HAWSONS IRON LTD — Investor Presentation 2012

Jun 26, 2012

Carpentaria Exploration Ltd Perth June 26 – 27 2012 Developing the Hawsons Iron Project

1

Carpentaria

==> picture [150 x 108] intentionally omitted <==

==> picture [112 x 326] intentionally omitted <==

==> picture [161 x 110] intentionally omitted <==

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

• Nickel – North of Broken Hill

2

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.

3

HAWSONS IRON PROJECT Structure of the Talk

• Progress to date

• Time Line

• Location

• Geology and resources

 PFS

 Mining

• Processing Flow Sheet

• Export and Logistic Solutions

• Water

 Power

 Rail

 Port

 Summary

==> picture [336 x 256] intentionally omitted <==

==> picture [137 x 135] intentionally omitted <==

==> picture [159 x 123] intentionally omitted <==

4

HAWSONS IRON PROJECT Project and Test Work Flow Diagram

==> picture [690 x 397] intentionally omitted <==

----- Start of picture text -----

2009 2010 2011 2012
2014-15
Project GO/NO GO Project GO/NO GO Project GO/NO GO
DISCOVERY
RC Drilling
(3 holes ±600m)
Aug 09
Geophysical
Exploration Target
Definition
Sep 09 INFERRED RESOURCE
Promet - DEFINED FULL PILOT
Preliminary Mineral Hellman & Schofield PLANT
Processing TESTWORK
Testwork & Report Prefeasibility PFS
Nov 09 BBWI, HPGR 1 Completed Crushing and Reserve and
& JK Tech CSIRO Pelletising Tests – Magnetic
Lab Drill Drop Tests Scoping Bentonite Separation Metallurgical
Samples - DTR Study Due Market Requirement AMMTEC LIMS Testwork DD Core Drilling Env.
Dec 09 Mineral Liberation Procedures JKTech SEM Drilling Program Exploration & Resource On RC Chips LIMS Test Diligence PFS 1 Started Prefeasibility Testing DDC from JK Tech HPGR Reverse Float of Si0+ Dolomite Recovery 2 Audit PFS Mining Option Study Small Scale Grinding and Separation Approval Approval ML
Tests AMMTEC Testwork
Feb 10 Jun 10 Aug 10 Sep 10 Oct 10 Oct 10 Nov 10 Dec 10 May 11 Jul 11 Jul Nov 11 Apr 12
11
Polished Section Petrography and Geological Drilling Testwork Round Robin - 3 Labs’ consistent - 1 not @ 72.4% Fe + 3% SiO2 - Baseline Study Environmental Applications CSIRO ±90kg LIMS Concentrate Nov 10 Teale & Ass Jan 11 RESULTS Prefeasibility Process Review Jan 11 Bulk Sample – Proving Plant Flow Sheet Pelletising – 3t per sample
JK Tech Polished Crushing and Grinding Slurry P/L Test
Tested Diamond Drill Section Option Study
Core (DDC) Petrography Delkor Tailings
- AG Mill Tests: Full Settling Tests
DD
- HPGR Tests: ½ DD
SCOPING STUDY PFS DFS (BFS)
----- End of picture text -----

5

HAWSONS IRON PROJECT Pre-feasibility Study

RC Drill Rig Slimline Logging truck Slimline Logging truck RC Drill Rig Diamond Drill Rig

Resource Drilling Activity Sept’ 2010

==> picture [290 x 222] intentionally omitted <==

6

HAWSONS IRON PROJECT Largest Magnetite Project in NSW

• Resource – very large with potential for

• 50 year plus mine life

Native Title has been extinguished

==> picture [389 x 234] intentionally omitted <==

• 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

==> picture [175 x 109] intentionally omitted <==

==> picture [97 x 127] intentionally omitted <==

==> picture [109 x 115] intentionally omitted <==

with other projects

7

GLOBAL IRON

Geological Time

==> picture [606 x 309] intentionally omitted <==

==> picture [55 x 129] intentionally omitted <==

8

HAWSONS IRON PROJECT Geology and Resources

Five magnetic anomalies as target

• Very limited outcrop

• 20,000m drilling

• 70 holes

Results

• Consistent magnetite siltstone in all anomalies Exploration Target[1] 6 to 11 billion tonnes

• 900-1,900 million tonnes of concentrate

• Mass Recovery (DTR) 14-17% Concentrate Grade of 69-71% Fe

And a Maiden Resource

==> picture [381 x 320] intentionally omitted <==

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) 9

9

HAWSONS IRON PROJECT Geologically Consistent

160m

(DD10BRP023) Unit 3 (DD10BRP039)

True Thickness 400-500m

• Composition  Magnetite

• Quartz

• Carbonate

• Chlorite/biotite

• Hematite

==> picture [277 x 55] intentionally omitted <==

Unit 2

Cross Section – with mineralised units

170m

==> picture [159 x 75] intentionally omitted <==

10

HAWSONS IRON PROJECT Maiden Resource

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, no other impurities

==> picture [231 x 164] intentionally omitted <==

Eastern limit of Inferred Resource Fe% Al2O3% P2O5% SiO2% S% 69.9 0.22 0.002 2.50 0.003

11

HAWSONS IRON PROJECT PFS November 2011

Improvements to PFS base case :

 In pit crushing and conveying (IPCC) shows significant improvement

• Standard magnetite processing techniques

==> picture [333 x 184] intentionally omitted <==

==> picture [653 x 212] intentionally omitted <==

----- Start of picture text -----

Capex NPV IRR Annual ave. Payback
Gross Profit
Nov 2011 PFS Update (incl $2.9Bn $3.2 Bn 23% $735 m 6.3yrs
in pit crushing option)
July 2011 PFS Base Case $2.8Bn $2.8 Bn 21% $688 m 6.7yrs
Assumptions Discount rate AUD:USD Life of Mine 69% Life of Mine equivalent
Concentrate price 62% fines price
9% 1.00:0.85 US$88 US$79
(All currency in Australian $ unless otherwise defined) 12
----- End of picture text -----

12

HAWSONS IRON PROJECT

Lower Mining Costs – In Pit Crushing and Conveying

• Existing and Proposed IPCC operations e.g. :  Bingham Canyon

• – ~165Mtpa linked to the Copperton Concentrator by an 8km conveyor system

• Escondida – Over 320Mtpa

==> picture [223 x 171] intentionally omitted <==

• Benefits :  Lower fuel usage (fuel and transport ~50% of mining costs )

• Truck utilisation increase by up to 15%

• less long up hill hauls

• Uses Electrical power – lower cost

• Better operational safety

• Deeper mine – maximise resource

13

HAWSONS IRON PROJECT Value of low Waste : Ore

==> picture [348 x 333] intentionally omitted <==

----- Start of picture text -----

+ 600 m mining widths
Waste Pit outline
150 m mining widths
200 m
----- End of picture text -----

Example at same scale

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

Waste to ore 2.3: 1, 36% DTR

Mine 330t material to produce 100t of ore

100t ore gives 36t of concentrate

9.2 t material moved produces 1 tonne concentrate

14

HAWSONS IRON PROJECT

Optimization Studies – Processing

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 )

• Grain size 30 – 50 µm

• Ideal for pellet production

• Ideal for slurry pipe operation

• Lab’ trials indicate :

Magnetite

Quartz

==> picture [325 x 248] intentionally omitted <==

Rock breaks into grain size

• suitable for impact crushing

• impact crushing generates more

• fines than conventional crushing

15

HAWSONS IRON PROJECT Low Cost Front End Crushing

PRIMARY CRUSHING - IMPACT CRUSHERS

Preliminary testwork - Positive  Utilizing soft ore characteristic (Low bond work and abrasion indices) Value compared to HPGR :

==> picture [190 x 148] intentionally omitted <==

----- Start of picture text -----

HPGR
----- End of picture text -----

• Lower capital cost

• Low energy consumption

==> picture [690 x 206] intentionally omitted <==

----- Start of picture text -----

 Low energy consumption
 Large feed reduction ratio (12 : 1)
Feed
 Norm is 3 or 4 : 1 <800mm
 Fewer crushing stages
 Off the shelf units
Discharge
<65mm
16
----- End of picture text -----

• Off the shelf units

HAWSONS IRON PROJECT Low Cost Front End Crushing

Barmac Crusher SECONDARY CRUSHING - IMPACT CRUSHERS

Laboratory scaled crushing tests indicate:

• Liberates crystalline magnetite

• Secondary Crushing

==> picture [118 x 38] intentionally omitted <==

• Feed ~ 65mm

• Discharge ~70% less than 1mm

Feed

~ 65mm

• Total Fines Production ~35% less than 53µm

Value :

• Off the shelf low cost units

• Low energy consumption

~40 m µ

• Produces 35% final products

==> picture [63 x 36] intentionally omitted <==

Discharge

~70% <1mm

• Eliminates tertiary crushing

17

HAWSONS IRON PROJECT Optimization Studies - Processing

Preliminary Costings for a 5mtpa Crushing Module

Equipment	5Mtpa (equivalent)	5Mtpa (equivalent)	Installed Power kW	Estimate d Costs M AUD	Option Study 5Mtpa (Anticipated)	Option Study 5Mtpa (Anticipated)	Installed Power kW	Estimate d 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

18

HAWSONS IRON PROJECT

Low Processing Costs - Summary

• Processing Costs $11/t concentrate – very low compared to others

• Produces premium pellet feed concentrate at 30-50 microns

• Very soft ore – est’ 30% less energy per tonne concentrate than typical WA deposits

• Grid Power – up to 50% cheaper than self generated diesel power

==> picture [392 x 415] intentionally omitted <==

----- Start of picture text -----

Run of Mine (ROM)
Primary Crushing
O/F U/F
Screening Fines
Middlings
Stockpile Secondary Crushing
O/F
Screening
U/F
Rougher Magnetic Separator
Ball Mills
Cyclones and Hydro Separators Tailings
Cleaner Magnetic Separator Tailings
ISA Mills
Recleaner Magnetic Separator Tailings
Concentrate Handling Tailings Storage Facility
Concentrate Despatch Concentrate Export
----- End of picture text -----

19

HAWSONS IRON PROJECT Optimization Studies – Simplified Flow Diagram

==> picture [689 x 428] intentionally omitted <==

----- Start of picture text -----

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
Lower cost front end Tailings disposal
20
----- End of picture text -----

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

==> picture [8 x 9] intentionally omitted <==

At 15.5% DTR :

39 kWh to produce 1 tonne con’

At 36% DTR :

57 kWh to produce 1 tonne con’

==> picture [279 x 233] intentionally omitted <==

Note :

• Power calculations based on public information

• Hawsons costs assuming HPGR / Ball Mill circuit

• Anticipate lower power with impact crushers

21

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

22

HAWSONS IRON PROJECT

Cost Summary – Start Up

Costs per AUD tonne concentrate Mining Costs $15 Processing Costs $11* Other (incl’ $8 Royalties) Total to $34 ** Mine Gate

* Does not include processing optimisation ** Long term total is estimated to be $27

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

 Average operating costs drop over life of mine after Pre Strip

==> picture [268 x 198] intentionally omitted <==

FOB – Free on board

23

HAWSONS IRON PROJECT Power and Water - Concept

==> picture [616 x 391] intentionally omitted <==

----- Start of picture text -----

Approx 40km Power Line Route
Water Pipeline
Route/Alternative
Power Route
10 km
Water :
Borefield – saline and deep
Close to power
----- End of picture text -----

24

HAWSONS IRON PROJECT Transport Options From Site to Port

==> picture [630 x 344] intentionally omitted <==

25

HAWSONS IRON PROJECT

Transport Options – Great Optionality

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 , rail to Port Pirie

• Ramp up to yr 4 - 20MT

• slurry to Broken Hill , slurry / rail to Port Pirie

• 13Mtpa available using existing rail to Port Pirie

• Port Capacity available at Port Pirie pending upgrade

==> picture [210 x 161] intentionally omitted <==

----- Start of picture text -----

26
----- End of picture text -----

HAWSONS IRON PROJECT

Transport Options – Concept Plan

==> picture [502 x 324] intentionally omitted <==

Port Pirie bottleneck solved Two spare berths Out of town stock pile and conveyor

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

Port Pirie common berth facility

27

HAWSONS IRON PROJECT Cost Summary

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

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

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

 Average operating costs drop over life of mine after Pre Strip

==> picture [268 x 198] intentionally omitted <==

FOB – Free on board

28

HAWSONS IRON PROJECT

CIF China Comparison June 2011

==> picture [528 x 387] intentionally omitted <==

----- Start of picture text -----

Carpentaria 2011
PFS – 20mtpa
US$63 - $68
----- End of picture text -----

Note : The CIF costs are at production grade eg hematite producers est. at 60% Fe High grade concentrate producers – magnetite will attract 10 – 20% premium.

This offsets processing and transport costs not reflected in graph

Makes magnetite attractive

29

HAWSONS IRON PROJECT

Work Program - Summary

• Port Pirie Expansion

• Flinders Port to complete

• Metallurgical Testwork

• Bench scale and pilot scale

• Project Sizing Study

• Determine optimum capacity and production rates

• Include recent optimisation studies

• Transport Studies

• Maximise option utility (Slurry/rail)

• Drilling

• Improve resource category

• Geotechnical testing

• Metallurgical sampling

• Statutory Approvals

==> picture [220 x 165] intentionally omitted <==

==> picture [220 x 160] intentionally omitted <==

30

HAWSONS IRON PROJECT SUMMARY

• Prefeasibility Study – Start up at 5mtpa ramp to 20 mtpa concentrate production, 20 year mine life

• NPV $3.2 billion, IRR 23% (November 2011)

• CAPEX of $2.9b

• Life of mine 69%Fe price US$87/t

• Est. cost in China US$63 – 68 /t

• PFS Audited Sept 2011 – all ok

• Infrastructure – Port, rail capacity, water, and power all available for start up

• Mining and Processing –low unit costs because low strip ratio, wide mining widths and soft ore

• Marketing - Saleable concentrate low silica, no impurities

• Ownership – CAP 60%, BMG (in Liquidation) 40% CAP potential to increase

==> picture [345 x 206] intentionally omitted <==

Native Title has been extinguished

==> picture [152 x 118] intentionally omitted <==

31

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

==> picture [366 x 51] intentionally omitted <==

32