EASTERN RESOURCES LIMITED — Annual Report 2011

Nov 22, 2011

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23 November 2011

CHAIRMANS ADDRESS

Eastern Iron has made considerable progress during 2011.

We’ve evaluated numerous projects and opportunities in Iron Ore and several other commodities, in several countries. We’ve advanced the existing Queensland Iron Ore projects at Eulogie and Hawkwood, we’ve seen the NSW Iron Project advanced by our joint venture partners and we’ve recently obtained an option over the Nowa Nowa Iron Ore prospect in Victoria.

Iron Ore has remained the dominant commodity target of Eastern’s existing tenements.

I won’t go into detail about Eastern’s various projects, except to say that:

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• Our joint venture partner 3E Steel continues to carry out work on the NSW Iron Ore Project.

• Eastern Iron has drilled the Eulogie project and has pleasingly announced a Maiden JORCcompliant Iron Ore resource of 465 million tonnes of combined Indicated and Inferred mineralisation,

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• We have carried out more drilling at the Hawkwood magnetite prospect and hope to announce a maiden JORC-compliant resource there shortly and

• We’re in the early stages of evaluating the Nowa Nowa Iron Ore prospect In Victoria.

Eastern Iron is now delivering on its plans to create a portfolio of projects with good potential that we can advance either alone or with partners. We’ve already farmed out our NSW tenements and are seeking a strong partner for Eulogie and Hawkwood in Queensland, to fund completion of a scoping study and a bankable feasibility study. The announcement of JORC-compliant resources is an important step in attracting partners to those projects.

Having only recently gained the option to buy the Nowa Nowa prospect, it is too early to say terribly much except that the scale of the prospect is very modest compared to our NSW and Qld properties. Therefore it may be possible for Eastern to equity and debt fund a small development, rather than having to bring in a development partner.

Eastern Iron’s focus remains on building a portfolio of projects that will give us a good chance of developing a profitable mining business.

Despite continuous volatility in stock markets, Eastern Iron shareholders exercised $2million worth of our 12 cent options prior to their expiry in December 2010. We enjoyed a very high percentage of options exercised by holders. After spending significant sums on several RC and diamond drilling campaigns on our Queensland properties, Eastern had approximately $2.8 million in net cash at 30 September.

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Given the active evaluation and project marketing programs we have planned, together with our program of new project identification and evaluation, we hope that our work over the coming year will create substantial value for Eastern Iron stakeholders.

In closing, on behalf of the Board I would like to thank our shareholders for their support and our team of management, contractors and consultants for their efforts during the year.

Mr Glenn Goodacre Chairman

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