CZR RESOURCES LTD — Interim / Quarterly Report 2014

Apr 29, 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

30 April 2013

Quarterly Activities Report to 31 March 2014

HIGHLIGHTS - Technical

Yarraloola Project – West Pilbara

• Prospectivity review completed and targets for martite-haematite and channelstyle iron-ore mineralisation in the Hamersley Basin and Ashburton Trough are being identified for drilling.

Shepherds Well Project – West Pilbara

• A high-resolution airborne magnetic-radiometric survey has been planned and scheduled for early May. Results will be used to identify priority targets for ironore mineralisation in the Cleaverville Terrain.

Buddadoo Project – Midwest Region

• Sampling programmes over copper-gold (Cu-Au) targets have been planned and costed with a focus on identifying drill targets.

HIGHLIGHTS - Corporate

• Completed capital raising of $2.5m

Activities and Results

– Yarraloola Project West Pilbara

In the past quarter Coziron Resources Ltd (CZR) commenced detailed planning for fieldwork on the Yarraloola project. Historical programmes for iron-ore exploration focussed on the direct-shipping ore (DSO) prospectivity in a shale between the Marra Mamba Iron Formation and the Wittenoom Dolomite. The new programmes have a broader focus. DSO

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remains the priority but the geological setting and mineralisation style of the targets has increased to include martite-goethite in any of the iron formations and channel iron. In addition, large-scale intervals of magnetite mineralisation are being assessed as potential longer term development opportunities due to the proximity to the new road and port infrastructure which is emerging at Cape Preston East (Fig 1).

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Fig 1. Location and infrastructure setting of the Yarraloola and Shepherds Well (CZR) Iron-Ore Projects 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).

The highest priority targets at Yarraloola are channel-style iron (CID) mineralisation because of their proximity to the Robe River systems which hosts large tonnage deposits which are being mined by RioTinto Ltd at Mesa J, Mesa A and Warramboo. CZR has received programmes of works approval for some CID targets associated with the Robe drainage system where previous work has identified mineralisation in outcrop. CZR now requires a Heritage clearance programme before drilling can commence. An additional two outcropping

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CID targets have been identified but these require mapping and rock-chip sampling prior to a decision for drilling. There are also areas with the potential to host CID mineralisation beneath shallow cover. Ground-based geophysical programmes which may be able to locate the channel traces are being planned.

Another priority DSO-target is martite-haematite mineralisation hosted by the approximately 50 strike kilometres in each of the Marra Mamba, Brockman and Boolgeeda Iron Formations in the Hamersley Group. These outcrop and subcrop in the central and eastern sections of Yarraloola. Reconnaissance results from mapping and rock-chip sampling announced by CZR during 2012 identified iron-rich (Fe>55%) rocks associated with the major regional faults. These prospects will be mapped and sampled more systematically. In addition, there are significant intervals of the iron formations from the Hamersley which are covered by a veneer of younger rocks. Magnetic data in the covered areas is being reviewed at prospect scale to generate targets for ground-work and drilling.

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Fig 2. Regional tectonic setting of the Yarraloola Project showing CID-targets and subdivision of the iron formations in the Hamersley Basin and Ashburton Trough by magnetic properties.

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Magnetite is a lower priority target and these prospects are subdivided by geological setting into Ashburton and Brockman-style. The Ashburton prospect which outcrops in part has a strike length of about 12km and is up to 1km wide. Previously announced rock-chip samples reported Fe-contents similar to the Brockman Iron Formation, but the Ashburton mineralisation outcrops within a schist. At surface, the schist is coarser grained and more friable than the finer grained, highly siliceous rocks from the Brockman.

The Brockman Iron Formation is currently a lower priority target than the Ashburton because it is more siliceous and finer grained. However, the thickness, Fe-tenor and magnetite content in the more prospective, upper part of the formation will need to be reviewed before determining its priority. In this regard, to the north, the upper units of the Brockman are being mined and processed by Citic Pacific Mining at the Sino Iron Project near Cape Preston.

– Shepherds Well Project West Pilbara

The Shepherds Well Project is a single exploration license (E08/2361) that is contiguous with the northern boundary of the Yarraloola Project in the West Pilbara (Fig 1). The tenement has bitumen-road access from the Northwest Coastal Highway and is proximal (about 20km) to the new public access port being developed by Iron-Ore Holdings Ltd at Cape Preston East.

Geologically, the southern part of the tenement covers areas of the Fortescue Basalt from the lower part of the Hamersley Basin and this region has potential to host outliers of the Marra Mamba Iron Formation. The northern part of Shepherds Well covers the older basement of the Pilbara which includes sediments and volcanics of the Cleaverville Terrain. Intercalated amongst the sediments is the Nimingarra Iron-formation. To the northeast, of Shepherds Well, Iron-Ore Holdings has announced a magnetite ore-resource in the Nimingarra on the Maitland project (Fig 1) of 1.16Bt @ 30.4% Fe. In addition to the iron-ore prospectivity, the Cleaverville on E08/2361 hosts occurrences of base-metal mineralisation which potentially represent parts of high-grade massive sulphide systems.

Exploration will commence on Shepherds Well with the acquisition of a high-quality airborne magnetic and radiometric survey to be flown over the tenement. Quotations for the programme have been received and UTS has been selected as the contractor to fly the survey. Acquisition of the airborne data is scheduled for early May. Results from the survey will be used to identify priority targets for mapping, surface sampling and drilling.

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Fig 3 Total intensity from the regional magnetic surveys covering the Shepherds Well Project showing the south-west extension of magnetic features associated with Maitland magnetite mineralisation onto the northern part of E08/2361. (Brown and pink stars are reported occurrences of base-metal mineralisation.)

Buddadoo Project

The Buddadoo project (E59/1350) is located in the Mid-west region of Western Australia towards the western margin of the Yilgarn (Fig 4). The tenement covers part of the Gullewa Greenstone Belt and adjacent mafic and felsic intrusive systems. 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 strikelengths (<200m) but strong down-dip extent.

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Fig 4. 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.

Following a detailed review of historical results plans and budgets for follow-up programmes of mapping, soil and rock-chip sampling have been prepared. The main targets are opportunities for copper and gold mineralisation. Field-work is planned to commence in the next quarter.

Earaheedy Project

No significant work was undertaken during the quarter.

Corporate

During the quarter the Company raised $2.5m at a price of 2.0 cents per share. The placement was made to clients of Trident Capital, Strategic Capital Management and Blackswan Equities. The proceeds of the raising are to be used to further the Company’s exploration, primarily on the Yaraloola iron ore project.

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Company Background

In September 2012, Coziron Resources Ltd (ASX: CZR) acquired the Yarraloola Iron-Ore Project in the West Pilbara, KingX Manganese Project in the Earaheedy Basin and Buddadoo Iron-ore Project in the Midwest of Western Australia from Creasy Group (Fig 5).

Then in October 2013, CZR acquired the Shepherds Well Project. This exploration license covers 192km[2] in the West Pilbara, is contiguous with the Yarraloola Project and prospective for iron-ore (Fig 5).

While CZR maintains a focus on commodities used in the steel industry, prospectivity for other metals is assessed as part of the exploration process.

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Fig.5 Location of the Coziron Resources Ltd projects in Western Australia.

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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Coziron Resources Ltd –Tenement Schedule in the past Quarter

Project	Location	Tenement Number	Economic Entity's Interest at Quarter End	Change in Economic Entity's Interest During Quarter
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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