EASTERN RESOURCES LIMITED — Capital/Financing Update 2010

Apr 18, 2010

. . . AS X Announcement Further acquis itions of Iron - Vanadium Pros pective Ground

19 April 2010

New ground acquisition at the Hawkwood

Iron-Vanadium Project, QLD

Eastern Iron has applied for an additional area with potential for iron mineralisation some 12km west of its recently acquired Hawkwood iron – vanadium project area in Queensland. The new Exploration Permit (EPM18566 - Auburn) covers an area of 100 square kilometres and overlies a separate gabbroic intrusive complex similar to that at Hawkwood. Regional airborne magnetic surveys show patterns similar to those at Hawkwood and are suggestive of compositional layering possibly due to magnetite rich layers. Once granted, Eastern Iron will carry out an exploration program consisting of detailed magnetic surveys and drilling. There has been no previous exploration for iron, magnetite or vanadium in the new area, which is 100% Eastern Iron tenure.

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Figure 1. Location of the Hawkwood JV area and the new 100% Eastern Iron EPM application area. Encouraging magnetite-vanadium concentrate assays of 60% Iron and 1% Vanadium were collected from historic drill core drilled outside the main magnetic target. Background image is an existing, low-resolution aeromagnetic survey, red and yellow areas represent highly magnetic rocks prospective for iron ore.

New Airborne Geophysical Survey

Eastern Iron has completed a low level, high resolution aeromagnetic survey (2,241 line kilometres) covering the main magnetite-bearing zone as well as potential magnetite-bearing satellite bodies at Hawkwood. Interpretation of the data will assist the delineation of the extent of the magnetite-bearing zones, enable definition of an initial program of reverse circulation drilling and establish a potential exploration target tonnage. The results from this survey are expected to be received shortly.

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

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 2).

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Figure 2. Location of Eastern Iron’s Hawkwood JV Project

Eastern Iron is exploring and evaluating a number of mineral projects in eastern Australia, including the Hawkwood and Cobar Iron Projects. On 18 February 2010, Eastern Iron announced high grade, indicative iron ore concentrates averaging 60% Fe and 1% V2O5. One licence area at Hawkwood is a JV between Eastern Iron, Rugby Mining Pty Ltd and Rugby Mining Limited (TSX Code: RUG). Part of the JV area is subject to a 2% Net Smelter Royalty held by Newcrest Operations Limited, a subsidiary of Newcrest Mining Limited (ASX Code: NCM). Eastern Iron can earn a 50% interest in the exploration area by spending $700,000 within 3 years and can earn up to an 80% interest by spending in staged increments to a Bankable Feasibility Study. The joint venture transaction has been accepted by the TSX Venture Exchange.

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 and other steel-related minerals that have potential to add value to our existing iron assets.

Further information, previous Eastern Iron announcements and exploration updates are available 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