EASTERN RESOURCES LIMITED — Capital/Financing Update 2008

Nov 18, 2008

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19 November 2008

ABN 70 126 678 037 Suite 3, Level 1, 80 Chandos Street St Leonards, NSW 2065 PO Box 956, Crows Nest, NSW 1585 Ph: 02 9906 7551 Fax: 02 9906 5233

Company Announcements Office ASX Limited

ISSUE OF BONUS OPTIONS

Eastern Iron Limited is pleased to advise that it has lodged a Prospectus with the Australian Securities and Investments Commission to allow the Company to undertake a Bonus Option Issue to shareholders.

Attached is an Appendix 3B.

Yours sincerely

Eastern Iron Limited

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Glenn Goodacre Chairman

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Eastern Iron Limited

ABN

70 126 678 037

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Options
	Maximum of 23,000,000 options
	The options are to subscribe for ordinary shares at an exercise price of 12 cents and expiry date of 19 December 2010. The bonus issue is one option for every two shares held on the record date

• See chapter 19 for defined terms.

Appendix 3B Page 2

1/1/2003

Appendix 3B New issue announcement

• 4 Do the[+] securities rank equally in all respects from the date of allotment with an existing[+] class of quoted +securities?

There are no current quoted options

• If the additional securities do not rank equally, please state: • the date from which they do • the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment

• • the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment

5 Issue price or consideration Nil 6 Purpose of the issue As detailed in the Prospectus lodge with ASIC (If issued as consideration for the and released to ASX on 19 November 2008. acquisition of assets, clearly identify those assets) 7 Dates of entering[+] securities into Expected to be 12 December 2008 uncertificated holdings or despatch of certificates Number +Class 8 Number and +class of all 26,000,450 Fully paid ordinary +securities quoted on ASX shares ( including the securities in clause 2 if applicable) 23,000,000 Options, exercise price 12 cents, expiry 19 December 2010 Number +Class 9 Number and +class of all 19,999,550 Ordinary shares – escrowed until +securities not quoted on ASX 16 May 2010 ( including the securities in clause 2 if applicable) 120,000 Options, exercise price 25 cents, expiry 19 December 2010 4,150,000 Options, exercise price 25 cents, expiry 19 December 2010, escrowed until 16 May 2010 5,000,000 Options, exercise price 35 cents, expiry 19 December 2012, escrowed until 16 May 2010

Nil As detailed in the Prospectus lodge with ASIC and released to ASX on 19 November 2008. Expected to be 12 December 2008

• See chapter 19 for defined terms.

1/1/2003

Appendix 3B Page 3

Appendix 3B New issue announcement

10 Dividend policy (in the case of a Options have no entitlement to any future trust, distribution policy) on the dividends unless exercised increased capital (interests)

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations 20 Names of any underwriters 21 Amount of any underwriting fee or commission	No
	Non-renounceable
	One option for every two fully paid ordinary sharesheld atrecord date
	The options are to subscribe for ordinary shares at an exercise price of 12 cents and an expiry date of 19December 2010
	28 November 2008
	No
	Fractions will be rounded up
	None
	N/A – Bonus Issue
	None
	Not applicable

• See chapter 19 for defined terms.

Appendix 3B Page 4

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Appendix 3B New issue announcement

22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of+security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance? 32 How do+security holders dispose of their entitlements (except by sale through a broker)? 33 +Despatch date	None
	Not applicable
	Not applicable
	Not applicable
	Prospectus will be sent with holding statements on 12 December 2008
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	Not applicable
	12 December 2008

• See chapter 19 for defined terms.

1/1/2003

Appendix 3B Page 5

Appendix 3B New issue announcement

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

• 34 Type of securities ( tick one )

• (a) � Securities described in Part 1

• (b)[All other securities ]

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

• 35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the � additional[+] securities, and the number and percentage of additional[+] securities held by those holders

• 36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +

• � securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

• 37 A copy of any trust deed for the additional[+] securities

• See chapter 19 for defined terms.

Appendix 3B Page 6

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Appendix 3B New issue announcement

Entities that have ticked box 34(b)

Questions 38 to 42

Not applicable

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: Date: 19 November 2008

( ~~Director/~~ Company Secretary)

Print name: Michelle Lilley

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• See chapter 19 for defined terms.

1/1/2003

Appendix 3B Page 7