EASTERN RESOURCES LIMITED — AGM Information 2014

Nov 18, 2014

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AGM Presentation November 2014

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Disclaimer
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This release may include forward-looking statements. These forward-looking statements are based on management’s expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Eastern Iron Limited, that could cause actual results to differ materially from such statements. Eastern Iron Limited makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.

The information relating to the terms “iron ore”, “exploration target”, direct shipping ore”, “beneficiation” and “upgrade” should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012) and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

This overview of Eastern Iron does not purport to be all inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation and making any investment decision.

The information contained herein is general in nature and does not constitute financial product advice. If necessary, you should seek specific financial advice of your stockbroker prior to making any investment decision. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any investor.

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Greg De Ross, BSc, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Greg De Ross is CEO and a full-time employee of Eastern Iron Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration 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”. Mr De Ross consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Corporate Overview
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Capital Structure

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Experienced Board and Management

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• 147.7 million shares on issue

• Share price: 3.3c (18 Nov 14)

• Ev $4.5M

Chairman: Steve Gemell CEO: Greg De Ross NED’s : Greg Jones, Wendy Corbett, Ivo Polovineo, Adrian Critchlow, Michael Giles

Shareholders

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PlatSearch NL 35.79% Adrian Critchlow 15.81% Harland Capital Fund 11.3% Planning & Property Partners 7.69%

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Overview
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• Nowa Nowa Iron DFS results released September 2014

• DFS completed without final transport plan

• Capital cost A$33.6M

• Producing 780,000 tpa 58%Fe beneficiated iron product at A$26.1/t ex-minegate

• • Details of an Alternative Transport Plan released in November 2014 indicating CNF China costs of less than US$60/t

• Nowa Nowa Copper Exploration

• Highly prospective Silurian rock sequence identified

• VTEM survey completed identifying several high priority targets

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Nowa Nowa Iron Project
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• Eastern Victoria – good local power, roads, labor and port infrastructure

• Granted Mining Lease

• Native Title agreement in place

• Environmental assessment process well advanced

• DFS completed

• 100% owned by Eastern Iron

• Existing global resource 9 Mt @ 50.8% Fe at a lower cutoff of 40% Fe

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• Multiple deposits; further resource and exploration upside

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Five Mile Deposit – DFS Results
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Project Layout

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Nowa Nowa Iron – DFS results
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• Total Resource 9.05Mt @ 50.8%Fe at 40%Fe lower cutoff

• Mining – mine design optimised from scoping study to include:

• Box cut access to allow mining of northern and southern pit and in-pit waste disposal.

• The use of surface miners for waste removal and ore mining – lower unit costs, no drill and blast, no site storage of explosives, reduced broken ore size eliminates need for primary crusher.

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• 6.81Mt at 50.8%Fe mill feed over 7 year mine life.

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Nowa Nowa Iron – DFS results
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•

Processing

• Two stage crushing to -6mm and dry LIMS to 780,000 tpa 58%Fe finished product.

• Pilot plant dry LIMS testwork showed excellent upgrade and yield factors

Sample ID	Head Fe %	Yield %	Conc Fe %	Fe Rec %	Conc **SiO2% **	Conc S%	Upgrade factor %
Average	50.9	80.9	57.8	91.5	12.2	0.65	14.3

• Lab scale Wet LIMS testwork showed better selectivity at -1.6mm crush size to produce +62%Fe product with 7%SiO2.

• Operations management

• Site based workforce of 52 based in local area (no FIFO or site accommodation)

• Environmental and Social Impact

• EES process commenced early 2014, currently suspended pending alternative transport solution

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Nowa Nowa Iron – DFS results
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• Transport

• DFS completed on the basis of trucking to Eden and using SEFE wharf and shiploader, but adverse SEFE decision requires an alternative transport solution.

• Using SEFE required 234km road transport and loading onto 55,000t vessels.

• Alternative slurry pipeline proposal includes 15km trucking and loading onto +100,000t vessels.

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Nowa Nowa DFS– Capex/Opex
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• Capital Cost: Total $33.6M inc contingency (minesite only)

• Study emphasis on minimising capex at the expense of opex

• Operating Cost: Total mine gate $26.1/t inc contingency

Capital Cost	$M AUD $3.0 $10.6 $9.8 $10.2 $33.6
Mine
Process Plant
Site Works
Indirect, owners, Contingency
Total

• Additional costs subject to product option adopted

Operating Cost MiningCost Processing Indirects Total(Minegate)	Costs (AUD $/t conc)
	$18.67
	$3.48
	$3.95
	$26.1

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Nowa Nowa Iron Project – Transport
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• Slurry Pipeline – self decanting vessels

• Scoping level study completed by independent consultants (Nov 2014)

• Proven technologies employed by BlueScope steel at Taharoa iron sand operation in New Zealand.

• • Concept

• Truck iron concentrate 15km to slurry pipeline headworks and concentrate storage area.

• Pump to ship during loading operations at 1000tphr approx

• Decant slurry on vessel and return excess water to shore facility

• International shipping group has indicated capacity to provide suitable vessels

• +100,000t vessels moored during loading by bottom anchored single point mooring system.

• No visible or permanent coastal infrastructure required

• Indicative costs A$41/t FOB and less than US$60/t CNF China.

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Nowa Nowa Iron Project – Environmental
and Social Impacts
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20km
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• EES process has addressed site based environmental issues which are seen to be minor.

• Adoption of slurry pipeline concept will require scoping requirements of EES to be reviewed.

• Victoria has 8 offshore to onshore oil and gas and other offshore pipelines in place and a tried and proven process for assessing and granting licenses for operation of offshore pipelines.

As with other pipelines it is envisaged that the slurry pipeline will be laid below the coastal beach and dune complex and anchored to the seafloor.

• There are several options for location of the stockpile and slurry headworks as well as the pipeline corridor but the preferred option is yet to be finalised.

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Copper Exploration
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• Previously unrecognised prospective Upper Silurian rock sequence identified as host to magnetite and base metal mineralisation in Buchan Rift Zone

• • Upper Silurian hosts to all major VMS base metal mineralisation in SE Aust. inc

• Woodlawn (18Mt Cu/Pb/Zn/Au/Ag), Captains Flat (4.2Mt), and Benambra (14Mt)

• Geophysical survey (VTEM) flown over prospective areas

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Copper Exploration
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• VTEM survey has generated several high priority targets, inc Blue Spur, Three Mile, Five Mile and Quarry.

• Follow-up ground EM and preliminary drilling on high priority targets recommended

• Previous exploration in Nowa Nowa area suggests excellent copper/base metal/gold potential

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Previous Exploration:

• Hampered by younger Tertiary cover and poor outcrop

• Some scout drilling of airborne magnetic targets

• Prospective host sequence unrecognised meant there was little systematic exploration

• • Nevertheless some good first pass results

Drill Hole No	Company	Date	Intersection
NOWD1	VGS	?1995	From 22m, 38m@ 0.36% Cu,0.12g/Au
			From 22m, 266m@ 0.12%Cu;?altered volcs.
NOWD2	VGS	?1995	104.7- 106.7m : 3.8g/t Au;elevated Au(Cu)
			102.75-125.05m : 0.6g/t Au
NOWD3	VGS	?1995	111-134.8m: 0.6g/t Au,elevated Au(Cu)
			25-30m : 0.64g/t Au
HARD1	Hardrock Res	1991	From 212.2,6.2m@1.73%Pb,1.3%Zn
			From 135m,22.3m@1.7% Zn,0.4%Pb
			From 313.2m,0.7m@5.3g/tAu
HARD2	Hardrock Res	1991	From 195.8m, 13.6m@3.8%Cu
HARD4	Hardrock Res	1991	From 73m,72m@45.4%Fe

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Three Mile:

• Previous exploration by WMC and others in 1985-1992, tested airborne mag anomaly below 50m Tertiary sands.

• Several drillholes on single line, inc 22.3m @ 1.73%Zn, 0.4%Pb from 135m in Hard1 and

13.6m@3.8%Cu from 195.5m in Hard2

• VTEM anomaly possibly offset and below drilled area

• Ground EM required for targeting drilling

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2015 Work Programme
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• Nowa Nowa Iron Project

• Completed:

  • Native Title Agreement

  • Mining License Granted

  • Definitive Feasibility Study

• Next steps

  • Bring slurry pipeline concept up to DFS standard of assessment

  • Re=initiate EES process

• Copper Exploration

• Complete field assessment

• Carry out ground EM follow up of high priority anomalies

• Preliminary drill testing

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Iron Ore market
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• Table below is from 2013 AGM

Source	Forecast indicator	2012	Q1	Q2	Q3	Q4	2013	2014	2015	Long-term
			2013
Consensus forecast	Iron ore fines (62% Fe, CFR China)	130	133	136	130	122	129	125	115	97
Max- forecast	Iron ore fines (62% Fe, CFR China)	130	145	183	183	140	157	158	135	150
Min- forecast	Iron ore fines (62% Fe, CFR China)	130	115	120	110	110	106	100	90	80

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• 12 months later “expert” forecasts look like this:

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Iron Ore market
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• Reason : supply in short term is outstripping demand - as reflected in iron ore stocks in Chinese ports and increased (tonnes to China) shipping activity.

Source: BHP Billiton

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• This is despite forecast continued growth in the Chinese and world steel and iron ore demand

• Conclusion: Iron ore prices are forecast to stay at less than US$80/t in short to medium term but should

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Iron Ore market
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• New supply growth is almost exclusively from Australia and is forecast to outstrip demand growth until 2016

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• Conclusion: Prices are likely to stay low until 2016 but should reset once supply : demand come back to balance.

• Eastern Iron targeting 2[nd] quartile production costs of less than US$60/t CIF

Eastern Iron Limited

Level 1, 80 Chandos Street St Leonards, NSW 2065

T: +61 2 9906 7751 www.easterniron.com.au Twitter: @EasternIronEFE

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