EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2012

Jan 29, 2012

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 Consolidated statement of cash flows

Quarter ended (“current quarter”) 31 December 2011

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/received on R&D tax offset 1.7 Other - consulting fees and rental income - tenement security deposits (paid)/refunded Net Operating Cash Flows	Current quarter 31 December 2011 $A’000	Year to date (6 months) 31 December 2011 $A’000
	0 (743) 0 0 (268) 0 50 0 0 7 0	0 (1,338) 0 0 (560) 0 107 0 0 27 0
	(954)	(1,764)
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 Totaloperating andinvesting cash flows (carriedforward)	0 0 0 0 0 0 0 0 0 0	0 0 (7) 0 0 0 0 0 0 0
	0	(7)
	(954)	(1,771)

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Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

	Current quarter $A’000	Year to date $A’000
1.13 Total operating and investing cash flows (brought forward)	(954)	(1,771)
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	0 0 0 0 0 0	0 0 0 0 0 0
	0	0
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	(954) 2,801 0	(1,771) 3,618 0
	1,847	1,847

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
	153
	Nil

• 1.25 Explanation necessary for an understanding of the 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

$299,000

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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.

	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 4.3 Production 4.4 Administration	$A'000
	300
	0
	0
	260
Total	560

Reconciliation of cash

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 in the accounts is as follows	Current 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	219	362
	22	22
	0	0
	1,606	2,417
Total: cash at end of quarter(item 1.22)	1,847	2,801

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed 6.2 Interests in mining tenements acquired or increased	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter
	EPC 2330 Comet	tender application unsuccessful	100%	0%
	ELA 5405 Nowa Nowa East	EL application	0%	100%

6.3 The full Eastern Iron schedule of tenements is included as an attachment to this report.

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Appendix 5B Mining exploration entity quarterly report

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	67,807,419	67,807,419
	Nil 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 35 cents EFE 18 cents EFE 20 cents EFE 18 cents 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	5,000,000 1,200,000 1,850,000 1,650,000	0 0 0 0	Exercise price $0.35 $0.18 $0.20 $0.18	Expiry date 19 Dec 2012 9 Mar 2015 23 Nov 2013 23 Nov 2013
	1,650,000	0	$0.18	23 Nov 2013
	Nil
	Nil
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes (totals only)	Nil

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Appendix 5B Mining exploration entity quarterly report

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: 30 January 2012

( ~~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 31 December 2011

Tenement	Tenement Number	Interest	Joint Venture Details
NEW SOUTH WALES
Cobar Project Area Cobar East Coolabah West and Oakvale Quartermaine Techno and Tottington Wendoline Shaun Wallace Gromit Gorgonzola Camembert Main Line Project Area Bimbella Euabalong McGraw Flamingo Preston QUEENSLAND Hawkwood Auburn and Redwood Fairhill and Rolleston Eulogie	EL 6710 ELs 6711 and 6706 EL 6953 ELs 6954 and 6956 EL 6957 EL 6958 EL 6959 EL 6960 EL 7282 EL 7283 EL 6671 EL 6672 EL 6961 EL 6952 EL 6962 EPMs 15289 and 17099 EPMs 18566 and 18533 EPCs 2175 and 2206 MDL 362	100% 49% 100% 49% 100%% 100%% 100%% 100% 100% 100% 100% 100% 100% 100% 100% 0% 100% 100% 100%	3E Steel can earn 77.5% PlatSearch 51% 3E Steel can earn 77.5% PlatSearch 51% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% 3E Steel can earn 77.5% Rugby 100%, Eastern can earn up to 80%, Note 2 - - -
VICTORIA
Nowa Nowa Nowa Nowa East	EL 4509 ELA 5405	0% 100%	Option to purchase 100% -
EL = Exploration Licence ELA = Exploration Licence Application EPM = Exploration Permit for Minerals EPC = Exploration Permit for Coal

Notes:

1. Eastern Iron can earn 100%.

2. Joint Venture with Rugby Mining Pty Ltd and Rugby Mining Limited whereby Eastern can earn up to an 80% interest.

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