HAWSONS IRON LTD — Capital/Financing Update 2009

Oct 27, 2009

27 October 2009

ASX ANNOUNCEMENT

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Carpentaria confirms additional magnetite mineralisation and increases tonnage potential at Hawsons Iron Project

• Recently located historical Placer drill hole (1993) data confirms source of Wonga Anomaly to be magnetite ironstone with similar results to Carpentaria drill holes at the Core Anomaly

• Wonga anomaly is in 100%-owned Carpentaria ground

• Magnetic modelling indicates considerable increase in potential Wonga magnetite tonnages

• Additional potential magnetite tonnages interpreted at the Dam Anomaly

The Hawsons Iron Project is a new magnetite discovery by Carpentaria in western NSW (see figure 1). Hawsons’ close proximity to Broken Hill (60 km) and infrastructure (rail and power) provide many favourable logistical aspects for the project. In the Company’s ASX release on 14 October 2009, Carpentaria announced an Exploration Target[1] at the Hawsons Project of 2.5 to 4.5 billion tonnes at an average 18% DTR magnetite with a concentrate grade of 69 - 71 % iron , with a vertical depth of 250m and density of 3.2 t/m[3] . The historical drill core that has been located in storage at Broken Hill has enabled Carpentaria to increase this Exploration Target[1] with confidence.

Carpentaria has very recently been successful in locating a previously misplaced drill-core from a historical Placer Exploration Ltd hole, DD93W2, which was drilled on the flank of the 100%-owned Wonga magnetic anomaly as shown in figures 2 and 3. The hole was drilled to test for iron oxide copper gold targets on the flank of the magnetic anomaly. The hole finished in a magnetite ironstone at 147.2 m below collar. Unfortunately, core from the end of the hole was missing but 2.2 metres from 141.5 metres down hole or 132 metres below surface was available and quarter core was taken and despatched for analysis. The core returned a Davis Tube Recovery (DTR) analysis of 17.43% weight recovery and a concentrate grade of 68.6% iron and 4.3% SiO2 with negligible deleterious elements. This is very similar to the results obtained in the Carpentaria holes announced previously (ASX release 26 August 2009). This hole confirms the concept that the Wonga Anomaly’s source can be directly correlated to ironstone at the adjacent Core magnetic feature, which is part of the prospective Neoproterozoic Braemar Facies of the Yundamutana Sub-Group.

The modelling of the magnetic anomaly (See figure 4) has also confirmed that the Placer hole has only intersected the edge of the magnetic anomaly. The modelling indicates the source is a large mass of magnetite ironstone. Using a body of magnetite ironstone of approximately 3.0 km by 2.0 km with a thickness of 150 metres and a density of 3.2 t/m[3] , Carpentaria estimates an exploration target[1] of 1.0 billion tonnes to 1.5 billion tonnes with a DTR average of 18% of 68 - 70% iron exists within the 100% Carpentaria ground. This effectively doubles the recently announced Hellman and Schofield estimate for this target (ASX release on 14 October 2009).

Immediately west of the Wonga Anomaly, another magnetic feature, the Dam Anomaly, is now confidently considered as another magnetite ironstone with a 6 km strike length within Carpentaria 100%-owned ground, thus suggesting an exploration target[1] of 400 - 600 million tonnes with a unit thickness of 80 - 120 metres at an average 18% DTR magnetite with a concentrate grade of 69 - 71 % iron, a vertical depth of 250 metres and density of 3.2 t/m[3]

These reassessments of the Wonga and Dam Anomalies increase the Exploration Target[1] to 3.5 to 5.8 billion tonnes at an average 18% DTR magnetite with a concentrate grade of 69 - 71 % iron, with a vertical depth of 250m and density of 3.2 t/m[3] .

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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ASX ANNOUNCEMENT

27 October 2009

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Carpentaria Exploration’s Executive Chairman – Nick Sheard stated:

“I am very pleased that we have located this historical drill-core and that geological and laboratory analysis shows that the source of the large, 100% owned Wonga Aeromagnetic Anomaly is magnetite ironstone very similar in character to that recently drilled at the Hawsons Core Anomaly, which is prospective for beneficiation quality magnetite iron ore. It also gives us confidence that the adjacent Dam Anomaly is similar material and adds significantly to potential tonnages for this project.”

Carpentaria is currently planning further exploration work to test all the magnetic targets with the objective of proving up an initial inferred resource within the next 6 months.

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Figure 1 Project Location

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Figure 2 Regional (tilt) processed airborne magnetics showing anomalies

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ASX ANNOUNCEMENT

27 October 2009

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Figure 3 Detailed (tilt) processed airborne magnetics showing area of 3D magnetic modelling

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Figure 4 3D magnetic model showing iso-surface of magnetic susceptibility (5000 x 10[-5] SI units) With location of Placer drill hole

For further information, please contact: Nick Sheard Executive Chairman, Carpentaria Exploration Ltd.

Ph: 61(7) 3161-3801 Email: info@capex.net.au

The data in this report is based on information evaluated by Mr Nick Sheard who is a Member of The Australasian Institute of Geoscientists (MAIG) and who has sufficient experience 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 (the “JORC Code”). Mr Sheard is a full-time employee of Carpentaria Exploration Ltd and he consents to the inclusion in the report of the Mineral Resource in the form and context in which they appear.

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