DOTZ NANO LIMITED — Capital/Financing Update 2009

Aug 27, 2009

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS

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NORTHERN IRON LIMITED

ABN 71 125 264 575

Level 3, 3 Ord St, West Perth West Perth WA 6005

T: (08) 9321 9334 F: (08) 9321 9335 info@northerniron.com.au www.northerniron.com.au

28 August 2009

Northern Iron successfully completes institutional equity raising.

Northern Iron Limited (“Northern Iron”) is pleased to announce that it has successfully completed the institutional component (“Institutional Entitlement Offer”) of its fully underwritten 1 for 5 accelerated non-renounceable entitlement offer (the “Entitlement Offer”) announced on 27 August. The Institutional Entitlement Offer was very strongly supported by both existing eligible shareholders (who took up more than 90% of entitlements) and other eligible investors from Australia, Asia, Europe and Canada.

A total of A$55.9 million has been committed by institutional investors through the Institutional Entitlement Offer which is fully underwritten by Euroz Securities Limited (“Euroz”), Macquarie Capital Advisers Limited (“Macquarie”) and RBC Capital Markets (“RBC”) at A$1.45 per share. The new shares comprised in the Institutional Entitlement Offer will settle on Wednesday, 9 September 2009, and are expected to be available for trade on Thursday, 10 September 2009.

The retail component of the Entitlement Offer (”Retail Entitlement Offer”), is expected to raise a further A$5.5 million taking the total size of the Entitlement Offer to A$61.4 million. The Retail Entitlement Offer is fully underwritten by Euroz and Macquarie.

Following completion of the Entitlement Offer, Northern Iron will progress towards production with commissioning of the entire plant expected to commence in September 2009. While the remaining development expenditure is estimated to be A$32 million, the balance of the funds raised will provide additional working capital.

Neil Hamilton, the Chairman of Northern Iron, said:

“We are extremely pleased with the very strong level of interest and support we received from both current and new institutional investors. Northern Iron looks forward to successfully closing both the Institutional and Retail Entitlement Offers as the Company progresses towards planned production later this year.”

Commencement of the Retail Entitlement Offer

Eligible Retail Shareholders will be invited to participate in the Retail Entitlement Offer on the same terms as the Institutional Entitlement Offer under a prospectus to be lodged with the ASX and the Australian Securities and Investments Commission on 2 September 2009 ("Prospectus").

The Retail Entitlement Offer is expected to open on 2 September 2009 and is expected to close at 5:00pm WST on 21 September 2009. Eligible Retail Shareholders can choose to take up their entitlements in whole, in part, or not at all. Eligible Retail Shareholders who take up their entitlement in full may also apply for New Shares in excess of their Entitlement ("Additional New Shares"). However, Additional New Shares will only be allocated to Eligible Retail Shareholders if there are sufficient New Shares from Eligible Retail Shareholders who do not take up their full Entitlements or from New Shares that would have been offered to ineligible Retail Shareholders, subject to any allocation policy and scale-back that Northern Iron, in consultation with Macquarie, Euroz and RBC.

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The Prospectus is expected to be sent to eligible Retail Shareholders by 7 September 2009 and together with the investor presentation released to the ASX on 27 August, will be made available on Northern Iron's website www.northerniron.com.au.

Eligible Retail Shareholders wishing to acquire New Shares under the Retail Entitlement Offer will need to apply in accordance with, the Entitlement and Acceptance Form that will accompany the Prospectus. In deciding whether to take up the offer of New Shares, Eligible Retail Shareholders should read the entire Prospectus, including the risk factors set out in section 5.

All dates are indicative only and subject to change. Northern Iron reserves the right to amend the timetable including, in consultation with Euroz, Macquarie and RBC, to extend the closing date for the Retail Entitlement Offer, and to accept late applications either generally or in specific cases.

For and on behalf of the Board.

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Mick McMullen

Managing Director and Chief Executive Officer

NOT TO BE RELEASED OR DISTRIBUTED IN THE UNITED STATES OR ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF APPLICABLE LAWS

This announcement and its accompanying documents do not constitute an offer of securities for sale in the United States, or in any other place in which, or to any person to whom, it would not be lawful to make such an offer. This document may not be distributed or released in the United States. The New Shares have not been, and will not be, registered under the U.S. Securities Act or the securities laws of any state or other jurisdiction of the United States and may not be offered or sold, directly or indirectly, within the United States.

Disclaimer

This announcement contains certain forward-looking statements. The words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Northern Iron, and its officers, employees, agents and associates, that may cause actual results to differ materially from those expressed or implied in such statements. Actual results, performance or outcomes may differ materially from any projections and forwardlooking statements and the assumptions on which those assumptions are based. You should not place undue reliance on forward-looking statements and neither Northern Iron nor any of its directors, employees, servants, advisers or agents assume any obligation to update such information.

This document has been prepared by Northern Iron. No party other than Northern Iron has authorised or caused the issue of this document, or takes responsibility for, or makes any statements, representations or undertakings in this document. Each of Euroz, Macquarie and RBC and each of their related bodies corporate, directors, employees, servants or agents ( Affiliates ) make no representation or warranty, expressed or implied, as to the accuracy or completeness of this document. Except for any liability which cannot be excluded by law, each of Euroz, Macquarie and RBC and their Affiliates expressly disclaim and accept no responsibility or liability (including liability for negligence) for the contents of this document.

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Northern Iron Limited – Entitlement Offer Key Dates

Northern Iron Limited – Entitlement Offer Key Dates
Key dates
Institutional Offer opened	27 August 2009
Institutional Offer closed	28 August 2009
Record Date to determine right to participate in the	2 September 2009
Entitlement Offer
Prospectus expected to be lodged with ASIC and ASX	2 September 2009
Retail Entitlement Offer opens	2 September 2009
Retail Entitlement Offer closes	21 September 2009
Allotment of New Shares under the Retail Entitlement Offer	28 September 2009
Despatch of holding statements	28 September 2009
Expected date for trading of New Shares under the Retail	29 September 2009
Entitlement Offer on ASX on a normal settlement basis

Note: The above timetable is indicative only. Northern Iron in conjunction with the Underwriters, reserves the right to amend any or all of these events, dates and times subject to the Corporations Act, the Listing Rules and other applicable laws. In particular, Northern Iron, in conjunction with the Underwriters, reserves the right to extend the closing dates for the Entitlement Offer to accept late Applications either generally or, in particular cases, to withdraw the offers without prior notice. The commencement of quotation of the New Shares is subject to confirmation from ASX. If the Closing Date is extended, the subsequent dates may also be extended.

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