CZR RESOURCES LTD — Capital/Financing Update 2017

Mar 20, 2017

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Coziron Resources Limited

ASX Code: CZR

Contact Details

The Company Announcements Office ASX Limited via E-Lodgement

21 March 2017

Level 24, 44 St Georges Tce Perth WA 6000

PO Box Z5183 Perth WA 6831

Ashburton Magnetite Drilling Update Additional Information

T +61 (0) 8 6211 5099 F +61 (0) 8 9218 8875 E info@coziron.com.au W www.coziron.com

ABN 91 112 866 869

We refer to the Company's announcement of 15 March 2017 where the Company stated:

Near-term exploration will be focussed on delineating fresh, near-surface material totalling at least 1 billion tonnes[1] , with a mass magnetite-yield of at least 30% with low impurity levels that is free of blue asbestos.

Board of Directors

We provide the following additional information in relation to the Company's objective and the basis for the above statement.

Adam Sierakowski Non-Executive Chairman

Dr Rob Ramsay Non-Executive Director Senior Geologist

Steve Lowe

Non-Executive Director

The Yarraloola Magnetite Project represents a 12km long 1km wide magnetic anomaly within the Ashburton Basin. RC and diamond drilling at the Rossi Hill, Spinifex Hill and Trailer Laydown Prospects along the western outcropping zone of mineralisation represents a minimum strike length of 3.3 km with RC and diamond drilling intersecting mineralisation across strike widths that range from 300 to 500m and intercept depths extending vertically and ending in mineralisation down to 250m.

Bulk density values from the magnetite-bearing diamond core range from 3.3 to 3.8 in rocks where 1m RC intervals report magnetic susceptibility from 10,000 to 60,000 SI units and Fe from 25% to 35%.

Grinding and low intensity magnetic recovery from diamond-core samples reported magnetite mass recoveries ranging from 26% to 39%. These correlated closely with Davis Tube results that report a weighted average mass-recovery across all samples of 26% with the magnetite concentrate reporting Fe @ 65.7% and SiO2 @ 7.44%. However, samples from the higher grade Spinifex Hill yielded a 31.9% mass recovery and a better quality concentrate with Fe @ 66.8% and SiO2 @ 6.4%

1 The Exploration Target of 1 billion tonnes is based on the information detailed in this announcement. The potential quantity and grade is conceptual in nature and there has been insufficient work completed to estimate a Mineral Resource. It remains uncertain that further exploration will result in the estimation of a Mineral Resource.

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Based on the above, exploration activities will be focussed on the western mineralised zone within the Ashburton Magnetite Project where an exploration target of 816 Mt to 1,567 Mt that will produce a mass magnetite-yield of greater than 30% with a resulting magnetite concentrate that has a Fe-grade greater than 65% has been identified. This tonnage would have the potential to support a long-life mining and processing operation.

For details of the drill results and Davis Tube results please refer to the Company's announcements dated 6 October 2015 and 28 April 2016.

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Fig 1. Location of Ashburton magnetite project on the Coziron tenements in the West Pilbara of Western Australia.

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Fig 2. Prospect areas, location of the diamond and RC drill-collars and proposed infrastructure corridors within the Ashburton magnetite project overlain on the mapped geology.

Competent Persons Statement

The information in this report that relates to exploration results is based on information compiled by Dr Rob Ramsay (BSc Hons, MSc, PhD) who is a Member of the Australian Institute of Geoscientists. Dr Ramsay is a full-time Consultant Geologist for Coziron. Dr Ramsay has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activities which they have undertaken to qualify as a Competent Persons as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Ramsay has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

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