CZR RESOURCES LTD — Interim / Quarterly Report 2008

Oct 30, 2008

COZIRON RESOURCES LIMITED www.coziron.com

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COZIRON RESOURCES LIMITED (ASX:CZR)

QUARTERLY REPORT For The Period Ending 30 SEPTEMBER 2008

HIGHLIGHTS

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• Agam Iron Sand project in Western Sumatra, Indonesia, is -

• ongoing, preparation of in depth exploration program by an independent consultant, Ravensgate.

• Lead Project is ongoing, negotiations with interested parties.

• Tenements of Rawang Gadang Iron Ore, Bukit Bara Inderapura and Tapan Coal Projects were written off.

• Singkarak Copper - Gold and Landas Paeu Coal Projects, The Company decided not to proceed with the Heads of Agreement.

• Short Term Loan from the Directors of $200,000 Interest Free Loan to the Company .

• Non - Renounceable Rights Issue to Raise an approximately $2.6 Million.

September Quarterly Report 2008 1

COZIRON RESOURCES LIMITED www.coziron.com

Introduction

The Agam Iron Sand project is ongoing. The company (CZR) has received an Independent Geological Assessment Report from the independent geological consultant, Ravensgate; this report was released to the Australian Securities Exchange (ASX) on 17 September 2008, for Ravensgate full report, refer to http://www.asx.com.au/asxpdf/20080917/pdf/31cc9p6gt8kpg2.pdf

Ravensgate will also prepare an in-depth exploration program to fully comprehend the quality and quantity of Agam Iron Sands mineralization.

The company (CZR) has entered into a Joint Venture agreement with PT Galian Endapan Buana for the Agam Iron Sand project.

The Solok Selatan Lead Project is ongoing. Negotiations with interest parties are continuing. The company (CZR) has entered into a Joint Venture agreement with PT Galian Endapan Buana for the Solok Selatan Lead ore project.

The company (CZR) received $200,000 (Two Hundred Thousand Australian Dollars) by way of short term interest free loan from the company’s Directors.

The company (CZR) announced a non-renounceable rights issue of one share for every two shares held to raise up to approximately $2.6 Million.

Projects Review - Western Sumatra Republic of Indonesia

• Rawang Gadang Iron Ore, Inderapura and Tapan Coal Projects

The company (CZR) has decided to write off the above West Sumatran projects to concentrate on developing the Agam Iron Sand project. The company (CZR) believes the exploration and mining costs for iron sands are significantly lower and the return on capital period is shorter compared to the projects above. The Initial survey has indicated a significant potential to delineate a sizeable, potentially economic, iron sands resource. See review of operations for Agam iron sands.

• - Singkarak Copper Gold and Landas Paeu Coal Projects

The company (CZR) has decided not to proceed with the Heads of Agreement of the above projects, in order to focus on developing the high potential Agam Iron Sands project.

The company (CZR) believes the exploration and mining costs for Iron Sands are significantly lower and the return on capital period is shorter than the projects above. Initial survey has indicated a significant potential to delineate a sizeable, potentially economic, iron sand resource.

Refer to review of Agam Iron Sands activities below.

September Quarterly Report 2008 2

COZIRON RESOURCES LIMITED www.coziron.com

• Lead Trading, Exploration and Mining Project in Indonesia

In February 2008 the Company ((CZR) entered into a Heads of Agreement to Joint Venture with the Indonesian Company PT Galian Endapan Buana (GEB), on an 80:20 basis, ( CZR 80% & GEB 20%) with GEB’s interest to be a free carried interest, in respect of a Lead Trading, Exploration and Mining venture in Western Sumatra, Indonesia.

GEB was awarded the requisite Lead Export Licence by the West Sumatra Government on 12 Feb 2008.

Field observation and geological mapping of the outcrops around the existing Lead Sulphide Pbs zones were carried out at the company tenement at Solok Selatan Province, Western Sumatra. Initial results revealed a promising presence of Lead ore around the exposed Lead Sulphide veins on surface.

With the global Lead price dropping from the high of mid $3,000 in February 2008 to about $1,600 currently, beneficiating Lead concentrate to add value will be a good option as the margin from direct sales of lead ore is expected to be low. The Lead concentrate price is tied to the market price of Lead at the London Metal Exchange.

If the resource is proven, it will ensure consistent supply of raw input for the beneficiating plant. The company (CZR) is also negotiating with Hunan Guiying Yinxing Non-Ferrous Smelt Co Ltd and other interested parties to fund and set up the lead beneficiating plant.

In September 2008, the Company (CZR) entered into a JV agreement with PT GEB, which is subject to completion of legal due diligence, for the exploration of Lead Ore in Solok Selatan, Western Sumatra. The JV agreement confirms the terms and conditions specified in the Heads of Agreement.

• Agam Iron Sands Project

The company (CZR) has signed a Heads of Agreement to Joint Venture (80:20 Basis) with the Indonesian Company PT Galian Endapan Buana (GEB) to develop the Agam Iron Sands Project in Western Sumatra. GEB has an Exploration Licence for Agam’s two tenements; the combined area of the tenements is 3,960 hectares.

An application for Mining and Export Licence has been lodged with the Indonesian authorities and is awaiting approval.

Agam tenements are located on Western Sumatra, west of the Trans Sumatran Fault Zone (TSFZ) and within few kilometres from the Indian Ocean.

September Quarterly Report 2008 3

COZIRON RESOURCES LIMITED www.coziron.com

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PROJECT AREA
REGIONAL LOCALITY MAP
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Agam Location
Agam tenement Locality Map
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An extensive mapping geology program was carried out at Agam tenement followed by a shallow drilling program to intercept the Iron Sands Layers. Initially, a program of three inch diameter hand augers commenced the drilling program to establish the Iron Sands locations for the Test Pits drilling. Subsequently, the exploration program entered its second phase of digging 20 test pits using an excavator to detect the thickness of the Mineralised Iron Sand Layers.

A full scale Resource Drilling Program will be prepared by Ravensgate Minerals Industry Consultants; this program will be implemented as soon as final version is received from Ravensgate.

September Quarterly Report 2008 4

COZIRON RESOURCES LIMITED www.coziron.com

The completed 20 test pits (holes), vary in depth, but generally were between 3 - 4m deep with an average diameter of 2m.

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Coziron initial 20 Test Pit Holes diagram

On-the-spot Elemental Analysis was carried out to determine the Iron Sands percentage at the mineralised zones. For this purpose a portable X-Ray Fluorescence (XRF) analyser was used at each intercepted Iron Sands Layer for all 20 test pits.

The Agam Iron Sands project will be explored further and requires further drilling to identify the limits of mineralisation zones. A drilling program has to be implemented within the next few months to enhance mining opportunities.

An accurate sampling and assaying program will be undertaken by ProMet Engineers providing the metallurgical test-work and samples will be analysed at the ALS Laboratory Group in Perth.

The Company (CZR) has appointed Ravensgate Minerals Industry Consultants as an independent consultant to prepare a report in respect of the resource estimate.

Ravensgate is a Perth-based independent privately owned firm providing exploration, mining and minerals resources consulting services to the mining sector since 1997.

Since the end of the financial year, the company (CZR) has engaged with the Indonesian Geophysics company “ CV Billanda Utama ” to undertake the Ground Electro Magnetic Survey at the two Iron Sand tenements at Agam.

The company (CZR) has recently received an Independent Geological Assessment of the project from Ravensgate, minerals industry consultants after the visit of their exploration manager, Mr Allen Lyons to the Agam Iron Sand site. Mr. Lyons will prepare an in-depth exploration program to fully comprehend the quality and quantity of Agam Iron Sands mineralisation.

The company (CZR) has also engaged ProMet Engineers to provide a Preliminary Sighter Test-work prior to the extensive Metallurgical Test-work program for the Agam Iron Sand project.

The intent of the Sighter Test-work is to establish sufficient information to offer recommendations on how to beneficiate the iron sands to marketable grade.

September Quarterly Report 2008 5

COZIRON RESOURCES LIMITED www.coziron.com

The company has sent a representative sample of 18kg to ProMet Engineers collected from the Agam site for this purpose. The test is to be conducted at ALS Laboratories and will include a Davis Tube Wash, which is utilised to establish a concentrate. This material will then be analysed by the Laboratory XRF to establish the grade (5 size fractions) of the Iron Sands.

In September 2008, the Company (CZR) entered into a JV agreement with PT GEB which is subject to completion of legal due diligence, for the exploration of iron sands. The JV agreement confirms the terms and conditions specified in the Heads of Agreement.

• Short Term Loan From The Directors

The company (CZR) has received $100,000 from Australian Glamour Pty Ltd (a company controlled by the Director, Mr. Richard Tan) and $100,000 from KHH (Aus) Holdings Pty Ltd (a company controlled by the Director, Mr. Lam Fatt Tan) by way of short-term interest free loans in September 2008.

• Non - Renounceable Rights Issue

In 24 September 2008 the company (CZR) announced a non-renounceable rights issue of 1 share for every two shares held to raise an approximately $2.6 million. This amount is not underwritten. For further information, refer to the Company’s Pro Rata Right Issue at the Australian Securities Exchange (ASX) www.asx.com.au/asxpdf/20080924/pdf/31ch8lss5cm15q.pdf

• Project Generation

In addition to the company’s active Asian Exploration Projects within this quarter, Coziron Resources has been considering several prospective exploration project proposals, both domestically in Australia and in the growing mining industry overseas. The company will announce its future projects in due course.

Yours Faithfully,

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Bakr Khudeira Geologist

The contents of this report that relate to geology and historical exploration are based on information compiled by Mr Bakr Khudeira, 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. Mr. Khudeira consents to the inclusion of this report of the matters compiled by him in the form and context in which they appear.

September Quarterly Report 2008 6