EASTERN RESOURCES LIMITED — Capital/Financing Update 2010

Jul 7, 2010

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. . . ASX Announcement
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8 July 2010

HAWKWOOD PROJECT – EXPLORATION UPDATE

• Recently completed high resolution airborne magnetic survey highlights +12km long continuous highly magnetic zone.

• Followup ground magnetic survey has confirmed a high intensity magnetic anomaly and has aided in modelling the magnetic body prior to the planned drilling program.

• Drilling program delayed but now due to commence in late July 2010.

High Resolution Airborne Magnetic Survey

Eastern Iron has previously reported the results of a low level high resolution airborne magnetic survey flown over the Hawkwood project area which has clearly outlined a +12km long intense magnetic feature interpreted to be magnetite-rich layers within the layered igneous complex.

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Figure 1 – Total magnetic intensity image from the recent high resolution magnetic survey showing the prominent laterally continuous “Main Magnetic Anomaly” and the location of surface samples reported in April 2010. Warm colours denote areas of higher magnetic intensity.

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

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…ASX Announcement

Eastern Iron Limited

A recently completed ground magnetic survey was carried out on strike normal lines across the magnetic feature to assist in planning the upcoming RC drilling program. In the absence of any surface outcrop the ground magnetic has aided modelling of the magnetic body including giving an estimate of its potential width and dip.

Drilling Program

The planned 2000m RC drilling was due to commence in late June but has been delayed by a combination of access issues and rig availability. Drilling is now scheduled to commence in late July 2010.

Investor Information

The Hawkwood Project in southern Queensland is located 160km from the coast and 250km by rail from the coal export port of Gladstone, an area well serviced with existing infrastructure (Figure 2).

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Figure 2 - Location of Eastern Iron’s Hawkwood Joint Venture Project

Eastern Iron is exploring and evaluating a number of mineral projects in eastern Australia, including the Hawkwood and Cobar Iron Projects and is also evaluating further new projects and exploration opportunities involving iron ore, gold and other minerals that have potential to add value to our existing iron assets.

Further information, previous Eastern Iron announcements and exploration updates are available at the News and Reports tab on the Company’s website - www.easterniron.com.au

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Mr Greg De Ross, Chief Executive Officer Mob: 0417 711 274

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves 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 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”. Greg 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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