EASTERN RESOURCES LIMITED — AGM Information 2009

Nov 24, 2009

==> picture [183 x 117] intentionally omitted <==

EASTERN IRON LIMITED

CHAIRMAN’S ADDRESS TO THE 2009 ANNUAL GENERAL MEETING

In this address, I will summarise the conclusions our consultants and Board have reached after considering the results from drilling, processing, logistical and commercial studies that Eastern Iron undertook since the last AGM. Then I’ll speak about your Board’s future plans for Eastern Iron.

In my Chairman’s address last year, I concluded by expressing the hope that at this meeting we would be able to report “significant progress in our efforts to boost shareholder wealth”.

Unfortunately, I am unable to report such an outcome, especially if one uses Eastern Iron’s share price as a guide – our shares are trading at a similar level to this time last year.

I will leave it for Peter Buckley, our Managing Director to detail the work our team undertook in the field, at metallurgical testing labs and elsewhere in order to evaluate Eastern’s tenements in the Cobar and Mainline projects.

An independent engineer undertook an economic evaluation of our iron ore projects over the last few months. Based on his conclusions we do not believe our Cobar and Mainline Projects are economically feasible at the prevailing spot prices for iron ore, for the development of a low-Capex Direct Shippable Ore (DSO) operation.

Eastern Iron made an ASX release to this effect last week. A copy of that release is accessible on our website and we also have copies available at today’s meeting.

While the above conclusion is disappointing, it can be said that in stronger price environments in the future, our iron ore projects may look more attractive as a DSO operation. In addition, the large size of the resource and the much larger exploration potential leave many more questions to be answered. There may be potential alternative uses and beneficiation technologies for our product. Eastern Iron is not sufficiently funded nor technically well equipped to make such evaluations, so we are seeking joint venture parties with relevant steel industry experience and contacts to join us in evaluating such alternatives.

It is important to also observe that our iron ore projects are not alone in the Iron Ore industry in having high Capex and marginal or negative economics at current spot prices. While no one can tell us when the Iron Ore spot price will revisit the substantially higher levels of several years ago, your Board holds the view that it is in shareholders’ best interests for the Company to retain its stake in the tenements and

CHAIRMAN’S ADDRESS – AGM NOVEMBER 2009

EASTERN IRON LIMITED

to consider any commercial arrangements with other suitable parties that may be proposed form time to time.

Having reached the point I have just described, the Board has considered what Eastern’s strategy should be, given that we had nearly $3million in cash as at 30 September.

We have decided that Eastern must broaden the list of commodities from which it will endeavour to develop a profitable mining business.

We are now seeking and in some cases are evaluating potentially valuable opportunities in iron and steel making metals, gold, copper/gold and various other non-bulk commodities. We are not actively seeking base metals or grass roots opportunities.

At this relatively early stage in implementing our new strategy, there is little that we can report, other than our resolve to further strengthen our team with appropriate talent to equip us in generating a flow of opportunities and in evaluating those opportunities.

The Board is flexible as to the kinds of scenarios we will consider, from farming into advanced projects or acquiring an advanced project, through to agreeing for Eastern Iron to be a listing vehicle for an advanced project or mine. The overriding guideline for the Board is to ensure that whatever transactions we conclude over the next year or so, we should consider it to have the prospect of delivering a significant boost in the value of our shareholders’ investment in Eastern Iron.

Shareholders can be assured that the Board is very aware of the need to be prudent with Eastern Iron’s funds and to focus our spending on evaluating opportunities that will enable us to build a strong future for the company. We seek shareholder patience over the next year or more as we evaluate such opportunities, since that process can be both time consuming and competitive.

I would like to recognise the contributions made to the company’s operations over the past year by the team at Eastern Iron, our various consultants and Board members, with a notable mention of founding Director Bob Richardson who retired from the Board during the year. Greg Jones replaced Bob on the Board as Managing Director of our largest shareholder, Platsearch. Bob remains a consultant to the company.

I would also like to thank our shareholders for their loyalty.

In closing, I can say that the team at Eastern Iron is looking forward to 2010 as a year of new opportunities.

Glenn Goodacre Chairman

2