EASTERN RESOURCES LIMITED — Capital/Financing Update 2012

Jun 3, 2012

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04 June 2012

2012 Entitlement Offer Prospectus Update

On 21 May 2012, Eastern Iron Limited (ASX:EFE) ( Eastern Iron ) announced a pro-rata nonrenounceable issue of new ordinary shares ( New Shares ) at an offer price of $0.055 per New Share on the basis of two New Shares for every three ordinary shares held by eligible shareholders ( Entitlement Offer ). The Entitlement Offer is made under a section 713 transaction-specific prospectus lodged with the Australian Securities and Investments Commission ( ASIC ) on 22 May 2012. The Company intends to lodge a replacement prospectus with ASIC, updating certain information set out in the prospectus lodged on 22 May 2012 ( Prospectus ).

The indicative timetable for the Entitlement Offer (as set out in the announcement of 21 May 2012) has been varied. A revised indicative timetable in respect of the Entitlement Offer is set out below.

Revised Indicative Timetable for Entitlement Offer

Event	*Date **
Lodgement of prospectus with ASIC	22 May 2012
Notice to Share and Option holders+	22 May2012
“Ex”date	24 May 2012
Record date for determining Entitlements	30 May 2012
OpeningDate and dispatchof Prospectus to Shareholders	13 June2012
Closing Date of Entitlement Offer	27 June 2012
NewShares quoted ona deferred settlement basis	28 June2012
Notify ASX of under subscriptions	3 July 2012
Despatchdate	5 July2012

Notes:

• These dates are the latest dates on which each relevant event may take place. + Optionholders must be advised by this date of the Entitlements Offer and their inability to participate unless they exercise their options.

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This timetable is indicative only and the Company reserves the right to vary it at any time without prior notice, subject to the Listing Rules and the Corporations Act.

A revised Appendix 3B for the proposed 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 Fully paid ordinary shares issued

• 2 Number of[+] securities issued or to 45,871,613 be issued (if known) or maximum A small number of additional shares may be number which may be issued issued where option holders who decide to participate in the Entitlement Offer exercise their options

• 3 Principal terms of the[+] securities (eg, Fully paid ordinary shares 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)

• 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
	114,679,032	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.

24/10/2005

Appendix 3B Page 2

Appendix 3B New issue announcement

Part 2 - Bonus issue or pro rata issue

11 Is security holder approval required? 12 Is the issue renounceable or non- renounceable? 13 Ratio in which the+securities will be offered 14 +Class of+securities to which the offer relates 15 +Record date to determine entitlements 16 Will holdings on different registers (or subregisters) be aggregated for calculating entitlements? 17 Policy for deciding entitlements in relation to fractions 18 Names of countries in which the entity has+security holders who will not be sent new issue documents Note: Security holders must be told how their entitlements are to be dealt with. Cross reference: rule 7.7. 19 Closing date for receipt of acceptances or renunciations	No
	Non-Renounceable
	Ratio 2:3 - 2 new shares will be offered for every3 existingshares
	Fully paid ordinary shares
	30 May 2012
	N/A
	Fractional entitlements are rounded up to the nearest whole
	China, Isle of Man, Singapore, United Kingdom, USA.
	27 June 2012

• See chapter 19 for defined terms.

24/10/2005 Appendix 3B Page 3

Appendix 3B New issue announcement

20 Names of any underwriters 21 Amount of any underwriting fee or commission 22 Names of any brokers to the issue 23 Fee or commission payable to the broker to the issue 24 Amount of any handling fee payable to brokers who lodge acceptances or renunciations on behalf of +security holders 25 If the issue is contingent on +security holders’ approval, the date of the meeting 26 Date entitlement and acceptance form and prospectus or Product Disclosure Statement will be sent to persons entitled 27 If the entity has issued options, and the terms entitle option holders to participate on exercise, the date on which notices will be sent to option holders 28 Date rights trading will begin (if applicable) 29 Date rights trading will end (if applicable) 30 How do+security holders sell their entitlements_in full_through a broker? 31 How do+security holders sell_part_ of their entitlements through a broker and accept for the balance?	N/A
	N/A
	N/A
	N/A
	N/A
	N/A
	13 June 2012
	22 May 2012
	N/A
	N/A
	N/A
	N/A

• See chapter 19 for defined terms.

Appendix 3B Page 4

1/1/2003

Appendix 3B New issue announcement

• 32 How do[+] security holders dispose of their entitlements (except by sale through a broker)?

N/A

33 +Despatch date 5 July 2012

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 5

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: 4 June 2012

Print name: Michelle Lilley

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• See chapter 19 for defined terms.

Appendix 3B Page 6

1/1/2003