HAWSONS IRON LTD — Investor Presentation 2012

Nov 19, 2012

Carpentaria Exploration Ltd Hawsons Iron Project

Mining South Australia Whyalla 20[th] November 2012

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

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Disclaimer

This presentation has been prepared by the management of Carpentaria Exploration Limited (CAP) for the benefit of analysts, brokers and investors and not as specific advice to any particular party or persons. The information is based on publicly available information, internally developed data and other sources. Where an opinion is expressed in this presentation, it is based on the assumptions and limitations mentioned herein and is an expression of present opinion only. No warranties or representations can be made as to origin, validity, accuracy, completeness, currency or reliability of the information. CAP disclaims and excludes all liability (to the extent permitted by law) for loses, claims, damages, demands, costs and expenses of whatever nature arising in any way out of or in connection with the information, its accuracy, completeness or by reason of reliance by any person on any of it. Where CAP expresses or implies an expectation or belief as to the success of future exploration and the economic viability of future project evaluations, such expectation or belief is expressed in good faith and is believed to have a reasonable basis. However, such expected outcomes are subject to risks, uncertainties and other factors which could cause actual results to differ materially from expected future results. Such risks include, but are not limited to, exploration success, metal price volatility, changes to current mineral resource estimates or targets, changes to assumptions for capital and operating costs as well as political and operational risks and governmental regulation outcomes. CAP does not have any obligation to advise any person if it becomes aware of any inaccuracy in or omission from any forecast or to update such forecast.

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HAWSONS IRON PROJECT

Structure of Talk � Is Iron Worth Pursuing ? � How are we Placed ? � Review of Hawsons Attributes � Optimisation Studies � Mining � Processing � Transport � Conclusions 3

Carpentaria Current Projects

AUSTRALIA MAGNETITE SYNOPSIS EXPLORATION PORTFOLIO Is Iron Still Worth It ?

The Chinese economy was expected to grow 7.8 per cent in 2012 and 8.2 per cent in 2013, the IMF said. Oct 9[th] AAP

Australia’s GDP growth estimated at 3.7%

This is a very good slow down ! Will still require raw materials

Improved October data reinforced the view that China's growth stabilization is on track, Barclays said in a research note on Monday (12[th] Nov 2012).

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AUSTRALIA MAGNETITE SYNOPSIS Slow Down in West – Huge Advantage to SA

Tues Nov 13th

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HAWSONS IRON PROJECT Where are we placed at US$93/t?

HAWSONS IRON PROJECT Where are we placed at US$93/t?
Revenue Calculation (@ spot) RIO BHP FMG AGO MGX GRR BCI		CAP**
Iron ore fines price - 62% Fe US$/dmt cfr 93 93 93 93 93 93 93		93
Fe% 62% 62% 58% 58% 61% 66% 57%		68%
Rec'd price A$/wmt FOB* 77 77 66 65 65 92 66		77
Cash Costs A$/wmt FOB* 31 38 52 70 63 100 54		45
EBITDA Margin A$/t 47 40 14 (5) 2 (8) 12		32

• After UBSe and company filiings, adjusted, moisture, Fe content, impurities, freight: 30.8.2012

• ** Nov 2011 PFS

• Received price varies depending on product quality

• Hawsons compares well to 2[nd] tier DSO producers

• Low cost producers will always have a strong business

• Hawson’s is well placed in the long term

Legend BHP RIO FMG – Fortescue Metals AGO – Atlas iron MGX – Mt Gibson GRR – Grange Resources BCI – BC Iron CAP – Carpentaria Exp’

HAWSONS IRON PROJECT Where are we placed – Costs to Port in China

Est’ Marginal Chinese Costs – Westpac CAP Est’ (@ 69% Fe) Macquarie Research Aug 2012

• Implications – all in U$ : • Probable Future Base cost for 62% $120/t

• • CAP will realise a premium

• (69% Fe) • Hawsons very profitable at $120/t (62% Fe)

CARPENTARIA Iron Growth Prospects

Significant growth through Hawsons Well funded to :

• Continue early BFS works

• Move Hawsons up the value curve

• Secure the right development partner

• Realize short term growth and

• long term value

Potential for Discovery

• Braemar JV – 3 initial holes in iron

• Awaiting DTR results

• Thick ~ 100m intersections magnetite siltstone

• Close to Adelaide / Port Pirie (Rail and Road)

• No native title

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HAWSONS IRON PROJECT Largest Magnetite Project in NSW

• Location – 60km SW Broken Hill

Native Title has been extinguished

• Resource – very large with potential for 50 year plus mine life

• –

• Completed Prefeasibility Study Audited with opportunities to improve

• Low operating costs - FOB approx. $50/t – potential for high margins

• Infrastructure – water, power, transport and port all available for start up

• Approvals – low hurdles compared

• with other projects

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HAWSONS IRON PROJECT Lower Cut Off Pit 1 Resource Drilling

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Slimline Logging truck RC Drill Rig Diamond Drill Rig
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RC Drill Rig Slimline Logging truck
Resource Drilling Activity Sept’ 2010
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HAWSONS IRON PROJECT Lower Cut Off Pit 1 NSW - State Significant Development

New South Wales Government declares : Hawsons Iron Project ‘State Significant Development’ project (14[th] November 2012)

Implications :

• First step towards granting of mining licence at NSW’s biggest magnetite discovery

• � Carpentaria targeting 2014 for completion of Environmental Impact Statement

HAWSONS IRON PROJECT Hawsons Magnetite Advantages

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Category BTonnes Magnetite Cut Off In Situ
DTR % Concentrate
� Size Inferred 1.4 15.5 12% 220 M tonnes
Inferred 1.7 14.8 10% 250 M tonnes
Concentrate Grades
Fe% Al2O3 P2O5% SiO2% LOI% Over 1500 samples
� Clean
%
69.9 0.22 0.002 2.5 -3.0
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• Starter Pit – single pit over 20 years mine life

@ 20Mtpa

• Waste to Ore 0.3 : 1 over life of mine

• Soft Ore – easy mining, lower power = lower cost processing options,

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HAWSONS IRON PROJECT Hawsons Magnetite Advantages Contd’

Exploration Target[1 ]

� 6 to 11 Billion Tonnes DTR 14 – 17%, Con’ grade 69 -71% Fe 900 – 1900 Mt contained concentrate

• Additional Pits ( ~ 3 additional )

• ~ 50 years mine life after Pit 1

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Pit 2
Pit 1
Pit 4
Pit 1 Extension
Pit 3
5 kms
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Idealised Pit Location over Life of Mine

1 The potential quantity and grade of the exploration targets is conceptual in nature and there has been insufficient exploration to define a Mineral Resource. It is uncertain if further exploration will result in the determination of a Mineral Resource. (DTR is Davis Tube Recovery)

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HAWSONS IRON PROJECT Mining Optimisation

Prefeasibility Study

Pit from original PFS

• 5Mtpa – 3yrs then step to 20Mtpa – 20 years

• Drill and blast to remove overburden

• Truck and shovel to extract the ore

Optimisation Study

• 5Mtpa year 1 then ramp up to 20Mtpa

• More rapid financial returns

• Better Stockpile management

• Less moving of material

Additional material available using IPCC

• Ripping of Overburden

• Not drill and blast

• Efficient water use – tail thickeners

• Reduction in pumping requirements – earth works

• In-Pit Crushing and Conveying (IPCC)

• Reduce truck hours

• Additional material to mine

HAWSONS IRON PROJECT

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Processing Optimization Studies
ROM
Rougher Mag Sep
ISA Mill
Impact Crushing
+65mm
Ball Mill
Recleaner Mag Sep
-65mm
Fines -1mm
Barmac
Cleaner Mag Sep
Stockpile
Concentrate
Fines -1mm Tailings despatching
Tailings disposal
Prefeasibility Study Assumed
Current Pilot Test Work
� Typical Magnetite Process Flow
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• Typical Magnetite Process Flow

• Assumed hard ore style

• Conventional magnetite processing

• High Capital & Operating costs

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HAWSONS IRON PROJECT – Proof of Concept Small Scale Pilot Plant

HAWSONS IRON PROJECT Preliminary Results Achieved

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Fresh Feed
100%
27% 100% @ 44μm
Rejected
to Tails
73% (30% @ 53μm) High Grade
Concentrate
50% Rejected to Tails
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HAWSONS IRON PROJECT – Proof of Concept Small Scale Pilot Plant

Small Scale Pilot Plant Testwork

�

� Impact Crusher pulverises ore Reduces CAPEX (No HPGR) As opposed to BIF style magnetites

� � Target fraction ~28 - 30% -53μm – Reduces CAPEX no tertiary crushers required � � Target to reject >50% of input material as tails – Reduce CAPEX and OPEX less mills

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Magnetite Quartz
e
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• � Target 80% of ball mill output <75μm [Achieved 38 ][–][ 44μm ]

Liberate magnetite early in circuit

Reduces downstream Grinding requirements Reduces CAPEX and OPEX

HAWSONS IRON PROJECT Optimization Studies – Simplified Flow Diagram

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ROM Removed
Rougher Mag Sep
ISA Mill
Impact Crushing
+65mm
Ball Mill
Recleaner Mag Sep
-65mm
Fines -1mm
Barmac
Cleaner Mag Sep
Stockpile
Concentrate
despatching
Fines -1mm Tailings
Tailings disposal
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HAWSONS IRON PROJECT Transport – Great Optionality

Recent Developments

• 13mtpa spare capacity identified on the existing rail

• MOU signed with rail provider Genesee & Wyoming detailing transport for

• 5 Mtpa to Port Pirie with possible expansion

• MOU signed with Flinders Ports to determine long term handling, storage and loading solution at Port Pirie, South Australia

• Low cost Common User Facility for potential to export 20 – 30Mtpa of iron concentrate

• Out of town stockpile, convey to port,

• Large barges transfer to Cape size

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HAWSONS IRON PROJECT Infrastructure and Transport Options

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power
water
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HAWSONS IRON PROJECT Transport – Great Optionality Port Pirie

Port Pirie common berth facility

Port Pirie bottleneck solved Away from town stock pile and conveyor

Availability of long-term handling and storage facility - great advantage over many other proposed magnetite projects

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HAWSONS IRON PROJECT Ongoing Work

• Small scale pilot plant work nearing completion

• Environmental approvals underway

• Ongoing discussions with Transgrid

• Additional early BFS works

• Reduction of water usage – paste thickeners

• Reduce tailing dam size

• Schedule

2013 - Resource Drilling , Pilot Plant 2014 - Mining Lease 2016 - Production

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HAWSONS IRON PROJECT Summary- A State Significant Development

Significant growth through Hawsons Strong team in place and well funded to

• Move Hawsons up the value curve

• Secure the right development partner

• Unique ore type (Not BIF)

• Low cost producer

– Long life mine with Port, and Infrastructure Potential for further discovery

• Braemar Iron JV

• Drill results very encouraging

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The information in this presentation that relates to Exploration Results and Resources is based on information compiled by S.N.Sheard, who is a Fellow of the Australian Institute of Geoscientists and has had sufficient experience 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'. S.N.Sheard is an employee of Carpentaria and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Carpentaria Exploration We find it. We prove it. We make it possible.

Phone: +61 7 3220 2022 To find out more, visit us at www.capex.net.au

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Appendix 1EXPLORATION PORTFOLIO

UBS research Legend BHP RIO FMG – Fortescue Metals AGO – Atlas Iron MGX – Mt Gibson GRR - Grange Resources BCI - BC Iron CAP – Carpentaria Exp’	Revenue Calculation (@ spot) RIO BHP FMG AGO MGX GRR BCI	CAP
	Iron ore fines price - 62% Fe US$/dmt cfr 93 93 93 93 93 93 93	93
	_deduct_freight US$/t (7) (7) (7) (10) (22) (22) (7)	(15)
	Iron ore fines price - 62% Fe US$/dmt FOB 86 86 86 83 71 71 86	78
	Fe% 62% 62% 58% 58% 61% 66% 57% Adjust to Fe content US$/dmt FOB 0 0 (6) (6) (1) 4 (7) Quality adjustment % 0% 0% 5% 5% 0% 0% 5% Qualityadjustment US$/dmt FOB 0 0 (4) (4) 0 0 (4)	68% 9 0 0
	Rec'dprice US$/dmt FOB 86 86 76 73 69 74 75	87
	Moisture % 6.0% 6.0% 9.0% 7.5% 3.0% 5.0% 8.0% Adjust for moisture US$/mt FOB (5) (5) (7) (5) (2) (4) (6) Pellet premium (for GRR) US$/wmt FOB 25 Rec'dprice US$/wmt FOB 80 80 69 67 67 96 69	9% (8) 79
	Rec'dprice A$/wmt FOB 77 77 66 65 65 92 66	77
	Costs COGS guidance A$/wmt FOB 26 33 45 66 59 95 50 royalties % 7% 7% 11% 7% 7% 5% 7% _plus_royalties A$/wmt FOB 5 5 7 4 4 5 4	41 10% 4
	Cash Costs A$/wmt FOB 31 38 52 70 63 100 54	45
	plus D&A A$/wmt FOB 7 6 5 13 4 18 2	10
	Total Costs A$/wmt FOB 38 44 57 83 67 118 56	55
	EBITDA Margin A$/t 47 40 14 (5) 2 (8) 12	32
	EBIT Margin A$/t 40 34 9 (18) (2) (26) 10	22

Source: Company filings and UBSe 30 August 2012 Note : Carpentaria's costs are estimated at $50FOB (dry) in its PFS. However wet, they are reduced by 9%.

HAWSONS IRON PROJECT

PFS November 2011

• Inferred Resource - 1.4Bt at 15.5% Mass recovery for 220mt concentrate

• Exploration target[1] - 6-11Bt at 14-17% Mass recovery for 900-1900 mt concentrate

• Concentrate quality 69.9%Fe, 2.50% SiO2 (no notable deleterious elements)

• Production 20mtpa magnetite concentrate

• Operating costs 47-53/t concentrate

• Completed by GHD, Audited by Behre Dolbear Australia

		Capex	NPV	NPV	IRR	IRR	Annual ave. Gross Profit	Annual ave. Gross Profit	Payback
Nov 2011 PFS Update (incl in pit crushing option)		$2.9Bn	$3.2 Bn		23%		$735 m		6.3yrs
Assumptions	Discount rate			AUD:USD		Life of Mine 69% *Concentrate price **		Life of Mine equivalent *62% fines price **
	9%			1.00:0.85		US$88		US$79

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HAWSONS IRON PROJECT EXPLORATION PORTFOLIO At 15.5% DTR - Why Does it Work ?

1. Low waste to Ore ratio (0.3:1)

2. Large mining widths and single 24 yr pit • Utilise in pit crushing and conveying

3. Soft Ore

• Lower mining costs (compared to BIF’s)

• Lower grinding (processing costs)

• Conventional circuit

• Reduce CAPEX

4. High grade concentrate with low contaminants

5. Infrastructure

• Power, water, rail, mining community

• • Port availability

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Quartz Magnetite
Slide 29
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