EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2008

Jul 30, 2008

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

EASTERN IRON LIMITED

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ABN 70 126 678 037

Quarter ended (“current quarter”) 30 June 2008

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other - tenement security deposits Net Operating Cash Flows	Current quarter 30 Jun 2008 $A’000	Year to date (12 months) 30 Jun 2008 $A’000
	0 (70) 0 0 (113) 0 29 0 0 0	0 (137) 0 0 (264) 0 30 0 0 (100)
	(154)	(471)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other - exploration on behalf of joint venturers - joint venture cash calls received Net investing cash flows 1.13 Total operating and investing cash flows (carried forward)	0 0 (21) 0 0 0 0 0 0 0	0 0 (21) 0 0 0 0 0 0 0
	(21)	(21)
	(175)	(492)

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EASTERN IRON LIMITED

	Current quarter $A’000	Year to date $A’000
1.13 Total operating and investing cash flows (brought forward)	(175)	(492)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other - Share issue costs Net financing cash flows	4,945 0 50 (150) 0 (223)	5,200 0 150 (150) 0 (279)
	4,622	4,921
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	4,447 (18) 0	4,429 0 0
	4,429	4,429

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	91
	Nil

1.25	Explanation necessaryforanunderstanding ofthe transactions
	Salaries, directors’ fees and consultancy fees at normal commercial rates

Non-cash financing and investing activities

• 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows

None

• 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

None

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

Financing facilities available

Add notes as necessary for an understanding of the position.

Financing facilities available Add notes as necessary for an understanding of the position.
3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000		Amount used $A’000
	Nil		Nil
	Nil		Nil
Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development			$A'000
			250
			0
Total			250

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items inthe accountsis asfollows	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items inthe accountsis asfollows	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items inthe accountsis asfollows	Current quarter $A'000		Previous quarter $A'000	Previous quarter $A'000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other - bills receivable, bank accepted and short term bank deposits			65			(18)
			0			0
			0			0
			4,364			0
Total: cash at end of quarter(item 1.22)			4,429			(18)
Changes in interests in mining tenements Tenement reference 6.1 Interests in mining tenements relinquished, reduced or lapsed Nil 6.2 Interests in mining tenements acquired or increased Nil
	Tenement reference	Nature of interest (note (2))		Interest at beginning of quarter		Interest at end of quarter
	Nil
	Nil

• 6.3 The full PlatSearch schedule of tenements is included as an attachment to this report.

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EASTERN IRON LIMITED

Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

	Total Number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference securities 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	Nil
	Nil
7.3 Ordinary securities - fully paid EFE 7.4 Changes during quarter (a) Increases through issues (b) Decreases through return of capital, buy-backs	46,000,000	26,000,450*
	25,000,000 Nil
7.5 Convertible debt securities 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil
	Nil
7.7 Options EFE 25 cents EFE 25 cents – Escrowed** EFE 35 cents – Escrowed**** 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter PTSAU	120,000 4,150,000 5,000,000	0 0 0	Exercise price $0.25 $0.25 $0.35	Expiry date 19 Dec 2010 19 Dec 2010 19 Dec 2012
	1,800,000	0	$0.25	19 Dec 2010
	Nil
	Nil
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes (totals only)	Nil

• 19,999,550 escrowed until 16 May 2010

• ** 9,150,000 escrowed until 16 May 2010

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EASTERN IRON LIMITED

Compliance statement

1. This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).

2. This statement does give a true and fair view of the matters disclosed.

Sign here:

Michelle Lilley Date: 31 July 2008

(Director / Company Secretary)

Print name:

Michelle Lilley

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

2. The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenements, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

3. Issued and quoted securities. The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities.

4. The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

5. Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED Schedule of Tenements as at 24 July 2008

Tenement	Tenement Number	Interest	Joint Venture Details
NEW SOUTH WALES
Cobar Project Area Cobar East Coolabah West Oakvale Quartermaine Techno Tottington Wendoline Shaun Wallace Gromit Main Line Project Area Bimbella Euabalong McGraw Flamingo Preston	EL 6710 EL 6711 EL 6706 EL 6953 EL 6954 EL 6956 EL 6957 EL 6958 EL 6959 EL 6960 EL 6671 EL 6672 EL 6961 EL 6952 EL 6962	80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80% 80%	PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20% PlatSearch 20%

EL = Exploration Licence

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