EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2014

Jan 29, 2015

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report

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

Name of entity

EASTERN IRON LIMITED

==> picture [76 x 43] intentionally omitted <==

ABN 70 126 678 037

Quarter ended (“current quarter”) 31 December 2014

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration and evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid/received on R&D tax offset 1.7 Other - consulting fees and rental income - tenement security deposits (paid)/refunded Net Operating Cash Flows	Current quarter 31 December 2014 $A’000	Year to date (6 months) 31 December 2014 $A’000
	0 (432) 0 0 (219) 0 0 0 1,015 0 3	0 (741) 0 0 (408) 0 0 0 1,015 0 3
	367	(131)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Net investing cash flows 1.13 Totaloperating andinvesting cash flows (carriedforward)	0 0 0 0 0 0 0 0 0	0 0 0 0 0 0 0 0 0
	0	0
	367	(131)

Appendix 5B Page 1

30/9/2001

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

	Current quarter $A’000	Year to date $A’000
1.13 Total operating and investing cash flows (brought forward)	367	(131)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Other – Equity raising costs Net financing cash flows	147 0 0 (300) 0 0	147 0 300 (300) 0 0
	(153)	147
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of quarter	214 49 0	16 247 0
	263	263

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

1.23 Aggregate amount of payments to the parties included in item 1.2 1.24 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
	121
	Nil

• 1.25 Explanation necessary for an understanding of the transactions

• Salaries, directors’ fees and consultancy fees at normal commercial rates

Non-cash financing and investing activities

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

None

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

None

Appendix 5B Page 2

30/9/2001

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

Financing facilities available

Add notes as necessary for an understanding of the position.

	3.1 Loan facilities 3.2 Credit standby arrangements	Amount available $A’000	Amount used $A’000
		Nil	Nil
		Nil	Nil

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A'000
	22
	0
	0
	61
Total	83

Reconciliation of cash

Total Reconciliation of cash		83
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows	Current quarter $A'000	Previous quarter $A'000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other - bills receivable, bank accepted and short term bank deposits	239	25
	24	24
	0	0
	0	0
Total: cash at end of quarter(item 1.22)	263	49

Changes in interests in mining tenements

6.1 Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning of quarter	Interest at end of quarter 0%
	MDL 362 Eulogie	Tenement relinquished	100%

Appendix 5B Page 3

30/9/2001

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

6.2 Interests in mining tenements acquired or increased	ELA 5530 Tara ELA 5405 Tara South	Exploration Licence application withdrawn Exploration Licence application withdrawn	100% 100%	0% 0%

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

Issued and quoted securities at end of current quarter

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

	Total Number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference securities 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions	Nil
	Nil
7.3 Ordinary securities - fully paid EFE 7.4 Changes during quarter (a) Increases through issues (b) Decreases through return of capital, buy-backs	151,200,630	151,200,630
	4,953,986	4,953,986	$0.042	$0.042
7.5 Convertible debt securities 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	Nil
	Nil
7.7 Options EFE 10 cents EFE 18 cents EFE 6.2 cents EFE 4.5 cents 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	3,700,000 1,200,000 1,000,000 450,000	0 0 0 0	Exercise price $0.10 $0.18 $0.062 $0.045	Expiry date 23 Nov 2015 9 Mar 2015 26 Nov 2016 19 Nov 2017
	450,000	0	$0.045	19 Nov 2017
	Nil
	Nil
7.11 Debentures (totals only)	Nil
7.12 Unsecured notes (totals only)	Nil

Appendix 5B Page 4

30/9/2001

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED

Compliance statement

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

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

Sign here:

Date: 30 January 2015 ( ~~Director~~ / Company Secretary)

Print name: Ian K White

Notes

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

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

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

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

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

== == == == ==

c:\my documents\asx\appendix 5b pts mar.doc/rac

Appendix 5B Page 5

30/9/2001

Appendix 5B Mining exploration entity quarterly report

EASTERN IRON LIMITED Schedule of Tenements as at 31 December 2014

Tenement	Tenement Number	Interest	Joint Venture Details
QUEENSLAND
Hawkwood	EPM 15289	100%
VICTORIA
Nowa Nowa Nowa Nowa MIN	EL 4509 MIN 5571	100% 100%	Note 1
EL = Exploration Licence ELA = Exploration Licence Application EPM = Exploration Permit for Minerals (Qld) MIN = Mining Licence (Vic) Notes:

1. Held by Gippsland Iron Pty Ltd a wholly owned subsidiary of Eastern Iron.

Appendix 5B Page 6

30/9/2001