EASTERN RESOURCES LIMITED — Capital/Financing Update 2014

Apr 28, 2014

– ASX Announcement 29 April 2014

SHARE PURCHASE PLAN

• Share Purchase Plan (SPP) to be offered to eligible shareholders on same terms as recent placements

• Funding will be used to progress the Nowa Nowa Iron Project

• Definitive Feasibility Study (DFS) targeting completion in June with environmental permitting underway

Eastern Iron Limited (ASX:EFE) refers to the share placements announced on 6 March 2014 and 15 April 2014 to Harland Capital Fund LLC (“Harland”) which have raised a total of $701,400 at an issue price of $0.042 per share (“Placements”). Eastern Iron has also advised that Harland has an option to subscribe for a further 7,300,000 shares at $0.042 per share on or before 30 June 2014.

The issue price of the more recent Placement announced on 15 April 2014 represented a 14.3% discount to the 15 day volume-weighted average price of Eastern Iron’s shares traded on the ASX prior to the issue and represents a 6.7% discount to the last closing price of Eastern Iron shares on 28 April 2014.

Eastern Iron is pleased to announce that it will undertake a Share Purchase Plan (“SPP”) providing existing eligible shareholders on Eastern Iron’s share register at 7pm on 28 April 2014 with registered addresses in Australia and New Zealand with the opportunity to subscribe for up to $15,000 worth of Eastern Iron fully paid ordinary shares at the same price as the Placement ($0.042 cents per share), without incurring brokerage or other transaction costs.

Full details of the SPP will be sent to eligible shareholders in the coming days.

The purpose of the capital raising is to fund ongoing work on the Nowa Nowa Iron project including completion of the Definitive Feasibility Study (DFS) and environmental studies carried out in preparation of an Environmental Effects Statement (EES).

Eastern Iron’s Managing Director, Greg De Ross commented: “It is encouraging that Eastern Iron received strong support for the recent placements from Harland. We are now providing shareholders with the opportunity, through the SPP, to increase their participation as we progress the Nowa Nowa Iron Project towards development.”

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The Indicative SPP timetable is as follows:

Event	Date
SPP record date	7:00pm (Sydney time), Monday, 28 April2014
SPP offer opens	Monday, 5 May 2014
SPP offer closes	5:00pm (Sydney time), Monday, 26 May2014
SPP results announcement	Friday, 30 May 2014
Despatch date	Monday, 2 June April 2014
SPP shares commence trading	Wednesday, 5 June 2014

This timetable is subject to change. Eastern Iron reserves the right to vary the timetable without notice. The commencement of trading of new shares is subject to confirmation from ASX.

INVESTOR INFORMATION

Eastern Iron is in the final stages of completion of a Definitive Feasibility Study for its 100% owned Nowa Nowa Iron Project in eastern Victoria. The project will produce around 0.8mt of high grade iron ore for export annually. The Company is also well advanced with required project permitting including completion of a native title agreement and the recent grant of a Mining Licence. An Environmental Effects Statement is in preparation and it is anticipated that final project permitting will be concluded in early 2015.

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

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 – 29 April 2014