EASTERN RESOURCES LIMITED — Capital/Financing Update 2011

Apr 18, 2011

. . . ASX Announcement

19 April 2011

+500Mt EXPLORATION TARGET FOR EULOGIE – CENTRAL QUEENSLAND IRON PROJECT

• A study by Hellman and Schofield, resource consultants, has upgraded the exploration target at Eulogie to 500-1000 million tonnes[1] of magnetite-bearing ferrigabbro – this represents a substantial increase on previous target sizes of 200Mt.

• A 3500m RC drilling program will commence at Eulogie in May 2011 to convert part of the target to a resource category reportable under JORC.

Eulogie Resource Study

The Eulogie project is located 54 kilometres south of Rockhampton in Central Queensland, near bulk tonnage infrastructure including sealed roads and both the Moura – Gladstone and Blackwater – Gladstone railway lines, giving direct access to the expanding, deepwater export port of Gladstone.

Iron-bearing magnetite with accessory titanium and vanadium is concentrated within shallow dipping (30-40 degrees) gabbroic layers (ferrigabbro) up to 100 metres thick within a layered igneous complex. The geology and nature of the ferrigabbro layers is almost identical to that at Hawkwood where Eastern has previously reported the results of preliminary drilling and the potential for high quality magnetite iron concentrate.

In 1989 Thiess Contractors Pty Ltd examined the project as a possible source of iron ore for a proposed steel plant located in Gladstone. A pre-feasibility study was completed and included 30 reverse circulation and cored drill holes.

Eastern Iron have engaged resource consultants, Hellman and Schofield Pty Ltd to review the work undertaken by Thiess including the old drilling data, to identify the resource potential at Eulogie and assist in the design of an initial drilling program to convert a portion of the exploration target to an Identified Resource of at least 100 million tonnes.

The resource study has been aided by drilling and geological mapping completed by Thiess which outlined the surface trace of the ferrigabbro units. This has been confirmed by an airborne magnetic survey flown in 2009 which clearly shows the extent and position of the ferrigabbro units. The study has concluded that based on the information provided by the Thiess work that the exploration target is approximately 500 – 1000 million tonnes[1] of magnetite-bearing ferrigabbro to a depth of between 100 and 200m below surface.

1 Potential exploration target tonnages and grades in this report are conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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

…ASX Announcement

Eastern Iron Limited

==> picture [482 x 367] intentionally omitted <==

Plan of the Eulogie project showing the Thiess drillholes located on a residual total magnetic image. The ferrigabbro units interpreted as arcuate ridges of high magnetic intensity (purple colour).

Drilling program

Eastern Iron has committed to a resource drilling program at the Eulogie and Hawkwood projects. A drilling contractor has been identified and drilling is expected to commence in May, 2011. At Eulogie some 31 holes totalling 3500m of RC drilling are planned and are aimed at converting a portion of the target resource to a resource reportable under JORC. At Hawkwood around 2000m of RC drilling will be carried out to supplement the drilling previously completed and again aimed at identifying a resource reportable under JORC.

The resource information compiled from the drilling at Eulogie will feed into a scoping study being carried out for its potential development. It is anticipated that the scoping study results will be available by the end of the September quarter, 2011.

==> picture [74 x 49] intentionally omitted <==

Page 2

…iron’s new horizon

…ASX Announcement

Eastern Iron Limited

==> picture [482 x 284] intentionally omitted <==

Investor Information

Eastern Iron is exploring and evaluating a number of mineral projects in eastern Australia, including the Eulogie, 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

==> picture [91 x 48] intentionally omitted <==

Mr Greg De Ross, Managing Director Mob: 0417 711 274

The information in this report that relates to exploration targets for Eastern Iron Limited is based on information compiled by Mr Arnold van der Heyden who is a Member of the Australian Institute of Mining and Metallurgy and a full time employee of Hellman & Schofield Pty Ltd. The data used to derive the exploration target was supplied by Eastern Iron Limited and compiled by Mr Greg De Ross who is a Fellow of the Australian Institute of Geoscientists and a full time employee of Eastern Iron Limited. Mr van der Heyden, and Mr De Ross have sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as "Competent Persons" as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr van der Heyden and Mr De Ross consent to the inclusion in this Report of the information compiled by them in the form and context in which they appear.

==> picture [74 x 49] intentionally omitted <==

Page 3

…iron’s new horizon