CZR RESOURCES LTD — Interim / Quarterly Report 2014

Jul 30, 2014

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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 2014

HIGHLIGHTS - Technical

Yarraloola Project – West Pilbara

• Field work commenced.

• Palaeo-channel systems with pisolite mineralization (CID’s) are priority targets for mapping and sampling.

• Marra Mamba, Brockman and Ashburton Iron formations are being mapped and sampled.

• Priority targets are those in proximity to current or proposed road and rail infrastructure.

• Priority drilling targets identified for drilling in the September quarter

Shepherds Well Project – West Pilbara

• A low level (40m), 100m line-spaced high-resolution airborne magnetic-radiometric survey has been completed over the entire tenement.

Yarrie Project – North Pilbara

• CZR has entered into option to acquire four tenements covering 1022km2 that are contiguous with BHP’s Yarrie-Goldsworthy-Nimingarra-Shay Gap tenements and prospective for high grade iron-ore.

• A gravity-seismic programme covering magnetic targets interpreted as extensions of the Nimingarra Iron-formation beneath cover was commenced during the quarter and results are currently being analyzed.

Buddadoo Project – Midwest Region

• Sampling programmes which collected 460 soils and some representative rock-chip samples over copper-gold (Cu-Au) targets has been completed.

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Project Summaries

Yarraloola Project – West Pilbara

Background

The Yarraloola tenements cover 1450km[2] in the western part of the Hamersley Basin and adjacent parts of the Ashburton Trough in the West Pilbara. In parts these are overlain by younger sediments of the Carnarvon Basin. Sediments in the Hamersley Basin include iron-rich members of the Marra Mamba, Brockman and Boolgeeda Iron Formations. In the southern part Yarraloola is divided by the RioTinto Ltd owned Robe River Channel Iron deposits (CID) within sediments of the Carnarvon Basin that currently support large-scale mining operations at Warramboo, Mesa A and Mesa J (Fig 1). In addition to the established infrastructure, a new haul-road and port infrastructure is being developed by Iron-ore Holdings Ltd and rail and port facilities are proposed for development by the Baosteel JV. This planned infrastructure will traverse the CZR tenements and potentially improve the economics of any iron-ore deposits discovered within the project area

Activities

During the quarter, the company commenced field activities (as reported on 1 June 2014). The major focus of the exploration activity is the palaeo-channel systems which host pisolitic iron-stone mineralization (CID). Secondary targets include some strongly magnetic units in the Ashburton Trough and the upper units of the Brockman Iron Formation (Fig 1). The target in the Ashburton Trough is of significant interest because unlike the Hamersley Basin, rocks in the Ashburton have been subjected to periods of deformation and metamorphism. This provides an opportunity for magnetite to recrystallize and increase in grain-size. The upper part of the Brockman is being targeted because it is being mined as a source of magnetite at the Sino Mine to the north of Yarraloola and also hosts largescale deposits of direct shipping iron-ore in the east and central Pilbara.

The focus of the exploration activity is to identify targets for drilling.

Results

No results were reported during this quarter, however significant results from the CID mineralization were reported on the 11[th] of July and the magnetite schists in the Ashburton Trough reported on 16[th] of July and these announcements will be summarized in the next quarterly report.

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Fig 1. Distribution of targets with the potential to host iron-ore mineralization on the Yarraloola Project, West Pilbara, Western Australia.

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Shepherds Well Project – West Pilbara

Background

Shepherds Well is a 192.2km[2] exploration license (E08/2361) located 50 km southwest of Karratha (Fig 1). Geographically the tenement is contiguous with the Yarraloola Project and logistically it is serviced by bitumen road access from the Great Northern Highway, located only 25-50km from a new public access port being developed at Cape Preston East by Iron-ore Holdings and crossed in part by the proposed Baosteel JV railway (Fig 2). This planned infrastructure has the potential to improve the economics of any mineral deposits identified within the project area.

Geologically, Shepherds Well compliments Yarraloola through the addition of potential iron-ore mineralization both as high-grade haematite and magnetite from Archaean-age metasediments of the Cleaverville Terrain. The Cleaverville consists of a sequence of ocean-floor basalts and associated sediments that are part of an accretionary domain that pre-dates the formation of the Hamersley Basin. Regionally, there are iron-formations up to 500m thick interbedded in the Cleaverville and basemetal (Cu-Au-Pb-Zn) occurrences attributed to a sea-floor volcanogenic origin.

Work Programmes

A 2724 line km, fixed-wing, magnetic-radiometric survey was completed during the quarter by UTS Limited over the Shepherds Well licence (as reported 1[st] June 2014). East-West survey lines were spaced 100m apart and flown at a height of about 40m and cover the entire tenement. Initial processing and levelling of the data has been undertaken by UTS prior to being released to Coziron. Further enhancements and filtering are being applied by a Consulting Geophysical company so that that it has generated targets for field follow-up.

The focus of the airborne survey is to more concisely outline and prioritize the distribution of ironformations on the Shepherds Well project. Follow-up work will include surface mapping and rock-chip sampling and the selection of sites for drilling.

Results

No results were reported during the quarter. Significant results from the airborne survey and some initial rock-chip sample results which were reported on the 29[th] of July will be summarized in the next quarterly report.

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Fig 2. Regional geological setting of the Shepherds Well Project showing the distribution of the Archaean metasediments of the Cleaverville Terrain which are the more prospective rocks for iron and base-metal mineralization.

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Yarrie Project

Background

Yarrie consists of four contiguous exploration licences held by XFE Pty Ltd (three granted, E45/3725, E45/3728, E45/4065 and one application E47/3727) covering a total of 1022.2km[2] and located 160km east of Port Hedland (Fig 3). The Yarrie tenements are largely underexplored. They share boundaries with the Yarrie-Goldsworthy mining project which was until recently, operated by BHP Billiton PLC (BHP), while Fortescue Metals Group Ltd (FMG) hold granted exploration licences along the northern boundary of the project.

The tenements are serviced by a bitumen road and natural gas pipeline between Pt Hedland and the Telfer copper-gold mine and major regional roads which service the cattle industry and other mining towns in the region. The BHP owned rail connection between the Yarrie-Goldsworthy mining area and Port Hedland also services this area (Fig 3)

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Fig 3. Location of the Yarrie tenements in relation to the other major iron-ore tenement holders and BHP mines in the North Pilbara of Western Australia.

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Prospectivity

The Yarrie project is prospective for high-grade iron-ore (Fe>62%) deposits within Archaean-age sequences of volcanics and sediments of the Cleaverville Terrain (Fig 4). These rocks unconformably overlie the granite basement, but underlie units of the Hamersley Basin. The Yarrie project covers outcrop extensions of the Cleaverville in the central and southern areas. In addition, there is significant tenement coverage held by CZR to the east and north where interpretations of magnetic surveys indicate the presence of highly magnetic rocks beneath shallow cover. Within the sequence, the priority exploration targets are the parts of the Nimingarra Iron Formation which may be altered to high-grade haematite.

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Fig 4. Regional geological setting of the Yarrie Project in the Pilbara with belts of Archaean sediments that include the Niminagarra Iron Formation marginal to the granite batholiths.

Significance of Yarrie to Coziron Resources Ltd

Yarrie provides the company with exposure to the North Pilbara, which is known to be mineralised with high-grade (premium quality) iron-ore. The tenements are in close proximity to the coast and has significant infrastructure in place that is used to service existing mining and exploration projects. An assessment of the existing data on the Yarrie project including results from high-resolution airborne magnetic surveys will provide a focus for future work. In addition to the prospectivity for high-grade iron-ore, the project is prospective for copper-gold and associated base-metal mineralisation which will be assessed as part of the exploration process.

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Terms of the Option Agreement

The Company has entered into an Option Agreement to Purchase the Yarrie tenements from XFE Pty Ltd.

The Option Agreement (“Option”) grants Coziron the exclusive right to purchase a 70% interest in the Yarrie tenements by spending $230,000 to explore and conduct due diligence on the Yarrie tenements. In the event the Option is exercised, Coziron shall acquire a 70% interest in the Yarrie tenements in a joint venture with XFE Pty Ltd.

The Option expires on 30 September 2014

In the event that the Option is exercised, the consideration payable by Coziron to acquire the 70% interest in the Yarrie tenements is the issue of 100 million Coziron Resources Limited shares at $0.02 per share, plus the reimbursement of $711,234 for prior expenditure expenses.

Work Programmes

A ground-based gravity programme supplemented by selected seismic profiles was commenced during the quarter (as reported on 1[st] June 2014). The gravity program has covered an area of approximately 150 km[2] and includes zones with strongly magnetic responses beneath surficial deposits (Fig 5).

The focus of the work was to identify drill-targets within the highly magnetic Nimingarra Iron Formation that have potential to host high-grade “Yarrie-style” haematite deposits.

Results

Results from the survey are currently being reviewed and will be released once the review has been completed. As a result, no results from the gravity/seismic programme were reported during the June quarter.

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Fig 5. Terrain model of the Yarrie iron-ore Project showing the areas of the gravity surveys and seismic traverses.

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Buddadoo Project

Background

The Buddadoo project (E59/1350) is located in the Mid-west region of Western Australia towards the western margin of the Yilgarn (Fig 6). The tenement covers part of the Gullewa Greenstone Belt and adjacent mafic and felsic intrusive systems. Historically reported mineralisation on the tenement includes bands of vanadiferous titanomagnetite in gabbro in the Buddadoo Range and copper and gold associated with felsic volcanics at Edamurta. The Edamurta system has been targeted historically as a potential site for volcanic hosted massive sulphides. These high-value deposits are typically characterised by relatively short strike-lengths (<200m) but strong down-dip extent.

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Fig 6. Geological setting of the Buddadoo Project which covers part of the Gullewa Greenstone Belt that is intruded by the Buddadoo Mafic Complex and disrupted by adjacent granites.

Work Programmes

A programme of mapping and the collection of 460 soil samples was completed at Buddadoo (as reported on 1[st] June 2014; Fig 7). The activity in-filled and extended previous work (particularly around the Edamurta Cu-Au prospect). The focus of the work is to establish relationships between geochemical anomalism and the outcrop geology and generate targets for drilling.

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Fig 7. Location of recently soil and rock-chip samples collected from the Buddadoo Project during the quarter.

Results

No results from the sampling programme were reported during the quarter.

Earaheedy Project

No significant work was undertaken during the quarter.

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ABOUT COZIRON RESOURCES LIMITED

Coziron Resources Limited has exploration focussed on the Yarraloola (1450km[2] of granted tenements), KingX (859km[2] granted and 2127 km[2] under application) and Buddadoo (210km[2] granted) Projects and an option over Shepherd Well (193km[2] ) and Yarrie (1022km[2] ) (Fig 8). The Yarraloola, Buddadoo, Shepherds Well and Yarrie projects have iron-ore as the principal exploration target, while KingX is focused on prospectivity for manganese.

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Fig 8. Location of the Coziron Resources Ltd projects in Western Australia.

For further information please contact Adam Sierakowski on 08 6211 5099.

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 2012 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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Coziron Resources Ltd – Changes to the Tenement Schedule in the past Quarter

			Economic Entity's Interest at Quarter End	Change in Economic Entity's Interest During Quarter
		Tenement Number
Project	Location
Yarraloola	West Pilbara,WA	E08/1060	85%	No Change
Yarraloola	West Pilbara,WA	E08/1684	85%	No Change
Yarraloola	West Pilbara,WA	E08/1685	85%	No Change
Yarraloola	West Pilbara,WA	E08/1686	85%	No Change
Yarraloola	West Pilbara,WA	E08/1824	85%	No Change
Yarraloola	West Pilbara,WA	E08/1825	85%	No Change
Yarraloola	West Pilbara,WA	E08/1826	85%	No Change
Yarraloola	West Pilbara,WA	P08/529	85%	No Change
Yarraloola	West Pilbara,WA	P08/530	85%	No Change
Yarraloola	West Pilbara,WA	P08/666	100%	No Change
Kingsland	EaraheedyBasin WA	E38/2212	85%	No Change
Kingsland	EaraheedyBasin WA	E38/2213	85%	No Change
Kingsland	EaraheedyBasin WA	E53/1433	85%	No Change
Kingsland	EaraheedyBasin WA	E53/1437	85%	No Change
Kingsland	EaraheedyBasin WA	EA38/2211	85%	No Change
Kingsland	EaraheedyBasin WA	EA53/1434	85%	No Change
Kingsland	EaraheedyBasin WA	EA53/1435	85%	No Change
Kingsland	EaraheedyBasin WA	EA53/1436	85%	No Change
Kingsland	EaraheedyBasin WA	EA53/1622	85%	No Change
Kingsland	EaraheedyBasin WA	EA53/1623	85%	No Change
Kingsland	EaraheedyBasin WA	EA53/1624	85%	No Change
Kingsland	EaraheedyBasin WA	EA69/2573	85%	No Change
Buddadoo	Mid-west,WA	E59/1350	85%	No Change

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