CZR RESOURCES LTD — Interim / Quarterly Report 2007

Jul 30, 2007

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Quarterly Report For the period ending 30 June 2007

Highlights

__________

• Grange Resources has completed legal due diligence on the Inderapura Coal Project. Technical due diligence currently being completed.. Subject to due diligence Grange will spend A$1M on exploration at Inderapura Coal Project.

• Metallurgical Test Work Confirms the Rawang Magnetites to be a Premium Quality Iron Ore.

• A detailed Ground Magnetic Survey is commissioned at Rawang to delineate further extensions of high grade magnetite which are currently open in a north-west and south-east direction.

Project Review

Rawang Gadang Iron Ore Project

Metallurgical test work was completed in the March quarter and results were made available to ASX early in the reporting period. Seven representative core samples were collected for Davis Tube Recovery (“DTR”) test work and submitted to Ultra Trace Laboratories in Canning Vale, Perth.

Significant conclusions deducted from test work include:

▪ “Iron Ore average concentrate grade is more than Fe69%.”

▪ “The magnetite exhibits high weight recovery giving concentrate qualities significantly better than most Australian magnetites; with a mass recovery average of greater than 73%.”

▪ “Weight recovery is almost double that of Australian magnetite ores therefore requiring less ore to provide the same volume of concentrate.”

▪ “SiOB2 is considered as an impurity and after DTR test work SiO2 content is significantly reduced; achieving on average a 70% reduction.”

▪ “Al2O3, MgO and P are all within acceptable Direct Shipping Ore (DSO) limits; levels of MgO can be considered an additional benefit during blast furnace techniques and is considered a ‘self fluxing’ ore.

▪ “An iron ore product of this quality, with higher concentrate, can achieve premium prices.”

Results of the DTR test work are tabulated below.

Sample_ID	Mag Wt Recovered (%)	Fe (%)	SiO2 (%)	Al2O3 (%)	Ca0 (%)	Mg0 (%)	P (%)	S (%)	LOI (%)
RWG-MET001	80.70	68.82	2.10	0.98	0.43	0.53	0.003	0.011	-2.70
RWG-MET002	86.40	68.52	1.74	1.21	0.30	0.44	0.007	0.004	-2.03
RWG-MET003	86.80	68.86	1.72	0.90	0.24	0.23	0.012	0.009	-1.97
RWG-MET004	72.20	69.55	1.40	0.91	0.35	0.24	0.002	0.006	-2.91
RWG-MET005	69.30	69.19	1.58	1.02	0.47	0.22	0.002	0.081	-2.92
RWG-MET006	49.50	70.22	1.02	0.39	0.56	0.08	0.002	0.004	-2.89
RWG-MET007	69.10	69.89	0.96	0.56	0.28	0.12	0.003	0.004	-2.50
Average	73.43	69.29	1.50	0.85	0.38	0.27	0.004	0.017	-2.56

A comparison of DTR concentrate grades and head grades of each metallurgical sample is detailed in the March Quarter.

Given the exceptional recoveries the process of producing such high grade concentrates can therefore be achieved at a reduced operating and capital cost.

These results are a significant step in defining a potential small to medium sized high grade magnetite deposit and is in line with the Company’s goal to bring the project to production as soon as practical to enable early cash flow and value to shareholders.

A Ground Magnetic Survey was proposed during the quarter and PT Elliot Geophysics Indonesia (‘Elliots’) were commissioned and commenced works in July 2007. Two Geometric G856 PPM Magnetometres will be in operation and the scope of work encompasses an area of 1,000 x 800 metres, with survey specifications of 50 metre line spacings with magnetic responses recorded every 5 metres along survey lines. Approximately 16 line kilometres is proposed for the program which is designed to delineate further extensions of high grade magnetite which are currently open in a north-west and southeast direction.

Results will be made available as soon as practical.

Kunyit Iron Ore Project

The drilling program at Kunyit was warranted to test the magnetite and hematite mineralisation at depth and to determine lateral extensions. A total of 14 holes were drilled at Kunyit for a total of 943.6m. The total included 832.95m of PQ core and 110.65m of HQ core. Drill-hole collar data is presented in table 1. The drilling was carried out by PT Maxidrill Indonesia, whom supplied a Maxi 195 man-portable diamond rig set up for PQ and HQ diamond coring. The holes were down-hole surveyed using an Eastman single shot camera.

TABLE 1. Drill-hole Collar Data (WGS84, Zone 47S)

Drill Hole	Easting*	Northing*	Elevation*	AZI	DIP	DEPTH
KYT001	778135	9846386	254	135	-60	90.6
KYT002	778576	9846860	298	135	-60	93.55
KY 003	778637	9846927	274	135	-60	80.25
KYT004	780550	9849445	318	180	-60	79.85
KYT005	780640	9849460	320	180	-60	59.55
KYT006	780750	9849460	322	180	-60	71.25
KYT007	778594	9846784	308	90	-60	82.5
KYT008	778548	9846784	300	90	-60	74.05
KYT009	778684	9846784	291	90	-60	50.25
KYT010	778644	9846784	303	90	-60	62.5
KYT011	778497	9846784	288	90	-60	48
KYT012	778546	9846735	294	90	-60	56.25
KYT013	778602	9846732	295	90	-60	48.05
KYT014	778572	9846676	286	90	-60	46.95

*Not surveyed; GPS estimated position

Core was sent to PT Intertek Utama Services in Padang for sample preparation. The sample preparation scheme consisted of jaw-crushing to nominal 20mm, total pulverization in a LM2 or LM5 ring-mill to passing 200# and riffle splitting of a nominal 250g pulp sample for analysis.

Samples were sent from the sample preparation facility in Padang to Ultratrace Laboratories Pty Ltd in Australia for analysis. Al2O3, CaO, Cr2O3, FeTotal, K2O, LOI, MgO, MnO, Na2O, P2O5,SiO2, TiO2 and V205 were analysed by XRF. Detection limits for all elements were 0.01%, LIO to 0.1%.

Assay results are detailed in Appendix 1.

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FIGURE 1. Drill Hole Collar and Trench Location Plan

The drilling program successfully tested the main prospect areas of Bukit 1 and Bukit 2 with broad zones of iron-manganese mineralization intersected in a number of the drill-holes. At Bukit 3, three holes tested small quartz-FeO veins with only one hole intersecting low grade iron mineralization near the surface.

Iron mineralization at Bukit 1 and 2 has been established to extend over economic widths and reaches economic grades in individual samples; however the overall grade of the deposit is unlikely to be economic. Mineralised intersections can be typified as ferruginous or manganiferous clays with thin discontinuous veins of more massive magnetite, goethite or hematite. The single drill-hole at Bukit 1 failed to intersect economic grades of FeO; a broad zone of weathered, ferruginised calc-silicate skarn was intersected, which peaked at 53% Fe (Total).

At Bukit 2 a sheet of iron-manganese mineralisation was defined with 10 drill-holes. While 17.5m of economic grade mineralisation was intercepted in KYT007, the remaining holes only intercepted thin discontinuous Fe mineralisation and have effectively closed off the mineralisation in KYT007. The iron mineralisation to the north and east of KYT007 has been eroded away, while to the south and west it tapers out rapidly into a zone of manganiferous clays. This appears to be supported by the results of a ground magnetic survey carried out previously.

While many magnetite deposits are amenable to some form of beneficiation, this is unlikely to be successful at Kunyit as ferruginous-manganiferous clays appear to form a substantial part of the already small potential resource. Only in the Bukit 2 area from KYT007 to the iron oxide outcrop to the north is there any potential for an economic grade resource; tonnage potential is however small, with potential for approximately 40,000 tonnes of >55% Fe Ore.

The 3 holes drilled at Bukit 3 were targeted at a very narrow discontinuous Quartz-FeO vein well away from the main zone of alteration and veining, and failed to intersect economic mineralisation.

The Kunyit area does not appear to host a large enough iron ore resource to warrant a small scale mining operation for Coziron. Sufficient resources may be present in the KYT007 area to permit very small scale mining by an Indonesian company or cooperative and Coziron will look at options to maximise potential on-sale opportunities of the Kunyit project.

Lubuk Gadang Lead Zinc Project

No field work was carried out at the Lubuk Project during the period.

Inderapura Coal Project Area

Granges’ legal due diligence was completed at the start of the reporting period, and a field trip commenced towards the end of the quarter which forms the technical due diligence. The field trip incorporated a three week program of geological mapping of coal seams, particularly in and around Block A and B prospect areas, where several large pits (up to 300m long) have in recent times been excavated for mining.

Grange collected several grab samples for analysis which have been submitted to SGS in Queensland. Grange will provide a comprehensive field report once results have been returned and at which point they will make a decision to enter into Joint Venture agreement.

A survey team was commissioned during the quarter and ten bench marks were emplaced to assist with detailed geological mapping and pit surveys. ‘Crest and toe’ survey stations for each pit were recorded and details of the survey will be combined with the detailed geological mapping from Grange’s site inspections.

Further exploration activity will be proposed once final reports have been received from Grange and from the survey program.

An application for an expansion in tenure covering the Inderapura Coal Project area was applied for in the previous quarter. Additional ground outside of the initial 4 tenement blocks became available, and it was a logical step for the company to expand on the ground holding, potentially increasing resource tonnages. Extensions to three of the blocks have been granted during the quarter; namely Inderapura (KW05191BBI),Tapan (KW05199BBT), Tapan (KW05192BBT), which now form a contiguous block. The forth tenement, Lunang (KW05193BBT); is awaiting its granted status, which should be available in the coming weeks.

Singkarak Copper-Gold Project

Coziron is pleased to report that it has successfully completed due diligence on the Singkarak CopperGold Project and all conditions covering the due diligence have been satisfied including legal and associated site inspections.

An extension to the due diligence period was granted earlier in the quarter and was duly appointed reflecting new applications by the Indonesian Partners to increase the tenement holding over the Singkarak project area. The applications were granted on 5 April 2007, and changes are significantly beneficial with extensions encompassing further known outcrops of low and high sulphidation copper-gold showings and porphyry copper. A tenement location map can be found in the March quarterly report.

Coziron is currently in negotiations to formalise a Joint Venture (JV) with the Indonesian Partners, and will in due course announce details of the agreement once completed. The signing of a JV into the Singkarak copper-gold project in Sumatra will be an important and strategic development for the Company. Coziron believes the project area is highly prospective and that there is significant potential to delineate a sizeable resource.

Immediate follow up work is warranted once a JV agreement has been executed, and will include soil sampling, auger sampling, ground magnetics, electro-magnetic (EM).

Yours faithfully,

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_____ Greg Burns Executive Director

Competent Persons: The contents of this report that relate to geology and historical exploration are based on information compiled by Mr Greg Burns, who is a Professional Geologist and Member of the Australian Institute of Mining and Metallurgy (AusIMM). He has sufficient experience relevant to the style of mineralisation and types of deposit under consideration and to the activity being undertaken to qualify as a ‘Competent Person’ as defined in the 2004 Edition of the Australasian Code for Reporting Results, Mineral resources and Ore Reserves. Greg Burns consents to the inclusion in this report of the matters compiled by him in the form and context in which they appear.

TABLE 1

KUNYIT IRON ORE PROJECT DRILL ASSAYS

Hole_ID	Easting UTM	Northing UTM	Dip	AZ	Max Depth (m)	Depth From	Depth To	Width (m)	Fe %	SiO2 %	Al2O3 %	P2O5 %	MgO %	LOI %
KYT001	778135	9846386	-60	135	90.60	0.90	1.70	0.80	51.80	3.46	6.17	0.09	<0.01	9.30
						1.70	2.70	1.00	45.10	15.10	2.29	0.03	0.03	2.00
						2.70	3.50	0.80	48.80	6.37	5.72	0.05	<0.01	10.10
						3.50	4.65	1.15	43.20	13.80	3.51	0.03	<0.01	8.00
						4.65	5.10	0.45	25.40	28.80	5.90	0.01	0.35	4.00
						5.10	6.25	1.15	48.00	8.31	4.76	0.08	0.08	10.10
						6.25	8.10	1.85	41.90	13.90	6.92	0.14	0.14	10.60
						8.10	8.85	0.75	53.00	4.75	2.79	0.22	<0.01	10.50
						8.85	10.35	1.50	51.70	6.76	2.85	0.11	<0.01	10.10
						10.35	11.60	1.25	44.20	11.70	4.92	0.05	<0.01	9.20
						11.60	13.10	1.50	47.90	10.20	3.51	0.04	<0.01	9.50
						13.10	14.60	1.50	50.60	5.76	3.53	0.06	<0.01	10.50
						14.60	15.65	1.05	47.20	11.60	4.00	0.04	<0.01	10.10
						15.65	16.70	1.05	49.10	6.18	2.82	0.06	<0.01	10.90
						16.70	17.35	0.65	34.80	15.90	13.30	0.09	0.38	12.50
						17.35	18.60	1.25	45.00	9.36	6.93	0.06	0.05	11.50
						18.60	20.00	1.40	46.20	8.57	5.72	0.12	0.05	11.50
						20.00	21.50	1.50	44.40	10.70	7.91	0.08	0.12	11.20
						21.50	22.80	1.30	36.40	19.20	4.86	0.02	<0.01	7.10
						22.80	24.10	1.30	31.20	24.60	5.65	0.05	0.01	6.30
						24.10	26.20	2.10	13.40	38.00	22.90	0.03	0.44	10.80
						26.20	27.30	1.10	34.50	25.60	8.09	0.11	0.08	7.80
						27.30	28.60	1.30	40.20	23.50	4.81	0.15	0.08	7.80
						28.60	30.00	1.40	44.90	19.60	2.89	0.25	<0.01	8.60
						30.00	31.40	1.40	45.50	18.10	2.20	0.18	<0.01	8.90
						31.40	32.25	0.85	40.50	28.10	3.08	0.26	<0.01	6.90
						32.25	33.30	1.05	40.10	15.60	9.29	0.29	0.01	11.00
						33.30	34.00	0.70	24.10	43.70	8.56	0.12	0.09	6.90
						34.00	35.40	1.40	43.10	15.90	6.94	0.37	<0.01	10.40
						35.40	37.20	1.80	16.10	50.00	13.90	0.09	0.07	6.80
KYT002	778576	9846860	-60	135	93.55	0.00	0.30	0.30	27.70	16.90	15.10	0.12	0.11	12.50
						0.30	1.45	1.15	34.30	8.26	7.96	0.09	0.07	11.20
						1.45	2.20	0.75	38.30	7.63	5.07	0.06	0.08	9.00
						2.20	3.35	1.15	36.70	11.00	13.80	0.08	0.11	12.80
						3.35	3.95	0.60	36.40	8.95	11.70	0.05	0.10	11.10
						3.95	4.60	0.65	41.50	6.28	6.81	0.07	0.04	9.60
						4.60	5.20	0.60	34.40	10.90	11.60	0.07	0.10	12.20
						5.20	7.10	1.90	39.80	10.30	11.70	0.10	0.10	12.60
						7.10	9.00	1.90	32.30	14.70	15.30	0.19	0.15	13.10
						9.00	10.25	1.25	46.20	8.91	7.23	0.20	0.09	11.10
						10.25	11.50	1.25	50.70	4.56	5.22	0.33	0.09	11.70
						11.50	13.30	1.80	47.50	5.63	6.19	0.27	0.13	11.40
						13.30	15.55	2.25	43.30	9.96	8.02	0.15	0.09	11.40
						15.55	16.65	1.10	50.90	6.06	5.18	0.09	0.09	10.40
						16.65	17.80	1.15	44.00	9.75	9.96	0.12	0.12	11.00
						17.80	18.80	1.00	49.30	7.73	5.56	0.23	0.12	9.60
						18.80	19.90	1.10	49.80	8.93	4.74	0.26	0.09	8.70
						19.90	20.90	1.00	52.00	5.98	4.84	0.35	0.08	9.60
						20.90	22.25	1.35	48.30	8.21	5.95	0.29	0.10	9.70
						22.25	23.75	1.50	49.40	13.90	4.20	0.20	0.10	6.70
						23.75	25.30	1.55	39.60	16.30	12.40	0.18	0.10	10.50
						25.30	26.45	1.15	21.70	19.20	26.60	0.02	0.16	16.20

						26.45	27.00	0.55	23.70	16.90	25.60	0.07	0.16	16.70
						36.20	37.40	1.20	19.40	43.00	17.10	0.18	0.88	6.60
						37.40	38.75	1.35	14.60	43.90	20.70	0.17	1.23	6.90
						45.35	46.70	1.35	5.79	63.90	14.40	0.10	1.35	2.80
						46.70	47.75	1.05	20.60	54.40	8.13	0.06	1.14	1.60
						47.75	48.70	0.95	22.10	48.90	9.51	0.05	1.61	2.80
						48.70	49.85	1.15	24.40	46.10	10.10	0.07	1.54	2.20
						56.40	57.50	1.10	11.80	48.10	16.90	0.08	1.81	2.80
KYT003	778637	9846927	-60	135	80.25	0.00	2.00	2.00	10.70	45.60	23.50	0.06	<0.01	12.90
						2.00	4.00	2.00	10.60	46.60	24.20	0.05	<0.01	12.30
						4.00	6.00	2.00	10.70	47.30	23.30	0.05	<0.01	10.90
						6.00	8.00	2.00	13.80	43.20	21.10	0.05	<0.01	10.80
						8.00	9.30	1.30	42.20	6.41	3.31	0.08	<0.01	7.00
						9.30	10.53	1.23	51.10	11.00	4.25	0.04	<0.01	2.50
KYT004	780550	9849445	-60	180	79.85	0.00	3.45	3.45	16.50	41.00	21.90	0.01	<0.01	11.40
						3.45	3.85	0.40	40.00	30.90	4.62	0.03	<0.01	2.70
						3.85	5.20	1.35	23.60	33.70	17.80	0.04	0.01	10.40
						5.20	6.70	1.50	20.60	36.60	18.60	0.03	0.05	10.50
						6.70	8.15	1.45	17.10	37.30	15.50	0.03	0.08	6.60
						8.15	8.70	0.55	6.42	58.50	18.50	0.04	0.59	6.70
						8.70	9.95	1.25	10.90	51.70	12.20	0.05	0.30	4.10
						9.95	11.60	1.65	14.30	38.60	10.80	0.04	0.28	2.50
						11.60	13.00	1.40	11.10	52.20	14.60	0.05	0.47	5.90
						13.00	15.55	2.55	5.23	58.80	20.00	0.06	0.62	7.20
						15.55	17.10	1.55	4.94	59.60	19.20	0.09	0.70	6.50
						17.10	18.50	1.40	9.74	51.80	17.10	0.07	0.62	6.50
						18.50	19.60	1.10	13.50	44.90	8.51	0.17	0.42	1.80
						19.60	21.40	1.80	11.40	46.00	15.40	0.05	1.17	5.80
						21.40	22.60	1.20	13.20	46.20	11.30	0.05	0.23	3.20
						22.60	23.45	0.85	13.90	39.40	8.86	0.03	0.06	0.50
						23.45	26.00	2.55	7.64	54.40	16.70	0.07	0.67	5.20
KYT006	780750	9849460	-60	180	71.25	0.00	1.00	1.00	22.20	34.90	16.70	0.04	0.13	10.40
						1.00	2.20	1.20	21.80	32.90	16.30	0.04	0.18	9.30
						2.20	2.50	0.30	17.00	37.00	12.10	0.04	0.29	4.50
						2.50	3.00	0.50	18.60	38.60	17.70	0.04	0.16	9.30
						3.00	3.60	0.60	19.20	39.10	16.20	0.03	0.17	8.60
						15.35	16.15	0.80	4.76	64.60	15.60	0.13	1.00	5.10
						16.15	16.75	0.60	7.45	70.30	6.59	0.29	0.72	1.70
						16.75	17.40	0.65	8.99	56.60	12.60	0.31	1.40	2.90
						17.40	18.50	1.10	3.66	66.90	13.30	0.11	0.95	1.70
						18.50	19.75	1.25	7.60	54.60	16.10	0.11	0.87	2.30
						19.75	20.10	0.35	7.72	43.20	21.70	0.29	0.86	2.70
						20.10	21.30	1.20	7.32	51.50	16.30	0.16	2.13	2.40
						21.30	23.10	1.80	5.05	59.60	18.20	0.16	1.48	5.70
KYT007	778594	9846784	-60	90	82.50	0.00	2.00	2.00	33.30	10.00	7.75	0.16	<0.01	10.80
						2.00	2.35	0.35	52.80	3.63	1.26	0.10	<0.01	3.40
						2.35	2.95	0.60	39.40	6.80	5.07	0.14	<0.01	8.50
						2.95	3.35	0.40	18.60	11.90	12.20	0.36	<0.01	14.60
						3.35	4.35	1.00	42.80	2.79	0.98	0.20	<0.01	6.90
						4.35	5.35	1.00	45.20	7.46	5.40	0.15	<0.01	5.00
						5.35	6.35	1.00	47.00	5.08	3.69	0.23	<0.01	5.70
						6.35	7.35	1.00	56.70	5.40	2.85	0.16	<0.01	2.90
						7.35	8.35	1.00	61.10	3.97	1.48	0.08	<0.01	1.10
						8.35	9.35	1.00	51.30	15.10	1.48	0.03	<0.01	1.80

						9.35	10.35	1.00	57.50	11.60	2.12	0.03	<0.01	0.30
						10.35	11.35	1.00	57.10	8.18	3.21	0.04	<0.01	1.70
						11.35	12.35	1.00	59.50	11.60	1.21	0.03	<0.01	<0.1
						12.35	13.35	1.00	57.20	12.40	1.00	0.06	<0.01	<0.1
						13.35	14.35	1.00	59.00	9.45	1.02	0.07	<0.01	1.00
						14.35	15.35	1.00	61.20	5.07	1.73	0.02	<0.01	0.70
						15.35	16.35	1.00	60.10	9.54	1.55	0.07	<0.01	0.20
						16.35	17.35	1.00	56.20	13.80	1.55	0.05	<0.01	<0.1
						17.35	18.35	1.00	58.60	8.64	0.98	0.06	<0.01	0.60
						18.35	19.35	1.00	59.00	7.84	0.94	0.09	<0.01	0.70
						19.35	20.35	1.00	59.10	9.88	0.84	0.07	<0.01	0.10
						20.35	21.35	1.00	63.20	7.79	0.55	0.07	0.01	<0.1
						21.35	22.35	1.00	62.60	8.63	0.53	0.05	0.01	<0.1
						22.35	23.35	1.00	59.70	10.40	2.20	0.07	<0.01	<0.1
						23.35	24.35	1.00	62.30	7.98	0.73	0.06	0.01	<0.1
						24.35	25.35	1.00	47.30	22.50	1.35	0.31	<0.01	3.20
						25.35	26.60	1.25	12.10	34.60	22.50	0.42	0.80	11.90
						26.60	27.15	0.55	19.20	21.90	17.30	0.63	0.08	12.80
						27.15	28.45	1.30	45.20	20.70	4.99	0.28	<0.01	3.90
						28.45	29.10	0.65	52.10	12.40	3.31	0.52	0.11	5.90
						29.10	30.10	1.00	6.11	51.10	16.70	0.51	5.37	4.60
						30.10	31.10	1.00	6.02	52.30	17.50	0.49	4.20	5.70
						31.10	31.90	0.80	5.56	52.60	17.10	0.47	4.51	4.60
						31.90	33.30	1.40	5.90	49.80	21.00	0.35	3.84	7.60
						33.30	34.10	0.80	51.10	24.20	1.49	0.06	0.22	0.30
						34.10	34.90	0.80	45.40	21.00	2.22	0.10	0.51	1.50
						34.90	35.95	1.05	48.50	22.30	2.09	0.06	0.30	1.30
						35.95	37.10	1.15	13.70	41.90	20.90	<0.01	3.32	10.60
						37.10	38.10	1.00	47.10	21.00	1.54	0.04	0.22	0.70
						38.10	39.10	1.00	65.40	3.62	1.20	0.02	0.19	0.60
						39.10	40.10	1.00	61.50	7.08	1.51	0.02	0.25	0.90
						40.10	41.30	1.20	52.30	17.10	3.09	0.01	0.76	1.40
						41.30	42.75	1.45	15.70	39.40	7.33	0.06	0.43	1.80
						42.75	43.65	0.90	16.60	39.10	10.80	0.14	0.94	3.10
						43.65	45.25	1.60	11.00	41.40	20.90	0.13	0.76	5.40
KYT008	778548	9846784	-60	90	74.05	25.10	26.20	1.10	5.36	12.60	9.97	0.20	0.10	13.30
						26.20	27.35	1.15	55.00	4.87	0.95	0.07	0.07	2.80
						27.35	28.50	1.15	34.80	4.09	1.20	0.06	<0.01	8.80
						28.50	29.45	0.95	54.60	7.97	1.22	0.08	0.05	3.70
						29.45	30.70	1.25	46.60	9.93	2.57	0.19	0.01	10.50
						30.70	31.70	1.00	37.80	9.51	2.41	0.08	<0.01	9.90
						31.70	32.80	1.10	24.40	33.20	1.16	<0.01	0.12	1.30
						32.80	33.90	1.10	25.30	31.40	1.75	0.01	0.16	2.20
						33.90	34.70	0.80	25.40	30.70	5.07	0.02	0.20	3.60
						34.70	35.15	0.45	27.00	34.20	4.62	<0.01	0.34	0.90
						35.15	35.90	0.75	10.50	37.60	14.10	0.05	0.55	1.20
						35.90	37.90	2.00	11.40	37.30	12.40	0.04	0.43	1.10
						37.90	38.05	0.15	12.00	42.60	13.50	0.04	0.86	1.60
KYT010	778644	9846784	-60	90	62.50	0.00	2.00	2.00	18.90	34.70	19.30	0.14	0.10	12.20
						2.00	4.10	2.10	26.60	25.60	14.50	0.15	0.07	9.80
						4.10	5.20	1.10	37.30	9.32	4.80	0.14	0.01	8.20
						5.20	6.40	1.20	46.70	15.20	7.05	0.07	0.07	4.70
						6.40	7.35	0.95	54.60	11.50	5.45	0.05	0.09	3.00
						7.35	8.45	1.10	61.50	5.25	1.14	0.12	0.26	3.40

						8.45	9.80	1.35	41.00	18.40	7.75	0.16	0.69	7.10
						9.80	10.30	0.50	39.10	9.93	7.40	0.21	1.43	9.50
						10.30	12.30	2.00	21.20	22.30	21.50	0.53	0.15	12.70
						12.30	13.90	1.60	14.40	38.20	24.40	0.26	0.21	11.40
						13.90	15.20	1.30	6.04	50.90	25.70	0.06	0.15	10.80
						15.20	16.80	1.60	5.15	62.40	19.30	0.05	0.21	7.10
						16.80	17.60	0.80	19.60	47.60	15.00	0.09	0.30	3.80
						17.60	18.70	1.10	7.35	61.70	17.10	0.13	0.23	5.70
						18.70	19.90	1.20	21.50	35.20	21.70	0.05	0.39	4.60
						19.90	20.60	0.70	16.30	42.50	20.00	0.18	0.32	5.90
						20.60	21.70	1.10	18.20	39.40	21.40	0.15	0.33	7.50
						21.70	22.90	1.20	17.50	37.10	23.90	0.05	0.33	8.00
						22.90	25.15	2.25	21.80	28.70	25.80	0.04	0.96	8.80
						25.15	26.65	1.50	22.80	30.10	23.20	0.11	0.81	6.60
						52.05	53.10	1.05	12.10	42.20	16.90	0.03	1.41	2.80
						53.10	54.25	1.15	14.50	41.80	14.50	0.03	1.40	2.60
						54.25	56.00	1.75	19.30	42.20	13.80	0.03	2.64	3.30

APPENDIX 2

KUNYIT IRON ORE PROJECT SIGNIFICANT DRILL SECTIONS

==> picture [434 x 610] intentionally omitted <==

==> picture [465 x 656] intentionally omitted <==

Appendix 5B Mining exploration entity quarterly report

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

	Name of entity	Name of entity	Name of entity	Name of entity
	COZIRON RESOURCES LIMITED
	ABN 91 112 866 869 Consolidated statement of cash flows
			30 June 2007
Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other – (provide details if material) Net Operating Cash Flows		Current quarter $A’000		Year to date (12 months) $A’000
		(318) - - (276) 26 - -		- (1,270) - - (700) - 122 - - -
		(568)		(1,848)
Cash flows related to investing activities 1.8 Payment for purchases of: (a)tenements (b)equity investments (c)other fixed assets 1.9 Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)		- - (31) - - - (64) - -		- (100) (79) - - 2 (64) - -
		(95)		(241)
		(663)		(2,089)

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 1

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows (brought forward)	(663)	(2,089)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from exercise of options 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - costs of share issues Net financing cash flows	- 3 - - -	3,818 8 - - - (323)
	3	3,503
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash atend of quarter	(660) 2,215 -	1,414 141 -
	1,555	1,555

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		51
		-
1.25	Explanation necessaryfor an understandingof the transactions
	Includes salaries and superannuation contributions for all directors, and fees of $8,460 paid to Mining Corporate Pty Ltd for ongoing accounting and company secretarial services. George Lazarou is a director of Mining Corporate Pty Ltd.

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
	-	-
	-	-

• See chapter 19 for defined terms.

Appendix 5B Page 2

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Appendix 5B Mining exploration entity quarterly report

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development	$A’000
	480
	-
Total	480

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (provide details)	347	352
	1,208	1,863
	-	-
	-	-
Total: cash at end of quarter(item 1.22)	1,555	2,215

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	Nil
	Nil

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions
7.3 +Ordinary securities 7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs	63,639,253	44,314,251		Fully Paid
	12,500		20 cents	Fully Paid
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	31,760,751 1,250,000 3,250,000	31,760,751 - -	Exercise price 20 cents 20 cents 25 cents	Expiry date 31 July 2008 31 January 2009 31 December 2009
	12,500	12,500	20 cents	31 July 2008
7.11 Debentures (totals only)
7.12 Unsecured notes (totals only)

• See chapter 19 for defined terms.

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Appendix 5B Mining exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

Sign here: ................................................................. Date: 31 July 2007 Director

Print name: George Lazarou

Notes

• 1 The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

• See chapter 19 for defined terms.

30/9/2001

Appendix 5B Page 5