EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2014

Mar 12, 2014

Directors’ Report

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EASTERN IRON LIMITED ABN 70 126 678 037

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2013

Table of Contents

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Directors’ Report ............................................................................................................................................................ 1 Consolidated Statement of Comprehensive Income ...................................................................................................... 6 Consolidated Statement of Financial Position ................................................................................................................ 7 Consolidated Statement of Changes in Equity ............................................................................................................... 8 Consolidated Statement of Cash Flows ......................................................................................................................... 9 Notes to the Consolidated Financial Statements .......................................................................................................... 10 Directors’ Declaration ................................................................................................................................................... 14 Independent Auditor’s Review Report .......................................................................................................................... 15 Auditor’s Independence Declaration ............................................................................................................................ 17 Corporate Directory ...................................................................................................................................................... 18

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Directors’ Report

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Your directors submit their report for Eastern Iron Limited for the half year ended 31 December 2013.

Directors

The names of the Company’s directors in office during the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Steve Gemell	Non-Executive Chairman
Greg De Ross	Managing Director
Wendy Corbett	Non-Executive Director
Greg Jones	Non-Executive Director
Ivo Polovineo	Non-Executive Director
Adrian Critchlow	Non-Executive Director
Michael Giles	Non-Executive Director

Review and results of operations

Financial results

The net results of operations after applicable income tax expense for the half year was a loss of $136,047 (2012: $63,854).

Highlights

Nowa Nowa

• Definitive Feasibility Study nearing completion with results confirming scoping study outcomes indicating low capital cost and robust margins over the projected life of the mine.

• Decision by the Victorian Government initiates permitting process.

• Project Consent Deed signed with native title holding body Gunaikurnai Land and Waters Aboriginal Corporation.

• Receipt of funds totalling $970,574 from proceeds of sale of Eastern Irons interest in NSW pisolite project and Australian Government R&D grant.

Central Queensland Iron Project

• Partner sought to fund the next pre-feasibility stage for these projects.

Introduction

Eastern Iron’s corporate objective is to be an iron ore producer. The company seeks to deliver value to shareholders through building the Company’s asset base, leveraging up from low capital cost, high margin mine developments. To accomplish this, the company is seeking developments in areas with low development risk and importantly having existing open access transport infrastructure which will enable the Company to deliver its product to consumers at low cost.

Nowa Nowa Project

The Company’s first potential development is at Nowa Nowa in eastern Victoria and this has been the focus of activities over the last year. The Nowa Nowa project is a high grade magnetite iron deposit which is close to a sealed road providing access to a deep water port with bulk ship loading facilities.

Feasibility Study

Mining studies completed as part of the feasibility study have indicated that parts of the Inferred Resource at Five Mile will be mined early in the life of the operation. Consistent with the requirements of JORC 2012, a short program of confirmatory drilling will be 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.

1 > Eastern Iron Limited

Directors’ Report

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Eastern Iron has completed resource drilling at the Five Mile deposit outlining 9.6Mt averaging 50% Fe (at a lower cutoff of 40% Fe) of magnetite iron* reported under the guidelines of the JORC 2012 Code.

The project development includes no onsite accommodation and the workforce, expected to number around 120, will live in the surrounding towns of which there are several within a 50km radius including Nowa Nowa, Bairnsdale, Lakes Entrance and Orbost. Although a 22kva power line runs by the site, power requirements will be provided by site diesel operated gensets due to the doubtful load capacity of the existing line. Other options are being investigated as power costs are a large component of the total operating costs.

In the current study 1 Mtpa of ore will be mined by contract mining in a single open pit and hauled to a three stage crushing plant close to the pit where ore is crushed to -10mm before dry magnetic separation to a final upgraded magnetic iron product. Average magnetic yield to product is over 80% and yield has been estimated for individual ore blocks in the mine production schedule.

*This information is extracted from the report entitled “Nowa Nowa Iron Project – Feasbility Study Results” created on 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 Project – site layout

The product grade is expected to be +56% Fe which represents the average grade achieved from metallurgical testwork completed to date using laboratory scale separation equipment available at the ALS Global testing laboratory in WA.

2 > Eastern Iron Limited

Directors’ Report

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Eastern Iron will be carrying out further process optimisation over the coming months using larger commercial scale units with an aim to further improve the upgrade of the ROM ore to at least +58%Fe.

Upgraded ore is stockpiled at site and loaded into 42 tonne capacity B-double trucks for haulage via a short 1 kilometre new mine access road to an existing sealed road and then via the Princes Highway to the SEFE (South East Fibre Exporters Pty Ltd) port south of Eden in southern NSW. The haulage is some 234kilometres and quotes have been obtained from haulage operators for input in the feasibility study.

SEFE have indicated that one of its two existing stockpile areas (Stockpile No2) at the port may be available for use for use by Eastern Iron. The stockpile area has its own reclaim system and feeds directly to the wharf conveyor and ship loader. Use of Stockpile No2 will require minimal capital cost with some minor upgrade to the conveyor transfer points and wind protection screens. SEFE have proposed to provide a “full service operation” including truck weighing and load management, stockpile management and ship loading. The two companies have agreed commercial terms for the use of the site which will require sign off from the Japanese owners of SEFE.

Capital Costs

The feasibility study has confirmed capital and operating estimates broadly in line with those previously quoted for the scoping study completed in late 2012 as follows:

Capital Cost Estimate

Capital Cost Summary	AUD (millions)
	$3.8m
Mine
	$11.3m
Processing Plant
Site Works	$10.7m
	$0.7m
Port
	$9.7m
Owners Cost/Contingency/EPCM
Total	$36.1m

Note: Working capital is not included. Contingency has been included at 10% of Capex.

The capital cost shown in the table above has been estimated to an accuracy of +/- 15% and assumes all new equipment purchased. It also includes the capital cost of a processing plant which in the scoping study was assumed to be provided by a contractor.

Site works include the cost of a major water management system to ensure no discharge from the site during the life of the operation. This includes three water management dams around the site including an operations dam which will contain water from pit dewatering and runoff from the waste rock stockpile. It is anticipated that cost of this system can be reduced by better utilisation of waste rock from the initial pit development in dam construction.

Overall the Company expects the total capital cost to be reduced further by focussing on fit-for-purpose equipment and structures for the site facilities and a continued focus on reducing the cost of preliminary earthworks.

Operating Costs

The operating costs shown in the table below are similar to those from the scoping study. Again the company is of the view that further reductions will be made through a process of detailed design prior to development. The mining cost is a large component of the site base operating costs and it is anticipated that with further optimisation of the mine layout and actual quotes from mining contractors this can be reduced.

3 > Eastern Iron Limited

Directors’ Report

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Operating Cost Estimates

	AUD
Mining Cost	$4.42/t ore mined (waste and ore)
Processing	$3.78/t ROM ore processed
Admin	$3.36/t ore mined
Haulage and Port Costs	$39.4/t product
Total (FOB Eden)	$75.76/dry tonne export product

Note: Operating cost contingency is yet to be estimated.

Revenue

Revenue assumptions are based on the index price for iron ore less a discount for contained iron and contaminants. The formula has been provided by marketing consultant, Fundmax Pty Ltd and is based on extensive discussions with potential offtake groups. For the purpose of the feasibility study the product is assumed to achieve an FOB(Eden) price of US$88/t. The feasibility study has used an exchange rate of US$0.9 to the A$. It is anticipated that the sale price can be improved by delivering an enhanced +58% product which is the focus of the ongoing metallurgical optimisation program.

Environmental Effects Statement (EES)

In late December 2013 Eastern Iron was advised by the Victorian Minister for Planning of the requirements for an Environmental Effects Statement (EES) pursuant to the Environmental Effects Act (1978) as part of the permitting process for the proposed development at Nowa Nowa . The EES approval process is a one-stop-shop permitting approach, which includes all planning and operating license requirements for the development and operation of the project.

Planning, assessment and permitting for the Nowa Nowa project is now well advanced and the Company, in cooperation with Government officers overseeing the process, is working to a timetable that should see the EES submitted for a decision for approval by the Minister by the end of 2014.

Native Title Agreement

The project area at Nowa Nowa is entirely within a granted Native Title claim area held by the traditional owners, the Gunaikurnai people. During the quarter the Company announced that it had reached agreement with the Gunaikurnai Land and Waters Aboriginal Corporation (‘GLaWAC’), regarding the granting of Mining Licence Application 5571 covering the Nowa Nowa iron ore project in East Gippsland, Victoria. A Project Consent Deed has been signed between Gippsland Iron Pty Ltd and GLaWAC, which is the native title holding body for the Gunaikurnai People of Gippsland. Gippsland Iron is a wholly owned subsidiary of Eastern Iron. The Company expects that the Victorian Government will sign the Section 31 Deed during the coming quarter. This will be the final step towards the granting of the Mining Licence.

Program For 2014 – 2015

Nowa Nowa

Based on a consideration of the results of the DFS expected to be completed in early 2014 the Board of Eastern Iron will determine if the project will progress to development. If development is proposed the Company will proceed with completion of permitting for the project including preparation of an EES. It is anticipated that all development permits and approvals will be in place in the first quarter of 2015.

4 > Eastern Iron Limited

Directors’ Report

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Central Queensland Iron Project

The Company will continue to seek joint venture participation to fund the next stage of assessment.

Other

Actively seek and evaluate opportunities for investment in Australia and overseas for potentially valuable projects including iron and other commodities.

The information in this report that relates to Exploration Results, Mineral Resources or 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 of Eastern Iron Limited 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”. Greg De Ross consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Principal activities

The principal activity of the Group is the exploration for and delineation of iron ore, precious and base metals resources in the Australia/Asia Pacific region and the development of those resources into economic, cash flow generating mines.

Dividends

No dividends were paid or proposed during the period.

Significant events after the balance date

There were, at the date of this report, no matters or circumstances which have arisen since 31 December 2013 that have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years, other than:

• The issue of 2,274,575 shares on 28 February 2014 at $0.06 per share to a creditor as settlement for services provided.

• On 11 March 2014 Eastern Iron issued 14,300,000 shares to an investor at an issue price of $0.042 raising $600,600. The subscriber has a call option for a period of 60 days to subscribe for further additional shares at the same issue price of $0.042 to raise a further approximately $400,000.

• Michael Giles was appointed as a Non-executive Director of Eastern Iron on 11 March 2014.

Auditor’s independence declaration

A copy of the Auditor’s Independence Declaration to the Directors as required under section 307C of the Corporations Act 2001 is set out on page 17.

Signed at Sydney this 13[th] day of March 2014 in accordance with a resolution of the directors.

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Steve Gemell Chairman

5 > Eastern Iron Limited

Consolidated Statement of Comprehensive Income

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For the half year ended 31 December 2013

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	31 Dec 2013 $ 31 Dec 2012 $
Note
Revenue 4 ASX and ASIC fees Audit fee Conferences and training Contract administration services Directors fees Employee costs (net of costs recharged to exploration projects) Exploration expenditure written off Marketing costs Rent Share based payments Travel and accommodation costs Other expenses from ordinary activities Loss before income tax expense Income tax expense Loss after income tax expense Other comprehensive income Other comprehensive income for the period, net of tax Total comprehensive income for the period Total comprehensive income for the period attributable to members of Eastern Iron Limited Earnings per share Basic loss per share (cents per share) 8 Diluted loss per share (cents per share) 8	866,960 504,342 (20,452) (22,917) (20,500) (13,500) - (15,317) (59,125) (94,696) (100,717) (104,472) (110,434) (148,813) (578,436) - (3,611) (39,228) (12,750) (12,750) (10,580) (25,350) (8,790) (33,693) (77,612) (57,460)
	(136,047) (63,854) - -
	(136,047) (63,854)
	- -
	- -
	(136,047) (63,854)
	(0.12) (0.06) (0.12) (0.06)

The Consolidated Statement of Comprehensive Income should be read in conjunction with the accompanying notes.

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Consolidated Statement of Financial Position

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As at 31 December 2013

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	31 Dec 2013 $ 30 Jun 2013 $
Note
ASSETS Current assets Cash and cash equivalents 5 Receivables Tenement security deposits 7 Total current assets Non-current assets Tenement security deposits 7 Plant and equipment Deferred exploration and evaluation expenditure 6 Total non-current assets Total assets LIABILITIES Current liabilities Trade and other payables Provisions Total current liabilities Non-current liabilities Provisions Total non-current liabilities Total liabilities Net assets EQUITY Contributed equity 9 Accumulated losses Reserves 10 Total equity	709,910 1,673,146 38,727 82,592 - 130,000
	748,637 1,885,738
	25,850 15,850 19,662 26,950 7,035,398 5,546,961
	7,080,910 5,589,761
	7,829,547 7,475,499
	791,151 436,920 51,753 48,907
	842,904 485,827
	26,114 22,356
	26,114 22,356
	869,018 508,183
	6,960,529 6,967,316
	10,721,842 10,603,162 (3,886,193) (3,984,816) 124,880 348,970
	6,960,529 6,967,316

The Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.

7 > Eastern Iron Limited

Consolidated Statement of Changes in Equity

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For the half year ended 31 December 2013

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		Contributed	Accumulated
		equity $	losses $	Reserves	Total equity $
	Note
				$
At 1 July 2012 Loss for the period Other comprehensive income Total comprehensive income/(loss) for the period Transactions with owners in their capacity as owners: Issue of share capital, net of transaction costs Value of options expired during the year Expired option value transferred to Accumulated Losses Cost of share based payments taken directly to equity At 31 December 2012		8,031,695	(2,941,825) (63,854) -	434,675	5,524,545 (63,854) -
		-		-
		-		-
					(63,854) 2,503,661 (5,000) - 25,350
		-		-
	9	2,503,661		-
		(5,000)	-	-
		-		(114,565)
		-		25,350
		10,530,356	(2,891,114)	345,460	7,984,702
		Contributed equity	Accumulated losses $
				Reserves	Total equity $
	Note	$		$
At 1 July 2013 Loss for the period Other comprehensive income		10,603,162	(3,984,816) (136,047) -	348,970	6,967,316 (136,047) -
		-		-
		-		-
Total comprehensive income/(loss) for the period Transactions with owners in their capacity as owners: Issue of share capital, net of transaction costs Expired option value transferred to Accumulated Losses Cost of share based payments taken directly to equity At 31 December 2013					(136,047) 118,680 - 10,580
		-		-
	9	118,680		-
	10	-		(234,670)
	10	-		10,580
		10,721,842	(3,886,193)	124,880	6,960,529

The Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying notes.

8 > Eastern Iron Limited

Consolidated Statement of Cash Flows

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For the half year ended 31 December 2013

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		31 Dec 2013 $ 31 Dec 2012 $
	Note
Cash flows from operating activities Payment to suppliers and employees Interest received Consulting fee income R&D tax concession offset Net cash flows (used in) operating activities Cash flows from investing activities Purchase of fixed assets Proceeds from sale of fixed assets Proceeds from sale of tenements Expenditure on mining interests (exploration) Tenement security deposits Net cash flows (used in) investing activities Cash flows from financing activities Proceeds from issue of shares Equity raising expenses Net cash flows from financing activities Net increase (decrease) in cash held Add opening cash brought forward Closing cash carried forward		(376,457) (538,509) 23,283 48,630 9,999 23,664 690,574 429,668
		347,399 (36,547)
		- (1,800) - 14,095 150,000 - (1,580,635) (743,614) 120,000 (30,000)
		(1,310,635) (761,319)
		- 2,503,661 - (54,400)
		- 2,449,261
		(963,236) 1,651,395 1,673,146 917,310
	5	709,910 2,568,705

The Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.

9 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2013

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1. Corporate information

The financial report of Eastern Iron Limited (the Company) for the half year ended 31 December 2013 was authorised for issue in accordance with a resolution of the directors on 13 March 2014. Eastern Iron Limited is a company incorporated in Australia and limited by shares which are publicly traded on the Australian Securities Exchange using the ASX code EFE.

The nature of the operations and principal activities of the Company are described in the Directors Report.

2. Summary of significant accounting policies

The half year financial report does not include all notes of the type normally included within the annual financial report and therefore cannot be expected to provide as full an understanding of the financial performance, financial position and financing and investing activities of the Company as the full financial report.

The half year financial report should be read in conjunction with the Annual Financial Report of Eastern Iron as at 30 June 2013.

It is also recommended that the half year financial report be considered together with any public announcements made by Eastern Iron during the half year ended 31 December 2013 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 .

Basis of preparation

The half year financial report is a general purpose financial report, which has been prepared in accordance with the requirements of the Corporations Act 2001 , applicable Accounting Standards, including AASB 134 Interim Financial Reporting and other mandatory professional reporting requirements. The half year financial report has been prepared on a historical cost basis.

For the purpose of preparing the half year financial report, the half year has been treated as a discrete report period.

Significant accounting policies

The half year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2013.

Management has reviewed and assessed the new accounting standards effective 1 July 2013 and these have been deemed to be not applicable to the Group.

Basis of consolidation

The half year consolidated financial statements comprise the financial statements of Eastern Iron Limited and its subsidiaries (the Group). The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using consistent accounting policies. All inter-company balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in full. The subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date on which control is transferred out of the Group. The Group includes Eastern Iron Limited and its wholly owned subsidiaries.

3. Financial report by segment

The operating segment identified by management is as follows:

Exploration projects funded directly by Eastern Iron Limited (“Exploration”)

Regarding the Exploration segment, the Chief Operating Decision Maker (the Board of directors) receives information on the exploration expenditure incurred. This information is disclosed in Note 6 of the half year financial report. No segment revenues are disclosed as each exploration tenement is not at a stage where revenues have been earned. Furthermore, no segment costs are disclosed as all segment expenditure is capitalised, with the exception of expenditure written off which is disclosed in Note 6 of the half year financial report.

Financial information about each of these tenements is reported to the Managing Director on an ongoing basis.

10 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2013

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Corporate office activities are not allocated to operating segments as they are not considered part of the core operations of any segment and comprise of the following:

• Interest revenue

• Corporate costs

• Depreciation and amortisation of non-project specific property, plant and equipment

The Group’s accounting policy for reporting segments is consistent with that disclosed in Note 2.

4. Revenue

. Revenue
Interest received Consulting fee income R&D tax concession offset Proceeds from sale of tenements	31 Dec 2013 $ 31 Dec 2012 $
	16,387 54,676 9,999 19,998 690,574 429,668 150,000 -
	866,960 504,342

5. Cash and cash equivalents

. Cash and cash equivalents
Cash at bank Money market securities – bank deposits	31 Dec 2013 $ 30 Jun 2013 $
	458,578 262,104 251,332 1,411,042
	709,910 1,673,146

6. Deferred exploration and evaluation expenditure

Costs brought forward Costs incurred during the period Expenditure written off during the period Value of options expired during the year Costs carried forward		31 Dec 2013 $ 30 Jun 2013 $
		5,546,961 4,711,801 2,066,873 2,241,771 (578,436) (1,401,611) - (5,000)
		7,035,398 5,546,961

7. Contingent assets and liabilities

The Company has provided guarantees totalling $25,000 in respect of exploration tenements in Victoria and Queensland. These guarantees in respect of exploration tenements are secured against deposits with QLD DEEDI ($5,000) and various banking institutions ($20,000). Rugby Mining has been reimbursed $850 by the Company for Eastern Iron’s share of the security deposit on EPM 17099 in Queensland. The Company does not expect to incur any material liability in respect of the guarantees.

11 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2013

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8. Earnings per share

8. Earnings per share
	31 Dec 2013	31 Dec 2012
	$	$
Net profit/(loss) used in calculating basic and diluted gain/(loss) per share	(136,047)	(63,854)
	Number	Number
Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS 116,542,779
		103,661,734
Centsper share		Centsper share
Basic earnings(loss) per share (0.12)		(0.06)
Diluted earnings(loss) per share (0.12)		(0.06)

The number of potential ordinary shares that are not dilutive, by reason of the loss result, and not included in determining diluted EPS are 7,950,000.

9. Contributed equity

Share capital 117,870,484 fully paid ordinary shares (30 June 2013:115,892,475) Fully paid ordinary shares carry one vote per share and carry the right to dividends. Share issue costs	31 Dec 2013 $ 30 Jun 2013 $
	11,079,405 10,960,725 (357,563) (357,563)
	10,721,842 10,603,162
	Number $
Movements in ordinary shares on issue At 1 January 2013 Shares issued (i) At 30 June 2013 Shares issued (ii) At 31 December 2013	114,679,032 10,887,919 1,213,443 72,806
	115,892,475 10,960,725
	1,978,009 118,680
	117,870,484 11,079,405

(i) The Company issued 1,213,443 shares at $0.06 to a creditor as settlement for services provided.

(ii) The Company issued 1,978,009 shares at $0.06 to a creditor as settlement for services provided.

12 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2013

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10. Reserves (share based payments)

10. Reserves (share based payments)
	Number $
Movements in share based payments At 1 January 2013 Options issued (i) At 30 June 2013 Options issued (ii) Expired option value transferred to Accumulated Losses At 31 December 2013	7,950,000 345,460 450,000 3,510
	8,400,000 348,970
	1,000,000 10,580 (3,500,000) (234,670)
	5,900,000 124,880

• (i) 450,000 options were issued with an exercise price of $0.10 and expiry date of 23 November 2015 to a creditor as settlement for services provided. The value of these options was capitalised under deferred exploration in the Consolidated Statement of Financial Position.

• (ii) 1,000,000 options were issued to the Managing Director and approved at the AGM held on 26 November 2013. The options were issued with an exercise price of $0.062 and expiry date of 26 November 2016.

11. Events after the balance sheet date

There were, at the date of this report, no matters or circumstances which have arisen since 31 December 2013 that have significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group, in future financial years, other than:

• The issue of 2,274,575 shares on 28 February 2014 at $0.06 per share to a creditor as settlement for services provided.

• On 11 March 2014 Eastern Iron issued 14,300,000 shares to an investor at an issue price of $0.042 raising $600,600. The subscriber has a call option for a period of 60 days to subscribe for further additional shares at the same issue price of $0.042 to raise a further approximately $400,000.

• Michael Giles was appointed as a Non-executive Director of Eastern Iron on 11 March 2014.

13 > Eastern Iron Limited

Directors’ Declaration

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In accordance with a resolution of the directors of Eastern Iron Limited, I state that:

In the opinion of the Directors:

• (a) The financial statements and notes of the consolidated entity are in accordance with the Corporations Act 2001 , including:

• (i) Giving a true and fair view of the consolidated entity’s financial position as at 31 December 2013 and of its performance for the half year ended on that date; and

• (ii) Complying with Australian Accounting Standards AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001; and

• (b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable.

On behalf of the Board

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Steve Gemell Chairman

Sydney, 13 March 2014

14 > Eastern Iron Limited

Independent Auditor’s Review Report

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15 > Eastern Iron Limited

Independent Auditor’s Review Report

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16 > Eastern Iron Limited

Auditor’s Independence Declaration

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17 > Eastern Iron Limited

Corporate Directory

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Eastern Iron Limited

Share Registry

ABN 70 126 678 037

Directors

Steve Gemell Non-Executive Chairman Greg De Ross Managing Director Wendy Corbett Non-Executive Director Greg Jones Non-Executive Director Ivo Polovineo Non-Executive Director Adrian Critchlow Non-Executive Director Michael Giles Non-Executive Director

Boardroom Pty Limited GPO Box 3993 Sydney, NSW 2001 Telephone: +61 2 9290 9600 Facsimile: +61 2 9279 0664 Website: www.boardroomlimited.com.au

Auditors

BDJ Partners

Bankers

Company Secretary

Ian White

Commonwealth Bank of Australia Bank West Macquarie Bank

Registered and Administration Office

Stock Exchange Listing

Level 1, 80 Chandos Street St Leonards, NSW 2065 PO Box 956, Crows Nest, NSW 1585 Telephone: 02 9906 7551 Facsimile: 02 9906 5233 Website: www.easterniron.com.au E-mail: info@easterniron.com.au

Listed on Australian Securities Exchange Limited ASX Code: EFE

18 > Eastern Iron Limited