HAWSONS IRON LTD — Capital/Financing Update 2013

May 30, 2013

ASX ANNOUNCEMENT

ABN: 63 095 117 981 | ASX: CAP

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

31 May 2013

New Joint Venture with Pure Metals commences

Highlights

• New Joint Venture with Pure Metals commences

• Pure Metals pays Carpentaria $1.0m cash

• Pure Metals purchases 40% of Hawsons Iron Project for $3.25 million (CAP retains 60%)

• Bankable Feasibility funding of $5.0m to begin in the coming weeks

Carpentaria is pleased to announce that its new Joint Venture Partner, Pure Metals Pty Ltd has completed its acquisition of a 40% share in the Hawsons Iron Project Joint Venture following assignment from the Liquidators of BMG.

Pure Metals paid $1,000,000 to Carpentaria yesterday in accordance with the new Joint Venture agreement.

Under the new Joint Venture Pure Metals will now fund $5.0m towards the Hawsons Bankable Feasibility Study (BFS) over the next twelve months at which time the participating interests will remain CAP 60% and Pure Metals 40%. This funding will accelerate the BFS and is expected to begin in the coming weeks following agreement on the work program.

Level 6, 345 Ann Street Brisbane Queensland 4000

PO Box 10919 Adelaide Street, Brisbane Queensland 4000

e-mail: info@capex.net.au

For further information contact: Nick Sheard Executive Chairman Phone: 07 3220 2022

In addition, a further payment of $2.8 million from Pure Metals to CAP to finalise payment of past expenditures on the project is due the earlier of the completion of Federal Court proceedings[1] or two years. The Federal Court has ruled that the sale of the BMG Joint Venture Interest (40%) in the Hawsons Iron Project could proceed, dismissing an application to prevent the sale by way of an injunction on 18[th] April 2013. The Federal Court noted in its reasons for judgement that there was no serious question to be tried. However, the proceedings are still listed with the Federal Court.

Nick Sheard, Executive Chairman of Carpentaria says “this is a very positive outcome for Carpentaria shareholders and we look forward to the commencement of the next phase of work”. Following the payment from Pure Metals, Carpentaria’s cash balance is $4,434,475.

ASX ANNOUNCEMENT

About Hawsons Iron Project

Located 60 kilometres south-west of Broken Hill, the Hawsons Iron Project includes an Inferred magnetite Resource of 1.4 billion tonnes (Bt) at a Davis Tube Recovery (DTR) of 15.5% (12% cut-off) for 220 million tonnes of high grade (69.9% Fe) iron concentrate and an Exploration Target[2] of 6-11 Bt at 14-17% DTR for over 1,000 million tonnes of concentrate (refer ASX Announcement 23rd May, 2011).

Results of a Pre-Feasibility Study (PFS) were updated following a mining optimisation study and were released to the ASX on 21st November 2011. The results were very positive and, as such, Carpentaria has continued to develop the project, increasing its value.

The project is favourably located with existing power, water, rail and port infrastructure available for a 5-10 mtpa start-up operation. In November 2012, the New South Wales Government declared Hawsons a ‘State Significant Development’ project, also providing the Director General’s Requirements for an Environmental Impact Statement.

For further information please contact:

Nick Sheard

Executive Chairman Carpentaria Exploration Limited +61 7 3220 2022 nick.sheard@capex.net.au

1 CAP ASX Announcement 6 March 2013, CAP Announcement 22 April 2013

2The term “Target” should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.

Competent Person Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by S.N.Sheard, currently employed by Carpentaria Exploration Limited, a Member of the Australian Institute of Geoscientists and is also a Registered Professional Geoscientist - Mineral Exploration and Geophysics 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 consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Page 2