CZR RESOURCES LTD — Interim / Quarterly Report 2012

Jan 30, 2012

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The Company Announcements Office ASX Limited Via E Lodgement

31 January 2012

QUARTERLY ACTIVITIES REPORT TO 31 DECEMBER 2012

PROJECT ACQUISITION

• During the quarter, Coziron Resources Limited (“Coziron” or the “Company”) contracted to acquire three significant and key tenement interests in the Hamersley Basin, Midwest region and Earaheedy Basins of Western Australia.

• The three projects contain tenements that are highly prospective for significant iron ore as haematite and/or magnetite, titaniferous vanadiferous magnetite and manganese ore resources. The Midwest and Pilbara tenements are exceptionally well located in respect of existing and planned infrastructure.

• Coziron has commenced with a search for a suitable CEO to build a team to move the projects through exploration and development and plans to fast track exploration and project development to become an integrated supplier of raw materials to steel producers.

As announced on 2 January 2012, in December 2011 Coziron entered into agreements to acquire three separate projects in Western Australia, for a total consideration of 500 million shares at a deemed value of A$15M, together with an ongoing free carried interest for the vendors of 15% through until conclusion of any Bankable Feasibility Study on each of the three projects. The acquisition of the projects is subject to shareholder approval, which is anticipated to be put to shareholders during March 2012 quarter.

The projects, detailed below, provide Coziron with a significant presence in two of Western Australia’s most prolific mineral fields, being the Hamersley Basin of the Pilbara, and the Archaen Gullewa Greenstone Belt of the Midwest region. These two projects are supplemented by a significant holding in the highly prospective but underexplored Earaheedy Basin in the Yilgarn craton 120 km northeast of Wiluna.

Coziron Resources Limited

ABN: 91 112 866 869 Level 24, 44 St George’s Terrace Perth Western Australia 6000 PO Box Z5183 Perth WA 6831 Phone: +61 8 6211 5099 Facsimile: +61 8 9218 8875 Website: www.coziron.com

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Zanthus Resources Pty Ltd (“Zanthus”)

The Company entered into an agreement to acquire 100% of Zanthus. Zanthus holds seven contiguous granted exploration tenements and two granted prospecting licenses in the Pilbara’s iron producing Hamersley Basin. The tenements are adjacent to the North West Coastal Highway and 120 kilometres southwest of Karratha and the Port of Dampier. Established infrastructure traverses the tenements, including the Robe River Railway and the Dampier-Bunbury gas pipeline. The proposed railway for the Australian Premium Iron (API) Joint Venture is expected to cross through the tenements and continue to the proposed Anketell Port, west of Cape Lambert.

The Archean Hamersley Province of the Pilbara is a major world iron ore province with high grade iron ore mines occurring over an area of 400km by 150 km. Banded iron formation (BIF) is the major source of iron with the sediments of the Hamersley Group containing the bulk of the deposits. Another significant source of iron ore mined in the Pilbara is the Channel Iron Deposit (CID).

The main economic rock units for BIF iron ore in the Hamersley region are the Brockman and Marra Mamba formations. Early stage exploration has mapped abundant outcrop of BIF iron ore formations on the Zanthus project.

In 2009 Zanthus commissioned UTS Geophysics to conduct a 25,555km aeromagnetic-radiometric line survey over the tenements, with data compilation and interpretation completed by Southern Geoscience. Both magnetic and radiometric signatures were used to infer lithologies and structures under cover, revealing that Hamersley Group rocks are very likely to exist under shallow cover away from known outcrop.

Brockman and Marra Mamba Formations outcrop over 26 kms and 29 kms of strike respectively with total strike length on the tenements as a result of magnetic imagery estimated at more than 50 kms. No drilling of these units has yet been conducted on the tenements.

CIDs are often found as pods within depressions in ancient palaeochannels and are a cheaply extracted source of high grade iron ore as the resources tend to have low strip ratios, can be dry mined and are conventional direct shipping ore. There are abundant CID operating mines and deposits in proximity to the Zanthus tenements.

Rio Tinto’s Mesa A and Mesa J are both operating CID mines with combined annual production of greater than 30 M tpa whilst undeveloped CID’s in proximity to the Zanthus tenements include Warramboo, Mesa B-F and Mesa H-K, as well as Jewel, Cochrane, Ken’s Bore, Cardo Bore East and Upper Cane.

Publicly listed Red Hill Iron Ore Ltd owns the rights to CID deposits in the western half of one Zanthus tenement (E08/1685, shown on Figure 2) and have to date identified 71M tonnes of ore at 54.1% Fe. Red Hill have no rights to high grade hematite banded iron formations that may exist on the Zanthus tenements.

Additional CIDs have been mapped in the Eastern section of E08/1685 and potential exists for undiscovered CIDs under shallow cover.

Tenement locations, infrastructure and geology are shown in Figures 1 and 2.

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Figure 1 – Regional Infrastructure, Geology and Location

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Figure 2 – Tenement Map

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Buddadoo Metals Pty Limited (“Buddadoo”)

The Company entered into an agreement to acquire 100% of Buddadoo and Buddadoo has 100% ownership of Exploration licence E59/1350, located 180 kms east of Geraldton and 70 kms from existing railway at either Morawa or Pindar. See Figure 3 below.

The Exploration Licence contains:

1. A layered mafic complex with outcropping magnetite horizons:

2. A VMS copper-zinc target:

3. Aeromagnetic data covering most of the tenement at 100m line spacing or better.

4. A second copper anomaly occurs in the south of the tenement, associated with a small gossan hosted by a sequence of basalt and dolerite and widespread surface malachite occurrences.

The Buddadoo Complex is a layered mafic intrusion (dominated by coarse gabbro) that has been emplaced into the Archaean Gullewa Greenstone Belt. The complex is approximately 8.6 kms long, 2.4 kms wide and dips steeply to the west. Layers of massive cumulate magnetite range in thickness from 5cm to 4m and are separated by gabbro and anorthosite containing variable amounts of disseminated magnetite. Vanadium mineralisation is elevated within the magnetite bands also occur in economic concentrations in the adjacent gabbro layers.

Figure 3 – Buddadoo Location

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“ ” – KingX Pty Ltd ( KingX ) The Kingston Project

KingX holds 12 contiguous pending tenements in the southern Earaheedy Basin on the margin of the Yilgarn craton 120 km northeast of Wiluna, as shown in Figures 4 and 5. The Ground holding totals 965 blocks prospective for sedimentary manganese and iron ore deposits. KingX holds 4 granted tenements and eight applications. Historic exploration has been limited with the potential for manganese only recognized over the last few years.

Prospect mapping undertaken by geologists demonstrates that manganese occurs at several stratigraphic levels within the basin over 120 kilometres of strike. Seventy eight rockchip samples were collected from the Kingsland Prospect on the eastern tenement E38/2213. This prospect has a strike length of 1 kilometre. This prospect, along with several other areas of manganese outcrop, requires low cost geophysical surveys to define drill targets.

It is believed further manganese targets exist under cover at the junction of prospective stratigraphy with large regional structures. An airborne electromagnetic survey would be necessary to delineate target zones at these locations.

Figure 4 – Simplified Geology and Location

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Figure 5 – Tenement Map

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AGAM IRON SANDS PROJECT

The Company maintains its interest in the Agam Iron Sands project, located on the island of Sumatra. The project is located on the coastal plains within a few hundred metres of the shoreline. The focus is on exploration of iron rich sands. The concentrations of heavy mineral sands, principally magnetite, occur as distinct bands of varying thicknesses within a sequence of silt, sand and gravel beds below surface. The Company recently met with the joint venture partner and is proceeding with the appointment of a consultant geologist to report to the Board in relation to the project.

For more further information regarding this announcement please contact Adam Sierakowski on 08 6211 5099.

Coziron Resources Limited

Level 24, 44 St George’s Terrace Perth Western Australia 6000 PO Box Z5183 Perth WA 6831 Phone: +61 8 6211 5099 Facsimile: +61 8 9218 8875 Website: www.coziron.com