HAWSONS IRON LTD — Capital/Financing Update 2016

Dec 19, 2016

ASX ANNOUNCEMENT

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

ABN : 63 095 117 981 ASX : CAP

20 December 2016

Hawsons Iron Project resource upgrade on track

Highlights

• Completion of a 5,963m reverse circulation drilling programme comprising 20 holes directed to a JORC* mineral resource category upgrade of the existing resource to enable support of prefeasibility study due Q2 2017

• Potential for successful mineral resource upgrade as observed geology, preliminary assays meet expectations

• Analyses received from first 12 holes and showed 10 intersections between 105-200m thick and intersection of a proximal new mineralised zone in the north-east

• Best intersection of 200m at 16.8% magnetite mass recovery at 69.9%Fe concentrate grade in RC16BRP062

• Weighted average magnetite mass recovery and concentrate quality of significant intersections returned so far is 15.2% and 69.9%Fe, consistent with or better than current resource (14.9% at 69.7%Fe)

• Confidence in mining and processing plans increased as characteristics so far consistent with expectations

• Detailed analysis of geology and analytical results underway

* Joint Ore Reserves Committee

Level 6, 345 Ann Street Brisbane Qld 4000

PO Box 10919, Adelaide St Brisbane Qld 4000

e-mail: info@capex.net.au

For further information contact: Quentin Hill Managing Director Phone: 07 3220 2022

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Emerging iron producer Carpentaria Exploration Limited (ASX:CAP) announced today positive results from a recent drilling programme at its Hawsons Iron Project. The programme, aided by the Company’s recent successful capital raising, is designed to support a resource upgrade and planned new prefeasibility study for the Company’s flagship project near Broken Hill.

Drilling comprising 5,963m in 20 reverse circulation ( RC ) holes was completed on Friday and included additional drilling in the Fold prospect (Figure 1). The drilling targets upgrading significant portions of the resource from JORC Inferred Resource to JORC Indicated Resource which, if achieved would boost confidence in the project’s economic viability[1] . A resource upgrade is set to form part of a new prefeasibility study for Hawsons, scheduled for completion in the second quarter of 2017.

Carpentaria’s Managing Director Quentin Hill said the early results indicated the resource upgrade programme is on track for one of Australia’s highest quality emerging iron projects.

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ASX ANNOUNCEMENT

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“We have received results from the first twelve holes, and so far the geological interpretation is proving very robust and the analytical results so far are in line with our expectations. This gives us confidence we can achieve a significant upgrade from Inferred Resources to Indicated Resources,” Mr Hill said.

“Should this be achieved, it is planned that a new resource estimate will support a revised mine plan for use in a prefeasibility study for Hawsons, due in quarter two next calendar year.”

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Targeted resource upgrade area
Sections shown in
Figures 2 and 3
Fold
prospect
Geophysics collected on earlier holes
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Figure 1 – Drill hole location plan

Drilling programme

The work programme carried out, together with results to date, have improved the potential for a resource upgrade due to the following:

• Drill spacing across large areas of the deposit has tightened from a nominal 400m x 200m to a nominal 200m x 200m in areas of existing Inferred Resource;

• Initial analysis of observed geological data and analytical results received to date correlate closely with the existing interpretation, demonstrating that interpolating across significant distances can be done with some confidence;

• Downhole geophysical data was collected from over 80% of the mineralised parts of this drill programme and also from two earlier drill holes. This data type was integral to the classification of existing Indicated Resources.

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ASX ANNOUNCEMENT

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The confidence in some of the deposit’s key competitive advantages is also increasing as extra drilling supports earlier mining and processing assumptions. This is because:

• there is no expected material change in mining characteristics, including the exceptional mining widths of circa 500m and the depth of overburden as the geological interpretation so far appears robust;

• Davis Tube Recovery ( DTR ) tests were done for every fresh rock interval drilled, consistent with earlier drilling programmes;

• concentrate quality results received to data are outstanding and consistent with expectations. Pilot plant work (ASX Announcement 14 October 2015) has shown Hawsons can produce amongst the finest quality concentrate in the world, known as Hawsons Supergrade, at 70.3%Fe. While the resource grade determined by DTR concentrate analysis is currently 69.7% Fe, the test work included an additional upgrade stage without materially affecting recoveries.

The drilling has provided some analytical data for Unit 1 and confirmed its presence in the north central part of the deposit, where it has previously been ignored. The magnetite mass recovery and concentrate grades are above the resource cutoff grades, potentially extending the known resource limits (Figures 1 and 3).

Analysis of the data is continuing, and a further update will be provided when the remaining results are received.

Table 2 shows the significant intersections and Figures 2 and 3 are representative cross sections of the results.

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New mineralisation, Unit 1
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Figures 2 and 3 Example cross sections

Commenting on the latest results, Mr Hill said: “Hawsons is set to benefit from its favourable location near Broken Hill and superior access to infrastructure, putting it first in the queue for development among the next wave of iron projects. Having already attracted support from international blue-chip buyers across Asia and the Middle East in the Hawsons Supergrade product, Carpentaria is now focused on further upgrading Hawsons to secure a strategic development partner, complete a bankable feasibility study and launch production at this valuable new project for Broken Hill and Australia.”

Background

Under the JORC Code, 2012 Edition, an Indicated Mineral Resource is that part of a Mineral Resource for which quantity, grade (or quality), densities, shape and physical characteristics are estimated with sufficient confidence to allow the

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ASX ANNOUNCEMENT

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application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit.

An Indicated Mineral Resource has a higher level of confidence than an Inferred Mineral Resource and is the dominant resource in the early mine plan of any prefeasibility study under the Code.

At Hawsons, iron distribution is largely controlled by sedimentary processes resulting in thick, widespread sequences of magnetite iron ore. Being magnetite, magnetic surveys are reliable predictors of iron ore distribution. These deposit characteristics mean that drill spacing to achieve the confidence level of Indicated Resources is wider than a typical metal deposit and closer in character to that of a coal resource.

About Hawsons Iron Project

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The Hawsons Iron Project joint venture (Carpentaria 64%, Pure Metals P/L 36%) is currently undertaking development studies based on the low cost, long term supply of a high grade, ultralow impurity iron concentrate to a growing premium iron market, including the direct reduction market.

The project has a clear technical and permitting pathway. It is located 60km southwest of Broken Hill, an ideal position for mining operations with existing power, rail and port infrastructure available for a conceptual 10 Mtpa start-up operation. A mining lease application has been lodged.

The project’s soft rock is different from traditional hard rock magnetite and allows a very different approach to the typical magnetite mining and processing challenges (both technical and cost-related). The soft rock enables simple liberation of a Supergrade magnetite product without complex and expensive processing methods.

The Company is targeting the growing premium high grade Figure 4 Location of Hawsons Iron Project and Port Pirie product market, both pellets and pellet feed, which is separate to the bulk fines market, and believes its targeted cost structure is very competitive and profitable at consensus long-term price forecasts for this sector. It has secured offtake intent from blue chip companies Bahrain Steel, Emirates Steel, Formosa Plastics, Mitsubishi RtM and Gunvor.

The project is underpinned by Inferred and Indicated Resources totalling 1.8 billion tonnes at 15% mass recovery for 263 million tonnes of concentrate grading at 69.7% Fe. The Company confirms that it is not aware of any new data that materially affects this resource statement since the first public announcement and that all material assumptions and technical parameters underpinning the resource estimates continue to apply and have not materially changed since first reported (ASX Announcement 26 March 2014 and Table 2).

			concentrate grades	concentrate grades	concentrate grades	concentrate grades	concentrate grades	Contained
		Magnetite
	Billion Tonnes
								Concentrate million
Category	(cut off 12% mass recovery)	mass recovery (%)	Fe%	**SiO2% **	**Al2O3% **	P%	LOI%	tonnes
Inferred	1.55	14.7	69.6	2.9	0.20	0.004	-3.0	228
Indicated	0.22	16.2	69.8	2.8	0.20	0.005	-3.0	35
Total	1.77	14.9	69.7	2.9	0.20	0.004	-3.0	263

Table1 JORC compliant resources- Hawsons Iron Project

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ASX ANNOUNCEMENT

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Hole ID	From (m)	To (m)	Thickness (m)	Magnetite Mass Recovery % (DTR)	Head Fe %	Concentrategrades	Concentrategrades	Concentrategrades	Concentrategrades	Concentrategrades	Concentrategrades	comment
						Fe%	SiO2 %	Al2O3 %	P %	S %	LOI
RC16BRP060	69	241	172	13.0	17.9	70.2	2.02	0.16	0.001	0.003	-2.94
incl incl	116 211	186 236	70 25	15.3 14.1	15.3 23.1	70.3 70.6	2.13 1.71	0.16 0.14	0.001 0.000	0.003 0.002	-3.18 -3.14
	251	306	55	14.0	16.0	69.6	2.83	0.20	0.001	0.004	-3.02
RC16BRP061	79	234	155	15.7	17.0	69.2	3.25	0.19	0.003	0.002	-2.94
incl	79	204	125	16.9	18.1	69.2	3.28	0.18	0.004	0.003	-2.86
	244	279	35	16.9	20.5	71.1	1.20	0.09	0.001	-0.001	-3.29
RC16BRP062	105	305	200	16.8	19.2	69.9	2.53	0.17	0.004	0.000	-3.10
incl incl	150 240	275 265	125 25	17.8 18.7	17.5 20.7	69.7 70.7	2.85 1.71	0.19 0.12	0.004 0.003	0.000 -0.001	-3.12 -3.23
	315	335	20	13.2	14.2	69.1	3.61	0.22	0.006	0.002	-3.17
	345	350	5	11.2	11.5	69.7	2.77	0.25	0.004	0.006	-3.23	EOH
RC16BRP064	92	117	25	15.8	19.1	69.8	2.08	0.11	0.002	-0.001	-2.37
	142	227	85	14.9	16.4	69.3	3.24	0.16	0.002	-0.001	-3.06
incl.	152	212	60	16.5	17.5	69.3	3.25	0.16	0.003	-0.001	-3.03
	237	354	117	15.4	16.8	70.4	2.16	0.12	0.000	-0.001	-3.28	EOH
incl.	297	354	57	17.3	17.1	70.4	2.12	0.11	0.000	-0.001	-3.31	EOH
RC16BRP065	96	291	195	16.1	18.4	70.5	1.84	0.13	0.002	-0.001	-3.13
	301	311	10	14.3	18.3	69.3	3.31	0.18	0.005	-0.001	-3.10
RC16BRP066	98	203	105	15.2	16.9	70.3	2.09	0.13	0.001	-0.001	-3.10
	213	238	25	12.5	21.9	70.5	2.09	0.12	0.001	-0.001	-3.19
RC16BRP069	89	124	35	12.1	15.5	69.2	2.74	0.19	0.002	-0.001	-2.03	transition zone
	134	179	45	11.0	13.8	69.7	2.79	0.16	0.000	-0.001	-3.07
	194	348	154	14.9	19.7	70.6	1.84	0.12	0.001	-0.001	-3.31	EOH
incl.	229	319	90	16.7	18.0	70.7	1.77	0.12	0.000	-0.001	-3.34
RC16BRP067	174	181	7	12.8	22.6	70.7	1.38	0.13	0.003	-0.001	-3.02	EOH, abondoned
RC16BRP068	149	309	160	17.6	18.2	68.7	3.89	0.23	0.004	-0.001	-2.94
incl.	219	279	60	19.6	18.4	68.1	4.55	0.25	0.005	-0.001	-2.87
	334	354	20	11.5	14.3	70.4	1.96	0.12	0.003	0.000	-3.28	EOH
RC16BRP070	88	233	145	13.6	20.1	70.2	2.14	0.12	0.002	0.000	-3.07
incl. incl.	143 198	168 228	25 30	15.5 15.8	24.0 21.2	70.6 69.0	1.74 3.55	0.10 0.19	0.002 0.004	-0.001 0.002	-3.17 -2.90
	283	323	40	12.2	14.4	69.1	3.41	0.19	0.003	0.005	-3.05
	333	355	22	18.7	20.7	70.0	2.44	0.16	0.005	-0.001	-3.23	EOH
RC16BRP071	79	214	135	17.3	19.0	68.5	4.00	0.16	0.005	0.000	-2.70
incl.	99	204	105	18.3	18.9	68.5	4.19	0.17	0.005	0.000	-2.89
RC16BRP072	104	109	5	23.8	25.1	70.1	2.14	0.07	0.004	-0.001	-2.84
	119	184	65	13.7	16.2	70.7	1.35	0.13	0.002	0.004	-2.91	EOH

Table 2 Significant intersections (10% magnetite mass recovery cut off, no more than 5m of internal dilution)

For further information please contact:

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Quentin Hill Managing Director +61 7 3220 2022

Media Enquiries

Anthony Fensom Fensom Communications +61 (0) 407 112 623

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

The information in this report that relates to Exploration Results, Exploration Targets and Resources is based on information evaluated by Mr Q.S. Hill who is a member of the Australian 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 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources

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ASX ANNOUNCEMENT

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and Ore Reserves (the “JORC Code”). Mr Hill is a Director of Carpentaria Exploration Ltd and he consents to the inclusion in the report of the Exploration Results in the form and context in which they appear.

Hole ID	Hole Type	GDA_East	GDA_North	RL	Dip	Azimuth (Grid)	Hole Depth	Assay Result Status
RC16BRP060	RC	512263	6413511	196	-60	40	336	Received
RC16BRP061	RC	512225	6413155	194	-60	40	282	Received
RC16BRP062	RC	512349	6413301	195	-60	40	354	Received
RC16BRP063	RC	512435	6413395	195	-60	40	264	Pending
RC16BRP064	RC	512532	6412895	190	-60	40	354	Received
RC16BRP065	RC	512670	6413058	191	-60	40	324	Received
RC16BRP066	RC	512845	6412953	191	-60	40	265	Received
RC16BRP067	RC	512659	6412422	189	-60	40	181	Received
RC16BRP068	RC	512770	6412557	188	-60	40	354	Received
RC16BRP069	RC	512904	6412712	189	-60	40	348	Received
RC16BRP070	RC	513019	6412851	191	-60	40	355	Received
RC16BRP071	RC	512322	6412968	191	-60	40	214	Received
RC16BRP072	RC	513243	6412516	194	-60	40	184	Received
RC16BRP073	RC	513064	6412597	192	-60	40	354	Pending
RC16BRP074	RC	513174	6412726	192	-60	40	324	Pending
RC16BRP075	RC	513152	6412375	193	-60	40	312	Pending
RC16BRP076	RC	513845	6412129	195	-60	40	312	Pending
RC16BRP077	RC	513952	6412254	193	-60	40	276	Pending
RC16BRP078	RC	514078	6411938	195	-60	40	300	Pending
RC16BRP079	RC	514175	6412053	193	-60	40	270	Pending

Table 3 Drillhole collar data

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ASX ANNOUNCEMENT

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JORC Code, 2012 Edition – Table 1 Hawsons Iron Project

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma		A total of 20 drillholes were drilled by CAP. Results of 12 drillholes have been received to date. Drillholes were reverse circulation (RC) from surface.
	sondes, or handheld XRF instruments, etc). These examples should		All sampling was to industry standard
	not be taken as limiting the broad meaning of sampling.		RC drillholes were drilled to obtain 1m samples with sample
	 Include reference to measures taken to ensure sample representivity		compositing applied to obtain a 5m 6kg sample which was
	and the appropriate calibration of any measurement tools or systems		pulverized to produce 150g aliquot for X-Ray Fluorescence (XRF)
	used.		and Davis Tube Recovery (DTR) analysis. Magnetic susceptibility
	 Aspects of the determination of mineralisation that are Material to the		measurements and geological logging was completed for every
	Public Report.		metre of every drillhole.
	 In cases where ‘industry standard’ work has been done this would be		Endeavour Geophysics carried out down hole geophysical logging
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1		and gyroscope surveying on all drillholes. Surveys were
	m samples from which 3 kg was pulverised to produce a 30 g charge		conducted on open hole. The geophysical logging consisted of
	for fire assay’). In other cases more explanation may be required,		natural gamma, magnetic susceptibility, density and caliper
	such as where there is coarse gold that has inherent sampling		readings.
	problems. Unusual commodities or mineralisation types (eg		CAP has a suite of documented procedures for drilling related
	submarine nodules) may warrant disclosure of detailed information.		activities
			Consistency of sampling method maintained.
			Samplingtechnique is considered appropriate for deposit type
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other	 	Drilling was RC. RC drilling was carried out using a truck mounted Sandvik DE 840 (UDR1200) and truck mounted UDR1000. Both used 4.5 inch rods
	type, whether core is oriented and if so, by what method, etc).		and 5 ½ inch face bits.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure		RC sampling done on 1m intervals into green plastic bags. Sample recoveries for RC were visually estimated by the geologist
	representative nature of the samples.		at the time of drilling and recorded,
	 Whether a relationship exists between sample recovery and grade		Because no numerical RC chip recovery data exists it is not
	and whether sample bias may have occurred due to preferential		possible to conclude if there is a relationship between sample
	loss/gain of fine/coarse material.		recovery and mineral grade
			A hand held XRF orientation study concluded that there was no
			sample bias with loss orgain of fine/coarse material.

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ASX ANNOUNCEMENT

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Criteria	JORC Code explanation	Commentary	Commentary
			Negligible wet samples in the RC drilling
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.		Every RC drillhole was logged by a geologist & entered into Excel spread sheets recording; Recovery, Moisture content, Magnetic susceptibility, Oxidation state, Colour, % of Magnetite, Gangue
	 Whether logging is qualitative or quantitative in nature. Core (or		Min, Sulphide Min, Veins and Structure. Data was uploaded to a
	costean, channel, etc) photography.		customised Access database.
	 The total length and percentage of the relevant intersections logged.		Logging used a mixture of qualitative and quantitative codes
			All RC sample metres were sub-sampled, sieved, washed and
			stored in a labelled plastic chip tray. All remaining drill core after
			sampling was stored in labelled plastic core trays on site.
			All relevant intersections were logged
			Geological logging was of sufficient detail to allow the creation of
			a geological model.
Sub-sampling techniques	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and		RC samples were composited using the riffle split method. A 1/8 split was taken from the rig every metre then composited by splitting again using a 50/50 riffle splitter.
and sample	whether sampled wet or dry.		Field duplicates, blanks (washed sand) and standards we used for
preparation	 For all sample types, the nature, quality and appropriateness of the sample preparation technique.		quality control measures All sampling methods and samples sizes are deemed appropriate
	 Quality control procedures adopted for all sub-sampling stages to
	maximise representivity of samples.
	 Measures taken to ensure that the sampling is representative of the in
	situ material collected, including for instance results for field
	duplicate/second-half sampling.
	 Whether sample sizes are appropriate to the grain size of the material
	being sampled.
Quality of assay data	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.		Pulverizing  Crush the sample to 100% below 3.35 mm.  Separate a sample of 150 g for pulverizing in aC125 ring
and	 For geophysical tools, spectrometers, handheld XRF instruments, etc,		pulverizer(record weight) – DTR SAMPLE.
laboratory tests	the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.		 Initially pulverize the 150 g sample for nominal 30 seconds – the sample is unusually soft for a ferro-silicate rock!  Wet screen the DTR sample at 38 micron pressure filter and
	 Nature ofquality controlprocedures adopted(eg standards, blanks,		dry,screen at 1 mm to de-clumpand re-homogenize.

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ASX ANNOUNCEMENT

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Criteria JORC Code explanation Commentary

Criteria JORC Code explanation Commentary

duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.  

 Record the oversize weights – if less than approximately 20 g is oversize, stop the procedure – failure.  If failure - select another 150 g DTR Sample and reduce the initial pulverization time by 5 secs, repeat until initial grind pass returns greater than approximately 20 g oversize. Once achieved retain the – 38 micron undersize.  Regrind only the oversize for 4 seconds of every 5 g weight of oversize.  Repeat the wet screening, drying, de-clumping & weighing stages until less than 5g above 38micron remains.  Ensure the remaining < 5 g oversize is returned back into the previously retained -38 micron product.  Report the times and weights for each grind pass phase.  Combine and homogenize all retained -38 micron aliquots and <5 g oversize –final pulverized product. Sub-sample the final pulverized product to give a 20 g feed sample forDTR workand a ~10 g sample for HEAD analysis via XRF fusion.  The objective of the pulverizing procedure is to achieve a nominal P80 of approximately 25 micron for the sample. Davis Tube Recovery (DTR) Analysis Pulverizer bowl 150 ml Stroke Frequency 60/minute Stroke length – 38mm Magnetic field strength – 3000 gauss Tube Angle – 45 degrees Tube Diameter – 40mm Water flow rate – 540-590 ml/min Washing time 20 minutes Collect the concentrate in small collector (magnetic fraction) and discard tails. X-Ray Fluorescence (XRF) Assaying Head Sample Using the Head Sample, analyse byXRF fusion methodfor the following elements: Al2O3 %, As % , Ba % , CaO % , Cl % , Co % , Cr % , Cu % , Fe % , K2O % , MgO % , Mn % , Na2O % , Ni % , P % , Pb % , S % , SiO2 % , Sn % , Sr % , TiO2 %,V %,Zn %,Zr % & LOI.

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ASX ANNOUNCEMENT

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Criteria	JORC Code explanation	Commentary	Commentary
			DTR Concentrate Sample
			Dry the DTR concentrate and report the weight of the
			concentrate as a percentage of measured feed and report –
			DTR Mass Recovery.
			Analyse the concentrate by XRF fusion method for the
			following elements: Al2O3 %, As % , Ba % , CaO % , Cl % ,
			Co % , Cr % , Cu % , Fe % , K2O % , MgO % , Mn % , Na2O
			% , Ni % , P % , Pb % , S % , SiO2 % , Sn % , Sr % , TiO2 %
			, V % , Zn % , Zr % & LOI.
			JH8 and KT5 magnetic susceptibility metres were using to
			record magnetic susceptibility. A laboratory standard was used
			each day to calibrate each metre. A Niton XL3T Gold hand help
			XRF machine was used. A laboratory analysed sample was
			used to calibrate for Fe.
			QAQC procedures consisted of using Field duplicates, Blanks
			and Standards at a frequency of 10 per 100 samples.
			Internal QAQC measures were also undertaken by ALS.
			Samples were sent to Interteck acting as an umpire laboratory.
			Satisfaction of precision, accuracy and any lack of bias was
			made by an independent consultant using control plots.
			All sampling and assay methods and samples sizes are deemed
			appropriate.
Verification of	 The verification of significant intersections by either independent or		Data was stored in an Access database
sampling and	alternative company personnel.  The use of twinned holes.		Twin DD holes were used to verify the results for RC holes and the DTR performance.
assaying	 Documentation of primary data, data entry procedures, data		No Adjustments were made to raw assay data and lab
	verification, data storage (physical and electronic) protocols.		certificates were presented to verify the data.
	 Discuss any adjustment to assay data.
Location of	 Accuracy and quality of surveys used to locate drill holes (collar and		Drill holes collars were located using a Differential GPS accuracy
data points	down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.		to less than one metre by a local surveyor. Coordinates were supplied in GDA 94 – MGA Zone 54.
	 Specification of the grid system used.		Down hole surveys were recorded using a gyroscope due to the
	 Quality and adequacy of topographic control.		highly magnetic nature of the deposit.
			Topographic control was collected using a high resolution
			Differential GPS bya local surveyor

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ASX ANNOUNCEMENT

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Criteria	JORC Code explanation	Commentary	Commentary
			Location methods used to determine accuracy of drillhole collars
			is considered appropriate
Data spacing and	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral	 	The deposit is drill at a nominal spacing of 150m to 200m in section and plan. The drill spacing was deemed adequate for the interpretation of
distribution	Resource and Ore Reserve estimation procedure(s) and		geological and grade continuity noting the homogeneity of the
	classifications applied.		deposit and style of mineralisation.
	 Whether sample compositing has been applied.		Drill samples were composited at a nominal 5m
Orientation of	 Whether the orientation of sampling achieves unbiased sampling of
data in	possible structures and the extent to which this is known, considering the deposit type.		Drilling was completed at -60o, generally sub-perpendicular to the bedding, which is the primary control to the magnetite
relation to	 If the relationship between the drilling orientation and the orientation		mineralisation.
geological structure	of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.		Different azimuths were used to reflect the changing strike of the beds associated with folding of the sediments and were designed to maintain the steep angle to the bedding
			Locally holes deviated to the right (east) with depth.
			Drilling orientations are considered appropriate with no bias.
Sample security	 The measures taken to ensure sample security.	 	All samples were stored on site under company personnel supervision until transporting to the companies Broken Hill office Intensity of magnetite mineralisation is difficult to see visually but
			detectable usinga magnet.
Audits or	 The results of any audits or reviews of sampling techniques and data.		Sample procedures and results were reviewed by company
reviews			personnel systematically. The QAQC data is being reviewed by Carpentaria staff and an external consultant.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria		JORC Code explanation	Commentary	Commentary
Mineral		 Type, reference name/number, location and ownership including		The Hawsons Magnetite project is located in Western NSW, 60
tenement	and	agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests,		km southwest of Broken Hill. The deposit is 30km from the Adelaide-Sydney railway line, a main highway and a power
		historical sites, wilderness or nationalpark and environmental		supply.

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Criteria	JORC Code explanation	Commentary	Commentary
land tenure	settings.		The project is under a Joint Venture between Carpentaria
status	 The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.		Exploration Ltd (CAP) and Pure Metals Pty Ltd where CAP holds 64% and Pure Metals 36% equity in the project. Pure Metals
			currently manage the project.
			The project area is wholly within Exploration Licences (ELs) 6979,
			7208 & 7504 which are 100% owned by CAP.
			Licence conditions for all ELs have been met and are in good
			standing.
			An application for a Mining Lease (ML) was lodged with the NSW
			Trade & Investment Department in October 2013 and Carpentaria
			is not aware of anyimpediments to obtaininga mininglease.
Exploration done by other	 Acknowledgment and appraisal of exploration by other parties.		In 1960 Enterprise Exploration Company (the exploration arm of Consolidated Zinc) outlined a number of track-like exposures of Neoproterozoic magnetite ironstone (+/- hematite) which returned
parties			a maximum result of 6 m at 49.1% Fe from a cross-strike channel
			sample. No drilling was undertaken by Enterprise.
			CRAE completed five holes within EL 6979 seeking gold
			mineralisation in a second-order linear magnetic low interpreted
			to be a concealed faulted iron formation within the hinge of the
			curvilinear Hawsons’ aeromagnetic anomaly. CRAE’s program
			failed to locate significant gold or base metal mineralisation but
			the drilling intersected concealed broad magnetite ironstone units
			interbedded with diamictite adjacent to the then untested peak of
			the highest amplitude segment of the Hawsons aeromagnetic
			anomaly.
Geology	 Deposit type, geological setting and style of mineralisation.		The Hawsons Magnetite Project is situated within folded, upper greenschist facies Neoproterozoic rocks of the Adelaide Fold Belt.
			The Braemar Facies magnetite ironstone is the host stratigraphy
			and comprises a series of narrow, strike extensive magnetite-
			bearing siltstones generally with a moderate dip (circa 45o). The
			airborne magnetic data clearly indicates the magnetite siltstones
			as a series of parallel, narrow, high amplitude magnetic
			anomalies. Large areas of the Hawsons prospective stratigraphy
			are concealed by transported ferricrete and other younger cover.
			The base of oxidation due to weathering over the prospective
			horizons is estimated to average 80m in depth.

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Criteria	JORC Code explanation	Commentary	Commentary
			The Hawsons project comprises a number of prospects including
			the Core, Fold, T-Limb, South Limb and Wonga deposits.
			Resource Estimates have been generated for the Core and Fold
			areas which are contiguous.
			The depositional environment for the Braemar Iron Formation is
			believed to be a subsiding basin, with initial rapid subsidence
			related to rifting possibly in a graben setting eg the diamictites in
			the lower part of the sequence. A possible sag phase of cyclical
			subsidence followed with deposition of finer grained sediments
			with more consistent, as compared to the diamictite units, bed
			thicknesses, style and clast composition. The top of the Interbed
			Unit marks the transition from high to lower energy sediment
			deposition
			The distribution of disseminated, inclusion-free magnetite in the
			Braemar Iron Formation at Hawsons is related to the composition
			and nature of the sedimentary beds. The idioblastic nature of the
			of the magnetite is believed due to one or more of a range of
			possible processes including in situ recrystallisation of primary
			detrital grains, chemical precipitation from seawater, permeation
			of iron-rich metamorphic fluids associated with regional
			greenschist metamorphism . Grain size generally ranges from
			10microns to 0.2mm but tends to average around the 40micron
			mark. The sediment composition and grain size appear to provide
			a control on the mineralisation. There is no evidence for structural
			control in the form of veins or veinlets coupled with the lack of a
			strong structural fabric.
			In the majority of the Core and Fold deposit the units strike south
			east and dip between 45 and 65˚ to the south west. The eastern
			Fold deposit comprises a relatively tight synclinal fold structure
			resultingina 90o strikerotation.
Drill hole	 A summary of all information material to the understanding of the		See Table 3 for all drill hole information in this report
Information	exploration results including a tabulation of the following information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in
	metres) of the drill hole collar
	o dip and azimuth of the hole

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Criteria	JORC Code explanation	Commentary	Commentary
	o down hole length and interception depth
	o hole length.
	 If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should clearly
	explain why this is the case.
Data	 In reporting Exploration Results, weighting averaging techniques,		All significant intercepts reported are downhole weighted
aggregation	maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.		averages with magnetite mass recovery (DTR) 10% bottom cut off grade with no more than 5m (one sample) of internal dilution in
methods	 Where aggregate intercepts incorporate short lengths of high grade		Table 2.
	results and longer lengths of low grade results, the procedure used
	for such aggregation should be stated and some typical examples of
	such aggregations should be shown in detail.
	 The assumptions used for any reporting of metal equivalent values
	should be clearly stated.
Relationship between	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole		Drilling was planned to intersect the geology as close to perpendicular as possible to bedding to achieve true widths.
mineralisation	angle is known, its nature should be reported.
widths and intercept	 If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).
lengths
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being		Figure 1 -3 illustrate drill hole locations and typical section for the results reported.
	reported These should include, but not be limited to a plan view of
	drill hole collar locations and appropriate sectional views.
Balanced	 Where comprehensive reporting of all Exploration Results is not		All significant intercepts reported are downhole weighted
reporting	practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of		averages with no top or bottom cuts.
	Exploration Results.
Other	 Other exploration data, if meaningful and material, should be reported		Downhole geophysics comprises magnetic susceptibility, gamma
substantive	including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and		and density has been completed for a majority of the holes. This has resulted in the definition of a magnetic(and density-related)

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Criteria	JORC Code explanation	Commentary	Commentary
exploration data	method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.		stratigraphy that is coincident with a chronostratigraphic interpretation.
Further work	 The nature and scale of planned further work (eg tests for lateral		Further environmental and engineering studies are planned which
	extensions or depth extensions or large-scale step-out drilling).		will form part of the current PFS completion.
	 Diagrams clearly highlighting the areas of possible extensions,
	including the main geological interpretations and future drilling areas,
	provided this information is not commercially sensitive.

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