EASTERN RESOURCES LIMITED — Capital/Financing Update 2012

Jul 2, 2012

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03 July 2012

Results of Entitlement Offer

Eastern Iron Limited (ASX: EFE) (“the Company”) is pleased to announce the result of its pro-rata non-renounceable Entitlement Offer of New Shares whereby shareholders were offered 2 shares for every 3 fully paid ordinary shares (“Shares”) held in the Company on 30 May 2012 (“Record Date”) at an issue price of $0.055 per New Share. The Closing date for the Offer was 27 June 2012.

Eligible Shareholders (shareholders with a registered address in Australian or New Zealand on the Record Date) were able to apply for New Shares above their entitlement under the Shortfall Offer.

A total of 23,028,507 Shares were subscribed for (63,664 shares of the total were issued under the Shortfall Offer) representing approximately 50.2% of available entitlements. Accordingly the Company will issue 23,028,507 shares at $0.055.

The maximum number of New Shares that were available to be issued under the Entitlement Offer was 45,871,613. The Entitlement Offer was undersubscribed by 22,843,106 Shares and as stated in the Replacement Prospectus the Company may place the remaining shortfall within 3 months of the Entitlement Offer on the same terms and conditions.

The primary purpose of the Entitlement Offer was to raise funds for the ongoing work program and scoping study of the Nowa Nowa Project.

The total amount raised under the Entitlement Offer was $1,266,567.89 before costs and these funds will be put towards augmenting the Company’s general working capital.

The Company has applied to the ASX for Official Quotation of the New Shares. The New Shares commenced trading on a deferred settlement basis on 28 June 2012 and Holding Statements are scheduled to be despatched on 5 July 2012.

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A revised Appendix 3B for the issue of the New Shares is attached.

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

For further information please contact:

Greg De Ross Managing Director Eastern Iron Limited Phone +61 02 9906 7551 Email: gregdeross@easterniron.com.au Website: www.easterniron.com.au

2

Appendix 3B New issue announcement

Rule 2.7, 3.10.3, 3.10.4, 3.10.5

Appendix 3B

New issue announcement, application for quotation of additional securities and agreement

Information or documents not available now must be given to ASX as soon as available. Information and documents given to ASX become ASX’s property and may be made public.

Introduced 1/7/96. Origin: Appendix 5. Amended 1/7/98, 1/9/99, 1/7/2000, 30/9/2001, 11/3/2002, 1/1/2003, 24/10/2005.

Name of entity

Eastern Iron Limited ABN 70 126 678 037

We (the entity) give ASX the following information.

Part 1 - All issues

You must complete the relevant sections (attach sheets if there is not enough space).

1 +Class of+securities issued or to be issued 2 Number of+securities issued or to be issued (if known) or maximum number which may be issued 3 Principal terms of the+securities (eg, if options, exercise price and expiry date; if partly paid+securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion)	Fully paid ordinary shares
	23,028,507
	Fully paid ordinary shares

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 1

Appendix 3B New issue announcement

4 Do the+securities rank equally in all respects from the date of allotment with an existing+class of quoted +securities? If the additional securities do not rank equally, please state:  the date from which they do  the extent to which they participate for the next dividend, (in the case of a trust, distribution) or interest payment  the extent to which they do not rank equally, other than in relation to the next dividend, distribution or interest payment 5 Issue price or consideration 6 Purpose of the issue (If issued as consideration for the acquisition of assets, clearly identify those assets) 7 Dates of entering+securities into uncertificated holdings or despatch of certificates 8 Number and +class of all +securities quoted on ASX (_including_the securities in clause 2 if applicable) 9 Number and +class of all +securities not quoted on ASX (_including_the securities in clause 2 if applicable) 10 Dividend policy (in the case of a trust, distribution policy) on the increased capital (interests)	The share rank equally with EFE fully paid ordinary shares	The share rank equally with EFE fully paid ordinary shares
	$0.055 per fully paid ordinary share
	Funding for the Company’s ongoing work program and scoping study on Nowa Nowa project.
	5 July 2012
	Number	+Class
	91,835,926	Fully paid ordinary shares
	Number	+Class
	5,000,000 1,200,000 1,850,000 1,650,000	$0.35 Options expire 19 Dec 2012 $0.18 Options expire 9 Mar 2015 $0.20 Options expire 23 Nov 2013 $0.18 Options expire 23 Nov 2013
	Full participation in future dividends

• See chapter 19 for defined terms.

Appendix 3B Page 2

1/1/2003

Appendix 3B New issue announcement

Part 2 - Bonus issue or pro rata issue

Questions 11 to 33

Not applicable

Part 3 - Quotation of securities

You need only complete this section if you are applying for quotation of securities

34 Type of securities ( tick one )

(a) X Securities described in Part 1

(b) All other securities

Example: restricted securities at the end of the escrowed period, partly paid securities that become fully paid, employee incentive share securities when restriction ends, securities issued on expiry or conversion of convertible securities

Entities that have ticked box 34(a)

Additional securities forming a new class of securities

Tick to indicate you are providing the information or documents

35 If the[+] securities are[+] equity securities, the names of the 20 largest holders of the additional[+] securities, and the number and percentage of additional[+] securities held by those holders

36 If the[+] securities are[+] equity securities, a distribution schedule of the additional +securities setting out the number of holders in the categories 1 - 1,000 1,001 - 5,000 5,001 - 10,000 10,001 - 100,000 100,001 and over

37 A copy of any trust deed for the additional[+] securities

Entities that have ticked box 34(b)

Questions 38 to 43

Not applicable

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 3

Appendix 3B New issue announcement

Quotation agreement

• 1 +Quotation of our additional +securities is in ASX’s absolute discretion. ASX may quote the[+] securities on any conditions it decides.

• 2 We warrant the following to ASX.

• The issue of the[+] securities to be quoted complies with the law and is not for an illegal purpose.

• There is no reason why those[+] securities should not be granted[+] quotation.

• An offer of the[+] securities for sale within 12 months after their issue will not require disclosure under section 707(3) or section 1012C(6) of the Corporations Act.

Note: An entity may need to obtain appropriate warranties from subscribers for the securities in order to be able to give this warranty

• Section 724 or section 1016E of the Corporations Act does not apply to any applications received by us in relation to any[+] securities to be quoted and that no-one has any right to return any[+] securities to be quoted under sections 737, 738 or 1016F of the Corporations Act at the time that we request that the[+] securities be quoted.

• If we are a trust, we warrant that no person has the right to return the +securities to be quoted under section 1019B of the Corporations Act at the time that we request that the[+] securities be quoted.

• 3 We will indemnify ASX to the fullest extent permitted by law in respect of any claim, action or expense arising from or connected with any breach of the warranties in this agreement.

• 4 We give ASX the information and documents required by this form. If any information or document not available now, will give it to ASX before[+] quotation of the[+] securities begins. We acknowledge that ASX is relying on the information and documents. We warrant that they are (will be) true and complete.

Sign here: ( ~~Director~~ /Company secretary)

Date: 3 July 2012

Print name: Michelle Lilley

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• See chapter 19 for defined terms.

Appendix 3B Page 4

1/1/2003