EASTERN RESOURCES LIMITED — Capital/Financing Update 2012

Sep 25, 2012

==> picture [596 x 126] intentionally omitted <==

----- Start of picture text ----- ASX Announcement – 26 September 2012----- End of picture text -----

EASTERN IRON COMPLETES $1.26M CAPITAL RAISING

AT A 28% PREMIUM

• $1.26 million raised via a placement to sophisticated investors at a 28% premium to the last closing price for EFE shares

• Shares allocated were available as a result of a shortfall in the rights issue completed in July.

• Funds will be used to complete the scoping study and continue assessment of the Nowa Nowa iron project in eastern Victoria

• Adrian Critchlow appointed to the Board as a Non‐Executive Director.

Eastern iron is pleased to announce that it has raised a further $1.26M via a placement of 22,843,106 shares at $0.055 which represents a 28% premium to the average closing price for the week prior to the placement. The placement represents the balance of shares available under the rights issue which closed on the 27[th] June this year and has been placed with sophisticated investors.

Funds raised will be applied to the scoping study at Nowa Nowa, due for completion in November. Should the results of the study be sufficiently encouraging the Company plans to then move the project forward into the first stage of a feasibility study including further resource drilling and initiating the permitting and approval process.

The Board of Eastern Iron wishes to advise that founding Chairman, Glenn Goodacre has resigned from the Board, effective 31[st] October 2012. Mr Goodacre played an instrumental role in the Company’s establishment, IPO and listing in 2008. The Board wishes to thank Glenn for his outstanding contribution to the Company’s growth.

The Board is pleased to announce that Mr Adrian Critchlow has been appointed as a Non‐ Executive Director of the Company effective 1[st] October 2012.

Adrian holds a Bachelor of Science degree with an engineering major and has a background in the development of start‐up technology companies including founding Active Hotels/Booking.com which is now a significant part of Priceline.com, the largest hotel online booking engine in the world. He is also the founder of the Australian Solar Group Ltd which is developing alternative energy projects in Australia. Adrian brings to the Board connections to various financial institutions in Australia and the UK and will be valuable in assisting the Company to secure funding for future developments.

==> picture [596 x 42] intentionally omitted <==

----- Start of picture text ----- ABN 70 126 678 037----- End of picture text -----

==> picture [100 x 57] intentionally omitted <==

Eastern Iron's Managing Director, Greg De Ross, commented: "We are pleased to have completed a capital raising at a significant premium to the share price. This is reflective of the strength of the growing potential resource base at the Company's Nowa Nowa Project and the now proven strategy to identify small tonnage, high grade iron projects with a rapid development timeframe. The funding will be used to complete the scoping study at Nowa Nowa due for completion in the December quarter.

"I would also like to welcome Adrian Critchlow to the Board of Directors. The current Board is confident that Adrian's experience will augment the technical and corporate skill set already represented. We also thank Glenn Goodacre for his contribution to the Company since listing, and wish him well in his future endeavours."

INVESTOR INFORMATION

Eastern Iron is investigating the potential for development of a high grade magnetite resource at Nowa Nowa in eastern Victoria as well as a magnetite processing operation based on magnetite deposits it holds under permit in central Queensland. The Company is also in joint venture with 3E Steel to investigate the potential for developing large low cost low grade iron deposits in central western NSW.

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 [90 x 50] intentionally omitted <==

Mr Greg De Ross Managing Director Mob: 0417 711 274

ASX: EFE

For enquiries on your shareholding or change of address please contact: Boardroom Limited GPO Box 3993, Sydney NSW 2001 Phone: (02) 9290 9600

Page | 2

ASX Announcement – 26 September 2012