EASTERN RESOURCES LIMITED — Annual Report 2008

Nov 25, 2008

…The Eastern Dragon

� Eastern Iron - Snapshot

EXECUTIVE SUMMARY

� ASX Listed - 16 May 2008

• Major Shareholder - PlatSearch NL

• � Cash on hand - circa $4.0 Million

• 15 granted licences, 2 applications and a JV

• � Current Bonus options issue

� Cobar Project

• Main iron mineral is maghemite, a magnetic equivalent of hematite

• � Potential Direct Shipping Ore and upgradeable channel and detrital iron deposits � >55% Fe at the “mine gate”, studies show potential for further beneficiation � Road and rail links to existing port and loading infrastructure in Newcastle

� Main Line Project

• Potential upgradeable channel and detrital iron deposits and alluvial potential

• Road and rail links to existing port and loading infrastructure at Port Kembla (or SA)

• � Potential beneficiation upgrade and domestic sales

• Investigation of further downstream processing, pelletisation, merchant pig iron…

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…iron’s new horizon

2008 - Our First Year In Review

• Identified Channel Iron ore deposit potential in NSW in more than 1,100 kilometres of palaeochannel target length.

• Completed capital raising of $5 million and commenced trading on the ASX on 16 May 2008.

• Fulfilled requirements to earn an 80% interest in all 15 exploration licences.

• � Commenced exploration drilling on NSW Channel Iron deposits in June 2008 and has completed 7,390 metres of exploration drilling in 508 aircore holes at 28 different prospect areas.

• Tested approximately <5% of the 1,100 kilometres of palaeochannel originally identified.

• Large tonnage iron ore exploration targets identified at Belah Tank, Oakvale, Shearlegs and Amphitheatre prospects in NSW.

• Achieved test work results of up to 58% Fe from a trial gravity beneficiation process.

• Confirmed that a product grading more than 55% Fe could be made on site from ex-mine products using only a light crush to less than 1mm size using relativly inexpensive differential magnetic separation.

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2008 - Our First Year In Review

• Outlined an area for resource trial drilling with potential to produce ex-mine products grading at least 50% Fe, “magnet direct ore”

• � Signed a Joint Venture agreement with Drysdale Resources to explore a major, prospective palaeochannel system, close to Cobar rail infrastructure.

• Continued to evaluate a number of exploration and development projects that have the possibility of adding value to Eastern Iron’s iron ore assets including the provision of lower tonnage yet higher grade iron blending products.

• Eastern Iron has brought a new commodity to New South Wales and the company remains the largest holder of iron prospective licences despite a rapid increase in competitor activity

• Your company has conducted all operations in environmental compliance, safely and without incident, providing new employment in rural and regional Australia

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Scout Drilling

Bimbella Prospect And gold target Yellow Streak Gold Mine Historic Production 293t @ 34.9 g/t Laneway Prospect

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Bimbella Gold Target

North Limited Soil Grid and RC Drilling

Eastern Iron Palaeochannel Target draining Gold anomaly

BWRP2 - 14m @ 0.33 g/t Au (48-62m)

BWRP04 - 6m @ 0.42 g/t Au (54-60m) 12m @ 0.13 g/t Au (104-116m) BWRP05 - 8m @ 0.41 g/t Au (24-32m) 10m @ 0.42 g/t Au (44-54m) 6m @ 0.16 g/t Au (70-76m) 4m @ 0.14 g/t Au (116-120m) 8m @ 0.16 g/t Au (140-148m)

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Laneway Prospect

6 to 10 metres of non magnetic cover sediments Alluvial gold potential

Broad intersections of low-grade iron gravel

Gold potential in basement rocks

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Scout Drilling Belah Prospect Grid drilling trial area Oakvale Prospect Amphitheatre Prospect Shearlegs Prospect ASX Code: EFE 26 November 2008 …iron’s new horizon

All iron intersections from surface

Oakvale Prospect

Kilometre-long zones grading >20% Fe

• Drilled with a cross section of 40m spaced holes, and a long section of holes on a nominal 250m spacing over more than 90% of the identified target length

• � Prospect is at least 3000m long, has an average width of 330m, is approximately 8.5m deep throughout and grades 13 to 14% Fe

• Exploration Target tonnage range in the area tested =

• 3000m x 330m x 8.5m x 1.72 = 14 to 15* million tonnes @ 13-14% Fe

• Relative density was measured and calculated using drill cuttings by MetCon Laboratories. Geotechnical drilling is required to determine accurate “in-situ” specific gravity and tonnages for each exploration target. Potential quality and grade is conceptual in nature and there is insufficient exploration to define a mineral resource.

ASX Code: EFE 26 November 2008

…iron’s new horizon

All iron intersections from surface

Shearlegs Prospect

Kilometre long zones grading >20% Fe

Intersection grading >30% Fe

• Drilled with a cross section of 80m spaced holes, and a long section of holes on a nominal 250m spacing over less than 25% of the identified target length

• Scout drill section length is 1300m long, has an average width of 300m, is approximately 4m deep throughout and grades 17 to 18% Fe

• Exploration Target tonnage range in the area tested =

• � 1300m x 300m x 4m x 1.72 = 2 to 3* million tonnes @ 17-18% Fe

• Relative density was measured and calculated using drill cuttings by MetCon Laboratories. Geotechnical drilling is required to determine accurate “in-situ” specific gravity and tonnages for each exploration target. Potential quality and grade is conceptual in nature and there is insufficient exploration to define a mineral resource.

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Amphitheatre Prospect

Only a small percentage of potential target kilometres have been drill tested

Google Sketch Up by:

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The Good

The Bad

Metallurgy The Challenge for 2009

The Ugly

Relativly pure maghemite with an iron rich shell

Minor included rock fragments and quartz But an iron rich shell

Included rock fragments, silica, alumina etc But an iron rich shell

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Metallurgy Test Work - medium tonnage, beneficiated ore approaching DSO

The Good Great News 1 Head Grade 58.3 2 7.74 6.28 0.65 0.06 0.03 0.06 9 0.01 5 0.10 0.45 0 N A

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Metallurgy Test Work - High tonnage, low cost blend feed

The Bad

Sample	Fe %	Ca Fe	SiO2 %	Al2O3 %	TiO2 %	CaO %	Mn %	P %	S %	MgO %	K2O %	LOI 1000 %
1 Head Grade	50.9 1	51.95	13.4 7	9.18	0.69	0.05	<0.0 1	0.07 2	0.01 2	0.15	0.97 2	2.00
2 Mag 1	55.1 7	56.06	10.2 6	**7.21 **	**0.68 **	**0.06 **	<0.0 1	0.07 7	0.01 2	**0.12 **	0.76 6	**1.58 **
3 Mag 2	52.3 7	53.30	12.2 9	8.87	0.69	0.05	<0.0 1	0.07 1	0.01 2	0.14	0.94 9	1.75
4 Mag 3	50.4 8	51.44	13.4 2	9.88	0.69	0.05	<0.0 1	0.06 6	0.01 2	0.14	1.07 2	1.86
5 Mag 4	49.6 5	50.62	14.0 5	10.3 2	0.69	0.05	<0.0 1	0.06 4	0.01 2	0.15	1.15 8	1.91
6 Non Mag	45.0 8	46.18	18.5 4	11.7 6	0.78	0.06	<0.0 1	0.06 4	0.01 3	0.17	1.26 6	2.38

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Metallurgy Test Work - High tonnage crush and beneficiation feed

The Ugly

Sample	Fe %	Ca Fe	SiO2 %	Al2O3 %	TiO2 %	CaO %	Mn %	P %	S %	MgO %	K2O %	LOI 1000 %
1 Head Grade	50.9 1	51.95	13.4 7	9.18	0.69	0.05	<0.0 1	0.07 2	0.01 2	0.15	0.97 2	2.00
2 Mag 1	55.1 7	56.06	10.2 6	**7.21 **	**0.68 **	**0.06 **	<0.0 1	0.07 7	0.01 2	**0.12 **	0.76 6	**1.58 **
3 Mag 2	52.3 7	53.30	12.2 9	8.87	0.69	0.05	<0.0 1	0.07 1	0.01 2	0.14	0.94 9	1.75
4 Mag 3	50.4 8	51.44	13.4 2	9.88	0.69	0.05	<0.0 1	0.06 6	0.01 2	0.14	1.07 2	1.86
5 Mag 4	49.6 5	50.62	14.0 5	10.3 2	0.69	0.05	<0.0 1	0.06 4	0.01 2	0.15	1.15 8	1.91
6 Non Mag	45.0 8	46.18	18.5 4	11.7 6	0.78	0.06	<0.0 1	0.06 4	0.01 3	0.17	1.26 6	2.38

ASX Code: EFE 26 November 2008

…iron’s new horizon

Eastern Iron = low cost mining and simple processing

50% Fe 55% Fe 55+% Fe? Direct shipping of highest grades Onsite, near site or offsite gravity beneficiation to higher iron grades 1) DSO Potential 2) Sinter blend feed 3) Pellet or pig iron plant feed Long term supply options if size potential can be realised ASX Code: EFE 26 November 2008 …iron’s new horizon

Market Conditions

Australian Contract Price vs Fe Spot Price

Pattern drill trial and 5 tonne sample for Eastern Iron lists PlatSearch NL forms Beneficiation trials ASX Code: EFE Eastern Iron subsidiary Scout Drilling PlatSearch NL applys for IPO Preparation CID Prospective licences Phase 2 Drilling Phase 1 Drilling

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…iron’s new horizon

Asian and middle class Affluence (Sustained Growth)

Supply and infrastructure 1987 “Crash” (Slide) constraints (Spike)

Oil Shock (Slide)

Credit Crisis (Slide)

China/India Middle class Aspiration (Spike)

American and Japanese Affluence (Sustained Growth)

Post War Reconstruction (Spike) WW2 Armament (Spike) WW1 Armament (Spike) Great Depression (slide)

Increased production from CID BHP & RIO Yandi Pisolite

?

Discovery and development of Giant Deposits (Pilbara & Brazil)

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Asian and middle class Affluence (Sustained Growth)

?

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American and Japanese
Affluence (Sustained Growth)
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Non BHP or RIO IRON Resources Iron Ore Producers & Near Term Producers	Non BHP or RIO IRON Resources Iron Ore Producers & Near Term Producers	Non BHP or RIO IRON Resources Iron Ore Producers & Near Term Producers
Company Flag Share Pric Mcap Cash Debt Enterprise Project Hematite 20/11/12 Diluted Value Status Resources Fe SiO2 Al2O3 P (A$) (A$m) (A$m) (A$m) (A$m) (Mt) (%) (%) (%) (%) Av. Resource Grade			Magnetite Magnetite Project Resources Fe Status (Mt) (%)
Fortescue Metals Portman Mount Gibson Iron Murchison Metals Midwest Corporation Atlas Iron Gindalbie Metals Red Hill Iron BC Iron Brockman Res. Territory Iron Grange Res. Golden West Res. FerrAus Ltd Centrex Metals Western Plains Res.		1.36 3823.0 653.6 4290.2 7459.6 Production 3245.0 57.9 4.87 2.61 0.06 21.22 3805.1 147.7 70.7 3728.0 Production 140.8 62.1 1.00 2.39 0.11 0.27 215.7 42.4 151.4 324.7 Production 103.3 62.2 5.35 1.44 0.03 0.58 253.6 132.0 0.0 121.6 Development 76.5 50.5 12.3 0.85 0.55 6.36 1360.1 60.7 0.0 1299.4 Production 139.2 58.7 na na na 0.48 159.6 159.0 0.0 0.6 Development 23.3 57.3 6.6 1.7 0.09 0.37 192.8 83.4 0.0 109.4 Development 27.1 61.7 5.90 2.30 0.11 2.00 83.8 8.7 0.0 75.1 Feasibility 350.1 57.2 5.63 3.65 0.08 0.23 14.7 10.0 0.0 4.7 Scoping 28.0 57.4 2.98 1.76 0.02 0.46 63.2 130.0 0.0 -66.8 Pre-Feas. 555.2 57.5 0.00 0.00 0.00 0.15 38.5 15.3 7.0 30.1 Production 10.1 60.5 na na 0.10 0.44 58.8 10.8 0.0 48.0 0.0 - - - - 0.36 44.3 29.4 0.0 15.0 Feasability 86.3 60.1 7.80 2.40 0.05 0.17 24.8 9.6 0.0 15.2 Pre-Feas. 43.0 58.6 4.78 2.87 0.10 0.14 44.4 4.5 0.0 39.9 Pre-Feas. 12.3 56.8 5.12 2.95 0.51 0.27 25.2 7.1 0.0 18.1 Development 37.4 62.6 8.20 0.80 0.03	0.0 - 0.0 - 0.0 - 0.0 - Feasibility 430.0 35.0 Pre-Feas 853.0 37.2 Development 1426.0 36.3 0.0 - 0.0 - 0.0 - 0.0 - Feasibility 479.1 37.3 0.0 - 0.0 - 0.0 0.0 Seeking JV Feasibility 569.0 35.0

•Eastern Iron included only for comparative share price information, no resource has yet been defined * hematite upgrades expected: MMX for stage 2 Data provided by Veritas Securities

Response to Global Credit Crisis

• “Cash burn” will be minimised during uncertain market conditions. However, with continued encouraging results “value additions” to iron projects will not be compromised

• • Strategic opportunities for Cobar and Mainline Projects and for Eastern Iron will continue to be assessed

• The “keyhole” resource study at the Belah Prospect will be progressed, providing material for marketing

• Beneficiation trials, metallurgical test work, economics, marketing and transport option studies will become a major focus

• Gold and base metal targets will be assessed

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…iron’s new horizon

The Eastern Dragon

Thick Skinned Innovative Aggressive Opportunistic Adept at surviving adverse environments Profits when conditions improve Is always “looking up” A “Small” dragon But a DRAGON

ASX Code: EFE 26 November 2008

…iron’s new horizon

ASX Code: EFE 26 November 2008 …iron’s new horizon

DISCLAIMER

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 Ion 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 (2004) 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.

JORC Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Peter M Buckley, BSc (Hons), who is a member of the Australian Institute of Geoscientists. Peter M Buckley is Managing Director of Eastern Iron Limited and a full-time employee of PlatSearch NL. Peter M Buckley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and 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”. Peter M Buckley 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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