EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2014

Apr 29, 2014

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QUARTERLY REPORT – MARCH 2014
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ASX Code: EFE

Issued Capital: 134,445,059 ASX Code: EFE (as at 31 March 2014)

Issued Capital: Directors

Share Price at Steve Gemell (Chairman) Greg De Ross (MD) Market Capitalisation at Ivo Polovineo Cash on hand at Wendy Corbett

Directors Greg Jones Glenn Goodacre - Chairman Adrian Critchlow Greg De Ross - Managing Director Michael Giles Ivo Polovineo - Non-Ex Director

Wendy Corbett - Non-Ex Director

Greg Jones - Non-Ex Director Address Steve Gemell - Non-Ex Director Level 1, 80 Chandos Street

Investor and Media Contact: St Leonards, NSW 2065 Fergus Ross

HIGHLIGHTS

NOWA NOWA IRON PROJECT

• Definitive Feasibility Study (DFS) targeting completion in June

• Additional resource definition drilling completed with results confirming high iron ore grades at Five Mile North

• Large pilot-scale metallurgical Dry LIMS testwork results show significant improvement in product grades and iron recovery

• Commenced work on the Environmental Effects Statement (EES)

• Federal Government clears the project for assessment by State and Local Government only

• Mining Licence MIN 5571 has been granted for the Nowa Nowa Iron Project

Six Degrees Investor Relations

Fergus.ross@sdir.com.au Postal

Address PO Box 956, Crows Nest Level 1, 80 Chandos Street NSW 1585 St Leonards, NSW 2065

Postal T: +61 2 9906 7751 PO Box 956, Crows Nest F: +61 2 9906 5233 NSW 1585

T: +61 2 9906 7751 Twitter: @EasternIronEFE F: +61 2 9906 5233

CORPORATE

• Announced a share placement to raise approximately $1 million

• Announced a Share Purchase Plan (SPP) for eligible shareholders

Eastern Iron Limited (ASX: EFE) is pleased to report on activities undertaken during the quarter ended 31 March 2014.

NOWA NOWA IRON PROJECT

www.easterniron.com.au

Twitter: @EasternIronEFE www.easterniron.com.au

The Nowa Nowa Iron Project is located some 250 kilometres east of Melbourne close to the Princes Highway, which provides access to several nearby towns and a proposed export facility south of Eden, approximately 200 kilometres further east (Figure 1 on next page).

Over the past 12 months, Eastern Iron has advanced a Definitive Feasibility Study (DFS) into the potential development of the magnetiterich Five Mile deposit. It is proposed that iron ore would be crushed and beneficiated to export quality at site, and trucked to a port facility at Two Fold Bay south of Eden in southern NSW.

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Figure 1: Nowa Nowa Locality Plan

Definitive Feasibility Study

Eastern Iron has previously released details of capital and operating costs arising from the feasibility study (ASX release 24 January 2014*) demonstrating that the Nowa Nowa Iron Project has an extremely low capital intensity (capital cost per tonne of annual production) of A$45/t. This compares favourably with virtually all proposed Australian hematite and magnetite projects, which generally range between $150-350/t.

Mining studies completed as part of the feasibility study have indicated that mineralisation within the area known as Five Mile North will be mined early in the life of the operation but is currently in an inferred resource category. Consistent with the requirements of JORC 2012, a short program of confirmatory drilling was required to upgrade the confidence level in the Inferred Resource areas before production and financial forecasts completed as part of the feasibility study can be released.

This drilling program was completed during March with an upgraded resource model due for completion in May. This information will feed directly into an updated mine plan and production schedule which will provide for finalisation of the DFS at the end of June.

*This information is extracted from the report entitled “Nowa Nowa Iron Project – Feasibility Study Results” announced to the ASX on 24 January 2014 and is available to view on www.easterniron.com.au. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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Figure 2: Nowa Nowa Iron Project – site layout

Metallurgical Testwork

During the quarter the Company completed further beneficiation testwork using large pilot-scale dry low intensity magnetic separation (Dry LIMS) equipment at Western Process Equipment (WPE) and supervised by ALS Global and Engenium in Perth, WA.

The results from this work represent a significant improvement on earlier test results which used smaller “laboratory scale” equipment and which had no capacity to vary drum speed.

Highlights from the latest large pilot-scale test results include:

• Average iron recovery exceeding 90% suggests little of the low magnetic hematite is being lost to the non-magnetic fraction.

• An average product grade of 58% Fe which is a significant improvement to the 56% Fe product grade realised from previous testwork.

• Upgrade factors (i.e. from feed grade to product grade) have exceeded expectations and confirm that the Dry LIMs is highly effective in its application to the Nowa Nowa ore, even at a relatively coarse feed size of -6mm.

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• The Dry LIMS has been highly successful at reducing sulphur from feed grades usually in excess of 2% to well below 1%.

The testwork was performed with larger composite drill core samples feeding onto a 914mm diameter, variable speed rotating drum magnet. The effects of varying the drum speed together with moisture content and sizing of the feed were measured. Selected intervals of drillholes were composited into five samples with grades distributed across the range of expected ROM feed.

Sample (Head) analyses are shown in the table below:

Sample ID	Fe %	SiO2 %	Al2O3 %	CaO %	MnO %	P %	S %	MgO %
HS 1	44.6	23.0	2.02	0.13	0.03	0.02	2.27	8.83
HS 2	47.4	18.2	3.07	0.19	0.03	0.03	2.00	7.25
HS 3	48.8	19.2	1.51	0.22	0.02	0.01	2.59	7.20
HS 4	56.2	14.0	1.18	0.15	0.02	0.02	2.09	4.00
HS 5	57.4	12.0	1.23	0.17	0.02	0.02	1.88	3.68

Initial tests on selected samples established a preferred drum speed of 2.5m/sec and a crush size of -6mm. Using these settings Dry LIMS test results from the sample composites were as follows:

Sample ID	Head Fe %	Yield %	Conc Fe %	Fe Rec %	Conc **SiO2% **	Conc S%	Upgrade factor %
HS 1	44.6	71.3	54.8	88.6	15.1	0.64	22.9
HS 2	47.4	75.9	56.3	89.0	13.1	0.68	18.8
HS 3	48.8	79.9	56.0	91.5	13.2	0.76	14.8
HS 4	56.2	88.2	60.1	94.2	10.8	0.59	6.9
HS 5	57.4	89.0	62.0	94.0	9.1	0.59	7.9
Average	50.9	80.9	57.8	91.5	12.2	0.65	14.3

Resource Drilling

Late in the quarter a program of RC drilling was completed at Five Mile North with the objective of upgrading the current inferred resource to a measured and indicated category for inclusion in the mining reserve of the Five Mile deposit.

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A total of 10 RC holes totalling 590m were completed, locations are shown on the plan below.

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Figure 3: Drillhole locations Five Mile Deposit

All holes were vertical and generally drilled to shallow depths not exceeding 74m. Assay results from the drilling have now been received and are summarised in the table below. The results are consistent with results reported from earlier drilling completed by the Victorian Department of Mines in the 1950’s and used to compile the current resource. Significantly it was noted that the thickest intersections were in the easternmost holes NRC044, NRC045 and NRC047 with the resource still open in this direction.

Weighted average of all mineralised intercepts was 52.8% Fe confirming that the mineralisation in this area tends to be somewhat higher grade than the bulk of the resource.

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Assay results have been provided to resource consultants and an updated resource estimate should be available in early May. Table 1, Sections 1 and 2 are included in this report to give the details of the new drillhole information. However, Table 1, Section 3 is not included at this time as there has been no material change to that information as previously reported.

Hole ID	Hole Depth (m)	From (m)	To (m)	Interval (m)	Fe%	SiO2%	Al2O3 %	P%	S%
NRC038	43			NSI
NRC039	52			NSI
NRC040	58	22	46	24	53.4	12.7	2.0	0.01	2.37
NRC041	64	22	56	34	54.4	11.9	2.1	0.02	2.23
NRC042	46			NSI
NRC043	65	14	54	40	50.9	16.2	2.0	0.01	1.45
NRC044	67	16	62	46	54.2	12.2	2.7	0.02	3.42
NRC045	67	26	67	41	50.7	13.4	2.9	0.03	3.87
NRC046	54	40	50	10	55.0	9.1	1.7	0.01	2.60
NRC047	74	42	72	30	53.2	12.0	2.7	0.02	2.65

 Fe intercepts reported applying a >40% Fe lower cut off. No top cuts were applied.  Mineable width of >5m assumed.

 RC percussion drillholes sampled nominally at 2 metre composite intervals for XRF analysis.

 NSI – no significant intersections.

Permitting

In January, Eastern Iron announced that the Victorian Planning Minister had advised the Company that it would be required to prepare an environmental effects statement (EES) to support its application for a work program approval for the Nowa Nowa Iron Project (ASX announcement 22 January 2014). This process is now well advanced and the scoping requirements for the EES were released for public comment on 9 April 2014. Once the scoping requirements have been finalised, the Company plans to proceed with related studies with the objective to lodge the completed EES with the Victorian Government before the end of 2014.

The project was also referred to the Federal Department of the Environment for assessment under the EPBC Act (1999). The Commonwealth has now advised that the proposed project is not considered a “controlled action” and therefore does not require further assessment and approval under the EPBC Act before it can proceed. This decision supports the view that this is a low impact proposal and effectively clears the way for the project to be assessed in accordance with State and Local Government requirements, thereby significantly reducing the expected time frame for granting the permit.

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Grant of Mining Licence

In April the Company also announced (ASX announcement 23 April 2014) that Mining Licence (MIN 5571) covering the project area was granted by the Department of State Development, Business and Innovation. The MIN has been granted to Gippsland Iron Pty Ltd, a wholly owned subsidiary of Eastern Iron. The area covered by the mining licence is approximately 485Ha.

This is a significant milestone for the project and clears the way for a work program approval prior to development.

FUNDING

Late in the quarter the Directors announced that Eastern Iron had agreed to issue approximately 14.3 million new fully paid ordinary shares (“Shares”) at an issue price of $0.042 per Share to New York based Harland Capital Fund LLC (“Harland”). The first tranche of the share issue raised approximately $600,000. Harland was also granted a call option for a period of 60 days to subscribe for additional Shares at the same issue price of $0.042 to raise a further approximately $400,000. The term of the call option was subsequently amended by agreement to extend to 30 June 2014 and was accompanied by a further tranche of shares at the issue price raising a further approximately $100,000. The balance, raising approximately $300,000 is expected to be placed prior to 30 June 2014.

Once fully subscribed Harland will hold approximately 17% of the issued ordinary shares in Eastern Iron. After settlement of the first tranche of the placement Harland took up its right to nominate a Director to the Board of Eastern Iron and Mr Michael H. Giles, a representative of Harland, joined the Board.

On 29 April 2014 Eastern Iron announced that it proposes to undertake a Share Purchase Plan (“SPP”) which will provide existing eligible shareholders on the Company’s share register with the opportunity to subscribe for up to $15,000 worth of fully paid ordinary shares at the same price as the Placement ($0.042 cents per share), without incurring brokerage or other transaction costs.

Proceeds from the placement and SPP will be used to progress work on the Nowa Nowa Iron Project including completing the DFS and progressing studies related to the EES.

FORWARD PROGRAM

• Finalise the Nowa Nowa DFS

• Complete a port access agreement

• Progress the EES compilation

• Increase stakeholder engagement

• Progress product off-take discussions

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FINANCIAL POSITION

Total exploration expenditure for the quarter was $732,000. The cash balance at the end of the quarter was $192,000.

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

The information in this report that relates to Exploration Results, Mineral Resources and Ore Reserves is based on information compiled by Greg De Ross, BSc, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Greg De Ross is Managing Director and a full-time employee of Eastern Iron Limited and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr De Ross consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

INVESTOR INFORMATION

Eastern Iron is investigating the potential for development of a high grade magnetite resource at Nowa Nowa in Eastern Victoria as well as a magnetite processing operation based on magnetite deposits it holds under permit in Central Queensland.

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

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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JORC Code, 2012 Edition

Table 1 report for Nowa Nowa Iron Project

Section 1 Sampling Techniques and Data

Criteria	Commentary
Sampling	Reverse circulation (RC) percussion drillholes were sampled over 2 metre downhole
techniques	depth intervals via a sealed collar dust diverter and cyclone.
	Diamond core was sampled nominally at 2 metre composite intervals at the
	boundaries of lithological contacts.
	Both RC and diamond core drill samples were 3-4kg in weight and pulverised in the
	ALS Adelaide laboratory to produce a fused disk for ME-XRF21 spectrometry
	analysis.
	Diamond core from the 1950’s Victorian Geological Survey (GSV) drillholes was
	nominally sampled by the GSV at both 5ft and 10ft intervals at the boundaries of
	lithological contacts and is reported in Bell, 1959 GSV Bulletin 57. EFE considers that
	there are no detrimental issues in the sampling procedure with regard to the resource
	estimation.
Drilling	RC percussion drillholes were drilled using a 5 ½ inch (140mm) RC face-sampling
techniques	buttoned drill bit.
	Diamond core drilling was drilled using triple-tube conventional wireline HQ (96mm)
	and PQ (122.5mm) diameter techniques.
	All EFE drillholes were drilled vertically and consequently diamond core was not
	orientated.
	All GSV drillholes were drilled vertically using conventional NQ (47.5mm) diameter
	diamond drillingmethods. Thereisnorecord ofthe core being oriented.
Drill sample	The sample recovery for all the Eastern Iron Ltd (EFE) drillholes was excellent. RC
recovery	drillhole sample recovery was determined by visual inspection of 1metre bulk samples
	in the field by an experienced supervising geologist. All assay samples submitted as
	two metre composites were weighed upon receipt at the laboratory. The consistency
	of these weights is monitored as part of Eastern Iron’s sample QAQC programme.
	Company protocol is that if any RC percussion drillhole returns less than 70% by
	volume of the drill cuttings over a 10metre interval, the drillhole will be re-drilled.
	Full core recovery was achieved in the EFE diamond drillholes except in minor
	instances where friable zones were intersected downhole resulting in core losses,
	typically occurring at the start of a new drill run. These losses were considered to be
	insignificant.
	Recovery rates of drill core from diamond drilling are closely monitored by the
	supervising geologist. Should the integrity of the drillhole or representivity of the
	sample become compromised, the drillhole is abandoned at the supervising
	geologist’s discretion.
	Recovery details for the GSV drillholes are not known. Historical geology logs do not
	document any significant core losses and EFE considers that there are no detrimental
	issues in this with regard to the resource estimation.
Logging	All EFE drillholes have been geotechnically and geologically logged by an
	experienced geologist for their entirety with a uniform set of company specific codes.
	Geological drillhole data is collected based on geological intervals as opposed to a
	metre interval basis.
	All data was digitally captured into purposed designed spreadsheet templates. All data
	is uploaded, validated and stored in the Eastern Iron company database.
	GSV drillholes were logged by Victorian government geologists. EFE has no
	knowledge of their qualifications or given levels of experience. As a result of twinning
	several of these drillholes, where there was excellent logging correlation, EFE has
	assumed that the data from these drillholes is valid for the resource estimation.

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Criteria	Commentary
Sub-sampling	RC drillhole samples were split using a 75/25 riffle splitter mounted to the cyclone. A
techniques	3-4kg composite sub-sample was produced, with the split samples sent to ALS
and sample	laboratories Brisbane and Perth for analysis. The bulk reject fraction of the sample
preparation	was bagged and retained on site for storage.
	Diamond core was cut using a core saw for composite sampling. Half-core for HQ
	diameter drillholes and quarter-core PQ diameter drillholes were sampled
	respectively. The retained fraction of drill core has been securely stored and archived
	on site.
	Upon receipt at the lab, both EFE percussion rock chip and drill core samples were
	dried and crushed to a 70% passing at -6mm. The entire sample is then pulverised to
	an 85% passing at -75µm.
	Diamond core from the GSV drillholes was split using a core saw and half-core was
	composited for assay analysis.
	EFE have limited knowledge of the laboratory methods used for the GSV samples
	except as reported in Bell, 1959 GSV Bulletin 57 but it appears that samples were
	crushed, split and pulverised during their preparation. It is reasonable to assume that,
	as the samples were prepared by a certified independent laboratory, that industry-best
	analytical practices were employed at the time. As a result of twinning several of these
	holes, where there was excellent assay correlation, EFE has assumed that the data
	from these drillholes is valid.
Quality of	EFE samples were assayed by ALS Global Laboratories Brisbane and Perth.
assay data	Assay samples were cast using a 12:22 flux to form a glass disk. The resultant disk is
and	in turn analysed for the industry standard iron oxide suite of elements by XRF
laboratory	spectrometry. LOI values were determined using a thermogravimetric analyser
tests	system.
	EFE collected field duplicate samples at a ratio of 1 in 15 samples throughout all
	drillholes. RC duplicate samples are taken in the field using a riffle splitter mounted
	onto the drill rigs cyclone. Diamond core duplicate samples are prepared by the laboratory every 15thcrushed sample and inserted sequentially into the sample
	sequence for each drillhole.
	Duplicate samples were analysed by ALS Global and triplicate QAQC samples by
	Bureau Veritas Mineral Laboratories Perth.
	Certified reference materials are inserted nominally every 15thsample using
	internationally accredited standards.
	Blanks are inserted at regular intervals within each batch of RC drilling samples and
	one per diamond drillhole to verify the cleanliness of laboratory sample preparation
	machinery.
	Good reproducibility was obtained in the comparison of results from the umpire quality
	control programme. A minor high bias for total SiO2and Al2O3(~0.15%) and
	corresponding low bias for Fe (~0.15%) was present in the assay standards. These
	biases are considered insignificant.
	EFE have no knowledge on the method of chemical method used by the GSV for
	assay analysis but it is reasonable to assume that best-practice industry standards
	were used.
Verification of	Six of the historical GSV drillholes have been twinned by EFE drilling, comprising one
sampling and	RC and five diamond drillholes. Twinned drillholes were used to verify the geological
assaying	interpretation, confirm the assay tenor and to provide sample for metallurgical
	testwork. All drillhole data and assays are consistent with those from the earlier
	independent GSV drilling.
	Data is captured in hardcopy format in the field before being transposed digitally into
	spreadsheets. Data entry self-audits are made routinely during this process.
	All data is validated prior to and upon uploading to the company database by purpose
	built in-house software applications. EFE’s database is compatible for use with
	MapInfo and Micromine software applications.
	All EFEdrillhole assay datawasreceivedfromthelaboratoryinexcelspreadsheet

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Criteria	Commentary
	and pdf formats.
	Victorian Geological Survey data was obtained from historical reports and digitised
	manually, before being uploaded to the company database.
	Digital data for the project is stored on two separate remote computers as well as the
	Sydney office server which is backed up daily.
	Hard copies of drillhole & assay data, including report estimations, are kept secure in
	the Sydneyoffice.
Location of	EFE drillholes collar co-ordinates and elevations were located in the field using a
data points	handheld Garmin Map60 GPS, with an accuracy of +/- 3-5m. Following the completion
	of resource drilling, all drill collars were surveyed using a Trimble Differential GPS
	system with an accuracy of +/- 0.5m. DGPS drill collar data has been incorporated
	into the company database and is used for the resource estimation.
	All data is georeferenced and projected through the Map Grid of Australia (MGA) 1994
	geodatum within Zone 55.
	All GSV drillhole collars were surveyed and documented on a local grid. Drilled in the
	1950’s, the location of these drill collars were reprojected and georeferenced into
	MGA 1994 using MapInfo software. The comparability of data between historical and
	current twinned drillholes is excellent.
	EFE has produced a digital terrain model (DTM) and surface contour map from
	accurate levelling data that was recorded by geophysical contractors who carried out
	an airborne LIDAR over the prospect for Eastern Iron. The accuracy of this survey is
	within +/- 0.5m.
	All EFE drillholes were vertical and as drillholes are relatively short (<150m), it is
	assumed that any deviation would be negligible and have minimal impact on the
	resource estimation. No downhole surveys of drillholes were carried out...
	EFE is not aware of any downhole surveying on the vertical GSV drillholes and
	assumes any effect on the resource estimation is negligible.
	A table showing the location, dip, azimuth and depth of each drillhole is included at
	the end of this report.
Data spacing	At the Five and Seven Mile prospects, nineteen and eight EFE drillholes were sited
and	on the main magnetic anomalies respectively. Staggered drill-centres were nominally
distribution	spaced at 25 metres across east-west cross-sections and 25 metres between drill
	profiles. The drill layout was designed to provide the best possible integration and
	validation of the historical GSV drillholes.
	At the Five Mile prospect, six of the previously drilled GSV drillholes were twinned by
	EFE drilling to confirm their results.
	EFE considers the density of drilling is sufficient to establish the degree of geological
	and grade continuity appropriate for the Mineral Resource Estimation and
	Classifications applied. Continuity of the mineralisation is strongly supported by the
	ground-based geophysical survey data.
	EFE RC and diamond core samples were composited nominally into 2 metre intervals
	for head assayanalysis.
Orientation of	The main body of mineralisation at Five Mile is almost horizontal. Drilling carried out
data in	by the GSV and subsequently by Eastern Iron was vertical to give close to true width
relation to	intersections of the mineralisation.
geological
structure
Sample	All EFE drilling samples were collected in securely tied calico mining bags. RC and
security	diamond samples were placed in clearly labelled polyweave and green plastic bags
	respectively, five at a time and secured with metal twist ties. Samples were
	transported, loaded onto pallets and despatched from a freight depot in Lakes
	Entrance to Adelaide for sample preparation. No samples were stored overnight in
	unsecured storage facilities.
	Companysample despatch documentation was verified against laboratoryarrival

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Criteria	Commentary
	documentation upon the receipt of samples to the facility to ensure all samples were
	received.
	Drill core was archived in plastic core trays on site - stacked, covered with lids and
	secured to pallets with metal strapping.
	RC percussion drilling chip trays, with representative geological material from each
	metre interval, are archived and securely stored in a lock-up facility on site.
	Drill core from the GSV drilling is stored in the departmental core store in Melbourne
	however it has been reported that there is little of the original core remaining.
Audits or	Eastern Iron has not sought external audits or reviews of sampling techniques used
reviews	during the drilling campaigns.
	EFE data capture protocol, sampling techniques and drilling datasets have been
	reviewed by H&S Consultants for the resource estimation. They have all been found
	to be satisfactoryfor the resource estimation.

Section 2 Reporting of Exploration Results

Criteria	Commentary
Mineral	The Five and Seven Mile Resources are contained within the Victorian EL4509.
tenement and land tenure	EL4509 was granted on August 23rd2006 over 95 graticule units for a period of 5 years. Renewal of EL4509 over an area of 50 units for three years until August 22nd
status	2014 was approved in November 2011. EL 4509 was transferred from Waygara Mines Pty Ltd to Eastern Iron Ltd on February 2nd2012.
	EL4509 is located within the Crown Land of the Colquhoun State Forest. No access
	agreements with landholder are required, however, notification and approval of
	proposed exploration activities is sought from the Department of State Development,
	Business and Innovation.
	EFE recognises the GurnaiKurnai people as the traditional custodians of the land
	situated on and immediately surrounding EL4509 and they are the Registered
	Aboriginal Party. A Project consent Deed was negotiated with the GunaiKurnai and
	has been assigned to EFE. All cultural heritage requirements have been met.
Exploration	Previous exploration at the Nowa Nowa Iron Project was carried out by the Victorian
done by other	Geological Survey (GSV), Pickhands Mather, Australian Coal & Gold and by Gulf
parties	Mines Ltd.
	To the best of EFE’s knowledge this exploration that led to the discovery of the Nowa
	Nowa deposit was conducted in a professional manner using recognised and widely
	accepted exploration and mining industry standards employed at that time.
	Historical reports and results of the GSV exploration and previous explorers are
	available on open file in the Department of PrimaryResources database.
Geology	The Nowa Nowa Iron Project is situated in the Lachlan Orogen, which extends from
	eastern Tasmania, through central and eastern Victoria, into New South Wales and
	Queensland.
	The Silurian Yalmy Group and Devonian Snowy River Volcanics host the Nowa Nowa
	iron ore mineralisation. They are considered to be replacement deposits of the Iron
	Ore Copper Gold (IOCG) style of mineralisation.
	The mineralisation is characterised by massive magnetite-hematite with lesser
	chlorite, talc/carbonates, pyrite, quartz and chalcopyrite.
	Mineralisation at the Five Mile prospect occurs in a zone that is up to 500m in length,
	150m in width and 100m in thickness. At the Seven Mile prospect, mineralisation
	occurs in a discrete zone approximately 100m in length, 50m in width and up to 65m
	in thickness.
Drillhole	A tabulation of the recent drillhole information is included at the end of this report.
Information	No additional exploration results have since been reported.

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Criteria	Commentary
Data	A lower cut-off grade of 40% Fe has been used in the resource estimate for the Five
aggregation	and Seven Mile deposits. No top cuts have been applied.
methods
Relationship	Iron mineralisation at the Five Mile prospect replaces sediments and volcanic units
between	which appear to be sub-horizontal or dip moderately to the southeast. Drillholes are
mineralisation	drilled vertically and are assumed to be close to the true width intersection of the
widths and	mineralisation. The geometry and attitude of the mineralisation is well constrained by
intercept	close-spaced drilling which has also defined a bounding fault on the western side of
lengths	the mineralisation. Mineralisation at Seven Mile is constrained by the current extents
	of drillinginformation.
Diagrams	Diagrams and schematics of the drilling information were presented in the_Nowa_
	_Nowa Resource Upgrade_announcement to the ASX on 12/06/2013.
Balanced	No exploration results are reported in this release.
reporting
Other	Ground magnetic surveys have clearly defined the limits of mineralisation at Five Mile
substantive	and are used to guide drillhole targeting.
exploration data	A ground magnetics survey was conducted by Gulf Mines in 2008, using two Geometrics 856 magnetometers. Lines were run east - west with a 100m line-spacing between traverses. Infill lines at 50m spacing were used over the strongest anomalies
	at the Five and Seven Mile prospects. Measurements were recorded every five
	metres along each profile. Computer modelling and reporting of the ground magnetics
	dataset was conducted by geophysical consultant Steve Webster. A single tabular
	body was modelled to simulate the main anomaly at Five Mile. Strong magnetic field
	gradients at Seven Mile resulted in a complex modelled anomaly.
	Geophysical consultants Planetary Geophysics were contracted by Gulf Mines in
	2009 to conduct a gravity survey at the Nowa Nowa Iron Project. Carried out using a
	LaCoste & Romberg Model-G gravity meter, a total of 210 stations were recorded.
	Computer modelling and reporting of the gravity dataset was conducted by
	geophysical consultant Steve Webster. The gravity models display an excellent fit with
	the observed data and are in agreement with the known geology and magnetic data
	acquired in the area.
	Metallurgical testwork has been carried out investigating appropriate methods of
	beneficiating the iron mineralisation.
	The large scale dry LIMS testwork was performed on composite samples on a pilot-
	scale dry LIMS unit at the Western Process Equipment laboratory in Perth, WA. Low
	grade three quarter HQ core from NDD015, NDD016 and NDD017, high grade quarter
	HQ core from NDD015, NDD016 and NDD017, and quarter HQ core from NDD012
	and NDD014 were used for this testwork. (The detailed location of these drillholes
	was reported on 13 June 2013.).
	Five composites were made up based on head grade and magnasat. The effects of
	varying the drum speed with the moisture content and crush size were measured with
	the complete Dry LIMS tests were carried out at a drum speed of 2.5m/sec, a crush
	size of -6mm and zero moisture content.
	DTR was performed on the each of the composites at 106 μm to determine the
	recovery and grades achievable. This testwork was also a check on the removal of
	sulphur at fine sizes.
Further work	Further work at the Nowa Nowa Iron Project is dependent on the results of the
	feasibility study currently being undertaken by EFE and in consideration of other
	commercial aspects.

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Drillhole Location Details

Hole ID	East	North	RL (m)	Dip °	Azimuth °	Hole Depth (m)	Type
	(MGA94)	(MGA94)
NRC038	598447	5831051	199.19	-90	360	43	RC
NRC039	598456	5831045	199.04	-90	360	52	RC
NRC040	598477	5831032	199.99	-90	360	58	RC
NRC041	598493	5831021	201.21	-90	360	64	RC
NRC042	598471	5831061	193.49	-90	360	46	RC
NRC043	598485	5831056	193.05	-90	360	65	RC
NRC044	598502	5831046	194.00	-90	360	67	RC
NRC045	598506	5831013	201.34	-90	360	67	RC
NRC046	598478	5831004	206.03	-90	360	54	RC
NRC047	598498	5830990	206.65	-90	360	74	RC

Explanatory Notes

• Fe intercepts reported applying a >40% Fe lower cut off. No top cuts were applied.

• Mineable width of >5m assumed.

• RC percussion drillholes sampled nominally at 2 metre composite intervals for XRF analysis.

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