HAWSONS IRON LTD — Interim / Quarterly Report 2009

Apr 21, 2009

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QUARTERLY REPORT

FOR THE 3 MONTHS ENDED 31 MARCH 2009

Highlights

• REDAN / BURTA - RECONAISSANCE SAMPLING RETURNS ELEVATED IRON RESULTS (UP TO 44.6%) CONFIRMING PAST EXPLORATION RESULTS - THE PROSPECTIVE FORMATION MAY EXTEND OVER A FOLDED STRIKE LENGTH OF 16KM AND ACROSS STRIKE FOR SEVERAL HUNDREDS OF METRES

• PANAMA HAT - POWER AUGER SOIL SAMPLES CONFIRM GOLD TREND AT THE WILLIAMS PROSPECT

• COMBANING - WORK FOCUSED ON DEFINING GOLD TARGETS NEAR PREVIOUS PRODUCING MINES WHERE RAB DRILLING BY PREVIOUS EXPLORERS RETURNED BEST INTERSECTIONS OF 2M AT 6.80G/T AU FROM 38M AND 2M AT 3.95G/T AU FROM 4M

• MT AGATE - IP SURVEY TO COMMENCE IN JUNE QUARTER TO BETTER DEFINE COPPER / GOLD TARGETS AT MT SHEILA AND QMH IN PREPARATION FOR DRILLING

Project Location Map

FOR FURTHER INFORMATION CONTACT:

NICK SHEARD EXECUTIVE CHAIRMAN CARPENTARIA EXPLORATION LTD

Bus: +61 (7) 3161-3801

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Figure 1: Location of Carpentaria Exploration Projects

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SUMMARY

EXPLORATION

Carpentaria Exploration Limited (ASX Code: CAP) has been re-evaluating its exploration portfolio with the aim of prioritising projects and dropping or disposing of lower ranked projects. During the quarter, Carpentaria has also assessed numerous third party projects with a view of acquisition/joint venture of high quality mature projects to further enhance the existing project portfolio. None of the projects assessed have been progressed. Redan JV / Burta Reconnaissance sampling of iron formation outcrops in these areas has returned elevated iron assays of up to 44.6% with low phosphorous (0.06%) from outcropping magnetite rich rock which has confirmed work carried out by previous explorers. Proximity to infrastructure and possibility of large tonnage make this an encouraging result. Auger drilling results at the Williams Prospect in the Panama Hat JV suggest the continuation Panama Hat JV of the gold trend beneath cover to the north east. Combaning New gold targets are being assessed around known gold occurrences. Targets are being defined near the Mother Shipton mine where historical production of 30,000oz of gold has been reported. Hughenden Coal A comprehensive regional technical review has confirmed the potential for coal in the Betts Creek Beds of the Galilee Basin particularly in the northern part of the tenement applications. Project Preparations for an IP survey to better define targets at the QMH and Mt Sheila Prospects are Mt Agate underway.

FINANCIAL

Cash and deposits totalled A$3,747,938 as at 31 March 2009.

CORPORATE

Issued Capital

55,178,410 ordinary fully paid shares listed 14,821,590 ordinary fully paid shares unlisted (restricted) 21,447,415 options listed

ACTIVITIES

Carpentaria has been actively evaluating projects with a view of either purchase or joint venture. The main focus in relation to potential acquisitions has been gold projects that could provide Carpentaria with a mineral resource that would provide the potential to develop a mining operation in the near/medium term.

Exploration focus has been in the Broken Hill region with reconnaissance rock sampling carried out on the Burta EL in NSW. During the quarter, exploration programs have been developed for the Redan/Burta Project (iron ore), the Euriowie Project (lead/silver/gold plus tin and tantalum), Combaning (gold) and Mt Agate (iron oxide copper gold).

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PLANNED JUNE QUARTER EXPLORATION ACTIVITIES

Exploration activities will be focused as follows:

Redan JV and Burta EL - A program of Niton Portable X-Ray Fluorescence (XRF) micro analyser sampling and mapping will be undertaken to establish the extent of the iron formation outcrop and evaluate its potential for commercial grade magnetite.

Combaning - Delineation of gold targets in and around the Mother Shipton area will occur. At Mother Shipton, RAB drilling by previous explorers included best intersections of 2m at 6.80g/t Au from 38m and 2m at 3.95g/t Au from 4m.

Mt Agate - When access conditions improve (due to wet weather), it is anticipated that an IP survey will be conducted to better define targets at the Mt Sheila and QMH gold and copper prospects.

Euriowie - Mapping and sampling and geochemical analysis using a Niton portable in-situ XRF analyser will be undertaken in the region where very elevated lead and silver was previously discovered

EXPLORATION

Iron

Redan (Earning 51%) / Burta (100%) - Reconnaissance sampling returns elevated iron (up to 44.6%) confirming past exploration results - the prospective formation may extend over a folded strike length of 16km and across strike for several hundreds of metres.

Review of previous work indicated that, in 1960, Enterprise Exploration Co. Pty Ltd (the precursor to CRA Exploration) undertook channel rock sampling over a large area of outcropping NeoProterozoic rocks interpreted to be components of the Braemar Ironstone (Yudnamunta Subgroup of the Adelaide Fold Belt) located to the west of Hawson’s Knob. Iron (Fe) concentrations ranging from 36.4% to 49.1% (see figure 2) in relatively fine grained banded magnetite-hematite-quartz rocks were reported. Enterprise did not undertake any further work at the prospect. To confirm these 1960 results, investigate potential deleterious elements and visually observe the grainsize of exposed iron formation at Hawson’s Knob, Carpentaria undertook a small check sampling program of selected banded magnetite-hematite rich outcrops which returned elevated iron assays up to a maximum of 44.6% with low phosphorous (0.06%) and acceptable Al, Ti and V concentrations with a visually estimated grain size in the 30 to 100 micron range. Samples have been forwarded for detailed petro graphic examination to establish the exact mineralogy, grain size and texture of the sampled iron rich rocks. Results are awaited.

During the next quarter, a detailed rock sampling program using a Niton portable in-situ XRF analyser will be initiated combined with check sampling, geological mapping and ground magnetics to assess the potential of the Hawson Prospect. Aeromagnetic interpretation indicates the formation may extend over a folded strike length of approximately 16km with potential iron rich strata being present across strike for several hundreds of metres (refer figure 2). Together with the proximity to the Broken Hill to Port Pirie railway line, main road (about 30Km), power and major mining centre of Broken Hill, the potential for large tonnage of magnetite resources makes this a very encouraging prospect.

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Figure 2 : Location of Enterprise and Carpentaria sampling overlying the airborne magnetics, (RK is rock chip and CS is a channel sample)

Gold

Panama Hat - (Carpentaria earning initially 51%) - Power auger soil sampling confirms gold trend at the Williams Prospect

Geochemical analyses for 101 nominal C-horizon soil samples collected to test the eastern strike extent of the highly anomalous surface gold, silver, bismuth, copper ( Au-Ag-Bi-Cu) Williams quartz lode were received. Bulk soil samples were taken by power auger at an average depth of 0.7m, split in half and analysed for gold via both fire assay (FA) and bulk cyanide leach (BCL) methods. Base metals, silver and trace elements were analysed by ICPOES. Samples were taken on a nominal 50m x 5m grid extending 250m to the east of the Williams Prospect (see figure 3).

The spatial distribution of elevated Au concentrations is somewhat erratic in detail but in broad terms suggests a simple strike extension of the mineralised zone at Williams is present. The distribution of BCL Ag concentrations supports this interpretation.

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Figure 3: Williams Prospect - EL 6556 - Power Auger Grid Gold Results

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Gold (continued)

Combaning - (Carpentaria 100%) Work focused on defining gold targets near previous producing mines

During the March Quarter, work at Combaning focussed on identifying gold drill targets in the highly prospective western part of the tenement. In this area, the Macquarie Arc Volcanics host a number of prospects and old workings, including Mother Shipton where historically, approximately 30,000oz of gold has been mined from hard rock and alluvial sources (see figure 4). An ongoing review of previous work revealed that surface geochemistry and RAB drilling have identified porphyry/epithermal style gold prospects within two north west striking andesitic sequences. At Mother Shipton, RAB drilling by previous explorers included best intersections of 2m at 6.80g/t Au from 38m and 2m at 3.95g/t Au from 4m .

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. Figure 4 : Combaning prospect location plan.

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Copper / Gold

Mt Agate - (100% CAP)

No work has been undertaken on this prospect due to access restrictions caused by adverse weather conditions.

In order to maximise the value of drill holes an IP survey is being planned to provide drill targets at both the QMH and Mt Sheila Prospects. Coal Queensland Coal Projects - (Carpentaria 100%) - Review completed

A comprehensive review of government and historical company data covering the Hughenden Coal Project continued during the quarter with the aim of categorising data, basin interpretation and defining target areas for coal potential. The review has confirmed the potential for shallow coal in the Betts Creek Beds of the Galilee Basin in the northern parts of the applications. Potential target areas have been delineated and upon grant of applications work can proceed to test these areas.

In the south west portion of the applications, Carpentaria has decided not to accept 5 of the tenements that were offered by the Department as the targets were confirmed to be too deep.

Euriowie - (Carpentaria owns rights to 100% base and precious metals other than Tin/Tantalum lithium) Lead/Silver

Preparations are underway for an extensive field program to map the area where high lead / silver samples were previously reported ( 11.45% lead, 191 g/t silver and 0.72 g/t gold ) are underway.

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ABOUT CARPENTARIA

Carpentaria Exploration Limited is an exploration company focused on finding base and 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 mineralized systems and are being explored using modern, efficient technologies. It is Carpentaria’s intention to ultimately mine its discoveries.

CORPORATE DETAILS

Board of Directors:

Nick Sheard Executive Chairman Stan MacDonald Non-Executive Director Bob Hair Non-Executive Director Mike Chester Non-Executive Director

Principal & Registered Office: Ground Floor, Boundary Court., 55 Little Edward Street., Spring Hill, Qld 4000

Contact Details: Capital Structure: Email: info@capex.net.au Ordinary Shares 67,500,000 Website: www.capex.net.au Listed Options 21,447,415 Telephone: (61 7) 3161 3801 Facsimile: (61 7) 3161 7860 Major Shareholder: PO Box 1019, Giralia Resources 10% Spring Hill, Qld., 4004

Stock Exchange Listing Share Registry: Australian Stock Exchange Link Market Services Limited ASX Code: CAP Level 12, 300 Queen Street CAPO Brisbane Qld 4000

The 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.

The information in this report that relates to Exploration Results 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:

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Nick Sheard - Executive Chairman Carpentaria Exploration Limited (+617) 31613801