ENTERPRISE METALS LIMITED — Capital/Financing Update 2012

Feb 9, 2012

ENTERPRISE METALS LIMITED

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ASX ANNOUNCEMENT 10 February 2012

BOOYLGOO AIRBORNE SURVEY DEFINES MULTIPLE BIF UNITS

• Multiple Banded Iron Formation’s (BIF’s) defined by detailed airborne magnetic survey at Booylgoo Range.

• Outcrop sampling (20 samples) returned grades of 25-62% Fe.

• Follow up sampling planned, along with expedited heritage clearance survey and scout RC drilling to test higher grade zones.

SUMMARY

Enterprise Metals Limited (“Enterprise” or “the Company”, ASX: “ENT” ) is pleased to announce that it has received data from its recently completed Booylgoo Range airborne magnetic/radiometric survey, and rockchip results from reconnaissance outcrop sampling.

WA Geological Survey mapping and historical airborne surveys had previously outlined the main banded iron formation (“BIF”) units in the Booylgoo Range. Enterprise’s new high resolution survey (100m line spacing, 50m mean terrain clearance) has more clearly defined the known BIF units and areas of demagnetisation which have potential to host high grade goethite and/or hematite. Approximately 28 strike km of multiple BIF units are apparent in the airborne data.

Non-systematic outcrop sampling of magnetic BIF on the eastern and western limbs of the syncline (18 samples) has returned assays of between 25-40% Fe. However, 2 samples from outcrops of BIF enriched in iron by goethite alteration have assayed between 59-62% Fe. (Refer Figure 1 and Table 1) The program of work will involve systematic sampling and mapping, heritage surveys and ultimately RC drill testing for magnetite and direct shipping ore (“DSO”).

BACKGROUND

Enterprise’s 100% owned Booylgoo Project is centred approximately 80 kilometres WNW of the town of Leinster in Western Australia and covers an area of approximately 91 km[2] . It lies to the south of Golden West Resources Ltd’s Wiluna West hematite project (127.2Mt at 60.2% Fe) which is hosted in similar rocks.

The tenement covers the Archaean Booylgoo Range greenstone belt which is comprised of a layered succession of metamorphosed mafic igneous rocks, minor felsic volcanics and banded iron formation (“BIF”) and other sedimentary rocks. The sequence is a NNW striking tightly folded “boat shaped” synclinal structure known as “the Mt Anderson syncline”, the limbs of which contain long segments of banded iron formation. From limited observations and sampling, the mostly magnetic BIF units average 30 – 40% Fe and vary in thickness from 10 to 40m.

Limited outcrops of BIF enriched in iron by goethite alteration have been observed running parallel to the BIF structures within the syncline. Prominent topographic breaks in the BIF ridges possibly indicate the presence of cross cutting faults where alteration of BIF to higher grade iron ore has occurred. (Refer Figure 2 – Digital Terrain Image) Considering the history of weathering during Tertiary and Pleistocene times, the tenement also has the potential to contain Channel Iron Deposits (“CID”).

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ENTERPRISE METALS LIMITED

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ENTERPRISE METALS LIMITED

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Figure 3: Tightly Folded BIF Unit with Goethite Alteration and Iron Enrichment

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Figure 4: Booylgoo Range Iron Project, Location Plan

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ENTERPRISE METALS LIMITED

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Table 1. Booylgoo Range Project, Grab Sample Results

SampleNumber	GDAEasting	GDANorthing	Fe%	P%	LOI%	Al2O3%	SiO2%
540	787821	6928646	62.48	0.093	4.16	1.17	5.14
539	787910	6928460	59.15	0.064	6.14	1.98	6.71
541	787729	6928786	41.64	0.075	3.69	0.64	36.21
545	784540	6925336	39.75	0.038	5.61	0.51	36.76
533	784646	6934533	38.47	0.164	4.22	0.78	39.19
532	784567	6934568	37.98	0.022	3.41	0.43	41.33
544	784519	6925511	37.2	0.035	4.62	0.34	41.71
530	784530	6934808	36.93	0.047	1.9	0.22	45.09
534	784641	6934504	35.28	0.051	2.46	0.79	46.59
528	784521	6934912	35.14	0.074	1.22	0.16	48.18
535	784797	6933990	33.99	0.041	1.75	0.16	49.68
536	784757	6933999	33.98	0.074	3.67	0.62	47.04
529	784511	6934862	33.91	0.031	2.88	0.27	48.37
543	788311	6927695	33.74	0.065	2.29	0.47	48.96
531	784521	6934808	33.24	0.057	2.71	0.23	48.68
542	788241	6927847	33.02	0.021	1.72	0.6	50.5
537	788124	6928021	32.1	0.097	0.98	0.03	52.58
538	787963	6928345	30.82	0.068	4.25	1.4	49.58
547	785044	6924938	30.47	0.05	1.06	0.17	55.11
546	784709	6924787	25.37	0.026	2.64	0.29	59.68

Notes: All samples numbers prefixed by E018Co-ordinates Map Grid of Australia, Zone 50, GDA 94. Analyses by Intertek Genalysis using XRF spectrometry (Iron ore suite).

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Dermot Ryan Managing Director

Contact: Telephone: 08 9436 9200 Facsimile: 08 9436 9299 Email: admin@enterprisemetals.com.au

The information in this announcement that relates to Exploration Results has been compiled by Mr Dermot Ryan, who is a Fellow of the Australian Institute of Geoscientists, and a full time employee of geological consultancy Xserv Pty Ltd. Mr Ryan has sufficient relevant experience in the techniques being reported and styles of mineralisation and types of deposit under consideration, and in the activity he is undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code), and consents to the inclusion of the information in the form and context in which it appears .

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