers from large steel mills to pig iron producers are active in pursuing Lump product for their steel production. The Candonga Sinter Feed product will also be well sought after in the domestic market due to high percentage of this material having a physical sizing of +1mm.

The Feasibility Study is due for completion by the end of September 2014, allowing a Final Investment Decision to be made in Q4 2014 once the requisite approvals and licences have been granted.

Project Licensing

The application for a Trial Mining Licence (Guia de Utilização – “GU”), which allows for mining of 300,000tpa of ore per licence, was lodged in early April 2014. The simple licensing process is managed by the Mines Department (DNPM) in Minas Gerais. The Company is now working with the DNPM to plan a site visit to Candonga, which is a key step in the GU approval process.

Concurrently, the Company has advanced the Environmental Licensing process for Candonga with the State Environmental Authority (Supram) by lodging the main Environmental Licence Application, known as the RCA/PCA, in May 2014. The process is relatively straightforward due to the planned operating parameters and because the Project is located on pastoral land requiring no native vegetation clearing.

Centaurus’ Managing Director, Mr Darren Gordon, said the Candonga Project was advancing quickly with the latest high-grade results providing the Company with confidence in the potential to develop a small-scale DSO mining operation whilst the Company continues to actively work on establishing a suitable offtake agreement for its Jambreiro Project to facilitate the Project’s funding and development. The lump and high grade sinter feed ore from Candonga will be sold into the domestic market, where there is a general shortage of these products.

“We look forward to delivering the Feasibility Study on the high-grade Candonga mineralisation at the end of September which will put the Company in a position to make an investment decision in the fourth quarter of 2014,” Mr Gordon said.

“The proposed approach to contract the mining operations to a third party contractor should allow us to keep the capital costs low. The near-surface and generally flat-lying nature of the high grade ore will facilitate a very low strip ratio when it comes to establishing the mining operation which will in turn assist in keeping the operating costs low,” he added.

-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

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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 – Analytical Signal Image with Drill Results – 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 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-14-00002 CDG-DD-14-00002 CDG-DD-14-00002							1.2 8.0 16.2	8.0 16.2 19.4	6.8 8.2 3.2	High Grade Itabirite Friable Itabirite High Grade Itabirite	67.2 46.0 63.3	2.1 28.3 5.6	0.7 3.7 1.2	0.02 0.02 0.04	0.14 1.41 -0.74
CDG-DD-14-00002	722202	7912260	910	210	-60	35.4	Downhole composite		18.2		56.9	14.5	2.1	0.02	0.56
CDG-DD-14-00003 CDG-DD-14-00003							0.0 6.5	6.5 16.4	6.5 9.9	Mineralised Colluvium High Grade Itabirite	55.9 65.9	12.7 2.3	4.7 1.8	0.03 0.02	2.19 0.47
CDG-RC-14-00003	722143	7912278	903	210	-60	40.21	Downhole composite		16.4		62.0	6.4	2.9	0.02	1.15
CDG-DD-14-00004 CDG-DD-14-00004							0.0 4.7	4.7 10.3	4.7 5.6	Mineralised Colluvium Friable Itabirite	57.8 52.9	13.3 21.7	2.5 1.5	0.02 0.04	1.05 0.62
CDG-DD-14-00004	722171	7912325	899	210	-60	34	Downhole composite		10.3		55.1	17.9	1.9	0.03	0.82
CDG-DD-14-00005
CDG-DD-14-00005	722218	7912288	896	210	-60	20.0	NO SIGNIFICANT INTERSECTION
CDG-DD-14-00006 CDG-DD-14-00006 CDG-DD-14-00006							0.0 4.2 9.3	4.2 9.3 29.3	4.2 5.1 20.0	Mineralised Colluvium Friable Itabirite High Grade Itabirite	44.7 50.6 66.0	22.4 26.0 4.1	6.5 0.8 0.5	0.11 0.03 0.04	5.04 0.37 -0.10
CDG-RC-14-00006	722088	7912344	880	210	-60	36.4	Downhole composite		29.3		60.3	10.6	1.4	0.05	0.72
CDG-DD-14-00007 CDG-DD-14-00007							0.0 10.6	4.4 35.1	4.4 24.6	Mineralised Colluvium High Grade Itabirite	57.1 64.4	10.0 5.5	4.5 1.2	0.03 0.03	1.57 0.30
CDG-RC-14-00007	722131	7912313	896	210	-60	40.0	Downhole composite		28.9		63.3	6.2	1.7	0.03	0.49
CDG-DD-14-00008 CDG-DD-14-00008 CDG-DD-14-00008							0.0 6.1 9.7	4.9 9.7 19.2	4.9 3.6 9.5	Mineralised Colluvium Friable Itabirite High Grade Itabirite	56.7 49.8 65.5	13.0 27.1 4.3	3.4 1.1 0.9	0.03 0.02 0.03	1.47 0.66 -0.02
CDG-DD-14-00008	722074	7912319	878	210	-90	25.1	Downhole composite		18.0		60.0	11.2	1.6	0.02	0.53
CDG-DD-14-00009 CDG-DD-14-00009 CDG-DD-14-00009 CDG-DD-14-00009							0.0 7.0 13.0 30.0	6.1 10.4 30.0 33.3	6.1 3.4 17.0 3.3	Mineralised Colluvium High Grade Itabirite High Grade Itabirite Friable Itabirite	41.6 63.7 64.2 52.3	24.8 6.4 6.0 23.0	8.8 1.3 1.0 1.2	0.04 0.04 0.03 0.03	4.56 0.38 -0.09 0.33
CDG-DD-14-00009	722102	7912368	877	210	-60	40.9	Downhole composite		29.8		58.2	11.8	2.6	0.03	0.96
CDG-DD-14-00010 CDG-DD-14-00010							0.0 3.5	3.5 15.5	3.5 12.0	Mineralised Colluvium High Grade Itabirite	59.6 63.7	6.6 4.4	4.7 2.6	0.05 0.02	2.74 0.60
CDG-DD-14-00010	722113	7912286	897	210	-70	24.6	Downhole composite		15.5		62.7	4.9	3.1	0.03	1.09

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	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	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	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	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	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	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	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 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	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	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	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	0.07 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	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

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 sample were spilt and pulverised to a ±50g
	sample for XRF and titration analysis.
	• RC samples were taken at 1m intervals from which 3-5kg was spilt, 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. Excluding results from this announcement and the 2013
	trench program which will be included in the forthcoming resource up date.
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 33 RC holes (5.5”) for a total of
	1,603m in 2010 and 2013.
	• At the date of this announcement Centaurus completed a further 18 diamond drill hole (HQ) for a
	total of 518m in the current program. 9 holes are included in the announcement and 9 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 2,304m, 100% has been logged. The
	total length of trenches is 438m, 100% has been logged.
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.

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Criteria	Commentary
Sub-sampling	• All samples were received and prepared by ALS or Intertek Labs in Belo Horizonte, Brazil as 3-5kg
techniques	samples. They were dried at 105°C until the sample was completely dry (6-12hrs), crushed to 90%
and sample	passing 2mm and reduced to 500g via a Jones riffle splitter. The 500g samples were pulverised to
preparation	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.
Quality of	• All chemical analysis was completed at ALS or Intertek Labs. Laboratory duplicates were completed
assay data and	every 10-20 samples and standards were completed every 20-25 samples dependent on the
laboratory	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.
	• Both the ALS 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.
Verification of	• All significant intersections are verified by alternative Company personnel before release. As part of
sampling and	Resource estimation process 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.

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Criteria	Commentary
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 Trail Mining
	License was submitted on 11 April, 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 60 metres.
	• 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 54 holes for 2,304m have been completed on the Candonga
Information	Project including 21 diamond holes for a total of 701m and 26 RC holes for a total of 1,603m. From
	the current drilling 9 holes are included in the announcement and 9 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 a full list of historical significant intersection for the Candonga Project.
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 31 March 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.