HAWSONS IRON LTD — AGM Information 2013

Oct 17, 2013

ASX ANNOUNCEMENT

Chairman’s address to the AGM

ABN: 63 095 117 981 | ASX: CAP

We find it. We prove it. We make it possible.

18 October 2013

In recent months, shareholders may have read media and political commentary concerning the end of the China-led resource boom. Yet anyone who has visited Asia recently will know that the resource boom may have reduced in intensity, but the growth in China and Asia, coupled with the resurgence of the United States and recovery signs in Europe, suggests demand for metals, including iron, remains strong.

China’s rise in gross domestic product may have eased from its previous double-digit pace, but due to its recent decade of growth, even a 7 per cent expansion today is an incredible growth rate. It is suggested that by 2030 in Asia the middle class could comprise 3 billion people, or 50 per cent more than the current global total which together with China’s growth means sustained demand for resources, with Australia’s proximity and security of supply making it a preferred supplier.

Longstanding shareholders will attest that our Company has never deviated from a policy of active and successful exploration, drawing upon our team’s global experience and geoscientific expertise. During the global financial crisis, Carpentaria continued exploring, resulting in the discovery of the flagship Hawsons Iron Project near Broken Hill, which is the biggest magnetite project in eastern Australia.

Now, while even the majors seek to cut costs, Carpentaria has committed more than $3 million to an active exploration program across eastern Australia this year, in an area host to numerous worldclass ore bodies.

Carpentaria will be exploring quality projects wholly acquired by the Company at little or no cost to shareholders. Our success in generating these quality projects on vacant ground gives potential for industry low acquisition costs, while a focus on outcropping mineralisation also provides for potential industry low discovery costs. This has been achieved using our dedicated and expert geoscience team, providing shareholders with maximum upside in the event of discovery.

The Company will continue its active project generation as more opportunities become available particularly as Majors retract their exploration activities.

Our strategy of selective acquisition and divestment has successfully raised funds for exploration without asking for a single extra cent from shareholders and diluting their holdings. We have a very strong bank balance and in a good position compared with many Juniors.

On the corporate front, following negotiations with major shareholder Silvergate Capital and its related company Pure Metals, a win-win agreement was secured which has boosted the Hawsons project.

Level 6, 345 Ann Street Brisbane Qld 4000

PO Box 10919, Adelaide St Brisbane Qld 4000

e-mail: info@capex.net.au

For further information contact: Quentin Hill Managing Director Phone: 07 3220 2022

Under the joint venture (JV) which commenced in May 2013, Pure Metals has committed $5 million towards advancing the Bankable Feasibility Study (BFS) for Hawsons. Carpentaria has retained a 60 per cent stake and has gained an additional $3.8 million as part of this deal. The JV, funded by Pure Metals to an additional $5million is focused on delivering the BFS and Environmental Impact Statement (EIS), securing a major development partner and achieving a Mining Lease.

I am delighted to announce today that we have put in this morning a Mining Application to the NSW Government. This is significant step for our company and highlights our belief in this project.

Importantly, in response to tightened capital markets, the JV is also investigating a smaller start-up operation at Hawsons. This study is currently being finalised but it would appear that a 10mt per annum option should have a high NPV, good rate of return and much lower capital expenditure making it more appealing to investors.

ASX ANNOUNCEMENT

Pure Metals assumed management of the Hawsons JV from July 1, freeing up time for Carpentaria’s management and exploration team to do what they do best: find and prove up valuable new mineral discoveries. Importantly, the same mining engineering team continues to technically manage the project.

Other milestones for Hawsons included its declaration by the NSW Government as a ‘State Significant Development’ project. A key rail agreement was secured, building on an existing port agreement and highlighting the project’s favourable access to infrastructure.

In addition, pilot plant tests showed the potential for Hawsons to produce very high grade iron concentrate at low cost; other test work showed its water needs could be slashed by a third, while the concentrate could also be significantly upgraded.

However, Carpentaria also has a number of other attractive projects across our valuable portfolio in eastern Australia.

In October 2012, Carpentaria announced the doubling of the Inferred tungsten Resource at Yanco Glen, which forms part of the Broken Hill Tin-Tungsten Project. We are currently finalising our scoping study to establish its feasibility.

Carpentaria also cemented its position as the leading tenement holder in the Braemar Iron Province by regaining in February 2013 full ownership of the South Dam Iron Project in South Australia. With South Dam and the Braemar Joint Venture, the Company has 32 strike kilometres of the emerging iron ore province, in an area considered highly prospective for bulk magnetite deposits similar to Hawsons. We are now working on an exploration target for this project which geographically is the closest Braemar Iron project to any Port.

In a rather counter cyclical approach Carpentaria has also assembled a quality grassroots gold and copper portfolio across NSW, including the Advene, Barellan, Glen Isla, Temora and Tooloom projects. This spans 1,721 square kilometres in eastern NSW, with many encouraging results from earlier explorers still untested. Recent reconnaissance work has certainly proved that we have picked up some excellent ground which have potential for large high grade gold deposits.

As a company with exploration in its DNA, Carpentaria is determined to build on its achievements as part of its growth into a midtier mining house. Part of this evolution is reforming the Company’s leadership to reflect best practice corporate governance, including the separation of the roles of chairman and managing director.

In July 2013, the Company announced the appointment of Quentin Hill as Managing Director, effective from September 1, with my role changing to Chairman. As Senior Geologist, Quentin was integral in the discovery of Hawsons, and in his recent position as Principal Geologist – New Business he played a key role in achieving the new joint venture with Pure Metals.

With more than 16 years’ experience across a range of commodities, Quentin has demonstrated all the skills necessary to ensure Carpentaria’s continued success. My role has now changed to a more strategic focus, overseeing the Company’s direction and ensuring Carpentaria builds upon its strong foundations.

Finally, I would like to thank our employees and contractors for their efforts over the past year, along with management and my fellow Directors for their valuable contribution. I also wish to thank shareholders for their continued loyalty and I trust you will extend the same unstinting support to Quentin in his new role.

Having two Inferred Resources, cash in the bank, a successful geoscientific team Carpentaria is in a great position to seize the opportunities that lie ahead of it.

Thank you.

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Nick Sheard

Chairman Carpentaria Exploration Limited

We find it. We prove it. We make it possible.

The information in this announcement 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 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'. S.N.Sheard is the Chairman 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.

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