EASTERN RESOURCES LIMITED — Capital/Financing Update 2010

Nov 7, 2010

. . . ASX Announcement

8 November 2010

Company Announcements Office Australian Securities Exchange

Option Expiry Notification

Eastern Iron Limited advises that an Option Expiry Notice has been sent to all Listed Option holders in relation to the expiry of Listed Options (ASX Code: EFEO) on 19 December 2010.

Options not exercised by 5.00pm (EST) on 19 December 2010 will automatically expire. Quotation and trading of the Options will cease on 10 December 2010 in accordance with ASX Listing Rule 6.

A copy of the Option Expiry Notice and a letter from the Company is attached.

For any further information please do not hesitate to contact our office on 02 9906 7551.

Yours sincerely

Michelle Lilley Company Secretary

Level 1, 80 Chandos Street St Leonards, NSW 2065 PO Box 956, Crows Nest, NSW 1585 Ph: 02 9906 7551 Fax: 02 9906 5233 www.easterniron.com.au

…iron’s new horizon

8 November 2010

Name Title Address 1 Address 2

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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 www.easterniron.com.au

Dear Optionholder

YOUR OPTIONS TO ACQUIRE EASTERN IRON LIMITED SHARES AT 12 CENTS PER SHARE EXPIRE ON 19 DECEMBER 2010

We are writing to you as a registered holder of bonus options in Eastern Iron Limited to remind you that these options will expire at 5:00pm (EST) on 19 December 2010.

You can exercise your options or in other words purchase additional ordinary shares in your company by electing to pay 12 cents for each option you hold by no later than 19 December 2010. You can choose to purchase any or all of your entitlement, but please note that any options not exercised by 5:00pm (EST) on 19 December 2010 will lapse and all rights under the options will cease at that time.

Some of the courses of action available to you as a holder of these soon to expire options are:

• a) Exercise the options on or before 19 December 2010 whereby you will receive one ordinary share for every option exercised. Payment must be received by 5:00pm (EST) on 19 December 2010.

• b) Sell your options on the stock market. Quotation of the options will cease at the close of trading on 10 December 2010.

• c) Do nothing (i.e., allow your options to expire). If you do not exercise or sell your options they will expire at 5pm (EST) 19 December 2010 and your right to subscribe for ordinary shares in Eastern Iron Limited at 12 cents per share will lapse.

There is no obligation on option holders to exercise their options. However, under paragraph 6.1 or Appendix 6A of the Australian Securities Exchange (ASX) Listing Rules, the Company is required to advise option holders of the information contained in this notice.

The market sale price of Eastern Iron Limited securities on 5 November 2010, being the last trading day in Sydney prior to the date of this notice was:

Ordinary Shares 16 cents Options 6 cents

During the three months preceding the date of this notice:

• The highest market sale price of ordinary shares on ASX was 20 cents on 2 November 2010; and

• The lowest market sale price of ordinary shares on ASX was 11 cents on 17 September 2010.

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If you wish to exercise your options then you must complete the attached “Notice of Exercise of Options” form and forward it together with payment of 12 cents per option exercised to be received no later than 5:00pm (EST) on 19 December 2010 to the Company’s offices, being:

Eastern Iron Limited Attn: Michelle Lilley PO Box 956 CROWS NEST NSW 1585

Cheques should be made payable to ‘EASTERN IRON LIMITED” in Australian dollars only and should be crossed “Not negotiable”. If you have any further questions please do not hesitate to contact our Company Secretary Michelle Lilley on 02 990 67551 or our share registry Registries Ltd on 1300 737 760. Should you require any further guidance on the purchase of these shares please contact your financial advisor.

The past year has seen some substantial improvement in the company’s share price as a result of continued developments at our exciting Hawkwood iron project. We anticipate that the company will continue its evaluation of the Hawkwood project as well as other projects which the company is currently assessing. We encourage you to consider exercising your options and look forward to updating you on further developments as a shareholder in the Company.

Yours faithfully

MICHELLE LILLEY COMPANY SECRETARY

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NOTICE OF EXERCISE OF OPTIONS

To: C/- Eastern Iron Limited, PO Box 956, CROWS NEST NSW 1585

Number of Options Held: Multiplied by Total Payment Due: «Units» the exercise «Value» price of $0.12

Payment may only be made by BPAY or cheque. Cash will not be accepted via the mail or at the Eastern Iron Limited Share Registry. Payments cannot be made at any bank.

Payment Option 1 - BPAY

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Biller Code:

Ref: «BPayCRN»

Telephone & Internet Banking - BPAY®

Contact your bank, credit union or building society to make this payment from your cheque or savings account. More info: www.bpay.com.au

® Registered to BPAY Ltd ABN 69 079 137 518

• To pay via BPAY please contact your participating financial institution

• If paying by BPAY you must still return this exercise notice with your signature(s) below

• If paying by BPAY the amount of your payment received in the account divided by the exercise price will be deemed to be the total number of options you are exercising

Payment Option 2 – Cheque (Record cheque details below)

DRAWER	CHEQUE NO.	BSB NO.	ACCOUNT NO.	AMOUNT $AUD
				$

• Only cheques or bank drafts in Australian dollars and drawn on a bank or financial institution in Australia will be accepted.

• Your cheque or bank draft must be made payable to “Eastern Iron Limited ” and crossed Not Negotiable.

• Please ensure that you submit the correct amount. Incorrect payments may result in your application being rejected.

Payment Made By (Please tick one)

Cheque � BPAY �

I / We

«Investor_Detail_1» «Investor_Detail_2» «Investor_Detail_3» «Investor_Detail_4» «Investor_Detail_5» «Investor_Detail_6»

*«SRReferen

hereby exercise my options to apply for

………………………………………………………………………………….………………………

[(number in words)][ (in figures)]

fully paid ordinary shares in the capital of Eastern Iron Limited. I/we have made payment of

$.........................................., being $0.12 per option subscription. I/we request that you allot me/us on the share register the number of shares to which I am/we are entitled and I/we agree to accept such shares subject to the Company’s Constitution.

PLEASE SIGN HERE:

Shareholder 1 (Individual) Joint Shareholder 2 (Individual) Joint Shareholder 3 (Individual) Sole Director & Sole Company Secretary Director Director / Company Secretary Business Telephone No. ( ) Date

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