HAWSONS IRON LTD — Interim / Quarterly Report 2008

Apr 21, 2008

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QUARTERLY REPORT ENDING 31 MARCH 2008

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HIGHLIGHTS:

• DRILLING COMMENCED AT GLEN ISLA

• AIRBORNE EM (VTEM) COMPLETED AT COMBANING – DRILLING ANTICIPATED JUNE QUARTER

• PRIORITY DRILLING TARGETS IDENTIFIED AT MT AGATE

• REDBANK FARMOUT COMPLETED – DRILLING TO COMMENCE JUNE QUARTER

• BROKEN HILL EXPLORATION FOR GOLD, LEAD/ZINC, TIN AND RARE METALS COMMENCES

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Figure 1 Carpentaria Exploration Ltd. Tenement Location March 2008

Carpentaria Exploration Limited (ASX:CAP) has continued to expand its exploration portfolio this quarter through acquisition of Bulldozer Prospecting Pty. Ltd., which had two tenements in NSW. Negotiations for a farm-in to Stellar Resources Limited (ASX: SZR) Panama Hat Project were commenced this quarter and finalized in early April. In Queensland Waterford EPMA 16393, was offered for grant under standard conditions after no objections were received from Native Title holders - final grant as an exploration permit is expected in the June quarter.

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GLEN ISLA – DRILLING COMMENCED

This 100% owned tenement is located in the Lachlan Fold Belt , approximately 15 km NNE of the Peak Hill Gold Mine, about 50 km southwest of the major regional centre of Dubbo and near the township of Tomingley, (see Figure 2).

The Glen Isla tenement lies within a north south belt of lode quartz, porphyry and epithermal gold deposits that extend from Forbes in the south through North Parkes

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(Goonumbla), Peak Hill and to Tomingley, where Alkane Resources Ltd. (Alkane) is currently undertaking a mining feasibility study on recently discovered gold resources adjacent to the Carpentaria tenement.

The Glen Isla drilling commenced late in the quarter. Diamond Hole 1 was targeted on a gold bearing brecciated zone within the rhyolite down dip from previous intersections considered to be lower in the epithermal sequence and with higher gold grade potential. About 750m of diamond drilling followed by about 1800 m of reverse circulation is anticipated.

Figure 2 Central NSW Project Location Map

The target was intersected as predicted however there was no increase in sulphide content and selected rush assays returned low gold results but final assays are pending.

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GLEN ISLA – DRILLING COMMENCED (CONTINUED)

Additional diamond holes are designed to identify structural components and anomalous untested surface gold anomalies. Structural information will be used to target later reverse circulation holes. It is anticipated all holes will be finished in the June quarter.

During the quarter, reconnaissance rock chip and mapping was completed at the Ellerslie Prospect situated in the western part of the tenement 2 km SE of Alkane’s Caloma Deposit. A quartz vein system with old workings scattered along its 1.5 km strike was mapped and sampled. Only limited above background gold values were obtained but due to cropping no work was able to be undertaken on 75% of the prospective zone which is soil covered and will require weathered bedrock drill testing. This work will undertaken on available access.

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Figure 3 Locality of Tanners Creek showing prospective Dulladery Rhyolite outcrop

An additional tenement adjacent to the Glen Isla, EL 6931 (Tanners Creek), was acquired during the quarter via purchase of Bulldozer Prospecting Pty.Ltd., (see figure 3). EL 6931 covers extensions of the volcanic sequence hosting the Glen Isla gold mineralized system and consolidates Carpentaria’s control of this geological prospective unit.

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COMBANING AIRBORNE EM (VTEM) COMPLETED

The 100% owned Combaning tenement, EL 6901, covers parts of the Temora and Springdale Goldfields, which have been significant past gold producers. The tenement is located 40 kms northeast of Wagga Wagga (see figure 2). The Gidginbung gold mine, which produced 677,000 ounces of gold from 1986 to 1996 (NSW Geol.Metmin database 2000), is located approximately 12 km northwest of the Combaning tenement.

A helicopter borne electromagnetic (EM) survey – VTEM – was conducted to define gold, nickel and other base metal targets. 1848 line kms of both electromagnetic and magnetic data was collected. The preliminary data has been processed and interpreted to define priority drill targets.

The Ingola target as shown in figure 4 is considered a priority target. It is a discrete elongate aeromagnetic anomaly that has not been previously drill tested (see figure 4). The anomaly is located on a splay of the Bethunga Shear and has similarities to the Merri Hill magnetic anomaly, four kilometres to the NW, where historic drilling around the margins of the anomaly returned significant gold and nickel results (see figure 4). Drilling will target the source and the margins of the Ingola magnetic anomaly for gold and nickel.

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Another priority target known as Wave Hill (see figure 4.) comprises of several airborne electromagnetic (AEM) targets identified near a high amplitude sub-circular aeromagnetic anomaly. One target is located within the embayment of the magnetic intrusive, the other within the contact aureole. The AEM anomalies have been interpreted as shallow weakly conductive features possibly sourced by tourmaline-quartz-topaz breccia and have potential for intrusion related tin-tungsten mineralization.

Other targets have been identified and field checked. These will be prioritized further for additional work following the evaluation of the Wave Hill and Ingola anomalies. Drilling at Ingola and Wave Hill is anticipated to commence in the June quarter 2008.

Figure 4: Combaning EL6901 detailed aeromagnetics and Geoscience Australia’s regional aeromagnetics

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PRIORITY DRILL TARGETS IDENTIFIED AT MT AGATE

During the quarter Carpentaria has completed a comprehensive mineral potential review of the Mt Agate Tenement (EPM 14955 – 100% CAP) and identified two high priority targets with potential for iron-oxide copper gold (IOCG) mineralization. The approach identified magnetic anomalies with a causative source buried beneath shallow syn-mineral (host rock) cover and with surface indications of mineralization. Two high priority targets; QMH and Mt Shelia are shown in Figure 5. Both targets are magnetic anomalies hosted by Mesoproterozoic metamorphic sediments and volcanics proximal and potentially transecting the mapped intrusive contact of the Wimberu Batholith which is a component of the regionally fertile Williams Naraku granitic suite.

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Figure 5: Mt Sheila & QMH location map on aeromagnetic image

The target at each magnetic anomaly is for blind/buried magnetite bearing IOCG style mineralization analogous to Ernest Henry. A secondary but very closely related target is massive sulfide magnetic skarns hosted by primary iron-rich or calcareous sedimentary units hosting base metals and possibly gold.

A work program to further investigate these and other targets via mapping, sampling and surface geophysics has been formulated and will be implemented, with a view to drill testing, once access to the tenement is achieved later in the year.

REDBANK FARMOUT COMPLETED

GBM Resources Ltd (ASX :GBZ) has farmed in to Carpentaria’s 100% owned Redbank nickel project (for location see figure 1). The target is a nickel laterite with a very similar signature to the nearby and historic Greenvale nickel laterite complex. GBM is due to drill the target during the June quarter and if successful can then elect to earn a 51% interest by expenditure of $1.000,000 within 18 months.

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BROKEN HILL EXPLORATION FOR GOLD, LEAD/ZINC, TIN AND RARE METALS COMMENCES

Laing’s Lode, EL 6857 - Lead / Zinc (Carpentaria 100%)

Located approximately 30km due north of Broken Hill. It covers metasediments of the Broken Hill Group, which host the giant Broken Hill silver, lead, zinc (Ag, Pb, Zn) massive sulphide ore body (see figure 6).

The licence includes the Laing’s Lode Prospect, which comprises a number of narrow, gossanous units exposed over a strike length of approximately 500 metres where prior rock chip sampling by CRA Exploration Pty Ltd (CRAE) encountered some very elevated metal concentrations, including 45.6% lead and 220 ppm silver. The regional stream sediment data within the tenement are also zinc anomalous. CRAE drilled three relatively shallow and widely spaced open percussion holes at Laing’s Lode, which returned a maximum result of 2m and 0.38% Zn.

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Figure 6 Broken Hill Tenements Location Map on Geology

The mismatch between very high surface results, especially for Pb, and the drill-holes is enigmatic and indicates that further follow up work is required to fully test this prospect.

Carpentaria is currently assessing all available historical data and together with the results from a recent rock chip sampling program (results pending) will decide on a future exploration program that could include additional mapping and surface geophysics to define drill targets.

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Eurowie, EL 6936 – Lead / Zinc, Tin and Rare Metals (Sunrise JV, Carpentaria earn 100% of all metals)

In December 2007, Carpentaria entered into a joint venture with Sunrise Minerals Pty Ltd. on EL 6936. Carpentaria has the right to earn a 100% interest in all base and precious metals (other than lithium) and will pay Sunrise a 1% NSR on any future mine production. The tenement is located 50 kms northeast of Broken Hill and contains moderate to low grade metasediments predominately belonging to the Sundown and Paragon sub-Groups (see figure 6).

The tenement covers anomalous zinc in stream sediments defined by previous explorers and it is considered that the area is prospective for low sulphide style lead zinc deposits like the zinc rich shale hosted stratiform deposit, Century Deposit, in NW Queensland.

The tenement is also considered prospective for tin, tantalum and rare metals. It encloses the bulk of the Eurowie Pegmatite Tin (Sn) field. The field contains a large number of small pits and was primarily worked between 1884 and 1900 although sporadic production occurred up until the middle of the twentieth century. Historic estimates suggest approximately 185 t of cassiterite (approximately 140 t of Sn metal) was produced during the pre 1907 mining phase. (Carne 1911, The Tin-mining Industry and Distribution of Tin Ores in New South Wales. Mineral Resources. Geological Survey of New South Wales , 14, 378 pp. ). Two major known producers were Lady Don and Trident which are both in the JV tenement. Mineralization comprises sporadically distributed cassiterite in pegmatite which also could contain other potentially economic rare metals such as tantalum, beryllium and niobium. In addition to hard rock occurrences proximal alluvial accumulations of cassiterite in rudimentary arid drainage channels are known.

Exploration is anticipated to start in the June Quarter to asses the potential for base metals and these strategic minerals.

Panama Hat, EL 6656 - Gold (Carpentaria in option stage)

In this quarter Carpentaria instigated farm in discussions with Stellar Resources Ltd for their Panama Hat EL 6656 (see figure 7). The agreement was signed early June Quarter and Carpentaria has the option to enter a JV on successful exploration to earn initially 51% of the project and increase to 91% of the project depending on Stellar’s participation. If Stellar does not participate in mining Carpentaria can purchase the Stellar’s free carried 9%.

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Figure 7: Location of Panama Hat EL on aeromagnetic image Figure 8: Panama Hat Location of Prospects

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Panama Hat, EL 6656 - Gold (continued)

The occurrence of a significant number of historical pits and shafts clearly indicate the prospectivity of the licence for gold hosted in quartz veins and ironstone units. Surface and costean rock samples have returned highly anomalous gold results at a number of prospects in this licence (see figure 8). Rock chip examples include:

Williams Prospect	maximum	54.25	g/t	Au
Panama Hat Prospect	maximum	30.70	g/t	Au
Jutland Tank Prospect	maximum	72.40	g/t	Au
Willyong TankProspect	maximum	41.85	g/t	Au
Huonville Fence Prospect	maximum	41.70	g/t	Au
Mulculca Telephone Prospect	maximum	116.70	g/t	Au

These prospects define a mineralized zone of approximately 8 by 2 kilometres, which will be the focus for the June Quarter when Carpentaria plans to undertake detailed innovative electrical geophysical surveys in an attempt to three dimensionally map interpreted gold bearing quartz rich portions of the host iron stone units. Priority targets identified by electrical geophysics will be drill tested. .

This agreement further consolidates Carpentaria’s tenement position in the highly prospective Broken Hill mineral province.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Nick Sheard, who is a Member 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.

For further information please contact:

Nick Sheard

Executive Chairman Carpentaria Exploration Limited (+617) 31613801 info@capex.net.au

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.

Name of entity

Carpentaria Exploration Limited

ACN or ABN

63 095 117 981

Quarter ended (“current quarter”) 31-Mar-08

Consolidated statement of cash flows

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		MAR
	Cash flows related to operating activities Receipts from product sales and related debtors	Current quarter $A’000	Year to date (6 months) $A’000
		-	-
	Payments for
	(a) exploration and evaluation	- 427	-678
	(b) development (c) production
	(d) administration	- 191	-324
	Dividends received
	Interest and other items of a similar nature received	- 18	50
	Interest and other costs of finance paid Income taxes paid Other
	Net Operating Cash Flows	- 636	-952
	Cash flows related to investing activities Payment for purchases of: (a)prospects (b)equity investments
	(c) other fixed assets	- 39	-68
	Proceeds from sale of: (a)prospects (b)equity investments (c)other fixed assets Loans to other entities Loans repaid by other entities Other
	Net investing cash flows	- 39	-68
	Total operating and investing cash flows (carried forward)	- 675	-1,020

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1.13 1.14 1.16 1.17 1.19 1.20 1.21 1.22	Total operating and investing cash flows (brought forward)	- 675	-1,020
	Cash flows related to financing activities
	Proceeds from issues of shares, options, etc.	-	7,500
	Proceeds from borrowings	398	554
	Repayment of borrowings	- 554	-554
	Other – capital raising costs	- 344	-493
	Net financing cash flows	- 500	7,007
	Net increase (decrease) in cash held	-1,175	5,987
	Cash at beginning of quarter/year to date	7,162	7,162
	Exchange rate adjustments to item 1.20
	Cash at end of quarter	5,987	5,987

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 2.1 2.2		Current quarter $A'000
	Aggregate amount of payments to the parties included in item 1.2	60
	Aggregate amount of loans to the parties 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 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but didnotinvolve cash flows
	Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

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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		800
	Development
		Total	800
	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	353	7,162
	Deposits at call Bank overdraft Other (provide details)	5634
	Total: cash at end of quarter(item 1.22)	5,987	7,162

Changes in interests in mining tenements

6.2 Interests in mining tenements acquired or increased Interests in mining tenements relinquished, reduced or lapsed	Tenement reference	Nature of interest (note (2))	Interest at beginning of
	EL 6857	Acquisition of Licence	100% CAP
	EL 6931	Acquisition of Licence	100% CAP

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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.

7.3 7.4 7.7 7.8 7.9 7.10		Total number	Number quoted	Issue price per security (see note 3) (cents)
	+Ordinary securities Changes during quarter	65,000,000	30,000,000	0.25
	(a) Increases through issues
	(b) Decreases through returns of capital, buy-backs
	Options (description and conversion factor) Issued during quarter Exercised during quarter Expired during quarter	3,700,000	-	Exercise price 0.30
		500,000	-	0.27

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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Date: 22 April 2008

Company Secretary Chris Powell