CZR RESOURCES LTD — Interim / Quarterly Report 2013

Jul 30, 2013

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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

The Company Announcements Office ASX Limited Via E Lodgement

31 July 2013

Quarterly Activities Report to 30 June 2013

HIGHLIGHTS

Yarraloola Project – West Pilbara

• CZR has completed negotiations for Iron-ore Holdings Ltd to construct a new haul-road across the Yarraloola Project to a port development at Cape Preston East.

• Magnetic data has been reprocessed and integrated with spectral data to highlight opportunities for high-grade (Fe>55%), haematite-martite or channel iron mineralization as priority targets for exploration.

• Results from magnetic data over the Ashburton and Brockman Iron Formations has identified high-intensity zones at shallow-depths with strong lateral continuity as priority drill targets.

• New gold and base-metal prospects identified in the Ashburton Trough.

KingX Manganese Project – Earaheedy Basin

• Field trip with mapping, soil and rock-chip sampling completed.

• Rock-chip samples from Biagong Prospect with Mn to 41.5% located within a zone of hydrothermal alteration showing anomalism in arsenic, barium, cobalt and lead.

• Soil samples from regional fault systems are anomalous in gold, copper and arsenic.

• Rock-chip samples from the poorly outcropping Frere Formation report Fe to 60.6%.

Buddadoo Iron Project – Midwest Region

• A field programme has extended in-filled soil and rock-chip sampling. Drill-core from the Buddadoo Gabbro has been selectively re-logged and re-sampled for mineralogical work.

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• Presence of sulphide banding in the Buddadoo Gabbro drill-core indicates prospectivity for magmatic copper, nickel and platinum group element mineralization.

• Petrographic analysis of the vanadiferous-titanomagnetite with Fe from 51-52%, TiO2 from 16-20% and V from 3130-4830ppm (V2O5 = 0.56 to 0.86%) indicates the minerals should suit hydrometallurgical recovery systems.

• Soil-based copper and gold anomalies continue to develop in surface area and tenor at the Copper Valley and Edamurta gold base-metal prospects.

Corporate

Company Background

In September 2012, Coziron Resources Ltd (ASX: CZR) acquired the Yarraloola Iron-Ore Project in the West Hamersley, KingX Manganese Project in the Earaheedy Basin and Buddadoo Iron-ore Project in the Midwest of Western Australia from Creasy Group (Fig 1). In addition to the major commodity, prospectivity for other metals is being assessed as part of the exploration process.

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Fig.1 Location of the Coziron Resources Ltd projects in Western Australia.

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Exploration Activities and Results

– Yarraloola Project West Pilbara

In the past quarter CZR has completed access agreements to allow Iron-Ore Holdings Ltd to construct a haul-road from their mining leases to a new port at Cape Preston. These agreements include terms which allow CZR access to the road and port facilities on commercial terms if capacity is available. The scoping study on transport options completed by Engenium Pty Ltd for CZR in the previous quarter identified this port as the preferred transport option for any ore discoveries at Yarraloola.

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Fig 2. Location and geotectonic setting of the Yarraloola (CZR) Iron-Ore Project in the West Pilbara, Western Australia. Other major tenement holders in the region are RioTinto Ltd (LTD), Fortescue Metals Ltd (FMG), Iron-ore Holdings Ltd (IOH), Mineralogy Pty Ltd (Mineralogy).

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DSO-Iron-ore Exploration, Work Programmes and Results

The Yarraloola Project hosts channel-style iron (CID), goethite-haematite mineralisation and approximately 50 strike kilometres of magnetite mineralisation in iron-formations attributed to the Hamersley Group (Marra Mamba, Brockman and Boolgeeda Iron Formations). Exploration by CZR is focused on the discovery of direct shipping-grade ore-types (DSO) that include CID-style and haematite-goethite enrichment developed on or within the Hamersley Group sediments.

During the quarter, the company has integrated 2012 field-results with further processing of magnetic data and newly acquired spectral data. The studies show that areas broadly mapped uniformly as Yarraloola Conglomerate in the north and west of the tenements comprise a suite of riverine and deltaic sediments related to historical positions of the Robe and Fortescue River systems. Results highlight iron-rich parts of the channel systems with the potential to host CID-deposits. Plans for drilling these targets have been completed. Works programme approval has been obtained from the WA Department of Mines and Petroleum for some targets, while others are being moved into the approval process.

Structural targets with the potential to host high-grade haematite-martite (HGO) mineralisation associated with the Brockman Iron Formation are progressively being identified. Mapping and rock-chip sampling is being planned as the targets are being prioritized for drilling.

Magnetite Exploration, Work Programmes and Results

In addition to the DSO potential, the proximity of Yarraloola to the coast, gas-pipeline and haul-road to the new port at Cape Preston has the potential to facilitate the economic development of magnetite-ore. The CZR tenements host large areas of Brockman Iron Formation which are being mined to the north by Citic Pacific and a sequence of magnetitebearing schists and cherts (ASH 1 on Fig 3) in the Ashburton Trough.

In the past Quarter, further analysis of the magnetic data over the Brockman and Ashburton highlights opportunities for near surface, high-intensity zones with strong lateral continuity as propriety drill-targets. A staged and costed RC and diamond drilling programme has been planned to assess the targets. A programme of works for early-stage drilling has been submitted to the WA Department of Mines and Petroleum for approval.

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Fig 3. Yarraloola Project showing the regional geotectonic setting, subdivision of iron formations in the Hamersley Basin and Ashburton Trough by magnetic properties with the location of Iron-ore and Gold Prospects that are being advanced towards drilling. (CID = Channel Iron; HGO = Haematite-martite; BRO = Brockman Magnetite; ASH = Ashburton Magnetite)

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Gold and Base-metal-exploration, Work Programmes and Results

A database of historical results has been updated and reviewed. A 2km by 1km gold and base-metal anomaly at Cobblers remains a high-priority target. Drainage samples with anomalous gold and base-metals are present in the areas near Dixie Well and BBQ Valley where CZR has rock-chipped manganiferous veins (Fig 4). A new anomaly has been identified in the Peters Creek area. Follow-up programmes of soil and rock-chip sampling are planned.

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Fig 4 Yarraloola Project showing the regional Bouguer gravity model for the region, subdivision of iron formations in the Hamersley Basin and Ashburton Trough by magnetic properties and the location of gold and base-metal prospects that are being evaluated.

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– KingX Project Earaheedy Basin

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Fig 5. Geology of the Earaheedy Basin showing the location of the KingX tenements and a surface trace of the manganese-prospective horizon in dark blue.

Work Programmes and Results

A field programme was completed in the quarter. Prospect and regional-scale mapping, rock-chip and minus 2mm soil sampling commenced as a follow-up to results from the 400km[2] airborne magnetic-radiometric survey that was flown in 2012.

At the Baigong manganese prospect, rock-chips from manganiferous veins reported Mn up to 41.5% (Table 1; Fig 6). The veins are hosted within a zone where the soil is also anomalous in arsenic (As to 19ppm), barium (Ba to 1110ppm), cobalt (Co to 45ppm) and lead (Pb to 49ppm). The metal association and field evidence supports hydrothermal activity associated with a major NNW-trending regional structure.

Regional rock-chip samples from units towards the base of the Frere Formation recovered haematitic samples which reported high-grade Fe-contents up to 60.6% (Table 1). In addition soil samples across the geology show that some regional structures are anomalous in copper and gold. Follow-up work on the tenements is planned.

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Fig 6. Percentile distribution of Mn-in-soil on a 100m grid from the Baigong Prospect with the location of rock-chip samples reporting Mn>30%.

Table 1. Rock-chip samples with manganese>30% from the Baigong Anomaly and iron>50% from exploration license E38/1624.

	AE2013- 004	AE2013- 005	AE2013- 006	BA2013- 0001	BA2013- 0003	BA2013- 0013	BA2013- 0014	BA2013- 0019
Sample
Easting	387759	387723	387708	387771	387803	319407	319405	321850
Northing	7082900	7082888	7083078	7082860	7082833	7115750	7116788	7113542
Fe%	15.44	9.9	9.51	3.12	5.68	60.62	55.6	50.21
SiO2%	15.01	15.62	22.43	15.4	23.72	2.9	8.62	25.73
Al2O3%	3.89	2.2	3.08	5.39	5.49	1.67	1.71	0.95
TiO2%	0.15	0.08	0.14	0.25	0.23	0.05	0.03	0.02
CaO%	0.08	0.16	0.2	0.09	0.06	0.07	0.02	0.03
Mn%	30.9	37	32.4	41.5	34.1	0.25	0.14	0.05
P%	0.121	0.348	0.316	0.024	0.043	0.299	0.59	0.002
S%	0.04	0.071	0.069	0.014	0.026	0.074	0.038	0.068
MgO%	0.27	0.13	0.15	0.22	0.21	0.02	0.07	0.02
K2O%	2.987	3.478	3.4	3.694	3.447	0.018	0.186	0.02
LOI	11.13	10.33	9.95	10.87	9.79	6.63	8.08	0.49

Easting and Northing are GDA Zone 51. Analysis on fused disk by XRF at Bureau Veritas Laboratories, Perth.

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Buddadoo Project

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Fig 7. Geology of the Buddadoo Project with the greenstones hosted by granite and showing the location of the Buddadoo Mafic Complex which hosts vanadiferous titanomagnetite mineralisation.

Work Programmes and Results

A field programme was completed in the quarter. It focussed on extending and infilling soilsample grids at Edamurta and Copper Valley and selectively re-logging drill-core from the Buddadoo Complex. Results have been reported in detail but are summarized below.

1. Buddadoo V-Ti-magnetite Deposit

Selective re-logging of diamond-drill core from the Buddadoo Gabbro shows that it consists of a number of distinct igneous phases which intruded mafic schists and garnet-bearing granulite. Variations in the mineralogy and chemistry between the igneous phases provide opportunities for different styles of mineralization. In addition to the vanadiferous titanomagnetite bands, variations in the copper-nickel distribution indicate some units are more prospective for nickel while others show prospectivity for copper. The presence of sulphide banding in parts of the drill-core is regarded as further evidence for magmatic-style copper and nickel prospectivity. The available magnetic data appears to be able to maps the extent of the different phases. Representative soil and rock-chip sampling should highlight any opportunities for orthomagmatic copper, nickel or platinum-group mineralization. Further work is planned.

An X-ray diffraction (XRD) powder analysis of coarse grained, vanadiferous titanomagnetite samples from surface which reported Fe from 51 to 52%, TiO2 from 16-20% and V from 3130 to 4830ppm (V2O5 = 0.56 to 0.86%) shows the material is composed predominantly of

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ilmenite and haematite, with a trace of magnetite. However, observations on polished thinsections indicate that an early and minor stage of ilmenite crystallization was extensively overgrown by titaniferous magnetite. The magnetite has then exsolved lamellae of ilmenite during cooling. As such, it appears that the XRD determination of haematite probably reflects the effects of near-surface weathering on the samples. An absence of refractory phases such as rutile and anatase in the XRD study is regarded as a positive result because it implies potential for a high recovery of titanium by hydrometallurgical processes. Representative petrographic samples have been collected from magnetite bands in the diamond drill-core to further document the iron-ore mineralogy at depth.

2. Copper Valley-Buddadoo Range

Copper Valley to the south and west of the Buddadoo Range hosts a sequence of Archaeanage, deformed, mafic and felsic rocks which are intruded in parts by gabbro. Copper mineralization is historically described as blocks of copper-rich gossan amongst soil detritus. CZR has now collected 660 minus 2mm soil samples from the area (Fig 8). and these report gold to 55ppb and copper to 1540ppm (or 0.15%). The anomalism is associated with a NWtrending shear-zone that is approximately 500m wide and hosts mafic intrusives with evidence of carbonate and sulphide alteration and quartz veining.

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Fig 8. Gold-in-soil results on a summary geological map of the Copper Valley area. (GDA Zone50). Gold by fire assay with ICP finish to 1ppb detection at Bureau Verias Laboratories in Perth.

3. Edamurta Gold-Copper Prospect

Edamurta hosts a sequence of felsic volcanic rocks which are prospective for copper-gold bearing massive sulphides. CZR has increased the number of minus 2mm soil samples in the area to 806 (Fig 9). The results show strong copper (0.12%), zinc (0.25%) and gold (to 21ppb) anomalism associated with an area at Edamurta which has been subjected to some wider spaced, historical diamond and RC drilling. This is the area where CZR has rock-chip samples reporting copper to 4.86% and gold to 1.21g/t. The soil sampling also shows the presence of gold anomalism north of the drilled area within a sequence of interbedded mafic

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volcanics and banded iron-formations that show evidence of carbonate alteration associated with some of the major cross-cutting structures. Further work is planned.

To the south of the main Edamurta prospect, sampling along fence line access has identified a regional arsenic anomaly that appears to be associated with the Salt Creek Shear Zone.

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Fig 9. Gold-in-soils from the Edamurta area. Grid is GDA Zone 50. Gold by fire assay with ICP finish to 1ppb detection from Bureau Veritas Laboratories in Perth.

COMPETENT PERSONS STATEMENT

The information in this report that relates to mineral resources and exploration results is based on information compiled by Rob Ramsay (BSc Hons, MSc, PhD) who is a Member of the Australian Institute of Geoscientists. Rob Ramsay is a full-time Consultant Geologist for Coziron and 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”. Rob 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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