HAWSONS IRON LTD — AGM Information 2015

Nov 18, 2015

ANNUAL GENERAL MEETING Brisbane 19[th ] November, 2015 Managing Director’s Review of Operations

WE FIND IT. WE PROVE IT. WE MAKE IT POSSIBLE.

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Disclaimer

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This presentation has been prepared by the management of Carpentaria Exploration Limited (CAP) for the benefit of customers, 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 losses, 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.

- Carpentaria Outline

Goal - to balance promotion and protection of the Hawsons asset

Presentation Content

Review of Activities in FY15

• cost effective work programs that

• maximising opportunities and

• minimising development risk

• controlling costs

Outlook for steel and iron ore

Development strategy

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FY15 – Maximising opportunities

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70
Indicative %Fe of Seaborne Traded Ores
65
60
55
Source –Company Data, LFJ Consulting
HAWSONS IRON PROJECT (SG)
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Key milestone - Pilot plant test work and bulk upgrade program (completed October 2015)

Outcome delivered - Supergrade results including direct reduction (DR) grade that demonstrate how we can achieve the world’s highest seaborne traded ore at costs within our earlier estimates

Opportunity

• Differentiate our project from the rest

• Generate access to and potentially support from global high quality offtake partners

• Increase the potential size of product market

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• Increase the potential revenue that improves the project competitiveness

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FY15 - Reducing development risk

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All engineering aspects brought to prefeasibility study level

• Transgrid confirmed

• existing grid power can meet project requirements and

• how it can be connected at low cost

• Logistics solution to port completed by GHD

• dual funded by Flinders Ports and Carpentaria

• technically feasible

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• reduced existing cost assumptions

• Approvals for mining lease application

• ecology and cultural heritage surveys complete

• No issues identified

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FY15 - Cost reductions

Focussing on operations that are core to our strategy

• Reduced our tenement portfolio by 17 tenements reducing annual expenditure commitments by over $1.2m

• Farmed out two other tenements – Extension of terms sheet with Faraday Resources by one month

• Remaining program of relinquishment and divestment to continue

Corporate overheads continue to be reduced

• Staff and Board numbers reduced and remuneration cut

• Administration costs are forecast to be down considerably on last year

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Outlook

Steel demand is robust - over supply wont last

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• World Steel Association (May 2015) forecast additional 455Mt of steel demand from 2014 to 2030 globally (assumes no growth from China in this scenario)

• Iron ore market is suffering from over-supply, prices are volatile

• Major expansions will be largely complete by end of 2017, significant high cost producers will exit over this time, over supply will come to an end

• Demand for steel will continue to grow

• New projects will be required to meet demand growth and replace depleted mines

• Iron ore prices will need to rise to incentivise development of these new projects, noting that all the low cost expansions have largely been done

• Development window for new projects therefore is late 2017

• Carpentaria is positioning Hawsons to be ready for development at that time

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Development Strategy

• Buyers strongly influence which projects get developed, through offtake support

• They are willing to support competitive new sources of high grade supply that are sustainable through the cycle to diversify supply

• ~75% of the DR market supply is concentrated in four producers, this increases the importance of new suppliers to buyers in our targeted high grade markets

• Carpentaria’s recent supergrade results (October 2015) have positioned Hawsons very well

• Current work programs are targeted at gaining offtake support with product marketing programs and pelletising and steelmaking performance tests

• Feedback has been very positive

• By demonstrating offtake support, we will attract new cornerstone investors to push the development of the project through feasibility study and be ready when the market improves

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Summary

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• Supergrade results in a difficult market have maximised our opportunities for additional investment

• The development risk has been significantly reduced through increased confidence in logistics and other infrastructure

• Costs are being prudently managed

• We have a healthy cash balance and work programs to progress our product marketing campaign, the results from which will support cornerstone investment

• Understanding the timeframes is key, and there is a great opportunity for Carpentaria to be the first development project when the market cycle improves.

• Watch our website for more detailed project information and updates

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