HAWSONS IRON LTD — Investor Presentation 2012

Oct 17, 2012

Carpentaria Exploration Ltd Update AGM Oct 18[th] We find it. We prove it. We make it possible.

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Carpentaria

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Aim :

Discover, Develop and Mine mineral resources to grow shareholder value and fund further discoveries in Eastern Australia

Abilities :

Strong geoscientific and engineering team

Track Record :

• Established Resource at Hawsons

• Positive PFS released

• Tin / Tungsten near Broken Hill

• Tungsten Resource

• Gold – Lachlan Fold Belt

• Continue turn over EL’s

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Carpentaria Current Projects

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Slide 3

Company Snapshot October 16[th]

ASX : CAP FINANCIAL 16[th] Oct 2012 Cash A$5.8 million

Share Price and Volume 12 months

QUOTED SECURITIES 105,991,301 shares

Compared with Small Ordinaries

LARGEST SHAREHOLDERS Silvergate : 17.79% Aust’ Conglin Int’ Inv’ : 10.6% Conglin Yue : 3.7% Directors & Management (inc’ unlisted Options : 13.31%)

INVESTMENTS 2.2 m Guildford Coal Ltd fully paid shares ~ value $1m 16[th] Oct

KEY ASSET

Hawsons Iron Project JV – Carpentaria 60%

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HAWSONS IRON PROJECT Largest Magnetite Project in NSW

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Is Iron Still Worth It ?

In the News :

 China slow down :

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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

This is a very good slow down ! Will still require Iron

Slide 6

Is Iron Still Worth It ?

In the News :

 Iron price reduction

 Hematite producers reducing project expenditure

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

Slide 7

Is Iron Still Worth It ?

Implications – all in U$ :

Est’ Marginal Chinese Costs – Westpac CAP Est’ (@ 69% Fe)

• Probable Future Base cost for 62% $120/t • CAP will realise a premium (69% Fe) • Hawsons very profitable at $120/t (62% Fe)

Macquarie Research Aug 2012

Slide 8

HAWSONS IRON PROJECT Largest Magnetite Project in NSW

• Resource – very large with potential for

50 year plus mine life

Native Title has been extinguished

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• Mining – very low unit costs because low strip ratio, very wide mining widths, low abrasion index and single pit

• Processing - comparatively very low cost because of very soft mineralised rock

• Infrastructure – water, power, transport

• and port all available for start up

• Approvals – low hurdles compared

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with other projects

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HAWSONS IRON PROJECT Maiden Resource / Exploration Target[1 ]

JORC Inferred Resource (12% DTR cut off)

1.4 billion tonnes at 15.5% mass rec. 220 million tonnes of concentrate 69.9% Fe; 2.50% SiO2; 0.22% Al2O3; 0.002 P2O5

Exploration Target[1] 6 to 11 billion tonnes

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900-1,900 million tonnes of concentrate DTR 14-17%, Con’ Grade 69 – 71% Fe

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)

Eastern limit of Inferred Resource

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Hawsons EXPLORATION PORTFOLIO At 15.5% DTR - Why Does it Work ?

The Value at Hawsons :

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

• Mining costs low - not mining too much waste

2. Large mining widths and single pit to year 20

• Mining costs low – thick consistent Fe units

• Large and easy to move material – in pit crushing and conveyancing

• Minimising truck usage – lower OPEX

3. Soft Ore

• Lower mining costs (compared to BIF’s)

• Lower grinding (processing costs)

• Reduce CAPEX

4. High grade concentrate will low contaminants

5. Infrastructure

• Power, water, rail, mining community

• Port availability

Slide 11

HAWSONS IRON PROJECT Value - Geologically Consistent

160m

(DD10BRP023) Unit 3 (DD10BRP039)

True Thickness 400-500m

• Composition  Magnetite

• Quartz

• Carbonate

• Chlorite/biotite

• Hematite

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Unit 2

Cross Section – with mineralised units

170m

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HAWSONS IRON PROJECT Why Does it Work ? low Waste : Ore

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+ 600 m mining widths
Waste Pit outline
150 m mining widths
200 m
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Waste to ore 0.3 : 1, 15.5% DTR Mine 130t material to produce 100t of ore

100t ore gives 15.5t of concentrate

8.4 t material moved produces 1 tonne concentrate

Example of a WA style BIF deposit Waste to ore 2.3: 1, 36% DTR Mine 330t material to produce 100t of ore

100t ore gives 36t of concentrate

Example at same scale

9.2 t material moved produces 1 tonne concentrate

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HAWSONS IRON PROJECT

Why Does it Work ? – Soft Ore

Unique Metallurgical Characteristics :

• Low bond work index of 6 - 8 kWh/t

(BIF’s ~ 15 – 30 kWh/t)

• Low abrasion index ~ 0.09

(BIF’s ~0.3 – 0.7 )

• Rock Strength (UCS) 50 – 90 Mpa

• (BIF’s ~ 355 Mpa )

All this shows very soft ore

Magnetite

Quartz

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Rock breaks into grain size

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HAWSONS IRON PROJECT Why Does it Work ? – Easy to Crush

• Suitable for Impact Crushing

• High reduction ratios – rapid throughput

• Generates fines early

• Saves on secondary crushing

• Simple Process Flow

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• Crushing

• Screening

• Magnetic Separation

• Milling

• Possibly fine Grinding

• Fine Concentrate

• Slurry Pipe to Rail / Port

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HAWSONS IRON PROJECT Pilot Plant - Proof of Concept

Work at HRL Testing Pty Ltd

6t core through Impact Crusher

• Decimates the ore

• Fines generated >40%

  • minus 106 micron

• Rougher Magnetic separation

• Greater than 50% solids rejected – to tails

• Rougher concentration

• ~40% Iron

• Ball Milling requirements

• Less than 50% of ore needs

to be milled

• Milling testwork planned for next week

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HAWSONS IRON PROJECT Why Does it Work ? – Magnetic Separator

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HAWSONS IRON PROJECT

Low Cost Front End Crushing

PRIMARY CRUSHING - IMPACT CRUSHERS

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Feed
<800mm
~40µm
Discharge
<65mm
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HPGR
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Feed
~ 65mm
Discharge
~70% <1mm
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HAWSONS IRON PROJECT

Value of Soft Ore – power per tonne concentrate

Hawsons

Example of a WA BIF

Grinding costs

Bond Work index : 6 kWh/t

Grinding costs

Bond Work index :~ 20 kWh/t

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At 15.5% DTR :

39 kWh to produce 1 tonne con’

At 36% DTR :

57 kWh to produce 1 tonne con’

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Note :

• Power calculations based on public information

• Hawsons costs assuming HPGR / Ball Mill circuit

• Anticipate lower power with impact crushers

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HAWSONS IRON PROJECT Optimization Studies - Processing

Preliminary Costings for a 5Mtpa Crushing Module

Equipment	5Mtpa (equivalent)	5Mtpa (equivalent)	Installed Power kW	Estimated Costs M AUD	Option Study 5Mtpa (Anticipated)	Option Study 5Mtpa (Anticipated)	Installed Power kW	Estimated Costs M AUD
Primary Crushers	Gyratory	1	1,200	4.5	Impact Crusher	2	2,400	2.0
Secondary Crushers	Cone	2	1,900	7.0	Barmac	5	3,000	2.5
Tertiary Crushers	HPGR	4	16,000	31.2	-	-	-
Total			19,100	42.7			5,400	4.5

Total Installed Power consumption estimated to be reduced from 173 MW to ~ 143 MW

**Estimated Power Reduction of 15 – 20% ***

* Reduction not put into PFS, power for entire on site operation at 20Mtpa con. production

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HAWSONS IRON PROJECT

Optimization Studies – Simplified Flow Diagram

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ROM
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
Current Pilot Test Work Tailings disposal
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HAWSONS IRON PROJECT 3d Mine Model animation

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HAWSONS IRON PROJECT

Operating Cost Summary

Operating Costs and Strip Ratio

5Mtpa 20 Mtpa

• Over Life of Mine :  Operating costs : Fall from $36 to $27

 Waste to ore Strip Ratio : Reduce at start of mine from ~ 0.4 :1 to 0 in 10 years

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HAWSONS IRON PROJECT Transport Options From Site to Port

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HAWSONS IRON PROJECT Pipe Line animation

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HAWSONS IRON PROJECT

Transport Options – Great Optionality

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Recent Developments – March 21, 2012

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

• Common User Facility for potential to export 20 – 30Mtpa of iron concentrates

Start Up Preference

• Year 1 – 5Mt

• slurry to Broken Hill , train to Port Pirie

• Ramp up to yr 4 - 20Mt

• slurry to Broken Hill ,

• slurry / train to Port Pirie

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Port Pirie
Spare Berths
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• 13Mtpa available using existing rail to Port Pirie

• Port capacity available at Port Pirie pending upgrade

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HAWSONS IRON PROJECT Cost Summary

Costs per AUD tonne concentrate Mining Costs $15 Processing Costs $11 Other (incl’ $8 Royalties) Transport to and $13[a] - 19[b] onto Ship Total FOB $47-53 Port Pirie*

a Long term pipeline estimate b Rail to Port Pirie estimate * Not including processing optimization

 FOB costs highly competitive (av. Closer to $60)  Including transhipping

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FOB – Free on board
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HAWSONS IRON PROJECT Where We Sit

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HIP Production and Delivery Cost
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HAWSONS IRON PROJECT Approvals

• Submitted Preliminary Environmental Assessment (PEA) and Development Application to NSW Govt.

• Planning Focus Meeting  Meet with government departments involved with EIS

• Meeting held today

• Will receive guidelines for Environmental Impact Statement (EIS)

• Entered discussions with TransGrid

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Power Lines Near Site
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Weather Station on Site
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HAWSONS IRON PROJECT

Work Program - Summary

• Port Pirie Expansion

• Flinders Port to complete

• Metallurgical Testwork

• Pilot scale ongoing

• Transport Studies

• Maximise option utility (Slurry/rail)

• Drilling

• Improve resource category

• Geotechnical testing

• Metallurgical sampling

• Statutory Approvals

• PEA submitted – Meeting on Oct 18[th] with Govt

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Carpentaria Current Projects

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Slide 31

Carpentaria Iron Projects Braemar JV

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Braemar
JV
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Close to Adelaide / Port Pirie Good transport infrastructure (Rail and Road) No Native Title

Airborne magnetic image Green to Red depicts Braemar Iron Formation

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Tail end of Braemar Iron Formation EL 3998 ~ 20kms of Braemar EL 4395 ~ 10kms of Braemar

Slide 32

Carpentaria Projects

Target :

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1. High amplitude magnetic anomalies that may represent magnetite

Two zones for test :

1. Depth of oxidation

2. Quality of magnetite

Drilling started yesterday

Example of magnetic model

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Slide 33

Carpentaria Current Drilling

Initial Drill Results : RC12 BM001

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 0 - 18 m unconsolidated cover

 18 – 62 m oxidised magnetite siltstone  62 – (eoh) 160 m interbedded magnetite siltstone 30,000 SI units (interpreted to be same as Unit 2 at Hawsons)

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Slide 34

Carpentaria Tin Tungsten Projects

Carpentaria’s strategic objective :

• close to Broken Hill

• establish a cluster of tin and/or tungsten

• deposits

• coarse grained surface mineralisation

• easily mined by low cost methods

• processed with a single, centrally located plant

• Produce a tin concentrate and tungsten concentrate using same processing plant

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Slide 35

Carpentaria EXPLORATION PORTFOLIO Tungsten Project – Yanco Glen

New Inferred Resource

3.4Mt @ 0.11% WO3 (at 0.05% WO3 cut-off) containing 3,953t WO3

Doubled in-situ tonnes of contained metal ( 3,950t of WO3 )

Previously published and now superseded 2006 inferred resource of 0.83Mt @ 0.21% WO3 or 1,743t of WO3

• Resource open and depth and along strike

• Will be amenable to open cut mining

• Metallurgical test will commence to establish

• Concentrate quality

• Processing techniques inc’ ore sorting

• possibility / beneficiation

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2m at 1.13%WO3
5m at 0.86%WO3 [from 141m ]
[from 99m ]
3m at 0.76%WO3
[from 83m ]
1m at 1.09%WO3
[from 100m ]
7m at 0.34 %WO3
[from 33m inc’ ]
1m at 1.34% WO3
from 38m;
11m at 0.47%
WO3
From 106m inc’
4m at 0.95% WO3
from 108
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Slide 36

Tungsten Production

• Historically China controls supply

• China dominated in ‘80 & ’90’s

• Chinese mines historically high graded

• ATP plants installed were artificially supported by government

• Created artificial supply cheap W

• Results today

• West stopped W exploration

• Chinese mines now operate at higher costs

• China now a net importer of W

• China imposes a 5% tariff on all W exports

• Identified globally as a Strategic Material

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Tungsten Annual Averages U$ (Metal Bulletin Quotations)

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Tungsten APT Prices U$ (Metal-Pages) Note 1 mtu equals 10 kgs

Tungsten – What you may not know

• Tungsten Properties

• Highest melting point of ALL metals

• Hard metal therefore robust

• SG 19.3 – very dense

• Thermal Expansion 40% of steel

• Uses for Tungsten include: -

• Hard wearing tool protection (Tungsten Carbide / Tool Steel)

  • Mining drill bits

  • Machine tools / cutters

• Heat sinks / Transition spacers

• Furnace and Light bulb elements

• Radiation & X-Ray shielding

• Ceramic Glazes

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Light Bulb Sports Equipment
Cutting Tools Welding Rods
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Carpentaria Tin Tungsten Projects

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Corona : Initial Field Results Indicate up to 19% copper

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Slide 39

Carpentaria Tin Tungsten Projects

Kantappa : Initial Field Results Indicate up to 2.86% tin

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Slide 40

Carpentaria Gold Projects

Barellan EL

Tooloom EL

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60m at 1.5g/t Au
(incl. 10m at 4.5 g/t Au)
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Slide 41

Carpentaria Summary

Carpentaria is in a strong position

 Cash in the bank

• Major Iron Projects

• One post Pre feasibility

• One in drilling phase with good initial results

• New inferred tungsten resource at Yanco Glen doubling in situ tonnage from earlier resource

• Good tin results in other tenements requiring follow up

• Three large undrilled gold projects in the highly prospective Lachlan Fold Belt of NSW

• An excellent team to carry out this work

• A strong supportive Board

Slide 42

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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