HAWSONS IRON LTD — Investor Presentation 2014

Mar 23, 2014

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

Mines and Money Hong Kong 2014 Quentin Hill – Managing Director 24 March 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 Company Snapshot

ASX Code : CAP IPO : Nov 2007 CASH: A$6.2 million

ISSUED SECURITIES: 124 m shares

Share Price and Volume 12 months

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High 0.30
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Top Shareholders: Silvergate: 17.2% Conglin Group*: 11.4% NEFCO: 4.5%

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

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Low 0.10
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Company Assets:

1. Hawsons Iron Ore Project

2. Discovery/Exploration Projects

KEY ASSET Hawsons Iron Project JV – Carpentaria 60% Pure Metals Pty Ltd 40%

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• Associates interest

CARPENTARIA EXPLORATION

Hawsons Iron Project - Investment Highlights

Robust development case set - BFS underway

• •Recent study based on 10 Mtpa spare infrastructure capacity shows potential for robust returns

• •simple low energy processing challenges conventional wisdom

Soft rock magnetite

• •easily produces increasingly sought after high grade, low impurity product

• •Comparatively low capital costs - shorter development times

Infrastructure in place

• •Joint venture pursuing agreements with port, rail, power and water authorities

• •Carpentaria to pursue development and production

Strategy

• •Introduce the right partner at the right time to underwrite initial construction funding

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CARPENTARIA EXPLORATION

Hawsons Iron Ore Project – Development Case Set

Study based on:

• Location Broken Hill, NSW, Australia

• Utilising the 10 Mtpa of infrastructure spare capacity

• Inferred resources of 220Mt concentrate*

• Extensive metallurgical test work

• Site engineering cost estimates to ±30%

• Consensus long term pricing forecasts

Results provide confidence to continue development

However

• Low level of geological confidence in inferred resources. No certainty further exploration will result in the establishment of Indicated or Measured resources

• Requires upgrade of resources to establish economic viability

Presents investment opportunity to add value as high confidence in upgrading the resource

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Broken Hill
Rail Siding
Slurry pipeline
NSW – SA Border
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*refer slide 8

CARPENTARIA EXPLORATION

Hawsons Iron Ore Project – Low Capital Intensity

Further work will be aiming to establish:

• Low capital cost per tonne of capacity (capital intensity)

• Capital intensity similar to hematite projects

• Lower than comparable magnetite projects

Potential Benefits

• Low capital service costs

• Potential for better return on investment

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400
Magnetite Projects (grey)
Range 67-69%Fe
Minas Rio 68% Fe
350
Karara
300
Southdown
Fusion
250
Some typical
Central Eyre
200 hematite projects (red)
AUD170
150
Mblam 63%Fe
Roy Hill 55%Fe
100
Pilbara 333 62%Fe
50 Roper Bar 60%fe RIO TINTO
0
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
Total Capital Cost estimate A$M
Source - refer Appendix 6
Capital Intensity A$/t Capacity
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CARPENTARIA EXPLORATION

2016 cost curve iron cost curve

Further work will be aiming to establish:

• Costs to land concentrate in China (CIF) in second quartile of cost curve indexed to 62% Fe equivalent

• 69% concentrate product

Benefits

• Potential to withstand price fluctuations

• Potential for high margins

• Potential better return on investment

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Second Quartile
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Source - After Credit Suisse 21 August 2013 1 Reported cash costs are C1 costs

• 2 all-in cash costs include royalties, sustaining capital, corporates costs but not finance costs 3 includes a freight adjustment to CFR China and indexed to a 62% product 4 exchange rate USD 0.85 = AUD 1.00

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CARPENTARIA EXPLORATION

Hawsons Iron Ore Project – Project Concept

• Resource - large allows scaleability

• Mining

• low strip ratio 0.47:1 waste to ore

• Utilise low cost bulk mining methods

• Processing

• simple flow sheet

• very low energy

• Don’t break the magnetite

• very high grade product

• Bond Work Index

  • 6-7Kwhr/t

	Bt	Mass recovery	Conc. Tonnes	Concentrate grade	Concentrate grade
Inferred Resource	1.4	15.5%	220M	69.9% Fe	2.50% SiO2
Exploration Target	6-11	14-17%	900-1900	69% Fe	2.5% SiO2
The term "target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve.
Photomicrograph of rock Image of concentrate 5o micron magnetite quartz

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CARPENTARIA EXPLORATION

Hawsons Iron Ore Project – Project Concept

• Water – source identified 90km from site- pumping tests to start next week

• Power- Available from the grid

• Permitting – No Native Title, permits on track

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Broken Hill
Rail Siding
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Slurry pipeline
NSW – SA Border
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CARPENTARIA EXPLORATION

Hawsons Iron Ore Project – Project Concept

Transport

• New slurry pipeline to existing rail head

• Existing rail to existing port

• 3 spare berths - underutilised

• Require conveyors, stockpiles and ship loaders

• Transhipment barge operation to Cape class vessels in Spencer Gulf in excess of 20Mtpa capacity available

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Spare berths
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CARPENTARIA EXPLORATION

Hawsons Iron Ore Project – Project Concept

Market

• High grade pellet feed

• Increasing demand in the long term

• Premium price possible

Why

• High grade feed increases steel mill efficiency

• Drive for greater efficiency and less pollution from steel mills will lead to growing demand

• Hematite grades fall over time requires blending with higher grade to maintain efficiency

• Premium price possible

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~~Potential product specifications Fe SiO P O Al O~~ 2 2 5 2 3

~~69.5% 3.1% 0.001% 0.22%~~

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CARPENTARIA EXPLORATION Hawsons Iron Ore Project - Feasibility Study

Recent milestones

• Start environmental impact statement

• Mining lease application

• Definition of water resource

• Development case set

Bankable Feasibility Study

Goals for next 12 months

• Complete agreements with infrastructure authoritiesport, rail, power and water

• Complete engineering studies for rail, port and marine

• Upgrade the resource

• Pilot plant test run

• Complete environmental impact statement

Continue to move the project up the value curve

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Broken Hill
Rail Siding
Slurry pipeline
NSW – SA Border
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CARPENTARIA EXPLORATION

Hawsons Iron Project – Summary

Robust development case •Bankable feasibility study continues building project set - BFS underway momentum •Challenges conventional wisdom – not all hard to liberate or Soft rock magnetite high cost

Infrastructure in place

•Comparatively low capital costs - shorter development times

Future

•Subject to funding- production possible 2017

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Carpentaria Exploration

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

Visit our Booth G26

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

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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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CARPENTARIA EXPLORATION APPENDIX

Project	Operator	Capex A$M	Annual M Tonnes	Capex/Tonne A$M	Product %Fe
Roy Hill₁	Hancock	[10,000]	55	[180]	[55]
Karara₂	Karara JV	3000	10	300	68
Central Eyre₃	Iron Road	3980	21.5	185	67
Fusion₄	Eyre Iron	2600	10	260	67
Mbalam₅	Sundance	4700-7830	35	134-224	63
Southdown₆	Grange	2885	10	289	69
Minas Rio₈	Anglo	9300	26.5-30	350-310	68
Pilbara 333₉	Rio	15740	113	139	62
Roper Bar₁₁	West Desert	180	3	60	60

• ₁ http://www.royhill.com.au/sites/default/files/Tim%20Treadgold%27s%20article.pdf

• ₂ http://gindpublic.powercreations.com.au/images/gind---iebohvaiti.pdf

• ₃ http://Asx Announcement IRD February 26 2014.

• ₄ http://centrexmetals.com.au/wp-content/sharelink/20120503-mine-and-port-scoping-study-completed-and-dfs-commenced87554443598698511.pdf

₅ http://www.sundanceresources.com.au/IRM/Company/ShowPage.aspx/PDFs/2675-51552764/PresentationResourcesRisingStars

₆http://www.grangeresources.com.au/clients/grange/downloads/item150/southdown_dfs_presentation_-_albany_16_may_2012.pdf

₈ http://www.angloamerican.com/business/ironore/projects.aspx , http://www.mining-technology.com/projects/minas-rio-iron-ore-brazil/ ₉http://www.riotinto.com/documents/110324_New_opportunities_for_industry_growth_Sam_Walsh.pdf

₁₁ ASX550 : Investor Notice of Presentation 20 Sep 2013.pdf USD/AUD conversion at 0.94

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CARPENTARIA EXPLORATION The World Needs More Iron Ore

Demand

• World steel demand to almost double 2010 - 2030

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

• China’s leadership committed to growth and urbanisation

• Growth off a high base generates large incremental demand increases in China

• Chinese iron ore production to fall and iron ore imports to increase

• Indian demand to increase substantially based on significant infrastructure spending

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Source : ANZ Research February 2014

• Gradual global recovery to gain strength and add to world steel production and iron ore demand

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CARPENTARIA EXPLORATION The World Needs More Iron Ore

Supply

• Recent forecasts of new supply consistently wrong, reflects delays due to higher cost, higher risk, infrastructure constrained projects

• Chinese domestic iron ore increasingly costly – relocation of steel plants to port cities, supporting stronger imports

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

• Chinese and global drive to higher efficiency and less pollution will also support stronger relative growth in high iron products

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