HAWSONS IRON LTD — Investor Presentation 2014

May 25, 2014

Carpentaria Exploration Ltd

We find it. We prove it. We make it possible. Broken Hill Resources and Energy Symposium May 26[th] 2014

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 losses, 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 EXPLORATION Assets - Well positioned in a tight market

Cash

• 5.3 million (March 30, 2014)

• First in the queue when better times return

• •Carpentaria 60%, Pure Metals 40% (earning)

Hawsons Iron Project

• •+$20 million invested in project ($5m last year) •Bankable feasibility study on going

Gold Projects

• Central Lachlan Gold Project

• Currently drilling green fields soil anomaly

Others

• Braemar South Iron Project

• Nickel, tungsten and tin projects for divestment

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CARPENTARIA EXPLORATION Company Snapshot

ASX Code : CAP

FLOATED : Nov 2007

• Strong cash position

• History of good capital management

• Loyal long standing shareholders

CASH: AUD 5.3 million

QUOTED SECURITIES: 124 m shares

Top Shareholders: Silvergate: 17.2% Conglin Group*: 11.4% NEFCO: 4.5%

Directors & Management (inc’ unlisted Options): 15.5%

• Associates interest

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CARPENTARIA EXPLORATION Board of Directors

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Mr Nick Sheard - Chairman

• 40 years industry experience

• Vice President – Exploration INCO Limited

• Global Exploration Manager MIM Holdings

Mr Bob Hair

• 30yrs experience as a lawyer

• General Manager Commercial MIM holdings

• Development experience

Mr Quentin Hill – Managing Director

• 17 yrs experience in mineral exploration and development

• Geologist

• Worked at CAP since the IPO

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Dr Neil Williams

• 40 years experience

• Most recent 15 yrs CEO of Geoscience Australia

• One of Australias eminent geoscientists

Mr Paul Cholakos

• 25 yrs experience in resources

• Mining Engineer

• Current Executive General Manager Operations –Oil Search

Mr Bin Cai

• Mr Conglin Yue representative on the Board

• 17 years experience investing in emerging resource companies

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CARPENTARIA EXPLORATION

Hawsons Project Team – Deep Iron Ore Experience

Ray Koenig - Hawsons Project Director

• 45 years experience

• Chief Metallurgist Savage River Mines (magnetite)

• Agglomeration and Harbour Superintendent at Port Latta in charge of Pellet Plant and Port Operations

• Sought for due diligence by others on magnetite

Others

• Project development and financing advisors

• Deep iron ore experience

• Development and financing experience

  • Both Pilbara hematite and magnetite

• China side and local experience

Elements in place to unlock the tremendous value in the Hawsons Iron Project

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CARPENTARIA EXPLORATION

Location is everything – ahead of the pack

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Power
Rail
Water
Port
New rail link?
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CARPENTARIA EXPLORATION 10 Mtpa development case set

• Targeting less than USD 150/t capital intensity

Recent Study positive

• Targeting landed in China costs in 2[nd] quartile of cost curve at under USD 60/t on a 62% basis

Long life resource

• •JORC total Resource 1.8bn tonnes at 15% mass recovery for 263m tonnes of 69.7%Fe concentrate (refer Appendix 1)

Soft rock challenges conventional wisdom

• Soft rock is easy on equipment

• Low energy to easily liberate high grade product

Permitting on track

• Existing infrastructure reduces permitting timeframes

• Mining lease application lodged, No Native Title

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CARPENTARIA EXPLORATION Recent study results cont.

Mining

• Convention truck and shovel, switching to in-pit convey when economics supports

• Waste : Ore 0.3 (post pre-strip average)

Processing

• •Two stage magnetic separation

• •Simple flow sheet

• Existing rail and port

Transport

• Independent assessment – efficient and viable

• Estimate $21 per tonne from site to ship

Product and market

• 69.5% Fe, ~ 3% silica +alumina pellet feed

• Increasing demand for high grade

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CARPENTARIA EXPLORATION

Recent Milestones – Hawson Iron Project

10 Mtpa development case set

• Uses existing rail and port infrastructure

Maiden Indicated Resource

• •Increase and upgrade resource by 20%

• •Increased confidence in conversion of rest of resource

Water source defined

• over 4000m of exploratory water drilling successful 90 km from site

• Final piece of infrastructure identified

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CARPENTARIA EXPLORATION

Bankable feasibility study next steps -

Continue EIS

• On track for delivery early 2015

• Key for mining lease approval

Infrastructure

• •Increase certainty, deeper engagement with government and Transgrid

•Prefeasibility on integrated port, rail , marine environments at Port Pirie

Renewed engagement with end users

• Positive early indications

• Market development

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CARPENTARIA EXPLORATION Feasibility opportunities – subject to funding

Drilling

• Upgrade resource • Metallurgical samples • Geotechnical samples

Pilot Plant test work

•Promising small scale results give confidence •Opportunity to de-risk and add great value

Feasibility level engineering

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• Engage contractor
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CARPENTARIA EXPLORATION The World Needs More Iron Ore

Demand

• World steel demand to almost double 2010 – 2030 notwithstanding short term fluctuations

• Iron ore demand in China continues strong growth; Jan 2014 – imports all time high of 86mt

• China’s leadership committed to growth and urbanisation

• Indian demand to increase substantially based on significant infrastructure spending

• Chinese iron ore production to fall and seaborne iron ore imports to increase to over 85% total feed

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Source : ANZ Research February 2014

• Seaborne iron ore 70% controlled by 4 producers and growing

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CARPENTARIA EXPLORATION The World Needs More Iron Ore

Expectations

• World iron ore production needs to be almost double in the next 20-25 years to meet expected demand

• China to have increasing dependence on imported iron ore

• Chinese steel makers seek to control more imports by investing offshore in low cost, long life projects;

• » secure supply

• » hedge price risk and protect diminishing margins

• » diminish big four pricing power

• China Inc. have re-entered the market with Boasteel bid for Aquilla – is this the beginning of a second phase beginning the re-rating of project value?

• Focus on increase efficiency and lower emissions driving demand for high grade products

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CARPENTARIA EXPLORATION Iron Ore Pricing

Benefits of high grade	Platts quoted prices for iron ore fines	Platts quoted prices for iron ore fines	Platts quoted prices for iron ore fines	Platts quoted prices for iron ore fines	Platts quoted prices for iron ore fines
	55%Fe	58%Fe	62%Fe	65%Fe	69%Fe
price received CFR, rolling 3months average Platts May 8 2014		102	113	123
iron unit price USD/1% Fe		1.76	1.82	1.90
discount/ premium for each iron unit		-3.5%		4.3%
Effect on Margins at production costs of USD62 landed in China		40	51	61

Source: Platts SBB Steel Markets Daily May 8 2014 (TSI daily iron ore Price indices)

The ~$20 differential is expected to grow, and pays for significant processing of magnetite and is an important consideration when comparing projects

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CARPENTARIA EXPLORATION

Summary

• Strong cash position in a tight market

• Company • Team in place to unlock tremendous value in Hawsons

• •Over $20 million invested

Hawsons Project

• •Significant recent milestones achieved

• •Development to continue

Iron Market Fundamentals

• Supports relative price growth in high grade products

• Is China Inc. ready to re-enter the market to hedge price against big four causing rerating of value?

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Carpentaria Exploration

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

• Come and see us at the Booth

• View the core at the government display

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This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported

The information in this presentation that relates to Exploration Results, Exploration Targets and Resources is based on information compiled by Q.S. Hill, who is a member 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'. Q.S.Hill 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.

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HAWSONS IRON PROJECT APPENDIX 1 – Resources

			Concentrate Grades	Concentrate Grades	Concentrate Grades	Concentrate Grades	Concentrate Grades
Category	Billion Tonnes	Magnetite DTR%	Fe%	Al2O3%	P%1	Si2O2%	LOI%	Contained Concentrate Million Tonnes
Inferred	1.554	14.7	69.6	0.20	0.004	2.9	-3.0	228
Indicated	0.215	16.2	69.8	0.20	0.005	2.8	-3.0	35
Total	1.769	14.9	69.7	0.20	0.004	2.9	-3.0	263

Refer ASX Announcement March 26, 2014

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Indicated and
Inferred
Resource area
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