HAWSONS IRON LTD — Interim / Quarterly Report 2007

Jan 29, 2008

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C a r p e n t a r i a E x p l o r a t i o n L i m i t e d

Q U A R T E R L Y R E P O R T F O R ( 3 ) T H R E E M O N T H S E N D E D 3 1 D E C E M B E R 2 0 0 7

HIGHLIGHTS :

• SUCCESSFUL ASX LISTING – CLOSED OVERSUBSCRIBED

• GLEN ISLA SURFACE GOLD ANOMALISM EXTENDED - DRILLING TO COMMENCE IN THE MARCH QUARTER

• AIRBORNE EM (VTEM) DUE TO COMMENCE AT COMBANING

• TARGET GENERATION CONTINUES ON QUEENSLAND TENEMENTS

• BROKEN HILL BASE METAL OPPORTUNITY

ASX LISTING

CARPENTARIA IS A QUEENSLAND- based exploration company focused on the discovery and mining of base metal and gold deposits in Queensland and New South Wales. Carpentaria (ASX Code: CAP) was listed on the ASX on November 14th 2007. The IPO was oversubscribed and 30 million shares were issued at 25 cents per share to raise $7.5 million.

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Figure 1 – Carpentaria’s tenement locations

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GLEN ISLA – GOLD ANOMALY EXTENDED

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This 100% owned tenement is located in the Lachlan Fold Belt (LFB), approximately 15 km NNE of the Peak Hill Gold Mine, about 50 kms 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 (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.

Figure 2 Central NSW Project Location Map - Glen Isla and Combaning

Three prospects have been defined within the tenement, two epithermal gold style (Glen Isla and Kyalite) and one newly recognized Ordovician porphyry related style (Ellerslie Prospect).

Most prior work has been directed to the Glen Isla Prospect, where previous drill holes have intersected several wide gold anomalous zones hosted by banded silicapyrite rock interpreted to be a hydrothermal sinter. Examples include: GI-RP11D - 79 metres @ 0.4 g/t gold including 1 metre @ 1.12 g/t gold and GI-RP16D - 594.4 metres @ 0.1 g/t gold.

The Ellerslie Prospect is situated in the western part of the tenement. Ellerslie is located 2 km SE of Alkane’s Caloma deposit along strike of a NW-SE trending structure. The host rocks at Ellerslie are interpreted to belong to the Ordovician volcanic belt, which host the Caloma and the other deposits in Alkane’s Tomingley Project. Reconnaissance work including ground soil sampling and possibly RAB drilling will be undertaken during the next quarter at Ellerslie.

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During the quarter, a total of 396 soil and 12 rock samples were collected to infill and extend previous RAB weathered bedrock geochemical survey completed by Geopeko in the 1990s.

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Figure 3 Newly Defined Gold Soil anomalies – Glen Isla Prospect

Approximately 30% of the soil samples returned gold (Au) concentrations exceeding 10 ppb, with a maximum result for the survey of 177 ppb. Gold concentrations showed a close spatial association with elevated arsenic (maximum 588 ppm) and antimony (maximum 36.2 ppm) concentrations. Silver concentrations were also elevated.

The survey identified two major zones of elevated gold concentrations, see figure 3:

• Zone 1 is a soil anomaly exceeding 25 ppb (max 177 ppb) that adjoins and extends the width of the known RAB geochemical anomaly by approximately 250m (see fig 2). This significantly extends the area for potential gold mineralization beyond previously known limits.

• Zone 2 is another newly defined soil anomaly which exceeds 25 ppb (max 57 ppb). The soil anomaly is located over interpreted basaltic rocks extending the potential for other styles of mineralization at the prospect.

In addition to these two new gold soil anomalies, a number of other scattered elevated results were returned that were not previously identified (see figure 3). These scattered one to five point anomalies will require further assessment

At least 2500m of RC and diamond drilling has been contracted to commence in February 2008 to test these targets.

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COMBANING (GOLD AND NICKEL) AIRBORNE EM TO COMMENCE -

The 100% owned Combaning tenement, EL 3077, 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 kms northwest of the Combaning tenement.

Combaning is prospective for gold, nickel and other base metals. Previous drilling results at the Merri Hill Prospect centred on a discrete magnetic anomaly and encountered numerous anomalous intercepts including: 40 metres from 14 metres below surface @ 0.79 g/t gold and 10 metres @ 1.33% nickel (see figure 4). The source of the magnetic anomaly is interpreted to be an altered and gold-nickel mineralized ultramafic body. Other discrete magnetic anomalies within the Combaning tenement have not been previously explored. It is considered by analogy that they have potential for gold and nickel mineralization.

There are several other quartz – lode gold prospects in the Combaning tenement. Prior drilling results include: 1 metre @ 10.6 g/t gold at Harvey’s Shaft, 2 metres @ 6.8 g/t gold at Mother Shipton, 4.0 metres @ 2.65 g/t gold at Opossum Hill and 3.9 metres @ 2.2 g/t gold at Kangaroo Dick. These gold prospects will be investigated in the third quarter.

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A helicopter borne electromagnetic survey – VTEM – is to be flown in the first week of February to test for four styles of targets:

Target 1: electrically resistive zones coincident with or adjacent to discrete magnetic anomalies that could represent high grade gold bearing altered ultramafic rocks.

Target 2: electrically conductive zones coincident with or adjacent to the discrete magnetic anomalies interpreted as ultramafic bodies that could represent nickel sulfide or PGM deposits.

Target 3: electrically conductive zones associated with the large magnetic anomalies in the north east of the tenement which could be sourced by base or precious metal deposits.

Target 4: discrete electrically conductive zones sourced by volcanic hosted massive sulfide deposits.

Figure 4 Airborne magnetic image with selected examples and untested anomalies

Geological and geochemical surveys will be undertaken in the third quarter to assist prioritizing targets identified from the VTEM survey. Drilling is anticipated to commence in the June quarter, 2008.

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TARGET GENERATION IN QUEENSLAND TENEMENTS

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Historical data acquisition has continued on the Company’s Queensland tenements. At Mount Agate south of Cloncurry an airborne (EM) survey – Geotem – flown by BHP in 1997 was recently released onto open file. This data is being reprocessed to assist targeting of ground geophysics prior to drill testing anticipated in the fourth quarter.

Adverse weather conditions have hampered ground access during the period.

BROKEN HILL OPPORTUNITY

In keeping with the Company of strategy of maintaining a “Project Pipe Line” Carpentaria has obtained two projects in the Broken Hill region through an acquisition and a joint venture to explore for economic lead/zinc deposits in this world class mining province by obtaining new data and using different geological models, such as that of the world class Century low sulfide lead/zinc deposit located in NW Queensland. As with Carpentaria’s other tenements elsewhere, both Broken Hill tenements have mineralised systems that will focus our exploration and can be rapidly tested for these large tonnage lead, zinc, silver deposits. In January 2008 Carpentaria agreed to purchase 100% of the shares in Bulldozer Prospecting Ltd, a company that owns two exploration tenements in NSW. These projects consist of Laing’s Lode, EL 6857 (see figure 5), located in the Broken Hill Region and Tanner’s Creek, EL 6031 (see figure 7 below), adjoining the Glen Isla tenement near Tomingley. Both of these tenements hold the potential to add significant value to Carpentaria’s existing exploration portfolio.

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Figure 5 Broken Hill Tenements Location Map on Geology

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Laing’s Lode (Carpentaria 100% upon completion of agreement to purchase Bulldozer Prospecting Ltd)

EL 6857 is held by Bulldozer Prospecting Ltd and is 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 sulfide ore body and strategically fits well into the Broken Hill portfolio, (see figure 5). The licence includes the Laing’s Lode Prospect, which comprises a number of narrow, gossanous units exposed over a strike length of approximately 500metres where prior rock chip sampling by CRA Exploration Pty Ltd (CRAE) encountered some very elevated metal

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concentrations, including 45.6% lead and 220 ppm silver. The regional stream sediment data within the tenement are also zinc anomalous (see figure 6). 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. 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 will undertake additional mapping and sampling together with surface geophysics to target drilling.

Figure 6 Regional Zinc Stream Geochemistry

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Eurowie – Sunrise JV (Carpentaria earn 100% base and precious 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 5). The tenement covers a high zinc stream sediment anomaly defined by previous explorers (see figure 6). The exploration target is low iron-sulfide, zinc rich shale hosted stratiform deposit.

Exploration will include additional ground geophysics, mapping and drilling.

OTHER AREAS

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As part of the Bulldozer Prospecting Ltd acquisition, the Company will also acquire 100% of the Tanner’s Creek Project. EL 6031 covers exposures of the Dulladery Rhyolite and adjoins Glen Isla EL 6246 (see figure 7). The Dulladery Rhyolite is the host rock to Carpentaria’s Glen Isla Prospect and BHP’s previously mined Mt Aubrey gold deposit. This acquisition is strategic and covers the regional strike potential of the Glen Isla prospect host rock.

Figure 7 Locality of Tanners Creek showing prospective Dulladery Rhyolite outcrop

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 - Chairman Carpentaria Exploration Limited (+617) 31613801 e-mail info@capex.net.au