EASTERN RESOURCES LIMITED — Capital/Financing Update 2012

Aug 13, 2012

– ASX Announcement 14 AUGUST 2012

NOWA NOWA IRON PROJECT

• Diamond drilling program completed.

• High Grade iron intercepts confirming potential at Five and Seven Mile Deposits.

• Beneficiation testwork on drill core samples commenced.

• MOU executed with South East Fibre Exporters Pty Ltd, operators of Eden export port terminal.

Eastern Iron is continuing the assessment of its wholly owned Nowa Nowa iron project in Eastern Victoria. The Company has previously announced that it has engaged Engenium to complete a scoping study into a possible mining development at the project and has also recently completed a large diameter diamond drilling program to obtain samples for beneficiation testwork.

Results of analysis of core samples have been received and confirm the high grade nature of the magnetite mineralisation at Five Mile. Previously released results from a single hole at the smaller Seven Mile deposit show that mineralisation at this site is almost completely altered to massive hematite by surface oxidation.

Eastern Iron Managing Director, Greg De Ross commented: “The results of the drilling program have confirmed the excellent potential for development of the iron deposits at Nowa Nowa and we look forward to receiving the results of the beneficiation testwork and progressing the scoping study over the next few months.”

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NOWA NOWA IRON PROJECT

The Nowa Nowa Project is located in eastern Victoria close to the Princes Highway.

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Nowa Nowa Locality Plan

Drilling Program

Four drill holes were completed consisting of one at the Seven Mile deposit and three at the larger Five Mile deposit. All drill holes were vertical and details of the drilling program are shown in the table below.

Details of Nowa Nowa Drill program:

Drill hole	Location	North (GDA)	East (GDA)	Dip °	Total Depth (m)
NDD011	7 Mile	599462	5832270	-90	124.1
NDD012	5 Mile	598407	5830862	-90	101.97
NDD013	5 Mile	598399	5830825	-90	119.4
NDD014	5 Mile	598378	5830801	-90	132.15

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ASX Announcement – August 2012

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All assay results have now been received. Quarter core samples were collected on a down hole 2m basis except where obvious geological contacts were present. Samples were analysed by XRF. Results were as follows:

	From (m)	To (m)	Total (m)	Fe%	**SiO2% **	**Al2O3% **	P%	S%
NDD011	0.0	71.4	71.4	46.3	26.9	2.77	0.006	0.03
NND012	53.2	85	31.8	56.3	9.87	1.6	0.014	1.93
NND013	83	117.9	34.9	43.29	11.3	2	0.025	0.7
NND014	67.7	130.6	62.9	57.6	9.78	1.77	0.035	2.1

Drill core from all holes has been split and composited for metallurgical testwork at AMMTEC laboratories in WA. This work is designed to investigate optimum conditions for beneficiating the Nowa Nowa iron ore to a +60% Fe product by crushing, screening and low intensity magnetic separation.

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ASX Announcement – August 2012

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MOU - South East Fibre Exports Pty Ltd

South East Fibre Products Pty Ltd (SEFE) operate a woodchip mill and associated wharf and bulk loading port facility at Two Fold Bay near Eden in southern NSW. Eastern Iron and SEFE have executed an MOU which will see the two companies cooperate in assessing the Two Fold Bay facility as a possible site for export of iron ore product from Eastern Iron’s Nowa Nowa project. The assessment will form part of the ongoing scoping study being carried out on Eastern Iron’s behalf by Engenium.

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

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Mr Greg De Ross Managing Director Mob: 0417 711 274

The information in this report that relates to Exploration Results, Mineral Resources and 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 Managing Director 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”. Mr De Ross consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

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

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ASX Announcement – August 2012