HAWSONS IRON LTD — Capital/Financing Update 2010

Apr 29, 2010

A N N O U N C E M E N T ASX

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29 April 2010

ABOUT CARPENTARIA:

Carpentaria is an exploration company focused on discovering base, precious metals and bulk commodities in eastern Australia. The company holds 100% owned tenements in NSW and Queensland and also has a number of farm-in deals. Most tenements have known mineralised systems and are being explored using modern, efficient technologies. The company currently has interests in iron ore, tin, gold, copper and coal exploration projects

CARPENTARIA’S AIM:

With a strong geo-scientific team discover or acquire a strong cash flow generating mining operation

DISCOVERIES TO DATE :

Hawsons Iron Project - NSW Euriowie Tin Project - NSW

H I G H L I G H T S

• BURTA IRON

• Negotiations with the Bonython Metals Group Pty Ltd (BMG) undertaken and finalized in April with Carpentaria expected to receive $53.0m in cash and $28.0m in ground expenditure in staged payments.

• Drilling approval granted with commencement scheduled for midMay 2010.

• Exploration target[1] estimated at 2.2 to 4.8 billion tonnes at 18% magnetite DTR with a concentrate grade of 69-71% Fe, to a depth of 250 m over an estimated strike length of the host geological unit of 34 to 51 km.

• REDAN JV IRON

• Drilling approval granted with commencement scheduled in midApril.

• EURIOWIE TIN

• Purchase of this tenement completed with an initial drilling program planned for 700m.

• HUGHENDEN COAL

• Joint venture with The Chairmen1 Pty Ltd finalized with drilling to commence in the June quarter.

• GLEN ISLA GOLD

Capital Structure:

Ordinary Shares 68,950,000 Total Options 21,447,415

• Farm out to Ramelius Resources Limited completed, entailing expenditure of up to $1.0m to earn a 51% interest. Geophysics will commence in the June quarter.

• SOUTH DAM IRON

Major Shareholder:

Giralia Resources 10%

Financial

Cash and deposits A$2.1 million as at 31 Mar 2010

Ground Level, Boundary Court 55 Little Edward Street Springhill Queensland 4000 PO Box 1019 Spring Hill QLD 4004 e-mail: info@capex.net.au

For further information contact: Nick Sheard Executive Chairman Phone: 07 3161 3801

Project Map

• Farm out to BMG requiring expenditure of up to $2.0m to earn an 80% interest

Location

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Figure 1. Project Location Map Shown by Stars and Circles

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EXPLORATION - SUMMARY

During the March Quarter, Carpentaria continued to maximize the value of its portfolio via farm out transactions on projects that leave Carpentaria with an interest in the project, no financial exposure, and substantial upside to mineral discoveries. These deals will fund exploration on Carpentaria’s projects, with a focus largely on drilling, with expenditure of up to $10.0m this calendar year, thereby maximizing the chances of economic success.

This strategy has allowed Carpentaria to focus on exploration of the 100% owned projects in NSW, exploring for iron, gold, tin, and base metals.

An additional large tenement that has considerable potential for direct shipment iron (hematite) in an area north of Broken Hill not previously explored has also been acquired, and if successful this could open a new iron province.

PLANNED JUNE QUARTER EXPLORATION ACTIVITIES

Redan JV Iron

Drilling of the “Core” anomaly is planned to start in the near future. Other targets will also be tested to establish grade, thickness and depth of the magnetite units.

Burta Iron

Drilling is scheduled to take place after the Redan JV drilling. This program will test magnetic anomalies in the EL for grade, thickness and depth of interpreted magnetite units.

Euriowie Tin

A drilling plan is being designed to test the Euriowie tin bearing pegmatite and establish the continuity of the cassiterite mineralization at depth along the exposed 1.4 km strike length.

Hughenden Coal

Drilling is planned to commence in mid-May to define width and depth of coal measures.

Glen Isla Gold

A three dimensional IP survey will be completed and interpreted. If successful, drilling should commence (subject to access).

EXPLORATION

Burta Iron (100% - subject to JV with BMG earning 80%)

Burta (EL 7208) and Little Peak (EL 7504) Exploration Licences cover a portion of the Braemar Iron Formation, which is highly prospective for bulk magnetite iron. The exploration target[1] is considered to be 2.2 to 4.8 billion tonnes at 18% magnetite DTR with a concentrate grade of 69 - 71% Fe with a low level of impurities, to a depth of 250 m over an estimated strike length of the prospective host unit of 34 to 51 km. This is considered to be one of the largest magnetite exploration targets in Australia. The 100% owned project area is shown in black in Figure 2. It is situated close to key infrastructure including rail, road and power.

An agreement with Bonython Metals Group Pty Ltd (BMG) to farm out the wholly owned tenement for consideration of staged cash payments and retained equity was negotiated during the Quarter and, once legal documentation was finalized, the transaction was announced to the ASX on 20 April, 2010.

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Burta Iron (100% - subject to JV with BMG earning 80%) (continued)

The agreement may be summarized as follows:

• Stage 1:

• BMG will pay Carpentaria $5.0m cash and $8.0m to fund exploration and Pre Feasibility work to define up to 1 billion tonnes of inferred resource within two years and thereby earn 40% in the project.

• These payments will be staged over 3 months

• Stage 2:

• On completion of Stage 1 and a positive Pre Feasibility Study, BMG pays Carpentaria $25.0m and will thereby earn 51% in the Joint Venture.

• Stage 3:

• BMG funds a Bankable Feasibility Study (estimated cost $20.0m) to be completed within two years of Stage 2.

• On completion of this Study, BMG’s JV interest will reach 80% when a further $23.0m is paid to Carpentaria.

• Stage 4:

• When a decision is made to develop the Project, Carpentaria retains a 20% free carried interest up to the targeted production of 20 mtpa of iron ore concentrate.

Under the agreement, Carpentaria will manage the exploration and feasibility work, providing continuity to the ongoing program. Drilling approvals for the initial exploratory work have been received, and drilling is expected to start in mid-May 2010.

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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Figure 2. Location of Hawsons Iron Project

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29 April 2010

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Figure 3 shows the “tilt” processed magnetic image over the Burta area and the location of the Placer-drilled Wonga hole as reported in the last Quarterly Report. Although not targeted on the magnetic anomaly, the drill hole finished in magnetic ironstone. The core was sampled by Carpentaria and returned a Davis Tube Recovery (DTR) analysis of 17.43% with a concentrate grade of 68.6% iron and 4.3% SiO2 with negligible deleterious elements for the last 2.2 m interval of core at 141.5 m below collar.

Figure 3. Regional (tilt processed) airborne magnetics with anomaly names

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.

Detailed modelling of the magnetic data has identified other magnetic bodies interpreted as magnetite bands of similar magnetic geometries as the drilled material, hence allowing a reasonable interpretation that these units are similar magnetite siltstones.

A similar logic to Hellman and Schofield as reported to ASX on 21[st] October 2009, was employed using a cumulative strike length and assuming an average 100 m true thickness for the magnetite zone at 18% DTR magnetite, a vertical depth extent of 250 m (this takes in about 80 – 100 m oxidized cover and unit dipping 45 degrees.) with a density of 3.2 t/m[3] . (refer Table 1)

Target Area	No of Bands	Cumulative Strike (km)	Thickness (m)	Volume (B m3)	Tonnage (Bt)
Dam	1	6.0 to7.5	80-120	. 0.12to 0.23	0.38 to 0.74
Fold (part)	5	7.0 to7.5	80-120	0.14to 0.23	0.45 to 0.74
South Limb A	2	5 .0 to 10	80-120	0.10 to 0.25	0.32 to 0.80
South LimbB	4	6.0 to12	80-120	0.12to 0.36	0.38 to1.15
Wonga	Bloblike	10 to 14 (equiv)	80- 120	0.20 to 0.42	0.64to1.34
	**Totals **	**34 to 51 **			2.17to 4.77

Table 1. Burta Exploration Target ~~[1 ]~~ Details

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29 April 2010

The exploration target[1] is considered to be 2.2 to 4.8 billion tonnes at 18% magnetite DTR with a concentrate grade of 69 -71% Fe with a low level of impurities, to a depth of 250 m over an estimated strike length of 34 to 51 km. This is considered to be one of the largest magnetite exploration targets in Australia.

A Surface Disturbance Notice (SDN) has been submitted to the NSW Government Departments indicating drill holes required to test all the magnetic anomalies in the tenement to establish grade, thickness, and depth of cover. The SDN has been approved and drilling will commence in the June quarter.

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.

Redan JV Iron (earning an initial 51% with ability to increase)

The Redan JV on EL 6979 is located immediately north of the Burta tenement EL 7208 (refer Figure 2).This prospect is part of the Hawsons Iron Project and covers part of the Braemar Iron Formation. Carpentaria had drilled three holes over the “Core” anomaly which clearly showed that the magnetic anomalies, as per Figure 3, were sourced by magnetite siltstones. In the March Quarter a ground magnetic survey was commenced to better define the “Core” anomaly. (It should be noted that a low level detailed airborne magnetic survey was contemplated however this could have impacted farming activities in the area and thus was not undertaken). Results are being compiled.

To further test the JV area, a SDN has been submitted to the NSW Government Departments indicating drill holes required to test all the magnetic anomalies in the tenement to establish grade, thickness, and depth of cover. The SDN has been approved and drilling will commence in June quarter.

Euriowie Tin ( Carpentaria purchasing 100%)

This prospect lies 60 km north of Broken Hill, NSW. (refer Figure 4).

The transfer of the tenement to Carpentaria 100% ownership was finalized and Government approval awaited. This was subsequently granted in early April and the transaction completed.

Previous reported results over a 1.4 km strike length of pegmatite were identified where rock chip and bulk sampling produced results that included (refer Figure 5):

8m @ 0.44% Sn (tin) including 1m @ 1.21% Sn from traverse E, and

6m @ 0.36% Sn including 1m @ 1.60% Sn from traverse H

Figure 5 shows these very encouraging results in more detail. The anomalous tin results are remarkably consistent and widespread. Figure 4 Tenement and Tin Prospect Locations

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Further geological reconnaissance and in situ analysis using the hand held Niton XRF analyzer has identified four other similar pegmatites containing coarse grained cassiterite (refer Figure 4). This work confirms the potential for further discoveries within EL 6936.

A drilling program to test the down dip continuance of the surface tin mineralization is being designed and will be submitted for approval to drill approximately 700 m in the June Quarter.

*Chip traverse results are an average of nominal 1m samples

*Assays method – Metaborate Fusion – Wavelength Dispersive XRF (ALSChemex XRF15b)

*Datum: GDA94 Zone54

Figure 5 Mt Euriowie Tin Prospect Results

Hughenden Coal (CAP 20%)

An agreement was announced to the ASX on February 22[nd] 2010 that The Chairmen 1 Pty. Ltd. had completed its due diligence on Carpentaria’s wholly owned subsidiary FTB (Qld) Pty. Ltd. FTB currently holds one granted coal exploration licence (EPC) and has four applications in the northern Galilee Basin. Carpentaria will add a further three EPC Applications 1573, 1574, and 1576 upon grant. Under the agreement with Carpentaria, The Chairmen 1 will add its existing Hughenden EPC Applications 2046, 2047, 2048 and 2049 to FTB upon grant, and potentially additional prospective coal tenements that are currently under negotiation with a third party.

A cash consideration of $300,000 was paid to Carpentaria in February and The Chairmen 1 will manage and fund up to $2.0m of exploration in order to define a thermal coal resource.

The Chairman 1 aims to commence a drilling program in April but this is dependent on weather related access.

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29 April 2010

Glen Isla Gold (100% with RMS earning an initial 51%)

A deal was finalized with Ramelius Resources Limited (RMS) whereby RMS funds the next phase of exploration, comprising a three dimensional (3-D) Induced Polarisation (IP) survey and follow up drilling of IP targets if warranted. The IP survey will cover a previously untested, geologically prospective area for high grade bonanza vein style gold mineralization within the Glen Isla epithermal gold system. This agreement was announced to the ASX on January 27, 2010.

Under the agreement, RMS will fund a minimum of $100,000 and, on definition of drill targets, fund a further $900,000 to earn a 51% interest. If successful, Carpentaria will have the benefit of a free carried Bankable Feasibility Study for Ramelius to earn its 75% project interest. Carpentaria can then fund to maintain its equity or dilute.

Carpentaria will manage the first stage ($1.0m expenditure) of the program which is a 3D Induced Polarisation and drilling if successful. This survey is due to commence in early April.

South Dam Iron (100% BMG earning an initial 49%)

An agreement with Bonython Metals Group was announced on the 4th February to the ASX for BMG to farm-in to Carpentaria’s 100% owned South Dam Iron Project, located only 50 km from the main rail line, approximately 200 km north of Adelaide in South Australia.

BMG will undertake an exploration program over a maximum period of three (3) years with total exploration expenditure of $1.95m. In more detail, Bonython will earn 49% with an exploration expenditure of $1.0m, 60% by expenditure of a further $0.5m and 80% with an additional $0.45M expenditure. At this stage, Carpentaria can elect to contribute pro-rata or dilute its project interest.

BMG intends to start a mapping and sampling program in the June Quarter.

Waterford Uranium

China Yunnan Copper Australia Limited purchased this project for $20,000.

Other Projects

During the quarter, Carpentaria has been in negotiation with other parties with a view to farming out various projects. This will allow Carpentaria to focus on the Broken Hill iron and tin discoveries and the Combaning gold project.

Target generation continued in the March Quarter and an Application was lodged for a large tenement with potential for direct shipping iron (hematite) located north of Broken Hill.

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Nick Sheard , who is a Fellow of the Australian Institute of Geoscientists and is a Registered Professional Geoscientist - Mineral Exploration and Geophysics. Mr Sheard is a full time employee of Carpentaria Exploration Limited and Mr Sheard has sufficient expertise 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’. Mr Sheard 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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Appendix 5B

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Mining exploration entity quarterly report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98.

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22	Name of entity	Quarter ended (“currentquarter”)
	Carpentaria Exploration Limited
	ACN or ABN
	63 095 117981	31-Mar-10
	Consolidated statement of cash flows
	Cash flows related to operating activities Receipts fromproduct sales and related debtors	Current quarter $A’000	Year to date (12 months) $A’000
		-	-
	Payments for
	(a)exploration and evaluation	- 282	-932
	(b) development (c) production
	(d)administration	- 230	-681
	Dividends received
	Interest and other items of a similar nature received	44	73
	Interest and other costs of finance paid Income taxes paid Other	-
	Net Operating Cash Flows	- 468	- 1,540
	Cash flows related to investing activities Payment for purchases of: (a)prospects (b)equityinvestments
	(c)other fixed assets	-	- 18
	Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets Loans to other entities Loans repaid by other entities Other	320	320
	Net investing cash flows	320	302
	Total operatingand investingcash flows(carried forward)	- 148	- 1,238
	Total operatingand investingcash flows(brought forward)	- 148	- 1,238
	Cash flows related to financing activities
	Proceeds from issues of shares,options,etc.	-	-
	Proceeds from sale of forfeited shares	-
	Proceeds from borrowings	-	-
	Repayment of borrowings Dividendspaid	-	-
	Other – capital raisingcosts	-	-
	Net financing cash flows	-	-
	Net increase(decrease) in cash held	- 148	- 1,238
	Cash at beginningofquarter/year to date	2,206	3,296
	Exchange rate adjustments to item 1.20
	Cash at end ofquarter	2,058	2,058

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

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	Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities
1.23 1.24 1.25		Current quarter $A'000
	Aggregate amount ofpayments to theparties included in item 1.2	51
	Aggregate amount of loans to theparties included in item 1.10	-
	Explanation necessary for an understanding of the transactions

Item 1.23 relates to Directors Remuneration, Fees and Superannuation Contributions.

Non-cash financing and investing activities

	Non-cash financing and investing activities
2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but didnotinvolve cash flows
	Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest

Financing facilities available

Add notes as necessary for an understanding of the position.

3.1 3.2 4.1 4.2 5.1 5.2 5.3 5.4		Amount available $A’000	Amount used $A’000
	Loan facilities	-	-
	Credit standby arrangements	-	-
	Estimated cash outflows for next quarter	$A’000
	Exploration and evaluation*	2,100
	Development	0
		Total 2100
	Reconciliation of cash
	Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.	Current quarter $A’000	Previous quarter $A’000
	Cash on hand and at bank	152	3
	Deposits at call Bank overdraft Other(provide details)	1,906	2203
		.
	Total: cash at end of quarter(item 1.22)	2,058	2,206

• Further funds received - refer ASX announcement 20 April 2010

Changes in interests in mining tenements

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Interests in mining tenements relinquished, reduced or lapsed

Changes in interests in mining tenements Interests in mining tenements relinquished, reduced or lapsed
	Nature of interest	Interest at beginning
		ofquarter
Tenement Reference	(note (2))	Interest at end of quarter
EPCA 1300 Black Creek	JV	100% 20%
EPCA 1394 Marathon	JV	100% 20%
EPCA 1477 Hughenden North	JV	100% 20%
EPCA 1478 Fairlight	JV	100% 20%
EPCA 1479 Yanks Bore	JV	100% 20%
EPCA 1480 Dutton	JV	100% 20%
EPM 16393 Waterford	Sold	100% 0%

	Changes in interests in mining tenements
	Interests in mining tenements relinquished, reduced or lapsed
	Tenement Reference	Nature of interest (note (2))	Interest at beginning ofquarter
			Interest at end of quarter
	EPCA 1300 Black Creek	JV	100%
			20%
	EPCA 1394 Marathon	JV	100%
			20%
	EPCA 1477 Hughenden North	JV	100%
			20%
	EPCA 1478 Fairlight	JV	100%
			20%
	EPCA 1479 Yanks Bore	JV	100%
			20%
	EPCA 1480 Dutton	JV	100%
			20%
	EPM 16393 Waterford	Sold	100%
			0%
6.2 7.1 7.2 7.3 7.4 7.5 7.6 7.7 7.8 7.9 7.10	Interests in mining tenements acquired or increased
	Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.
		Number quoted	Issue price per security (see note 3) (cents)
	Preference +securities (description) Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
	+Ordinary securities Quoted	67,500,000
	Options Quoted (Exercisable on 30 June 2010)	21,447,415
	+Ordinary securities Un-Quoted(restricted) Changes during quarter
	(a) Increases through issues
	(b) Decreases through returns of capital, buy-backs
	+Convertible debt securities(description) Changes during quarter (a) Increases through issues (b) Exercise of Options
	Options (description and conversion factor) Unlisted Options CAPAI Unlisted Options CAPAK Unlisted Options CAPAQ Unlisted Options CAPAS Unlisted Options CAPAY Issued during quarter Exercised during quarter Expired during quarter	Number	Exercise price Expiry date
		3,700,000	0.30 30-Jun-10
		2,000,000	0.15 26-Nov-12
		500,000	0.27 30-Jun-10
		800,000	0.15 30-Jun-10
		1,100,000	0.114 31-Jul-12
		600,000	0.250 30-Jul-13
		-	-
		-	-

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• 7.11 Debentures (totals only)

• 7.12 Unsecured notes (totals only)

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Law or other standards acceptable to ASX (see note 4).

• 2 This statement does give a true and fair view of the matters disclosed.

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_______ 29/04/2010 Company Secretary Chris Powell

• 1 This quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 The definitions in, and provisions of, AASB 1022: Accounting for Extractive Industries and AASB 1026: Statement of Cash Flows apply to this report.

• 5 Accounting Standards ASX will accept, for example, the use of International Accounting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.