GWR GROUP LIMITED — Capital/Financing Update 2012

Dec 23, 2012

24 December 2012

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ASX ANNOUNCEMENT

ASX Announcement ASX Code: DLE Released: 24 December 2012

For Further Information Gang Xu Managing Director Tel: +61 8 9322 6009

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Directors

Jie Chen Chairman

Gang Xu Managing Director

Tim Williams

COO, Executive Director

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Share Registry

Computershare Investor Services Level 2, Reserve Bank Building 45 St George’s Terrace Perth WA 6000

www-au.computershare.com

DRAGON ENERGY FARM OUT LEE STEERE PROJECT INTEREST TO GOLDEN WEST RESOURCES

Dragon Energy Limited (“Dragon”, ASX: DLE ) is pleased to announce that the Company has entered into an agreement with Iron West Resources Pty Ltd (“Iron West”), a wholly owned subsidiary of Golden West Resources Limited (“GWR” ASX: GWR ), to farm out up to 55% of interest in Lee Steere Project.

The Lee Steere Project is comprised of two tenements, E69/2126 and E69/2377 (“Tenements”), with iron ore rights being the subject of a joint venture agreement with Polaris Metals Pty Ltd (“Polaris”) a wholly owned subsidiary of Mineral Resources Limited ( ASX Code: MIN ).

Under the terms of the farm-in agreement, Iron West can earn a 55% interest in the Tenements by spending approximately $845,000 on exploration and making a payment of $200,000 to Dragon in cash or shares in GWR. Iron West is obliged to spend a minimum $350,000 on Joint Venture Expenditure within 24 months of the commencement date. After the farm-in period, Dragon will still hold 20% of Iron Ore rights and 45% rights for other minerals.

GWR already holds 1382km[2] of exploration ground in the Earaheedy Basin where the Tenements are located. Dragon believes GWR will be an excellent partner for the advancement of the Lee Steere Project.

Contact Details

Dragon Energy Ltd Suite 8, 1297 Hay Street West Perth, WA 6005

Gang Xu Managing Director

PO Box 1968, WA 6872

For further information please contact:

Tel: +61 8 9322 6009 Fax: +61 8 9322 6128

www.dragonenergyltd.com

ABN: 38 119 992 175

Gang Xu Tim Williams Managing Director COO, Executive Director Telephone: +61 8 9322 6009 Telephone: +61 8 9322 6009 Mobile: +61 411 039 645