EASTERN RESOURCES LIMITED — AGM Information 2008

Nov 25, 2008

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CHAIRMAN’S ADDRESS EASTERN IRON LIMITED 2008 ANNUAL GENERAL MEETING

As Chairman of Eastern Iron Limited, I’d like to thank all those present for attending Eastern Iron’s 1[st] annual general meeting as an ASX listed company.

In this address I will briefly recap Eastern Iron’s history over the 2007/08 financial year, then comment on the Options Issue, also how the global events during 2008 impact on companies such as Eastern Iron, before closing with some of comments on the outlook for the 2008/09 year.

2007/08

From the perspective of Eastern Iron, 2007/08 was a transforming year in which we evolved from being a 100% owned subsidiary of PlatSearch NL into an ASX listed company with $4.5 million in the bank post-IPO and an 80% joint venture stake in 15 iron ore exploration tenements in NSW. We had also commenced a drilling program and processing testwork designed to give us a better idea of the scope for finding economic grade deposits of iron ore on our areas.

The IPO was successful in raising the $5 million sought from investors, which left Platsearch with a holding of approximately 45% of Eastern Iron shares together with 5 million options to acquire more Eastern Iron shares at an exercise price of 35 cents per share.

Our IPO and specifically the prospectus were project managed by Mr Rob Waring of Oakhill Hamilton and the legals were conducted by O’Loughlins Lawyers, represented here today by Phillip Roberts. Eastern Iron was assisted in the IPO process by Taylor Collison, who were the sponsoring brokers however, a special mention must go to Mr Tony Locantro of Patterson Securities, Perth whose clients invested considerable funds in the IPO, far exceeding amounts raised by any other firm. I should also mention that the largest single investment was made by a colleague of Maurice Buckley, father of our MD, Peter Buckley. That was a very encouraging sign at the time of the IPO. We would like to thank all of the above parties as well as all the investors who participated in our IPO.

By the time of our capital raising in May, growing uncertainty was already evident in the financial markets. Once the ASX listing was achieved, Eastern Iron’s approach was to get out into the field and commence the work we had told investors we were going to undertake. Our annual report and September quarterly activity report record the significant progress we have made to date.

Options Issue

Eastern Iron shareholders as at the close of business on 28 November 2008 will be entitled to a 1:2 bonus issue of options with an exercise price of 12 cents and an expiry date of 17 December 2010. In our IPO prospectus, we stated that we intended to issue Loyalty Options to qualifying shareholders approximately 4 months after listing date. Unfortunately, our efforts to do that were frustrated when the ASX advised, after a lengthy period of consideration, that it would not allow such an issue since it was not a prorata issue and because the ASX’s opinion is that the issue to some but not all shareholders would have the effect of reducing the amount of trading in Eastern Iron shares.

The Directors considered that pursuing the matter further was not commercially justified. Instead, we drafted a prospectus for a prorata Bonus options issue on more generous terms than was contemplated for the Loyalty Options. Shareholders and directors alike have found the Loyalty options a very frustrating matter and I hope that the Bonus options issue will enable us to move forward. .

Global Events of 2008

One cannot ignore the massive financial dislocation over the past months. It would be a brave person to predict when and where it will end. However, it is already clear that in the absence of a globally significant discovery, most small explorers such as Eastern Iron may find it very difficult to raise further exploration capital let alone mine development funding. Specifically for us, spot iron ore prices have collapsed and are currently trading at a hefty discount to the benchmark contracted prices rather than the substantial premium of only several months ago.

The upshot of the current situation is that we recognize the need to be very prudent with our remaining cash resources.

Outlook for 2008/09

We have locked down our expenditures wherever possible and are reviewing our tenement package in view of expenditure obligations from the NSW Department. Fortunately, we have completed much of the drilling necessary for us to have a clearer idea of the quality of prospects on our tenements. Further drilling and processing testwork results will come to hand over the next few months and will also be evaluated.

As results come to hand, we continue to develop our understanding of the size and scope of our assets. Eastern Iron has been approached by other mining companies and iron ore purchasing groups to hold discussions. We have had initial discussions with several parties as is common in the exploration industry. We may ultimately joint venture some of our tenements, however this is unlikely to occur in the short term.

The Board of Eastern Iron recognizes that the current global financial turmoil and the drop in spot iron ore prices have transformed the immediate outlook for iron ore explorers and producers from very bullish to quite difficult. That said, we must remember that Eastern Iron’s prospects have a time horizon of many years, not months or quarters. It is quite likely that should we establish an economic iron ore resource, the worst of the economic turmoil, especially the credit squeeze, will be behind us.

To put it another way, there is likely to be a great deal of uncertainty in the remainder of this financial year and probably the next however, an iron ore project is likely to take several years to drill, identify the optimal processing route, undertake feasibility studies and obtain all regulatory approvals. Should development proceed, mining is likely to take place for a considerable number of years beyond that. We are looking at a medium to long term situation.

It is for that reason we can justify continuing to evaluate our iron ore projects, albeit with a determination to endure the current uncertainties, to have a disciplined budget and with an eye to joint venture and corporate opportunities.

Already many market commentators have forecast consolidation throughout the resources industry. Over the next few years, those companies with cash may be in a position to benefit when good projects falter due to lack of funds. Your Directors will consider any opportunities that will enhance long term shareholder wealth.

In closing, I would like to again thank the shareholders who have attended today and to also thank our exploration and metallurgical processing consultants including Phil Baily, Steve Rainer, Max Rangott, Bob Richardson, Wendy Corbett and of course the irrepressible Peter Buckley.

I hope that the 2009 Annual General Meeting will see us reporting significant progress in our efforts to boost shareholder wealth.

Glenn Goodacre Chairman