EASTERN RESOURCES LIMITED — Capital/Financing Update 2010

Apr 21, 2010

. . . AS X Announcement High Grade Iron from S urface S amples

22 April 2010

High Grade Iron in Surface Samples at

Hawkwood Project

• Initial surface sampling of magnetite-rich layers in Hawkwood Gabbroic Complex yields high-grade iron and vanadium results

• A single composite sample from poorly outcropping, massive magnetite layer assays 59.5% Fe, 0.48% V, 2.13% Al2O3, 1.64% SiO2, 9.11% TiO2 with direct shipping (DSO) potential.

• Samples from magnetite-bearing gabbro averaging 30% Fe, 6.6% Al2O3, 28.8% SiO2, 3.3% TiO2, 0.2% V consistent with magnetic fractions of 40-45% as indicated from earlier sampling.

• High resolution airborne magnetic survey completed, drilling to commence in the September quarter 2010.

Surface sampling results

Eastern Iron has completed a limited sampling program of magnetite-rich rocks at the Hawkwood project. Sampling is hampered by a lack of outcrop and along the entire 7km strike length of the prominent Main magnetic anomaly, as depicted on the regional magnetic map, only one area of (sub) outcrop was found during the recent visit. At this locality (H6) lumps of massive magnetite rocks are scattered over a wide area. Sample H6 represents a composite of a number of lumps taken from this locality. Assay results are equivalent to a magnetic fraction of around 95% and confirm the high magnetite content observed in the hand specimens of sample H6.

Samples H2 and H4 are from outcropping magnetite gabbro in an area south of the Main magnetic anomaly and previously drilled during the 1970’s to investigate the potential for coal washery grade magnetite. These samples assayed 28-31% Fe and 2.99 – 3.61% TiO2 and are consistent with a magnetic fraction of 40-45% as indicated in earlier sampling of the old drill core by Eastern Iron.

SAMPLE	Al2O3	CaO	Cr2O3	Cu	Fe	MgO	Mn	Na2O	P	S	SiO2	TiO2	V	Total
H2	7.22	5.14	0.04	0.06	28.20	12.80	0.26	0.69	0.03	0.01	30.10	2.99	0.16	99.99
H4	6.06	5.59	0.04	0.06	31.00	12.15	0.27	0.59	0.03	0.00	27.40	3.61	0.20	99.95
H6	2.13	0.08	0.21	0.02	59.50	1.08	0.32	0.01	0.02	0.03	1.64	9.11	0.48	100.00

Further Exploration

Eastern Iron has recently completed a high resolution airborne magnetic survey over the Hawkwood area. Processed interpreted images are yet to be received. However, the preliminary data has confirmed the very strong magnetic layering within the complex. The strongest of these

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

Eastern Iron Limited

…ASX Announcement

linear magnetic anomalies is over 7km long and coincident with the location of sample H6 which suggests that massive magnetite layers may be responsible for the anomaly. An RC drilling program scheduled for the September quarter of this year will target this magnetic anomaly.

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Figure 1 - Location of the Hawkwood joint venture area and the new 100% Eastern Iron EPM application area. Encouraging magnetite-vanadium assays were collected from historic drill core drilled outside the main magnetic target. Background image is an existing, low-resolution aeromagnetic survey. Red areas represent highly magnetic rocks prospective for iron ore.

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Figure 2 - Location of high-grade surface samples (Table 1). Concentrate grades (reported 18 February 2010) were taken from the Hawkwood Prospect area and red line denotes the drill target horizon.

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…iron’s new horizon

Eastern Iron Limited

…ASX Announcement

Inves tor 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 3).

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Figure 3 - 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. Hawkwood is a joint venture between Eastern Iron, Rugby Mining Pty Ltd (Rugby) and Rugby Mining Limited (TSX Code: RUG) whereby Eastern Iron can earn a 50% interest in the exploration area.

Eastern Iron is negotiating with potential joint venture parties to investigate downstream processing options for the large tonnage Cobar Iron Project (627 Mt @ 10.3% Fe, above a 5% total Fe cut-off grade, announced to the ASX on 30 September 2009) 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 information tab on the Company’s website - www.easterniron.com.au

Mr Greg De R os s, Chief E xecutive Officer Webs ite: www.eas terniron.com.au

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…iron’s new horizon