CZR RESOURCES LTD — Capital/Financing Update 2013

Jan 16, 2013

ABN: 44 114 553 392

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Registered Office: Level 2, 9 Havelock Street, West Perth WA 6005 Postal Address: PO Box 1160, West Perth WA 6872

Telephone: (61 8) 9481 8627 Facsimile: (61 8) 9481 8445 E-mail: redhillinfo@redhilliron.com.au Website: www.redhilliron.com.au

17 January 2013

Company Announcements Office ASX Limited Level 4, 20 Bridge Street SYDNEY NSW 2000

MINING LEASES SECURED AT THE PANNAWONICA PROJECT

Red Hill Iron Limited has secured sole entitlement to Channel Iron Deposits within the Red Hill Iron CID Purchase Area (Purchase Area) of Exploration Licence E08/1685, held by Zanthus Resources Pty Ltd (Zanthus), a subsidiary of Coziron Resources Limited, in terms of an agreement with Zanthus announced in November 2009 (Agreement).

In accordance with the Agreement, two mining leases, M08/499 and M08/500 (Mining Leases) with a total area of 11.53 square kilometres, have been applied for and these will be excised from E08/1685 and transferred into the name of Red Hill Iron Limited upon grant (see Figure 1).

The Mining Leases cover the entire CID resource potential established by Red Hill Iron during the exploration phase of the Agreement. Red Hill Iron has no further mineral rights beyond the boundaries of the Mining Leases. The Agreement does however provide that Zanthus will not object to any applications made for Miscellaneous Licences and/or any other similar tenements within the Purchase Area that may be required by Red Hill Iron for future mining operations.

The Mining Lease applications cover the Whitegate and Redgate CID inferred resources totalling 70 million tonnes grading 54.1% Iron, 4.8% Alumina, 8.5% Silica and 0.05% Phosphorus. This assumes a cutoff grade of 52% Iron.

Compliance Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Doug Stewart who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mr Stewart is a Consultant to the Company. Mr Stewart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is 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 Reserves’. Mr Stewart consents to the inclusion in this report of the matters based on his information in the form and context in which it appears, and has not withdrawn this consent.

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Figure 1: Location map showing M08/499 and M08/500 within the Red Hill Iron CID Purchase Area

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Figure 2: Location map showing the Pannawonica Project and the Red Hill Iron Ore Joint Venture Project

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