EASTERN RESOURCES LIMITED — Regulatory Filings 2012

May 17, 2012

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• 18 May 2012

100Mt Maiden Resource for Hawkwood Iron Project

• Maiden Inferred resource of 100Mt @ 13.8% Fe at a lower cutoff of 10% DTR for Hawkwood project

• Resource based on recently completed reverse circulation drilling program of 2,689m in 17 holes.

• High quality magnetite concentrate grade of 64.6% Fe, 0.6% V2O5 and 1.6% TiO2.

• Area tested by drilling represents a portion of previously estimated exploration target tonnage of 500-1000Mt[1] .

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.

Resource Estimate

Eastern Iron is pleased to provide the initial resource estimate for the Company’s Hawkwood Project located 200kms southwest of Gladstone in Central Queensland. These estimates are reported under the guidelines of the 2004 JORC Code.

The resource estimate was carried out by H&S Consultants Pty Ltd and was based on data from the recently completed drilling program and geophysical surveys which outlined the surface trace of the magnetite-bearing ferrigabbro units.

The resource drilling program consisted of 2,689m in 17 reverse circulation (RC) drill holes. The drilling was designed to test magnetite-bearing ferrigabbro which had been inferred to be present at shallow depth based on an interpretation of the results of an earlier airborne magnetic survey and to provide an estimate of grade and tonnage for this portion of the resource.

Previous drilling by Eastern Iron at Eulogie has confirmed that elongate airborne magnetic anomalies represent layers of magnetite enriched ferri-gabbro within a layered basic igneous complex. Collectively these anomalies extend over 12kms along strike and consist of ferrigabbro layers up to 100m thick.

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Hawkwood drillhole location plan with background aeromagnetic image

In the past the paucity of outcrop has made hole to hole correlation difficult and the section of ferrigabbro which is the subject of this resource drilling program has been selected due to the continuity of the associated magnetic anomaly. Holes have been drilled on strike normal lines approximately 400m apart. Holes are spaced at 50m across strike. The ferrigabbro is interpreted to dip at around 80˚ to the west and be around 100m thick.

Chip samples from the drilling were assayed for iron and associated elements on 2m composites and subjected to Davis Tube Recovery (DTR) analysis on 6m composites. Concentrates from the DTR analysis were assayed for Fe, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, Na, S, V and TiO2. See Appendices 1 and 2 for resource estimate and drill hole details.

In summary (at a lower cutoff of 10% DTR) the Hawkwood resource is as follows:

	Tonnes (Mt)	DTR	Fe%	**TiO2% **	V%
Inferred	103.7	12.2	13.8	1.83	0.05

Note: decimals do not imply precision.

The Hawkwood iron (magnetite) concentrate is notably lower in titanium (TiO2) and higher in iron than comparable titaniferous deposits as reflected in the high quality concentrate (DTR) analysis for the resource as follows:

	Fe%	**TiO2% **	**V2o5% **	**SiO2% **	**Al2O3% **	S%
DTR Conc	64.6	1.63	0.6	3.26	1.96	0.65

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Eastern Iron’s Managing Director, Greg De Ross commented: “We are pleased to have defined an initial resource at the Company’s Hawkwood Iron project. The recently completed drilling program and resulting resource estimation has confirmed the potential for the Company to build a significant iron resource base at both the Hawkwood and Eulogie projects.

Queensland Iron Project

Eastern Iron is investigating the potential for the development of magnetite iron ore deposits at two major locations, Eulogie and Hawkwood, in proximity to existing rail and port infrastructure on the central coast of Queensland.

At Eulogie the Company has outlined a resource of magnetite bearing gabbro and has completed a concept study with associated metallurgical testwork. The Eulogie project is located 80 kilometres west of Gladstone, which is one of Australia’s largest export ports. Road, rail and power infrastructure are all available close to the project site. Eastern Iron is examining its options to advance the project to a full feasibility study.

Investor Information

Eastern Iron is investigating the potential for development of a magnetite processing operation based on magnetite deposits it holds at Nowa Nowa in Eastern Victoria and in Central Queensland. The Company is also in joint venture with 3E Steel to investigate the potential for developing large low cost low grade iron deposits in western NSW.

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

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

The information in this report that relates to Exploration Results 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 CEO 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. The information in this report that relates to Mineral Resources is based on information compiled by Arnold van der Heyden, MAIG, a full time employee of H & S Consultants Pty Ltd who consents to being named the competent person under the JORC code in relation to the Hawkwood Resource Estimate 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 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” Both Messrs van der Heyden and De Ross consent to the inclusion in the report of the matters based on this information in the form and context in which it appears.

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Appendix 1 Resource Statement Notes

• All drill hole data is collected and stored in a digital format with appropriate validation checks to ensure integrity of the database. Based on sample density and confidence in the predictability of the distribution of magnetite, the resource has been reported as Indicated and Inferred under the guidelines of the 2004 JORC Code.

• Both the Fe and DTR resource estimates have been reported using a lower cut off of 10% Fe and 10% DTR respectively, no top cuts were applied.

• For head (whole rock) analysis, grade characteristics were based on assaying 2m down hole drilling chip composite samples for Fe, SiO2, Al2O3, P, LOI, CaO, K2O, MgO, Mn, Na, S and TiO2 (a total of 12) using XRF analysis or thermo-gravimetric measurement (for LOI). A suitable quality (QAQC) monitoring program was implemented by Eastern Iron.

• The resource was modeled down to RL 100m which is approximately 200m below surface.

• Grade estimates were calculated for 50m x 50m x 10m (vertical) blocks. The interpolation method used to obtain grade estimates was Ordinary Kriging.

• An in-situ dry bulk density of 3.05t/m[3] was used for the mineralised intervals.

• Classification into Indicated and Inferred Mineral Resource was developed from the confidence levels of key criteria including drilling methods, geological understanding and interpretation, sampling, data density and location, grade estimation and quality. The search parameters included 100m x 10m on the first pass, and 200m x 20m on the second pass. The level of confidence in both passes one and two has led to the indicated estimate, whereas the third pass at 400m x 40m is considered to be inferred.

• Drillholes were inclined at 60 degrees, azimuths were varied to ensure that drillholes were drilled normal to the mapped strike of the ferrigabbro.

• Samples obtained from the resource drilling were composited to a nominal 6m interval, and submitted for Davis Tube testwork (DTT) after grinding to 80% passing 75 micron, to determine the percent weight recovery (DTR) of magnetic material (concentrate). The concentrate was then analysed using the same methods described above for the head assays.

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Appendix 2 Drill hole information

Hole ID	MGA_East	MGA_North	RL	Dip	DH_Azi	Depth (m)
11HWRC0020	284753	7147793	270	‐60	250	150
11HWRC0021	284829	7147808	269	‐60	250	150
11HWRC0022	284881	7147875	265	‐60	250	175
11HWRC0023	285075	7148100	283	‐60	300	175
11HWRC0024	284975	7148162	264	‐60	300	175
11HWRC0025	284889	7148190	269	‐60	300	175
11HWRC0026	285307	7148257	308	‐60	315	100
11HWRC0027	285274	7148290	303	‐60	315	100
11HWRC0028	285653	7148717	301	‐60	285	125
11HWRC0029	285592	7148733	281	‐60	285	150
11HWRC0030	285757	7149081	272	‐60	285	100
11HWRC0031	285706	7149107	272	‐60	285	120
11HWRC0032	285920	7149466	272	‐60	285	175
11HWRC0033	285842	7149488	296	‐60	285	210
11HWRC0034	286115	7149823	299	‐60	285	200
11HWRC0035	286020	7149848	327	‐60	285	175
11HWRC0036	285943	7149869	368	‐60	250	234

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