EASTERN RESOURCES LIMITED — Investor Presentation 2010

Sep 29, 2010

. . . ASX Announcement

30 September 2010

HAWKWOOD IRON-VANADIUM PROJECT – DRILLING UPDATE

• Recently completed preliminary reverse circulation drilling program confirms potential for large magnetite, iron ore deposit at Hawkwood Project, Queensland, Australia.

• 19 drill holes completed for a total 1,848m of reverse circulation drilling with intersections of up to 112m of magnetite-bearing gabbro (ferrigabbro).

• The ferrigabbro includes bands of massive and semi massive magnetite with 2m drill composites assaying up to 35% Fe. The ferrigabbro is estimated to contain on average 20-25% vanadium-bearing titaniferous magnetite.

• Exploration target tonnage estimated from the shallow drilling to date of the order of 300-400Mt[1] of gabbro with 20-25% contained magnetite. Additional tonnage potential exists at depth and in a further 5 kilometres of untested magnetic anomaly.

• Davis Tube Recovery test work is yet to be completed, however, as previously reported, preliminary test work of magnetite concentrates assay up to 61% Fe, 1.1% V2O5 and 7.88% TiO2.

• Transport and infrastructure options including rail and port access provide potential for rapid low capital cost development.

• Exploration in coming months to focus on diamond drilling to provide samples for metallurgical test work and structural information on the attitude of the magnetitebearing layers.

Iron and vanadium-bearing magnetite on a sampling magnet during the Hawkwood drilling

1 Potential exploration target tonnages and grades in this report are conceptual in nature as there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Tonnages and grades are not to be quoted outside this context.

Level 1, 80 Chandos Street St Leonards, NSW 2065 PO Box 956, Crows Nest, NSW 1585 Ph: 02 9906 7551 Fax: 02 9906 5233 www.easterniron.com.au

…iron’s new horizon

…ASX Announcement

Eastern Iron Limited

Hawkwood Iron-Vanadium Project

The Haw k wood iron - vanadium project is located in southeast Queensla n d approxi m ately 24 0 kilometres by rail fro m the Port o f Gladston e , Australia’s third largest coal export port. E astern Iron has the ri g ht to earn an 80% in t erest in th e project b y carrying o ut exploration and c o mpleting a bankable f easibility study. Earli e r in the y e ar Eastern Iron com p leted a lo w level hig h resolution airborne m agnetic survey over the project a rea identi f ying a 12 k ilometre l o ng magne t ic anomal y interprete d to be coi n cident wit h magnetit e -bearing r o cks within the under l ying layer e d intrusiv e complex, the Delubr a Gabbro. G round geophysical tr a verses across the m a gnetite-be a ring layer s followed b y interpret a tion and m odelling of the resul t s was als o complete d . Outcrop across th e project ar e a is poor and East e rn Iron h a s recentl y complete d a bedro c k drilling p rogram t o determine the sourc e of the m a gnetic an o maly and obtain so m e prelimi n ary indications of th e grade and size of a p o tential ma g netite iron - vanadium exploration target ton n age at Ha w kwood.

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Eastern Iron drill hole locations showing magnetic anomaly, interpreted magnetite target zone and position of section A-B

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Eastern Iron Limited

Drilling Program

A total of 1 9 holes for 1,848m o f reverse circulation drilling were complete d across th e area. Drill holes wer e located o n lines pre v iously sur v eyed by g r ound mag n etics. The drilling, co n ducted on lines arou n d 1 kilom e tre apart, successfull y discovere d thick sections of ma g netite-bea r ing gabbr o or ferrigabbro, that ar e widespre a d through o ut the anomaly area a nd appear to be continuous ove r the 7 kilometre stri k e length so far test e d. The wi d espread o ccurrence of magne t ite-bearing gabbroic r ocks and the lack o f distincti v e geologi c al marker horizons h as made correlation between t h e drilling a nd the ma g netic mod e lling unce r tain. Interpretation of the drilling results ha s inferred a relatively s h allow nort h erly dip fo r the magn e tic layers, which will b e confirm e d by follo w up, orient e d diamond core drillin g .

Drill hole d epths vari e d from 60 – 120m. D u ring drillin g 1m samp l es were c o llected an d measured for magne t ic suscept i bility. Two metre composite samples were a ssayed by XRF fusio n for Al2O3, As, Ba, C a O, Co, Cr2O3, Cu, Fe , K2O, Mg O , Mn, Na2 O , Ni, P, Pb, S, SiO2, T iO2, V, Zn, LOI (wate r content or Loss On Ignition).

Drilling re s ults receiv e d to date indicate wi d e down h o le interse c tions of fe r rigabbro r a nging from 12% to 3 5 % Fe an d averagin g 18% Fe a cross all holes. The presence of the vanadium and titanium may substa n tially incre a se the val u e of any product that may be m i ned from t h is deposit. Ferrigabbro intersect e d by drilli n g ranges from a few metres up to 112m intersected H RC03 and includes t h inner ban d s of massi v e and se m i massive m agnetite. It is appar e nt that the ferrigabbr o occurs in m ultiple lay e rs within t h e intrusive complex w hich are at least semi continuous across th e seven kilo m etres of s t rike so far t ested by drilling.

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Drill section A-B, see plan above for location.

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…iron’ s new horizo n

Eastern Iron Limited …ASX Announcement

Exploration Target Tonnage Estimation

Assuming at least tw o ferrigabb r o layers o f 40m thick n ess, conti n uous over seven kilo m etres and mineable t o 200m gi v es an ex p loration ta r get tonna g e range o f 300-400 M t1 (assum e d tonnag e factor of 3 .3 tonnes/ c ubic metr e ). Based o n the results to date this has a n estimate d magnetit e content of 20-25%. F u rther reso u rce poten t ial exists w ithin the fi v e kilometr e s of untested strike o f the magn e tic anomal y which ext e nds north f rom the w e stern end o f the pros p ect area.

The resou r ce potenti a l will need to be teste d by furthe r drilling. In particular, core drillin g to confirm the dip of the layers and an in d ication as to what ex t ent the intersected i n tervals represent tru e widths. D a vis tube a n alysis also will be car r ied out on s elected drilling interv a ls to provi d e sample s for concentrate analy s is and estimates of mass recoveries to con c entrate.

Eastern Ir o n was al s o recently granted a n explorati o n license over the A uburn are a , some 1 2 kilometres west of H a wkwood. T his area i s underlain by layere d intrusive similar to t h e Delubr a Gabbro a n d will be a s sessed for its potenti a l to host m a gnetite de p osits over the comin g months.

Transport and Infrastructure

The discovery of a n iron-vana d ium, magnetite iron ore explo r ation targ e t of this s ize at th e Hawkwoo d project a rea is o f particula r interest due to the availabi l ity of tra n sport and infrastruct u re. Hawk w ood is loc a ted some 4 5 kilometr e s southw e st of the well service d rural town of Mundu b bera in ce n tral Quee n sland. Th e project area itself is freehold o p en grazin g land, with power, telephone a n d roads. M undubbera is conn e cted by s ealed hig h way to ot h er nearb y regional c e ntres and by rail via t he Maryborough line t o the main north-sou t h trunk lin e some 20 0 kilometres to the e a st and 2 5 0 kilomet r es northe a st to the export po r t of Glad s tone. Th e Maryboro u gh railway line, altho u gh maintained, is cur r ently not i n use but h a s been th e subject o f recent stu d ies to rea c tivate the line to me e t haulage requireme n ts of other potential u sers in th e region including som e proposed mineral an d coal dev e lopments.

Port facilities at Glad s tone offer a ny potenti a l develop m ent at Ha w kwood rea d y access t o oversea s export ma r kets. The p ort is cap a ble of acc o mmodatin g cape size vessels a n d currently has a total throughpu t of more than 75 million tonne s annually w ith major cargoes in c luding co a l, alumina, aluminium and cement. Gladst o ne is the t h ird larges t bulk tonn a ge coal e x port port i n Australia. Planned e xpansions will acco m modate a doubling of the c u rrent coal export capacity and increased capacity fr o m the pro p osed new LNG termi n als. The G ladstone P orts Corporation hav e advised E a stern Iron that subje c t to envir o nmental, community a nd comm e rcial conditions being met there is availabl e capacity for iron or e shipment s of 1-2Mt p a from existing facilities with an additional 5 -6Mtpa a v ailable as o ther plann e d expansi o ns come on line.

The avail a bility of e x isting resident workforce, road , rail, high voltage p o wer and e xport por t infrastruct u re provid e s any pot e ntial devel o pment of an iron or e operation at Hawk w ood with a significant advantag e compare d to other p roposed m agnetite iron develo p ments in r emote and logistically difficult W e stern and S outh Aust r alia.

1 Potential exploration t a rget tonnage s and grades i n this report a re conceptu a l in nature as there has be e n insufficien t exploration t o define a Mineral Resou r ce and it is u ncertain if f u rther explora t ion will resul t in the determination of a Mineral Res o urce. Tonna g es and grades are not to b e quoted outside this conte x t.

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…iron’ s new horizo n

…ASX Announcement

Eastern Iron Limited

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Location of Eastern Iron’s Hawkwood Joint Venture Project

Investor Information

Eastern I r on is exploring and evaluating a numbe r of miner a l projects in easter n Australia, including the Hawkw o od and C o bar Iron Projects and is also ev a luating further new projects and exploratio n opportunities involving iron or e , gold an d other mi n erals that have pote n tial to add value to o u r existing i r on assets.

Further in f ormation, p revious E a stern Iron announce m ents and e xploration updates a r e availabl e at the Ne w s and Rep o rts tab on t he Company’s website - www.ea s terniron.com.au

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

The inf o rmation in t h is report tha t relates to Ex ploration Re s ults, Mineral Resourc e s or Ore Res e rves is based o n information compiled by G reg De Ross, BSc, who is a Fellow of the Austra l asian Institut e of Mining a n d Metallurgy. Greg D e Ross is CEO and a full-tim e employee of E astern Iron Limited and has sufficient experience which is releva n t to the style o f mineralisati o n and type of deposit u nder consider a tion and to th e activity whic h he is underta k ing to qualify as a Co m petent Perso n as defined in t he 2004 Editi o n of the “Aus t ralasian Code for Rep o rting of Expl o ration Result s , Mineral Re s ources and O re Reserves”. Greg D e Ross consent s to the inclusi o n in the repo r t of the matter s based on his informa t ion in the form and context in which it appe a rs.

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