DOTZ NANO LIMITED — Capital/Financing Update 2012

Oct 10, 2012

Rule%2.7,%3.10.3,%3.10.4,%3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information%or%documents%not%available%now%must%be%given%to%ASX%as%soon%as%available.%%Information%and% documents%given%to%ASX%become%ASX’s%property%and%may%be%made%public.%

Introduced!01/07/96!!Origin:!Appendix!5!!Amended!01/07/98,!01/09/99,!01/07/00,!30/09/01,!11/03/02,!01/01/03,!24/10/05,!01/08/12!

Name!of!entity!

NORTHERN'IRON'LIMITED

ABN!

71'125'264'575

We!(the!entity)!give!ASX!the!following!information.!

Part 1 - All issues

You%must%complete%the%relevant%sections%(attach%sheets%if%there%is%not%enough%space).

1 +Classof+securitiesissuedorto beissued 2 Numberof+securitiesissuedor to be issued (if known) or maximum number which may beissued 3 Principal terms of the +securities (eg, if options, exercisepriceandexpirydate;if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Fully paid ordinary shares in the capital of NorthernIron(“OrdinaryShares”).
	105,991,094 Ordinary Shares under the Institutional component of the pro rata accelerated nonVrenounceable entitlement offierasdetailedintheannouncementand PathfinderdocumentlodgedwithASXon4 October 2012 (“Institutional Entitlement Offer”).
	ThesameasthetermsofexistingOrdinary Shares.

+!See!chapter!19!for!defined!terms.!

Appendix!3B!Page!1!

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4 Do the +securities rank equally in all respects from the date of allotmentwithanexisting+class ofquoted+securities? If the additional securities do notrankequally,pleasestate: • thedatefromwhichtheydo • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interestpayment • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interestpayment 5 Issuepriceorconsideration 6 Purposeoftheissue (If issued as consideration for theacquisitionofassets,clearly identifythoseassets) 6a Is the entity an +eligible entity that has obtained security holderapprovalunderrule7.1A? IfYes,completesections6b–6h in relation to the +securities the subjectofthisAppendix3B,and complywithsection6i 6b The date the security holder resolution under rule 7.1A was passed 6c Number of +securities issued withoutsecurityholderapproval underrule7.1	Yes
	$0.45perOrdinaryShare
	ThefundsraisedbyNorthernIronwillbe appliedbyNorthernIron: • tocompensateforareductioninthe amountabletobedrawnunderNorthern Iron'sworkingcapitalfacilitybroughton bythematerialdeclineinironoreprice; • forgeneralworkingcapitalpurposes; • toprovideongoingfinancialstrengthand operationalflexibilityforNorthernIron; and • toprovideincreasedheadroominthe covenantsunderNorthernIron’sdebt facilities.
	No
	N/A
	N/A

6d Number of +securities issued with security holder approval underrule7.1A 6e Number of +securities issued with security holder approval under rule 7.3, or another specificsecurityholderapproval (specifydateofmeeting) 6f Number of securities issued underanexceptioninrule7.2 6g If securities issued under rule 7.1A,wasissuepriceatleast75% of 15 day VWAP as calculated under rule 7.1A.3? Include the issue date and both values. IncludethesourceoftheVWAP calculation. 6h If securities were issued under rule 7.1A for nonVcash consideration, state date on which valuation of consideration was released to ASXMarketAnnouncements 6i Calculatetheentity’sremaining issuecapacityunderrule7.1and rule7.1A–completeAnnexure1 and release to ASX Market Announcements 7 Dates of entering +securities into uncertificated holdings or despatchofcertificates 8 Number and +class of all +securities quoted on ASX (including the securities in section2ifapplicable)	N/A	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	Holding Statements for Ordinary Shares issued under the Institutional Entitlement Offerwillbedespatchedon11October2012. Holding Statements for Ordinary Shares issued under the Retail Entitlement Offer willbedespatchedon7November2012.
	Number	+Class
	475,971,207	OrdinaryShares

+!See!chapter!19!for!defined!terms.!

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Number! +Class! 9! Number! and! +class! of! all! 500,000$ $2.15$options$ +securities! not! quoted! on! ASX! expiring$24/08/2013$ ( including the! securities! in! section!2!if!applicable)! 500,000$ $2.50$options$ expiring$24/08/2013$ 500,000$ $3.00$options$ expiring$24/08/2013$ (TOTAL:$1,500,000)$ 600,000$ Performance$Rights,$ subject$to$vesting$ conditions$

10! Dividend!policy!(in!the!case!of!a! As!per!existing!Ordinary!Shares.! trust,!distribution!policy)!on!the! increased!capital!(interests)!

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? 12 IstheissuerenounceableornonV renounceable? 13 Ratio in which the +securities willbeoffered 14 +Classof+securitiestowhichthe offerrelates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements inrelationtofractions	No
	NonVrenounceable
	1newordinarysharesforevery3ordinary sharesheld
	Fullypaidordinaryshares
	7:00 pm (Sydney time) on Tuesday 9 October2012
	No
	Fractionswillberoundeduptothenearest wholenumber

18 Namesofcountriesinwhichthe entity has +security holders who will not be sent new issue documents Note:Securityholdersmustbetoldhowtheir entitlementsaretobedealtwith. Crossreference:rule7.7. 19 Closing date for receipt of acceptancesorrenunciations 20 Namesofanyunderwriters 21 Amountofanyunderwritingfee orcommission 22 Names of any brokers to the issue 23 Fee or commission payable to thebrokertotheissue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalfof+securityholders 25 If the issue is contingent on +security holders’ approval, the dateofthemeeting	Under the Retail Entitlement Offer, all countries other than Australia, New ZealandandNorway. Under the Institutional Entitlement Offer, all countries other than Australia, New Zealand, Hong Kong, Singapore, United Kingdom,Switzerland,NorwayandCanada (British Columbia, Ontario and Quebec provinces)
	The Institutional Entitlement Offer closed onFriday5October2012. The Retail Entitlement Offer will close on Friday26October2012
	Goldman Sachs Australia Pty Ltd (“Sole LeadManagerandUnderwriter”)
	The Sole Lead Manager and Underwriter will receive the following total fees under theUnderwritingAgreement: • an underwriting fee of 3% of the InstitutionalEntitlementOfferproceeds; and • amanagementandsellingfeeof1%ofthe InstitutionalEntitlementOfferproceeds. Northern Iron must also pay to the Sole Lead Manager and Underwriter its reasonable expenses including legal expensesandoutVofVpocketexpenses.
	N/A
	N/A
	N/A
	N/A

+!See!chapter!19!for!defined!terms.!

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26 Dateentitlementandacceptance form and prospectus or Product DisclosureStatementwillbesent topersonsentitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Daterightstradingwillbegin(if applicable) 29 Date rights trading will end (if applicable) 30 How do +security holders sell theirentitlements_infull_through abroker? 31 How do +security holders sell part of their entitlements through a broker and accept for thebalance? 32 Howdo+securityholdersdispose of their entitlements (except by salethroughabroker)? 33 +Despatchdate	11October2012
	8October2012
	N/A
	N/A
	N/A
	N/A
	N/A
	Seeitem7above

Part 3 - Quotation of securities

You%need%only%complete%this%section%if%you%are%applying%for%quotation%of%securities%

• 34! Type!of!securities!! ( tick%one )!

• (a)![Securities!described!in!Part!1!]

(b)![All!other!securities!] Example:! restricted! securities! at! the! end! of! the! escrowed! period,! partly! paid! securities! that! become! fully! paid,! employee!incentive!share!securities!when!restriction!ends,!securities!issued!on!expiry!or!conversion!of!convertible! securities!

Entities that have ticked box 34(a)

Additional-securities-forming-a-new-class-of-securities-

Tick%to%indicate%you%are%providing%the%information%or% N/A! documents

35! If!the![+] securities!are![+] equity!securities,!the!names!of!the!20!largest!holders!of!the! additional![+] securities,!and!the!number!and!percentage!of!additional![+] securities! held!by!those!holders! 36! If!the![+] securities!are![+] equity!securities,!a!distribution!schedule!of!the!additional! +securities!setting!out!the!number!of!holders!in!the!categories! 1!V!1,000! 1,001!V!5,000! 5,001!V!10,000! 10,001!V!100,000! 100,001!and!over! 37! A!copy!of!any!trust!deed!for!the!additional![+] securities!

Entities that have ticked box 34(b) N/A

• 38! Number! of! securities! for! which! +quotation!is!sought!

39! Class! of! +securities! for! which! quotation!is!sought!

• 40! Do!the![+] securities!rank!equally!in! all! respects! from! the! date! of! allotment! with! an! existing![+] class! of!quoted![+] securities?!

If!the!additional!securities!do!not! rank!equally,!please!state:!

• the!date!from!which!they!do!

• the! extent! to! which! they! participate! for! the! next! dividend,! (in! the! case! of! a! trust,! distribution)! or! interest! payment!

• the! extent! to! which! they! do! not!rank!equally,!other!than!in! relation! to! the! next! dividend,! distribution! or! interest! payment!

+!See!chapter!19!for!defined!terms.!

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41! Reason! for! request! for! quotation! now!!

Example:!In!the!case!of!restricted!securities,!end! of!restriction!period!

(if! issued! upon! conversion! of! another! security,! clearly! identify! that!other!security)!

Number! +Class! 42! Number! and! +class! of! all! +securities! quoted! on! ASX! ( including !the!securities!in!clause! 38)!!

Quotation-agreement-

• 1! +Quotation!of!our!additional! +securities!is!in!ASX’s!absolute!discretion.!!ASX! may!quote!the![+] securities!on!any!conditions!it!decides.!!!

• 2! We!warrant!the!following!to!ASX.!

• The!issue!of!the![+] securities!to!be!quoted!complies!with!the!law!and!is! not!for!an!illegal!purpose.!

• There! is! no! reason! why! those![+] securities! should! not! be! granted! +quotation.!

• An!offer!of!the![+] securities!for!sale!within!12!months!after!their!issue! will!not!require!disclosure!under!section!707(3)!or!section!1012C(6)!of! the!Corporations!Act.!

Note:!An!entity!may!need!to!obtain!appropriate!warranties!from!subscribers!for!the!securities!in!order!to!be! able!to!give!this!warranty!

• Section!724!or!section!1016E!of!the!Corporations!Act!does!not!apply!to! any! applications! received! by! us! in! relation! to! any![+] securities! to! be! quoted!and!that!noVone!has!any!right!to!return!any![+] securities!to!be! quoted!under!sections!737,!738!or!1016F!of!the!Corporations!Act!at!the! time!that!we!request!that!the![+] securities!be!quoted.!

• If!we!are!a!trust,!we!warrant!that!no!person!has!the!right!to!return!the! +securities!to!be!quoted!under!section!1019B!of!the!Corporations!Act!at! the!time!that!we!request!that!the![+] securities!be!quoted.!

• 3! We!will!indemnify!ASX!to!the!fullest!extent!permitted!by!law!in!respect!of!any! claim,! action! or! expense! arising! from! or! connected! with! any! breach! of! the! warranties!in!this!agreement.!

• 4! We!give!ASX!the!information!and!documents!required!by!this!form.!!If!any! information! or! document! not! available! now,! will! give! it! to! ASX! before! +quotation!of!the! +securities!begins.!!We!acknowledge!that!ASX!is!relying!on! the!information!and!documents.!!We!warrant!that!they!are!(will!be)!true!and! complete.!

Sign!here:!! ............................................................!Date:!11!October!2012! Company!secretary! Print!name:!! Alex!Neuling! ==!==!==!==!==!

+!See!chapter!19!for!defined!terms.!

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