CZR RESOURCES LTD — Interim / Quarterly Report 2013

Apr 29, 2013

==> picture [164 x 62] intentionally omitted <==

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

30 April 2013

Quarterly Activities Report to 31 March 2013

HIGHLIGHTS

Yarraloola Project – West Pilbara

• The west Pilbara region, the location of the Yarraloola Project, has new haul-road and port infrastructure solutions progressing through statutory permitting towards development.

• DSO-prospects on the Yarraloola, hosting high-grade (Fe>55%), haematite-martite or channel iron rock-chip samples will be priority targets for drilling.

• Magnetite-prospects on Yarraloola located near the transport corridors are also being prioritized for drill-assessment.

KingX Manganese Project – Earaheedy Basin

• Fully processed airborne magnetic-radiometric data from the 2012 survey over 400km[2] of the project has provided confirmation that high-grade manganese mineralization is associated with geophysical anomalies.

Buddadoo Iron Project – Midwest Region

• Rock-chip sample results from the V-Ti-magnetite mineralization report Fe from 5152%, TiO2 from 16-20% and V from 3130-4830ppm (V2O5 = 0.56 to 0.86%).

• Pisolitic iron-ore samples report Fe to 58.4%.

• A rock-chip from the Edamurta gold base-metal prospect reports Au at 1.21g/t and Cu at 4.8%.

1

Corporate

Company Background

In September 2012, Coziron Resources Ltd (ASX: CZR) acquired the Yarraloola Project in the West Hamersley, KingX Project in the Earaheedy Basin and Buddadoo Project in the Midwest of Western Australia from Creasy Group (Fig 1). The Yarraloola and Buddadoo Projects have iron-ore as the principal exploration target, while KingX is focused on manganese exploration. However, each of the projects also contains prospectivity for other metals, particularly gold, copper and base-metals, and these opportunities are being assessed as part of the exploration process.

==> picture [340 x 480] intentionally omitted <==

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

==> picture [92 x 35] intentionally omitted <==

2

Exploration Activities and Results

– Yarraloola Project West Pilbara

The Yarraloola Project with a tenement holding of 1450km[2] is located adjacent to the iron-ore mining town of Pannawonica, 150km south-west of Karratha (Fig 2). The project consists of eight exploration licenses (seven granted, one pending) and three prospecting licences (two granted, one pending) that cover the western part of the iron-ore rich Hamersley Basin and an adjacent section of the gold and base-metal bearing Ashburton Trough. The project is located in an area with well-established Channel Iron Ore (CID) mines operated by RioTinto Ltd at Mesa A and Mesa J, magnetite mine being developed by Citic Pacific Mining on tenements held by Mineralogy Pty Ltd and developing CID operations controlled by Iron Ore Holdings Ltd (Fig 2).

RioTinto Ltd exports CID using an owner-operated rail system and port at Cape Lambert to the east of Karratha. In contrast, Citic-Pacific is developing a barge-assisted trans-shipment port for magnetite at Cape Preston. In recent months, Iron-Ore Holdings Ltd has applied for licences to cover part of Cape Preston and a haul-road corridor across parts of the Coziron tenements to connect with their Mining Leases. The proposed haul-road will be located adjacent to the Perth-Bunbury gas pipeline corridor. CZR is currently in the process of completing the required agreements to allow Iron-ore Holdings Ltd to proceed with the development. These agreements include terms which allow CZR access the road and port facilities on commercial terms if capacity is available.

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).

==> picture [361 x 407] intentionally omitted <==

==> picture [92 x 35] intentionally omitted <==

3

Results from a Preliminary Scoping Study on options and costs for DSO or Magnetite from Mine to Port

As part of the process of determining the economic parameters which impact the development of JORC-compliant iron-ore resources and mining operations from Yarraloola, CZR engaged the engineering company Engenium Pty Ltd to quantify the transport options and costs. A total of 11 potential transport scenarios were identified of which four were deemed to be realistic on costs and infrastructure. Then, during execution of the study Iron-ore Holdings Ltd (ASX: IOH) announced results from their prefeasibility of the Buckland Project, located near Yarraloola, which includes transhipment development at Cape Preston with capacity for third-party users.

Cape Preston is the preferred port option for CZR. Based on a 3.7mt/annum mining operation for direct-shipping ore, the capital-cost of transport equipment is projected at around $35.1 million with an operating-cost from mine to port at $24.33/tonne. The option for magnetite transport via a pipeline was also reviewed. On the basis on an 82km slurry-pipeline transporting 5Mt/a, the capital cost is anticipated to be around $298million with an operating cost at $10.73/tonne.

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 CIDstyle and haematite-goethite enrichment developed on or within the Hamersley Group sediments.

During the Quarter, the company has integrated field-results from 2012 with an ongoing review of geophysical data. The focus has been the identification of drill-sites within priority prospects showing potential for high-grade, direct-shipping (DSO) mineralization. The priority targets include areas with evidence for CID-mineralisation on the western side of the Yarraloola tenement package and haematite-martite (HGO) mineralisation associated with the Brockman Iron Formation (Fig 3). Programmes of works for approval from the WA Department of Mines and Petroleum are being prepared and heritage clearance is to be obtained.

Magnetite Exploration, Work Programmes and Results

In addition to the DSO potential at Yarraloola, the proximity of the project to the coast, the gaspipeline and proposed haul-road to the new port at Cape Preston has the potential to facilitate the economic development of magnetite-ore. To the north, Citic Pacific is developing Brockman ore-types which are well represented on the CZR tenements. However, during 2012 exploration by CZR identified a partially exposed sequence of interbedded, metamorphosed, magnetite-beating schists and cherts (ASH 1 on Fig 3) which have been attributed to the Ashburton Trough. These rock potentially have lower energy requirements to recover the magnetite than the finely siliceous units of the Brockman.

The Ashburton prospect encompasses a 12km by 1km magnetic anomaly which is well serviced by access tracks and requires drilling to establish the Fe-grade, magnetite yield and mill-index of the rocks. Drill sites are also being generated for the most magnetic parts of the Brockman because the available strike-length is in excess of 50km (Fig 3).

==> picture [92 x 35] intentionally omitted <==

4

==> picture [379 x 536] intentionally omitted <==

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)

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

In addition to iron-ore prospectivity, the Yarraloola tenements have historical reports of gold and base-metals. A 2km by 1km gold-in-soil anomaly with a peak value of 1.75g/t has been generated by CZR at the Cobblers Prospect, about 10km north of Pannawonica (Fig 4). Some additional soil sample results received during the Quarter confirmed the anomalism. Also, rock-chip sampling of some fault-hosted, en-echelon, manganiferous-quartz veins (MnO to 61%) in the Ashburton Trough at Dixie Well and BBQ Valley has identified low level anomalism in gold and base-metals.

==> picture [92 x 35] intentionally omitted <==

5

A review of gravity data stored by Geoscience Australia shows that the Yarraloola Project covers a major gravity discontinuity between the Hamersley Basin and Ashburton TroughCarnarvon Basin (Fig 4). The Cobblers Gold anomaly is located on the flank of a gravity low in the Hamersley Basin that is probably related to a granitic intrusion in the basement. The Dixie Well and BBQ Valley base-metal and gold prospects are associated with gravity features in the Ashburton Trough.

The identification of an association between the gold and base-metal mineralization and largescale features defined by the gravity assists in the identification of deposit models and prioritizing targets for further exploration.

==> picture [300 x 424] intentionally omitted <==

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.

==> picture [92 x 35] intentionally omitted <==

6

– KingX Project Earaheedy Basin

Project Background

This King X project, located 130km north-east of Wiluna, consists of 4 granted and 6 pending licences with a total area of 3000km[2] (Fig 5). It contains scattered outcrops of manganese mineralisation hosted by Palaeoproterozoic sediments of the Earaheedy Basin. The manganiferous outcrops are located consistently in an interval above pelletal iron-formation and towards the base of an overlying sequence of carbonates. This style and setting of the mineralisation is similar to the Kalahari Basin in southern Africa which is regarded as the world’s largest accumulations of manganese. In addition to manganese and iron, the Earaheedy Basin is also regarded as being prospective for sediment-hosted copper and other base-metal mineralisation.

==> picture [452 x 320] intentionally omitted <==

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

The initial review of the KingX project showed that historical manganese samples all reported elevated potassium-contents which has the ability to generate radiometric anomalies. As a result, CZR contracted UTS Geophysics to fly a 4,330 line kilometre airborne magnetic/radiometric survey over 400km[2] (13%) of the KingX tenements. In this quarter, CZR contracted Spinifex Geophysics to process the data and final images have been received.

The processed geophysical results confirm that the known outcrops of manganese mineralisation are hosted by relatively extensive zones of potassium radiometric-anomalism (Fig 6). Magnetic images also show evidence that the Baigong Manganese Prospect in particular is associated with a regional NNW-trending lineament. Further support for this NNW-trending lineament is present in the publically available gravity data. Such features can

==> picture [92 x 35] intentionally omitted <==

7

be associated with major faults that act as conduits for fluid-flow and provide sites for mineralization. A field-visit is being planned to establish ground-control, collect samples for geochemical characterisation and investigate opportunities for drilling.

.

==> picture [452 x 321] intentionally omitted <==

Fig 5. Potassium-channel radiometric results with mapped magnetic lineaments from the 400km[2] airborne-survey flown by UTS geophysics over part of the KingX Project.

Buddadoo Project

Background

The Buddadoo Project consists of a single exploration license covering approximately 200km[2] of the Yilgarn, 200km east of Geraldton (Fig 1). It is strategically located 70km from a railway line at Morawa that connects to both Geraldton and Fremantle Ports. The geology consists of part of an Archaean-age ultramafic to felsic Greenstone Belt, hosted by granitic rocks that were intruded later by gabbro (Fig 6). The mafic to felsic rocks in the greenstone belt are disrupted by faults and fractures. The Archaean rocks are prospective for gold and base-metal mineralisation, while younger gabbroic rocks host vanadiferous and titaniferous magnetite.

The most advanced targets is in the Buddadoo Range with historically drilled interval of V-Timagnetite mineralisation and Edamurta with drilled intervals of copper-gold and base-metal mineralisation. A two week field programme in late 2012 collected some representative 1-2kg, rock-chip samples from a range of different rock-types and 869, 1-2kg, -2mm, grid-based soilsamples from areas with gold and base-metal prospectivity. The geochemical results were received and details were reported in the Quarter. A summary of results is described below.

==> picture [92 x 35] intentionally omitted <==

8

==> picture [309 x 341] intentionally omitted <==

Fig 6. Geology of the Buddadoo Project with the greenstones hosted by granite and showing the location of the Buddadoo Mafic Complex which hosts V-Ti-magnetite mineralisation.

Work Programmes and Results

The Buddadoo project is moving towards an advanced exploration opportunity with at least four distinct prospects.

1. Buddadoo V-Ti-magnetite Deposit and other Iron-ore prospectivity

Massive, bands of coarse-grained, titaniferous and vanadiferous magnetite outcrop along the eastern part of the Buddadoo Mafic Complex. Access to the area is in good condition and historical drill-collars can be located. Five CZR drill-chip samples from the bands of iron-ore reported Fe from 51-52%, TiO2 from 16-20% and V from 3130-4830ppm (V2O5 = 0.56 to 0.86%), see Table 1. Another potential iron-ore opportunity has been identified by the presence of pisolitic material in some parts of Buddadoo that report Fe to 58.4% (Table 1).

==> picture [92 x 35] intentionally omitted <==

9

Table 1. Representative rock-chip samples from the Ti-V-magnetite bands in the Buddadoo Range and pisolitic iron-ore with Fe>55wt%.

Sample No	Easting	Northing	Fe %	SiO2 %	TiO2 %	Al2O3 %	MnO %	P %	LOI %	V ppm
Ti-V-magnetite
RR2012-235	449740	6823824	50.95	2.28	19.8	2.92	0.31	0.011	-0.56	3230
RR2012-236	449761	6823815	52.08	1.78	19	2.75	0.31	0.007	-0.28	3210
RR2012-237	449779	6823815	51.12	2.68	18.9	3.14	0.25	0.004	-0.2	3130
RR2012-238	449804	6823835	51.85	1.56	19	2.8	0.31	0.007	-0.13	4030
RR2012-239	449813	6823835	51.11	2.97	16.4	3.56	0.28	0.003	0.14	4830
Pisolitic Iron
AE2012-126	446822	6839093	58.09	8.97	0.06	1.29	0.63	0.044	4.92
RR2012-241	452876	6821509	56.52	5.05	3.43	2.87	0.27	0.039	6.72
RR2012-242	453524	6821853	58.41	3.28	4.04	4.89	0.19	0.048	3.39

Easting and Northing – GDA, Zone 50. Assay except V by XRF on fused disks at Ultratrace laboratories. V by mixed acid digest and ICP-finish at Ultratrace laboratories.

2. Copper Valley-Buddadoo Range

Soil sampling on the southern and western flanks of the Buddadoo Range identified anomalism in gold (to 30ppb) and copper (to 1540ppm) in an area known to host blocks of secondary copper mineralisation. Infill and extensional work is planned to provide constraints on the generation of targets for drilling.

3. Edamurta

Representative rock-chips were collected from a variety of rock-types in the Edamurta area. The most mineralized rock-chip from the wall of a historical pit reported Au at 1.21g/t and Cu at 4.8% (Table 2).

Table 2. Copper and gold rock-chip samples from the Edamurta area.

Sample	Easting	Northing	Cu %	Au g/t	Pb ppm	Zn ppm	Ag ppm
AE2012-104	450000	6839705	4.8	1.12	4	104	3
AE2012-105	450000	6839705	2.83	0.484	3	188	1.5

Easting and Northing – GDA, Zone 50. Au by fire assay with ICP finish and remainder of elements by mixed acid digest and ICP finish from Ultratrace laboratories in Perth.

Soil sampling across the Edamurta prospect has started to define some gold (to 21ppb) and copper (to 558ppm) anomalies. These appear to cross-cut the geology and are potentially related to structural features in the area. Follow-up sampling is planned to provide additional control for the selection of drill-targets.

4. Granite Flats

An exploratory line of soil samples along a fence-line that crossed a series of granite-hosted, fault splays from the Salt Creek Shear identified a 600m wide zone of anomalism in gold (to 8ppb). Follow-up sampling is planned to establish the extent of the anomalism and determine whether targets for drilling are present.

==> picture [92 x 35] intentionally omitted <==

10

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.

==> picture [92 x 35] intentionally omitted <==

11