EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2015

Mar 12, 2015

Table of Contents

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EASTERN IRON LIMITED

ABN 70 126 678 037

HALF YEAR FINANCIAL REPORT 31 DECEMBER 2014

4 > Eastern Iron Limited

Table of Contents

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Directors’ Report ............................................................................................................................................................ 1 Consolidated Statement of Comprehensive Income ...................................................................................................... 4 Consolidated Statement of Financial Position ................................................................................................................ 5 Consolidated Statement of Changes in Equity ............................................................................................................... 6 Consolidated Statement of Cash Flows ......................................................................................................................... 7 Notes to the Consolidated Financial Statements ............................................................................................................ 8 Directors’ Declaration ................................................................................................................................................... 13 Independent Auditor’s Review Report .......................................................................................................................... 14 Auditor’s Independence Declaration ............................................................................................................................ 16 Corporate Directory ...................................................................................................................................................... 17

Directors’ Report

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Your directors submit their report for Eastern Iron Limited for the half year ended 31 December 2014.

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
Wendy Corbett	Non-Executive Director	(resigned 13 February 2015)
GregJones	Non-Executive Director
Ivo Polovineo	Non-Executive Director	(resigned 13 February2015)
Adrian Critchlow	Non-Executive Director	(resigned 13 February 2015)
Michael Giles	Non-Executive Director
Greg De Ross	CEO	(Greg resigned as Managing Director on 31 July 2014 and is currently the Company’s CEO)

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 $516,458 (2013: $136,047).

Highlights

Nowa Nowa

• Definitive Feasibility Study completed confirming many of the Scoping Study outcomes including:

• Low capital cost - $33.6 million

• Low production costs - $26.1 per tonne of finished product at the mine gate

• Production of 780,000 tonnes of 58% Fe beneficiated magnetite per annum over a seven year mine life

• Slurry pipeline proposal has potential to deliver upgraded iron product at an FOB cost of A$32/t

Nowa Nowa Copper

• VTEM geophysical survey completed targeting volcanogenic massive sulphide (VMS) copper-lead-zinc bodies.

• Several high priority targets identified with drilling recommended.

• Drilling carried out by previous explorers intersected significant mineralisation including 13.6m @ 3.8% Cu at Three Mile Prospect.

Nowa Nowa Project

Feasibility Study

During 2014 (ASX release 29 September 2014) Eastern Iron released the results of the Definitive Feasibility Study (DFS) for the Nowa Nowa iron project.

The Nowa Nowa Iron project is based on the potential development of the Five Mile magnetite iron deposit by upgrading the ore to a beneficiated product at site then transporting this product to market by the most efficient and cost effective means. Key milestones in progressing this project have been achieved with the completion of a Native Title Agreement with the Gunaikurnai Land and Waters Aboriginal Corporation in December 2013 and the grant of the mining licence in April 2014

1 > Eastern Iron Limited

Directors’ Report

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The study was compiled for Eastern Iron by Engenium Pty Ltd (Engenium) as an independent consultant. It is based in part on information supplied by Eastern Iron, specialist consultants, contract service operators, vendors of equipment and Engenium’s engineering and project personnel.

Main outcomes of the study are summarised in the table below:

Geological Resource	9.05Mt @ 50.8% Fe1
Crushing Plant Feed	1 Mtpa ore
Mass yield	80%
Iron recovery	91%
Production	800,000tpa
Product	58% Fe magnetite
**Mine gate cost2 **	A$26.10/t product
**Capital Cost3 **	A$33.6 million
Mine life	7 years

• Notes 1. Resource calculated at 40% Fe lower cutoff

• Site costs including mining, processing and indirect costs

• Capital costs have been calculated at +/-15% and include contingency and EPCM costs

The information concerning resources is extracted from the report entitled “Resource Upgrade at Nowa Nowa Iron Project” announced to the ASX on 21 May 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.

Nowa Nowa Copper

Late in 2014 the Company received the results of the consultant geophysicists report analysing the results of a VTEM airborne geophysical survey completed over the Nowa Nowa tenement (EL 4509).

Analysis of the final VTEM data identified 25 anomalous responses and these have been ranked on the basis of shape and geological setting for each anomaly. The four highest priority VTEM anomalies have been modelled using conductor plates to fit the observed data in order to predict the target size, orientation and depth below surface of the potential source. Ground EM has been recommended for the highest priority targets in order to better define their location and orientation prior to drilling.

Drilling carried out by previous explorers within the Nowa Nowa area intersected significant copper, lead, zinc and gold mineralisation in altered volcanics and sediments consistent with the VMS interpretation, with a best intersection of 13.6m assaying 3.8% Cu at the Three Mile prospect in the south eastern corner of the licence. A coincident high priority VTEM conductor identified over this prospect identifies it as a high priority for followup work including drilling.

2 > Eastern Iron Limited

Directors’ Report

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Program for 2015

Nowa Nowa

Further work will be required to improve the level of assessment of the slurry transport proposal and bring the entire project to a definitive feasibility level.

Nowa Nowa Copper

The Company is seeking joint venture participation to evaluate the VTEM anomalies.

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 part-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 2014 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 Company issued 807,500 fully paid shares at $0.042 cents per share to a creditor is lieu of payment for services on 26 February 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 16.

Signed at Sydney this 13[th] day of March 2015 in accordance with a resolution of the directors.

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Steve Gemell Chairman

3 > Eastern Iron Limited

Consolidated Statement of Comprehensive Income

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For the half year ended 31 December 2014

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Note	31 Dec 2014 $ 31 Dec 2013 $
Revenue 4 ASX and ASIC fees Audit fee Contract administration services Directors fees Employee costs (net of costs recharged to exploration projects) Exploration expenditure written off Finance costs 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	519 866,960 (26,770) (20,452) (11,500) (20,500) (52,933) (59,125) (50,560) (100,717) (72,372) (110,434) (226,350) (578,436) (9,740) - - (3,611) (12,750) (12,750) (4,052) (10,580) (11,422) (8,790) (38,528) (77,612)
	(516,458) (136,047) - -
	(516,458) (136,047)
	- -
	- -
	(516,458) (136,047)
	(0.35) (0.12) (0.35) (0.12)

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 2014

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Note	31 Dec 2014 $ 30 Jun 2014 $
ASSETS Current assets Cash and cash equivalents 5 Receivables 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	263,174 247,153 12,356 1,065,083
	275,530 1,312,236
	10,000 12,500 8,752 12,478 6,346,100 5,931,671
	6,364,852 5,956,649
	6,640,382 7,268,885
	74,550 476,798 27,051 48,673
	101,601 525,471
	- -
	- -
	101,601 525,471
	6,538,781 6,743,414
	12,172,818 11,865,045 (5,762,969) (5,246,511) 128,932 124,880
	6,538,781 6,743,414

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

5 > Eastern Iron Limited

Consolidated Statement of Changes in Equity

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For the half year ended 31 December 2014

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	Note	Contributed equity $		Reserves $ Total equity $
			Accumulated
			losses
			$
At 1 July 2013 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 Expired option value transferred to Accumulated Losses Cost of share based payments taken directly to equity At 31 December 2013		10,603,162	(3,984,816)	348,970 6,967,316 - (136,047) - -
		-	(136,047) -
		-
		-	(136,047) - 234,670 -	- (136,047) - 118,680 (234,670) - 10,580 10,580
		118,680
		-
		-
		10,721,842	(3,886,193)	124,880 6,960,529
	Note	Contributed equity $		Reserves $ Total equity $
			Accumulated
			losses
			$
At 1 July 2014 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 Cost of share based payments taken directly to equity At 31 December 2014		11,865,045	(5,246,511)	124,880 6,743,414 - (516,458) - -
		-	(516,458) -
		-
		-	(516,458) - -	- (516,458) - 307,773 4,052 4,052
	9	307,773
	10	-
		12,172,818	(5,762,969)	128,932 6,538,781

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

6 > Eastern Iron Limited

Consolidated Statement of Cash Flows

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For the half year ended 31 December 2014

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	Note	31 Dec 2014 $ 31 Dec 2013 $
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 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 Net cash flows from financing activities Net increase (decrease) in cash held Add opening cash brought forward Closing cash carried forward		(310,047) (376,457) 534 23,283 - 9,999 1,015,588 690,574
		706,075 347,399
		- 150,000 (839,554) (1,580,635) 2,500 120,000
		(837,054) (1,310,635)
		147,000 -
		147,000 -
		16,021 (963,236) 247,153 1,673,146
	5	263,174 709,910

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

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Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2014

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1. Corporate information

The financial report of Eastern Iron Limited (the Company) for the half year ended 31 December 2014 was authorised for issue in accordance with a resolution of the directors on 13 March 2015. 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 2014.

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 2014 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 2014.

Management has reviewed and assessed the new accounting standards effective 1 July 2014 and these have been deemed to be not applicable to the Group.

Fair value measurement

The carrying amounts of the Group’s assets and liabilities are a reasonable approximation of their fair values. The only exception to this is the carrying amount of deferred exploration and evaluation expenditure which is estimated to be not in excess of its fair value.

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.

8 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2014

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Going concern

The financial report has been prepared on the going concern basis, which assumes continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business. The Directors believe that the Company will have sufficient working capital to meet its minimum project development and administrative expenses in the next twelve months following the date of signing of the financial report. The Directors are investigating options to raise additional funds to allow the Company to pursue its project opportunities and reduce its working capital requirements with the intent that the consolidated group continues as a going concern.

If all of these options are unsuccessful, this may indicate there is a material uncertainty that may cast significant doubt on the Group’s ability to continue as a going concern.

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 CEO on an ongoing basis.

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

Interest received Consulting fee income R&D tax concession offset Proceeds from sale of tenements	31 Dec 2014 $ 31 Dec 2013 $
	519 16,387 - 9,999 - 690,574 - 150,000
	519 866,960

9 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2014

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5. Cash and cash equivalents

. Cash and cash equivalents
Cash at bank Money market securities – bank deposits	31 Dec 2014 $ 30 Jun 2014 $
	238,781 223,063 24,393 24,090
	263,174 247,153

6. Deferred exploration and evaluation expenditure

Costs brought forward Costs incurred during the period Expenditure written off during the period Costs carried forward		31 Dec 2014 $ 30 Jun 2014 $
		5,931,671 5,546,961 640,779 3,302,530 (226,350) (2,917,820)
		6,346,100 5,931,671

7. Contingent assets and liabilities

The Company has provided a guarantee totalling $10,000 (30 June 2014: $12,500) in respect of an exploration tenement in Victoria. This guarantee in respect of exploration tenements is secured against a deposit with a banking institution. The Company does not expect to incur any material liability in respect of the guarantees.

8. Earnings per share

	31 Dec 2014	31 Dec 2013
	$	$
Net profit/(loss) used in calculating basic and diluted gain/(loss) per share	(516,458)	(136,047)
	Number	Number
Weighted average number of ordinary shares outstanding during the year used in calculation of basic EPS 146,619,194		116,542,779
Cents per share		Cents per share
Basic earnings (loss) per share (0.35)		(0.12)
Diluted earnings (loss) per share (0.35)		(0.12)

10 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2014

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9. Contributed equity

Share capital 151,200,630 fully paid ordinary shares (30 June 2014:143,872,706) Fully paid ordinary shares carry one vote per share and carry the right to dividends. Share issue costs	31 Dec 2014 $ 30 Jun 2014 $
	12,557,786 12,250,013 (384,968) (384,968) 12,172,818 11,865,045
	Number $
Movements in ordinary shares on issue At 31 December 2013 Shares issued (i) Shares issued (ii) Shares issued (iii) At 30 June 2014 Shares issued (iv) Shares issued (v) At 31 December 2014	117,870,484 11,079,405 4,361,776 261,708 4,940,446 207,500 16,700,000 701,400 143,872,706 12,250,013 3,827,924 160,773 3,500,000 147,000 151,200,630 12,557,786

(i) The Company issued 4,361,776 shares at $0.06 to a creditor as settlement for services provided.

(ii) The Company issued 4,940,446 shares at $0.042 under a Share Purchase Plan

(iii) The Company issued 16,700,000 shares at $0.042 in placements.

(iv) The Company issued 3,827,924 shares at $0.042 to creditors as settlement for services provided.

(v) The company issued 3,500,000 shares at $0.042 in a placement.

10. Reserves (share based payments)

10. Reserves (share based payments)
	Number $
Movements in share based payments At 31 December 2013 Options issued At 30 June 2014 Options issued (i) At 31 December 2014	5,900,000 124,880 - -
	5,900,000 124,880
	450,000 4,052
	6,350,000 128,932

(i) 450,000 options were issued to a Director and approved at the AGM held on 19 November 2014. The options were issued with an exercise price of $0.045 and expiry date of 19 November 2017.

11 > Eastern Iron Limited

Notes to the Consolidated Financial Statements

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For the half year ended 31 December 2014

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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 2014 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 Company issued 807,500 fully paid shares at $0.042 cents per share to a creditor is lieu of payment for services on 26 February 2014.

12 > 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 2014 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 Group 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 2015

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Independent Auditor’s Review Report

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Independent Auditor’s Review Report

To the members of Eastern Iron Limited

Report on the Half-Year Financial Report

partners north sydney office A J Dowell CA Level 13, 122 Arthur St M Galouzis CA North Sydney NSW 2060 A N Fraser CA G W Cliffe CA manly office B Kolevski CPA (Affiliate Level 5, 22 Central Ave ICAA) Manly National Building Manly NSW 2095 associate M A Nakkan CA all correspondence PO Box 1664 consultant North Sydney NSW 2059 C H Barnes FCA t 02 9956 8500 f 02 9929 7428 e bdj@bdj.com.au www.bdj.com.au

We have reviewed the accompanying half-year financial report of Eastern Iron Limited and controlled entities (the consolidated entity), which comprises the consolidated statement of financial position as at 31 December 2014, the consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes comprising a summary of significant accounting policies and other explanatory information, and the directors’ declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of Eastern Iron Limited (the company) are responsible for the preparation of the half-year financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2014 and its performance for the half-year ended on that date; and complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Eastern Iron Limited, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Liability limited by a scheme approved under Professional Standards Legislation. Please refer to the website for our standard terms of engagement.

14 > Eastern Iron Limited

Independent Auditor’s Review Report

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Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 . We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the directors of Eastern Iron Limited, would be in the same terms if given to the directors as at the time of this auditor’s report.

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Eastern Iron Limited and controlled entities is not in accordance with the Corporations Act 2001 including:

• (a) giving a true and fair view of the consolidated entity’s financial position as at 31 December 2014 and of its performance for the half-year ended on that date; and

• (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations Regulations 2001 .

Going Concern

Without modifying our opinion, we draw attention to Note 2 "Going concern" which describes the directors’ assessment of the going concern assumption. There is some doubt about the success of future capital raisings which could indicate the existence of material uncertainty that may cast significant doubt about the consolidated entity's ability to continue as a going concern and therefore the consolidated entity may be unable to realise its assets and discharge its liabilities in the normal course of business.

BDJ Partners Chartered Accountants

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............................................... Anthony J Dowell Partner

13 March 2015

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Liability limited by a scheme approved under Professional Standards Legislation. Please refer to the website for our standard terms of engagement.

15 > Eastern Iron Limited

Auditor’s Independence Declaration

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partners north sydney office A J Dowell CA Level 13, 122 Arthur St M Galouzis CA North Sydney NSW 2060 A N Fraser CA G W Cliffe CA manly office B Kolevski CPA (Affiliate Level 5, 22 Central Ave ICAA) Manly National Building Manly NSW 2095 associate M A Nakkan CA all correspondence PO Box 1664 consultant North Sydney NSW 2059 C H Barnes FCA t 02 9956 8500 f 02 9929 7428 e bdj@bdj.com.au www.bdj.com.au

Auditor's Independence Declaration under Section 307C of the Corporations Act 2001 to the Directors of Eastern Iron Limited and Controlled Entities

I declare that, to the best of my knowledge and belief during the half year ended 31 December 2014 there have been:

• a. no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the review; and

• b. no contraventions of any applicable code of professional conduct in relation to the review.

BDJ Partners Chartered Accountants

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........................................... Anthony J Dowell Partner

5 March 2015

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Liability limited by a scheme approved under Professional Standards Legislation. Please refer to the website for our standard terms of engagement.

16 > 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 Jones Non-Executive Director Michael Giles Non-Executive Director

Company Secretary

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

Ian White

Bankers

Registered and Administration Office

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

Commonwealth Bank of Australia Bank West Macquarie Bank

Stock Exchange Listing

Listed on Australian Securities Exchange Limited ASX Code: EFE

17 > Eastern Iron Limited