HAWSONS IRON LTD — AGM Information 2016

Nov 23, 2016

ANNUAL GENERAL MEETING Brisbane 24[th ] November, 2016 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.

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Carpentaria - Presentation outline

Near term goal Position Hawsons first in the development queue, thereby maximising return to shareholders.

Presentation Content

• benefits of company restructure

• project development

• maximising opportunities

• minimising development risk

• attracting investment

• outlook for steel and iron ore

• company growth prospects

• summary

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Benefits of restructure and cost reductions

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Corporate costs controlled allowing focus on adding value

• restructure and refocus implemented in September 2015 have saved ~$700,000 in non-project costs this year

• includes reduction in staff, board remuneration, corporate overheads, business development costs, promotion

Carpentaria has benefitted

• sharpened focus on adding value and project development

• more efficient use of shareholder funds

• market capitalisation more than doubled

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Maximising opportunities

Explored the opportunities created by Hawsons Supergrade , the world’s best pellet feed

Pellet testing achieved amongst the world’s best iron making raw materials with outstanding

• chemical properties

• physical properties

• iron making properties

Supported a highly successful product marketing campaign resulting in letters of intent with tier one buyers

• Bahrain Steel 3mtpa of direct reduction(DR) pellet feed

• Emirates Steel 0.9mtpa of DR pellets

• Formosa Plastics 2mtpa of Supergrade concentrates

• Mitsubishi RtM 1mtpa of Supergrade pellet feed

• Gunvor 1mtpa of Supergrade concentrate for China

Added value to the Company with share price increase Customers are a key milestone in development strategy Opened dialogue with potential BFS investors (strategic and institutional)

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Reducing development risk

Our customers have potential as bankable offtake parties able support financing in time

• Identified potential cost reductions • power synergies with local wind and solar projects

• $50m contingency released by government decision on Broken Hill town water

Identified additional infrastructure options

• Whyalla port may save capital and reduce risk

• Whyalla pellet plant has potential to value add to the world’s best pellet feed

• Company investigating access options

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Attracting investment

Successful project work provided the platform for capital raising

$2.0m raised has increased issued capital by about a third, in a non dilutive issue for participants

New investors add balance to the register and support to the company

Funds are directed to adding value ie resource upgrade drilling, prefeasibility study

Successful completion aims to lift project to a higher investment grade potentially capable of attracting strategic and institutional investors and launch the BFS

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Iron ore and steel market outlook is best for two years – New projects will be required

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• World steel production has returned to growth

• Fears of demand collapse have passed

• Long term demand story remains the same (CRU)

• 480-650mtpa of new steel (and iron ore ) is required to 2030, 30-40mtpa new iron demand each year

• Market in agreement the right new projects will be required to meet market demand ~2020

• Supply and demand timing suits our project

• Chinese steel industry restructure progressing apace

• We are aiming to be first in the queue

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Company growth and development prospects

Near term growth

• Upgraded resource –January 2017

• PFS-target Q2 2017

Development prospects and medium term value underpinned by

• Strategic value to the DR market in Middle East and India

• Strategic value to the blast furnace market in Asia

• Strategic value to the port and pellet plant assets in Whyalla

Timelines

• PFS Q2 2017

• BFS funding , 2017 and completion 2018

• Project financing and start development 2018

• First production aimed for 2020

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Summary

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• Clearly visible benefits of restructure is a sharpened focus

• Tier one customers for Hawsons Supergrade attracted additional investment

• New investors have added balance to the register and support to the company

• Work programs aim to achieve milestones that add value and attract BFS funding in

near term,

• Project value underpinned by steel market forces

• Carpentaria has a lean, stable corporate structure from which to build

• Development progress is being made under difficult conditions ,we need to keep

moving

• The biggest challenges are ahead of us, with the prospect of the highest returns

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Disclaimer Thank you for your attention

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Phone: +61 7 3220 2022 To find out more, visit us at www.capex.net.au

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The information in this presentation that relates to Exploration Results, Exploration targets and Resources is based on information compiled by Q.S. Hill, who is a member 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 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Q.S.Hill 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.