HAWSONS IRON LTD — AGM Information 2011

Nov 17, 2011

Carpentaria Exploration Ltd Annual General Meeting

18 November 2011 We find it. We prove it. We make it possible.

Carpentaria

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Strategy :

Discover and Develop mineral resources and become a producer with an income to fund further discoveries and grow shareholder value

Abilities : Strong geoscientific team

Track Record :

• Established Resource at Hawsons

• Positive PFS released

• Tin / Tungsten near Broken Hill

• Coal – Hughenden, Qld (sold)

• Gold – Lachlan Fold Belt

• Nickel – North of Broken Hill

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Disclaimer

This presentation has been prepared by the management of Carpentaria Exploration Limited (CAP) for the benefit of analysts, brokers and investors and not as specific advice to any particular party or persons. The information is based on publicly available information, internally developed data and other sources. Where an opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to origin, validity, accuracy, completeness, currency or reliability of the information. CAP disclaims and excludes all liability (to the extent permitted by law) for loses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where CAP expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such expected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from expected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. CAP does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast.

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Exploration and Value Creation Strategy

Discovery

• Explore in areas for favourable for rapid discovery

• Move projects through pipeline - advance or considered divestment

Development of Hawsons

• To provide long term cash flows, and

• Near term cash payments

Acquisition

• Advanced projects, operations, and other opportunities

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Project Pipe Line Status

Development

• Hawsons Iron Project (NSW): Magnetite  PFS Finalised, gearing up for DFS

Drilling

• Koonenberry (NSW) : Nickel-Copper

• Drilling post lambing (November 2011)

Project Generation

• Barellan (NSW): Gold

• Kantappa (NSW): Tin

• Corona (NSW) : Base metals

Divestment and reappraisal

  - _**McDougalls (NSW)**_ **– Iron**

  - _**Hughenden Coal – Completed**_

• Broken Hill Tin-Tungsten Project (NSW)

• Drilling – FY2012

• Concept Study underway

• Temora (NSW): Gold - Awaiting access - drilling (Dec?)

• Torrawangee (NSW): Iron ( Mar 2012 ?)

• Mt Agate JV (Qld): Cu/Au –drill targets being defined

• South Dam JV(SA) : Iron – drill targets defined

• Glen Isla (NSW) – Gold

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18 November 2011 5

Company Snapshot

ASX : CAP FINANCIAL 16[th] Nov 2011 Cash A$10.0 million

QUOTED SECURITIES 99.0 m shares

LARGEST SHAREHOLDERS

Aust’ Conglin Int’ Inv’ : 10.6% Conglin Yue : 3.7% Atlas Iron Ltd : 8.7% Directors & Management (inc’ unlisted Options) : 12.6%

Share Price and Volume 12 months

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INVESTMENTS

2.2 m Guildford Coal Ltd fully paid shares ~ value $2.0m 16[th] Oct

KEY ASSET

Hawsons Iron Project JV – Carpentaria 60%

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HAWSONS IRON PROJECT Largest Magnetite Project in NSW

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18 November 2011 7

WHY MAGNETITE ?

Global Iron Production

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5
7
6
1
4
3
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8
2010 Production Rankings
Source USGS
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Source USGS

30 % Contained Iron Produced From Magnetite Sources

18 November 2011 8

The Truths the Hematite Producers

Do not want us to know

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Hawsons Magnetite
69.9%
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Macquarie Commodities Research – June 8[th] 2011 Quote :

Analysis of Australian export trade values, using the Platt's 62% index (FOB Australia basis) has assessed implied export grade – see graph.

“…it does still suggest average grades are down”

Makes magnetite – high grade low deleterious material - more and more valuable

18 November 2011 9

WHY MAGNETITE Price Premium (Platt’s)

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Nov 16[th] 2011 :

Price /t for 62% Fe – U$146.25 (Hematite)

Thus for 69% Fe ~ U$162.8 (Magnetite)*

• Simple extrapolation but would expect a premium for high quality con’ with low impurities

18 November 2011 10

AUSTRALIAN IRON PRODUCERS And Deposits (Generalised)

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Hawsons Project :
Largely H
Power
Rail
Water
Largely M
Largely M
Largely M M = magnetite
H = Hematite
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HAWSONS IRON PROJECT MRRT - Breaking News

Confirmation the magnetite sector will pay little or no tax under the Australian Government’s proposed Mining Rent Resources legislation has prompted emerging producers to fight for exemption from the tax. Australia’s Resources, Energy and Tourism Minister Martin Ferguson the sector won’t contribute says any revenue under the legislation because of the low value of magnetite prior to intensive processing.

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Quote : From Asia Miner Nov 16 2011

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HAWSONS IRON PROJECT

• Prefeasibility Study – positive

Native Title has been extinguished

• Resource – very large with potential for 50 year mine life

• Infrastructure – water, power and transport all available for start up

• Mining – very low unit costs because low strip ratio, very wide mining widths, low abrasion index and single pit

• Processing - comparatively very low cost because of very soft mineralised rock

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18 November 2011 13

HAWSONS IRON PROJECT Inferred Resource

Maiden Inferred Iron Resource Published (Dec 2010) 1.4 Billion Tonnes

• Davis Tube Recovered Grade (DTR) 15.5% (cut off grade 12%)

• Concentrate Grade – 69.9% Fe, 2.5% SiO2

• Contained Iron : 220 million tonnes

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Eastern limit of
Inferred Resource
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Modelled deposit (Red, yellow, purple all iron units) and PFS Pit Shell over the Aeromagnetic image

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HAWSONS IRON PROJECT

Mining

Simple Open Cut

 Waste to ore ratio – 0.26 : 1

 Pre strip – start mining east end

 Truck and Shovel operation

 Blasting

Pit Area

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Pit dimension ~ 3.6 km x 1.4 km Depth 490 m

+ 600 m mining widths

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HAWSONS IRON PROJECT Exploration Target

• Exploration Target[1] 6 to 11 Billion Tonnes

 DTR 14-17% magnetite

• Concentrate Grade of 69-71% Fe

• Contained Iron : 700 - 1,700 million tonnes

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As big as some of the larger Pilbara resources

1 The potential quantity and grade of the exploration targets is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource.

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HAWSONS IRON PROJECT PFS Results (July 20[th] )

• Pre-Feasibility Study (PFS) Base Case produce 20 million tonnes (mtpa) of high grade concentrate (69.9% Fe) over 20 year plus life

• Start up mine 5mtpa using existing transport and port facilities

• Development capital expenditure (20 mtpa) estimated at A$2.8 billion

• Operating cost at mine gate of A$36.64/tonne of concentrate

• Life of pit 1 project strip ratio is 0.26 : 1 (waste to ore)

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NPV Annual ave.
IRR Payback
9% Gross Profit
Base Case
Life of Mine $88 US/DMT, $2.8 Bn 21% $688 m 6.5yrs
(69% Fe) A$0.85:US$1.00
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Using Sept’ 26 2011 prices annual gross profit averages $2.1bn

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The positive result from the pre-feasibility study provides confidence to proceed with
further development and a detailed feasibility study for the Hawsons Iron Ore Project
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(All currency in Australian $ unless otherwise defined)

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HAWSONS IRON PROJECT Independent Audit

Independent audit of PFS

 PFS based on conventional mining and processing method

• Cost estimates are reasonable and appropriate

• Identified priority areas to assist in DFS inc’ optimising production schedule

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18 November 2011 18

HAWSONS IRON PROJECT Processing

• Use low risk “off the shelf” processing technologies

• Ore 50-75% softer and 60-70% less abrasive than other magnetite ores

• Bond Work Index 6.3 kWh/t (very low cf WA magnetites)

• Abrasion Index 0.09 cc

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Very Low Processing Costs

Test work at CSIRO / ALS produces High grade premium marketable products

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38 micron fines
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Pellets using local clay
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HAWSONS IRON PROJECT Mining Option Study November 2011

Improvements to PFS base Quantitative Results : case : Reduced operating costs by 7%  Reducing truck haulage to $33.97 down by $2.67

• Reducing truck haulage and stockpiles

 NPV $3.2 Bn (up 15%)

 In pit crushing and conveying (IPCC) shows significant improvement

 IRR up 2%

 CAPEX up marginally $100m

		Capex	NPV	NPV	IRR	IRR	Annual ave. Gross Profit	Annual ave. Gross Profit	Payback
Nov 2011 PFS Update (incl in pit crushing option)		$2.9Bn	$3.2 Bn		23%		$735 m		6.3yrs
July 2011 PFS Base Case		$2.8Bn	$2.8 Bn		21%		$688 m		6.7yrs
Assumptions	Discount rate			AUD:USD		Life of Mine 69% Concentrateprice*		Life of Mine equivalent 62% finesprice*
	9%			0.85:1.00		US$88		US$79
	(All currency in Australian $ unless otherwise defined) 18 November 2011 20

HAWSONS IRON PROJECT

IPCC

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In pit crusher

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Conveyor

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HAWSONS IRON PROJECT

Work Program – 6 months

• Undertaking Environmental studies

Aim :

• Field measurements continuing

  • Reduce Operating costs

• Metallurgical studies

• Determine optimum crushing circuit

• Develop pilot plant tests

• Mining

• Optimising mining scenarios

• Minimising stockpiles

• Geological

• Reviewing resource model

• Optimising and secure transport options

• Reduce Capex

• Secure Approvals

• Secure transport

• Produce a solid base to start Definitive Feasibility (DFS) study (to commence when BMG provides funding)

• BMG has until 15th May 2012 to make this election

18 November 2011 22

HAWSONS IRON PROJECT JV Deal

Bonython Metal Group Ltd (BMG) earning in

• BMG vested 40%

• $25m cash to CAP and ~ $20m for BFS

• BMG vests 51%

• Before 15 May 2012

• On completion BFS (within 2 years)

Advantage to CAP:

 No scrip issued

• Project deal only

• Cash to CAP

 Total $53.0m

• $23m cash to CAP - BMG vests 80%

• On decision to mine

• CAP has free carried to production of 20mtpa

• CAP receives profits on 20% production

• Free Carried

• Huge value

• CAP to market

• 4 million tonnes con’ in own right

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HAWSONS IRON PROJECT

CIF China Comparison June 2011

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Carpentaria
PFS – 20mtpa
US$63
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Note :

The CIF costs are at production grade eg hematite producers est. at 60% Fe

High grade concentrate producers – magnetite will attract 10 – 20% premium.

This offsets processing and transport costs not reflected in graph

Makes magnetite attractive

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DEVELOPMENT OF HAWSONS Conclusion

• Hawsons is a very robust project

• Many advantages over peers including

• Power, water, rail, near mining culture

• Soft, low abrasive ore

• Many tonnes – long life mine

• Cash flow early using existing infrastructure

• Rapid pay back for investors

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OTHER PROJECTS

Torrawangee Iron Project

Concept - Target is magnetite iron ore in potentially unrecognised Hawsons equivalent rocks drilled by CRAE in 1980’s

Secondary :carbonate hosted Ag-Pb-Zn target

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TORRAWNGEE Iron (100% CAP)

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Located 60km North of Broken Hill

DD81YA2

Intersected 40m from 25mbc @ 22,000 SIU hosted by Pelite and Quartz-Magnetite – low base metal content, not analysed for iron. Possible Braemar Formation?????

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OTHER PROJECTS

Broken Hill Tin Tungsten Project

• Added to portfolio

• Concept study underway to test economic viability of tin and / or tungsten

• Aim :

  • Define target size required

 Add to tungsten resource

• short term cash flow possibility

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Scheelite normal light

Scheelite UV light

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BROKEN HILL TIN - TUNGSTEN PROJECT (100% CAP)

 3 EL’s North of Broken Hill + 1 ELA

• Target : Tin and tungsten

• Aim : locate targets in 4 EL’s to build an inventory

that will be economic to mine :

• small open pits

• mobile crushing / gravity separator

 export to processing facilities

• Addition Potential – Ag / Pb / Zn

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Kantappa
ELA 4406
Kantappa
Tin field Euriowie
EL 6936
Euriowie
Tin field
Yanco glen
Inferred resource
EL 4105 0.83 Mt at 0.21WO3
Apollyon
EL 7475
Best rock chip 3.31% tin
Broken Hill
0 10km
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YANCO GLEN (100% CAP) Tin / Tungsten

• Located 30 km north of Broken Hill

• Acquired 100% equity - 146 sq km EL:

• 125 mineral occurrences (tin)

• add to existing portfolio

• Scheelite (tungsten) inferred resource :

• 0.83 Mt of 0.21% WO 3

• upside potential at depth and along strike (CRAE drilling - up to 4m @ 2.47% WO3 from 30m )

• Assaying 2 holes previously un-sampled

• Sampling and drilling to commence Q1/Q2 2012

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PD81AL11
6m @ 0.42% Zn, 0.3% Cu & 0.16% WO3
(inc 1m @ 0.38% WO3)
Prospective unit
1m @ 0.23% WO3
Inferred Resource
0.83Mt @ 0.21% WO3
PDA81AL13
4m @ 2.47% WO3 from 30m
0.31% WO3 1.23% WO3
5 km
Broken Hill 25 kms
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OTHER PROJECTS

Koonenberry

 Drilling due to commence testing nickel sulphide / PGE targets  If successful CAP has 160km belt 100%

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Other Projects – KOONENBERRY (100% CAP)

• Target - High grade/lower tonnage and low grade/bulk tonnage nickel plus platinum group elements

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Mt Arrowsmith East
 Six licences covering 1,800 km [2 ]
22 m @ 0.20% nickel
 Mafic volcanic and ultramafic intrusions
22 m @ 0.16% copper
(open at depth and along strike)  Previous work has left considerable upside
Bald Hill
12 m @ 0.34% nickel
 Up to 12 Drill targets
(open at depth and along
strike) identified:
 Mt Arrowsmith East -
nickel in drilling; open
 Bald Hill - nickel in
drilling; open
 Packsaddle
 Wertago
Wertago
Untested magnetic
Packsaddle
anomaly
Nickel geochemical
anomaly
20 km
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OTHER PROJECTS

Growing Gold Portfolio - Premier Lachlan Fold Belt Address

Temora

• Drilling - Mother Shipton

Barellan

• Await grant, map and drill to evaluate potential

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TEMORA PROJECT (100% CAP) Gold

Mother Shipton (30,000 oz production)

BUP58: 4m from 14 m @ 1.05 g/t Au BUP68: 2m from 68 m @ 6.8 g/t Au BUP 72: 4m from 2 m @ 3.95 g/t Au. CAP Rock Chips – 6.13 g/t Au On access – 2 x 350m diamond holes

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Hibernia CAP Rock Chips incl. 21.30 g/t Au & 4.47 g/t Au

Harvey’s Shaft

Past drilling – 3m @ 2.70 g/t Au from 23m

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BARELLAN (100% CAP)

Gold

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ELA 4396 – Barellan (100%)
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• Target Au-Sb-(Sn?) stock work breccia pipe Tin Belt Style Granite – re. Ardlethan

• 250km WNW of Canberra

• Previous Exploration

• 1980’s drainage trench - 60m @ 1.5 g/t Au, inc 10m at 4.5 g/t Au

• 400 x 100m RAB with +50 ppb Au geochemical anomaly.

• only one shallow RC hole returned 12m @ 0.43 ppm Au from 48m

• No further work has occurred - untested

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CARPENTARIA

In Brief

GROWTH THROUGH SUCCESS

 Continuing work at Hawsons Iron Project in NSW

• Advancing Projects in Pipeline

• Drilling at Koonenberry, Broken Hill Tin-Tungsten Project and Temora Gold Project

• Awaiting grant 3 more projects

• Divestment – Hughenden, Glen Isla, MacDougalls

• JV Partners aim to drill targets at :

• Mt Agate (Copper / Gold)

• South Dam (Magnetite)

• Actively Seeking advanced projects – in discussions on 3

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The information in this presentation that relates to Exploration Results and Resources is based on information compiled by S.N.Sheard, who is a Fellow of the Australian Institute of Geoscientists and has had sufficient experience which is relevant to the style of mineralization 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'. S.N.Sheard is an employee of Carpentaria and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Carpentaria Exploration We find it. We prove it. We make it possible. Phone: +61 7 3220 2022 To find out more, visit us at www.capex.net.au

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