EASTERN RESOURCES LIMITED — Interim / Quarterly Report 2021

Apr 28, 2021

==> picture [596 x 116] intentionally omitted <==

----- Start of picture text -----

QUARTERLY REPORT – March 2021
----- End of picture text -----

ASX Code: EFE

Issued Capital: ASX Code: EFE 536,185,378

Issued Capital: Directors

Share Price at Eddie King (Chairman) Therese-Marie Taylor (Non- Market Capitalisation at executive Director) Cash on hand at Myles Fang (Non-executive Directors Director) Glenn Goodacre - Chairman Nathan Taylor Greg De Ross - Managing Director (Alternate Director) Ivo Polovineo - Non-Ex Director Wendy Corbett - Non-Ex Director Greg Jones - Non-Ex Director Steve Gemell - Non-Ex Director Address

Investor and Media Contact: Level 1, 80 Chandos Street Fergus Ross Six Degrees Investor Relations St Leonards, NSW 2065 Fergus.ross@sdir.com.au

Address Postal

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

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

T: +61 2 9906 7751 F:Twitter: +61 2 9906 5233 @EasternIronEFE www.easterniron.com.au www.easterniron.com.au

Twitter: @EasternIronEFE

HIGHLIGHTS

• Placement and fully underwritten Entitlements Issue to raise $2.2 million.

• Feasibility Study commences at Nowa Nowa Iron Project.

Eastern Iron Limited (“ Eastern Iron ” or the “ Company ”) is pleased to report on activities undertaken during the quarter ended 31 March 2021.

Nowa Nowa Iron Project

The Company has commenced to update the existing Definitive Feasibility Study which was completed in 2014 (the “ DFS ”) following the completion of an internal review on the Nowa Nowa Iron Project (the “ Project ”).

The delivery specialist Engenium Pty Ltd (“ Engenium ”) has been appointed to act as the project manager for delivery of the updated DFS. The Company is concurrently progressing the permitting and approvals process to ensure a rapid development of the Project is possible, subject to favourable results being achieved through the updated DFS.

==> picture [348 x 276] intentionally omitted <==

Figure 1 - Location of the Project

==> picture [596 x 41] intentionally omitted <==

==> picture [97 x 55] intentionally omitted <==

The Project is located in East Gippsland, Victoria and is proximal to the Princess Highway which provides access to several nearby towns and the existing export port facility at Eden in southern NSW.

The Company completed resource drilling at the Five Mile deposit outlining 9.05Mt averaging 50.8% Fe of magnetite iron in 2014. (Refer to the ASX announcement dated 21 May 2014[1] ).

Prospect	Measured	Measured	Indicated	Indicated	Inferred	Inferred	Total	Total
	Mt	Fe%	Mt	Fe%	Mt	Fe%	Mt	Fe%
Five Mile	2.25	52.8	4.32	50.4	2.49	49.7	9.05	50.8

Table 1 - Five Mile Estimated Resources (cut off of 40% Fe)

The Company completed the DFS in September 2014, based on the concept that beneficiated ore @ 58% Fe fines would be produced and transported from the mine 234km by road transport to the Port of Eden.

The Company has appointed Engenium to update the DFS which contemplates the production of a Direct Shipping Ore (“ DSO ”) with 50% Fe magnetite content. The updated DFS will focus on mining ore at the Five Mile magnetite iron deposit but will exclude the already identified satellite deposits at Six Mile Deposit and Seven Mile Deposit (the “ Satellite Deposits ”). Additional studies will be conducted on the Satellite Deposits post completion of the updated DFS which is expected to occur in the December quarter 2021.

The Company considers that the DSO product strategy will maximise value for shareholders given it reduces the timetable and capital requirements for the Company to commence production.

Finally, the Company has received enquiries from a number of parties which have expressed interest in potential investment and product off-take. The Company will continue to engage with interested parties over the coming months as refreshed information flows from the updated DFS.

The updated DFS is expected to be completed in the September quarter 2021.

Nowa Nowa Copper Project

The Company is waiting for the response from the Victorian Department of Jobs, Precincts and Regions (“ DJPR” ) for a revised Work Program of drilling proposal for Nowa Nowa Copper Project EL 006183.

Eastern Iron has selected a drill contractor through a tendering process, to conduct the previously announced work programme at its Nowa Nowa Copper Project. The work programme is planned to commence in May 2021, subject to DJPR work plan approval.

Capital Raising

In February 2021, the Company announced a capital raising of approximately $2,200,000 (“ Capital Raising” ).

1 The Company confirms that it is not aware of any new information or data that materially affects the information included in its ASX announcement of 21 May 2014, and the Company further confirms that all material assumptions and technical parameters underpinning the resource estimates provided in its ASX announcement of 21 May 2014 continue to apply and have not materially changed.

==> picture [596 x 41] intentionally omitted <==

Page | 2

==> picture [97 x 55] intentionally omitted <==

The Capital Raising will consist of:

1. A placement to sophisticated and professional investors of approximately 137,500,000 fully paid ordinary shares (“ Shares” ) and 68,750,000 free attaching options exercisable at $0.012 each on or before 31 January 2023 (“ Options” ) on the basis of one Option for every two Shares issued (the “ Placement” ), in two tranches:

2. Tranche 1 : 62,500,000 Shares and 31,250,000 Options.

3. Tranche 2 : 75,000,000 Shares and 37,500,000 Options.

The Placement will raise approximately $1,100,000 before costs.

1. A fully underwritten non-renounceable entitlements issue on a 1 for 4 basis at an issue price of $0.008 per Share with one (1) free attaching Option for every two (2) Shares issued, to raise approximately $1,072,770 (“ Entitlements Issue” ).

The Tranche 1 and Tranche 2 Placement is fully subscribed with a number of sophisticated and professional investors.

The Entitlements Issue is being undertaken pursuant to a short form prospectus under section 713 of the Corporations Act 2001 (the “ Prospectus” ) which was lodged with ASIC and ASX on 23 April 2021. All Options will be issued pursuant to a separate offer under the Prospectus.

The funds raised will provide the Company with general working capital and more specifically to fund the exploration activities at Nowa Nowa Copper Project and updating DFS of Nowa Nowa Iron Project.

New Project Search and Potential Acquisition

A number of projects have been evaluated by the Company during this quarter, and the Company is currently in commercial discussions with various parties.

Financial Position

The cash balance at the end of the quarter was $719,000. Related party payments for the quarter were $131,000 made to Directors for services provided as Directors of the Company.

Tenement Schedule

Tenement	State	Tenement Number	Interest	Joint Venture
Nowa Nowa EL	Victoria	EL 6183	100%	Note 1
Tara EL Application	Victoria	EL 5545	100%	Note 1
Five Mile RL Application	Victoria	RL 006488	100%	Note 1

EL: Exploration Licence RL: Retention Licence

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

==> picture [596 x 41] intentionally omitted <==

Page | 3

==> picture [97 x 55] intentionally omitted <==

This announcement has been authorised for release in accordance with the requirements of the Company’s published Continuous Disclosure Policy.

INVESTOR INFORMATION

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

Mr Myles Fang Non-executive Director T: 02 9906 7551

For enquiries on your shareholding or change of address please contact: Boardroom Limited, GPO Box 3993, Sydney NSW 2001, Phone: (02) 9290 9600

==> picture [596 x 41] intentionally omitted <==

Page | 4