HAWSONS IRON LTD — Investor Presentation 2012

Oct 30, 2012

Carpentaria Exploration Ltd Investor Presentation Mining 2012, Brisbane October 31, 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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Carpentaria

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Aim :

Discover, Develop and Mine to

• grow shareholder value; and

• fund further discoveries in E. Australia

Track Record :

• Discovery of the giant Hawsons magnetite deposit

• Positive PFS released

• Tin / Tungsten near Broken Hill

• Doubled resource recently

• Growing Gold portfolio in Eastern Australia

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CARPENTARIA

Board of Directors

Nick Sheard - Exec’ Chairman

• 40 years industry experience

• Vice President – Exploration INCO Limited

• Global Exploration Manager MIM Holdings

Mr Bob Hair

• 30yrs experience as a lawyer including 17yrs in resource sector

• Current CEO of AIM listed Ferrum Crescent

Dr Neil Williams

• 40 years experience

• Most recent 15 yrs CEO of Geoscience Australia

• One of Australia's eminent geoscientists

Mr Paul Cholakos

• 25 yrs experience in resources

• Mining Engineer

• Current Executive General Manager Project Development –Oil Search (Market Cap $8.5bn)

• Mr Bin Cai – Mr Conglin Yue representative on the Board

• 17 years experience investing in emerging resource companies

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Hawsons Project Director – Ray Koenig

40 years process engineering experience across all commodities - including Magnetite

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Company Snapshot October 30th 2012

ASX : CAP FINANCIAL 30[th] Oct 2012 Cash A$5.8 million

Share Price and Volume 12 months

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High $0.45
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ISSUED SHARES 105,991,301 shares

$0.265

LARGEST SHAREHOLDERS Silvergate : 17.36% Aust’ Conglin Int’ Inv’ : 9.89% Conglin Yue : 3.5% Directors &

Low $0.18

Management (inc’ unlisted Options : 13.31%)

INVESTMENTS 2.2 m Guildford Coal Ltd fully paid shares ~ value $1m 30[th] Oct

KEY ASSET

Hawsons Iron Project JV – Carpentaria 60%

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Carpentaria Current Projects

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Growth Prospects

Significant growth through Hawsons Well funded to

• Continue early BFS works

• Move Hawsons up the value curve

• Secure the right development partner

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• Realise short term growth and

• long term value

Potential for Discovery

• Braemar Iron

• Yanco Glen Tungsten

• Gold Projects eg 60m at 1.5g/t Au (untested)

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HAWSONS IRON PROJECT

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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 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	IRR	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% Concentrateprice*	Life of Mine equivalent 62% finesprice*
	9%	1.00:0.85	US$88	US$79

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)

(All currency in Australian $ unless otherwise defined)

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HAWSONS IRON PROJECT Improvements on PFS- Early BFS works

• Improved process design

• 15-20% less power

• Lower capital

• Transport options

 Potential to bring 10 -15 Mt production (and revenue) forward

• Other Possibilities

• Reduce water consumption to reduce tailings dam costs

• Lower cost removal of overburden

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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

3. Utilise in pit crushing and conveying

3. Soft Ore

• Lower mining costs (compared to BIF’s)

• Lower grinding (processing costs)

• Conventional circuit

• Reduce CAPEX

• High grade concentrate with low contaminants

5. Infrastructure

• Power, water, rail, mining community

• • Port availability

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Quartz Magnetite
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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

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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Port Pirie
Spare Berths
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HAWSONS IRON PROJECT Current Work

• Small scale pilot plant work nearing completion

• Environmental approvals underway – EIS terms pending

• Additional early BFS works

• Reduction of water – paste thickeners

• Efficient overburden removal

• Schedule

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

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HAWSONS IRON PROJECT Current Work

• Secure right development partner

• Advanced discussions with a number of parties

• Resolve ownership

• Current JV partner BMG (in Liquidation) 40%

• Asset for sale

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• Carpentaria well placed

• First right of refusal

• Right of third party introduced by Carpentaria to buy for $13m

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Where are we placed ?

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Macquarie Research Aug 2012
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Implications – all in U$ :

• Probable Future Base cost for 62% $120/t

• Est’ Marginal Chinese Costs – Westpac 62% $120/t

• • CAP will realise a premium

• CAP Est’ (@ 69% Fe) (69% Fe)

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

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Where are we placed ?

Revenue Calculation (@ spot) RIO BHP FMG AGO MGX GRR BCI		CAP**
Iron ore fines price - 62% Fe US$/dmt cfr 93 93 93 93 93 93 93		93
Rec'd price* A$/wmt FOB 77 77 66 65 65 92 66		77
Total Costs* A$/wmt FOB 38 44 57 83 67 118 56		55
EBITDA Margin A$/t 47 40 14 (5) 2 (8) 12		22

• After UBSe and company filiings, adjusted for D &A, moisure, Fe content, impurities, freight

• ** 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

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Summary

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

• Move Hawsons up the value curve

• Secure the right development partner

• Potential low cost and long life

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Potential for further discovery

• Braemar Iron

• Yanco Glen Tungsten

• Gold Projects

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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 1 EXPLORATION PORTFOLIO

UBS research

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

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