CZR RESOURCES LTD — Interim / Quarterly Report 2013

Jan 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 January 2013

Quarterly Activities Report to 31 December 2012

HIGHLIGHTS

• On the Yarraloola Iron Project, new prospects hosting high-grade (Fe > 55%), haematite-martite and channel iron mineralisation prospects have been identified. Work is focussed on generating targets for drilling.

• On the Earaheedy Manganese Project, potassic radiometric anomalies are associated with high-grade manganese prospects and provide additional support for drill targeting.

• Soil and rock-chip sampling commenced on the Buddadoo Iron Project. Results will be reported when they are available.

Corporate

Company Background

In September 2012, Coziron Resources Ltd acquired the Yarraloola Project in the West Hamersley, KingX Project in the Earaheedy Basin and Buddadoo Project in the western Yilgarn 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.

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

Exploration Activities and Results

Yarraloola Project

Background

The Yarraloola Project with a tenement holding of 1450km[2] is located adjacent to the ironore 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 immediately adjacent to Channel Iron Ore (CID) deposits mined by Rio Tinto at the Mesa A and Mesa J mines and covers the southern extension of magnetite-bearing rocks from the Sino Iron Project which is being developed by Citic Pacific Mining.

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Fig 2. Location and geotectonic setting of the Yarraloola Iron-Ore Project in the West Pilbara, Western Australia.

DSO-Iron-ore Exploration, Work Programmes and Results

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

During the Quarter, the company completed further programmes of mapping and rock-chip sampling focussing on sites regarded as being favourable for either secondary enrichment of goethite-martite or accumulation of iron-rich detrital materials (CID). Analyses of rock-chip samples reporting Fe >55% are presented in Table 1.

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Table 1: XRF analyse on fused-disk pulps from rock-chip samples that report Fe >55%.

Sample	Easting	Northing	Fe %	SiO2 %	Al2O3 %	CaO %	MnO %	P %	LOI %*
		**Brockman Iron Formation **
RR2012-186	413819	7602113	61.92	4.37	1.55	0.08	1.02	0.083	3.83
RR2012-187	413828	7602214	55.69	4.20	0.73	0.03	7.00	0.141	7.30
RR2012-190	413834	7602325	60.13	2.46	1.78	0.04	0.10	0.207	8.78
		**Boolgeeda Iron Formation **
RR2012-200	419428	7600761	57.62	14.50	0.30	0.11	0.03	0.123	2.67
		**Channel Iron **		Deposits (CID)
RR2012-181	412416	7591906	56.01	8.97	4.17	0.29	0.05	0.083	5.63
RR2012-182	412448	7591906	58.65	3.58	4.76	0.03	0.04	0.058	6.89
RR2012-226	394971	7588448	55.70	5.13	3.75	0.06	0.05	0.031	11.17

1. Easting and Northing - GDA94 – Zone 50; * LOI at 1100°C

The exploration has identified sites of haematite-martite mineralisation within the Brockman Iron Formation of which the largest prospect to date, lableled HGO-01 (Fig 3), also contains the samples reported in Table 1. Further work is planned for the area.

In addition, evidence of CID-mineralisation is more widespread on the western side of the Yarraloola than mapped previously and the areas require further assessment.

Historically, the Booldgeeda Iron Formation has not been regarded as a significant host for DSO mineralisation but the recovery of a sample with Fe > 55% shows the unit offers potential as an exploration target.

Magnetite Exploration, Work Programmes and Results

In addition to the DSO potential at Yarraloola, the proximity of the project to existing and proposed infrastructure (road, rail, port and gas pipeline) has the potential to facilitate the economic development of large-scale magnetite mineralisation at low cost. This is particularly the case if ore-types with higher grades, coarser grain-size or a lower mill-index can be identified. During the Quarter, the company completed additional programmes of mapping and rock-chip sampling on targets with different magnetic and geological settings.

Mapping and interpretation of the magnetic surveys shows that magnetite-bearing units of the Brockman Iron Formation outcrop and subcrop over a significant area of the tenements (Fig 3). However, field-work over a “Brockman-type” magnetic anomaly covering an area of approximately 12km by 1km in a region previously mapped as sediments of the Carnarvon Basin identified outcrop of interbedded magnetite-bearing schist and chert. This magnetitemineralisation rather than being attributed to the Hamersley Group appears to be hosted by units of the Ashburton Trough (ASH 1 on Fig 3). This target will be further investigated as it has significant surface dimensions, the magnetite appears to be coarser grained than material in the Hamersley Group and is also hosted by rocks potentially having a lower mill index.

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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

In addition to iron-ore prospectivity, the Yarraloola tenements have historical reports of gold and base-metals. Gold is reported about 10km north of Pannawonica in a region dominated by Fortescue Volcanics. In the previous Quarter, Coziron soil-sampled and generated a coherent 2km by 1km gold-anomaly with a peak Au of 1.75g/t and named the area the Cobblers Gold Prospect (Fig 3). During the Quarter some further mapping and sampling has been undertaken and results will be reported when they are available.

Another site of historical Cu-mineralisation is reported in the south-west of the tenements in rocks attributed to the Ashburton Trough. The site was located, mapped and sampled. Results will be reported when they are available.

In addition, Coziron has reported anomalous levels of gold and base-metals (Au (max = 24ppb), As (max = 107ppm), Cu (max = 387ppm), Pb (max = 95 ppm), Zn (max = 1460ppm), Co (max = 91 ppm) and U (Max = 4.2ppm)) in a graphitic shale between the Marra Mamba iron-formation and the overlying Wittenoom Dolomite.

Infill and extensional samples collected from other RC-drill intercepts were submitted for assay during the quarter and have reported similar levels of anomalism. The implication of the combined results for exploration is that the graphitic shale hosts multiple zones of enrichment, with the more anomalous zones located towards the stratigraphic base of the unit. Orientation soils samples collected over the outcrop expression of the unit reported up to 11ppb Au. This result suggests systematic soil sampling could be used to map mineralisation within the shale unit and more work is planned in 2013.

KingX Project

Project Background

This project, located 130km north-east of Wiluna, consists of 4 granted and 6 pending licences with a total area of 3000km[2] (Fig 4). 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.

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Fig 4. 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

An initial review of the geochemical data showed that manganese-rich samples from the major prospects all reported elevated potassium-contents which can genate radiometric anomalies.

During the quarter, UTS Geophysics flew a 4,330 line kilometre airborne magnetic/radiometric survey over 400km[2] (13%) of the KingX tenements. First-pass processing of the data shows that manganese anomalies are associated with radiometric anomalies on the potassium channel (Fig 5).

Spinifex Geophysics has been engaged to further process the data and provide detailed geological interpretations of the results to assist in the selection of targets for drilling.

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Fig 5. Raw total-count potassium radiometrics from the 400km[2] radiometric survey flown by UTS geophysics over part of the KingX Project in the Earaheedy Basin, Western Australia.

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). 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 which have been disrupted by major faults and fractures are prospective for gold and base-metal mineralisation. The later gabbroic rocks host vanadiferous and titaniferous magnetite.

The most advanced targets on Buddadoo is a drilled interval of V-Ti-magnetite mineralisation in gabbro (Buddadoo Mafic Complex) and drilled intervals of felsic rocks in the greenstones hosting copper-gold and base-metal mineralisation.

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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

Groundwork at Buddadoo commenced during the quarter, with 869 soil samples collected over the Edmurta Hills and Copper Valley Prospects and 44 more widely distributed rockchip samples (Fig 7). Final assay results are expected in early 2013 and will be reported when they are available.

The most significant mineralisation observed at surface are the massive, bands of titaniferous and vanadiferous magnetite along the eastern part of the Buddadoo Mafic Complex. These vary in thickness from 10cm to 1.0m and have crystals ranging from 0.5 to 2.0cm diameter. Samples have been collected for geochemical and mineralogical analysis. Results will be reported when they are available.

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Fig 7. Edamurta Hill Cu-Au prospect and Copper Valley Cu prospect soil sampling grids on E59/1350, Buddadoo Project, 200km east of the port of Geraldton, Western Australia.

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Agam Iron Sands Project

The directors undertook a review of the Company’s Agam Iron Sands Project in West Sumatra during the quarter. As a result of that review it has been decided to terminate the Cooperation Agreement with PT Galian Endapan Buana, to enable Coziron to focus on its WA projects.

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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