HAWSONS IRON LTD — Investor Presentation 2014

Feb 24, 2014

Carpentaria Exploration Ltd We find it. We prove it. We make it possible. Investor Presentation 25 February 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

Share Price and Volume 12 months

High 0.32

ISSUED SECURITIES: 124 m shares

Top Shareholders:

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

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

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Low 0.12
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Company Assets:

1. Hawsons Iron Ore Project

2. Discovery/Exploration Projects

KEY ASSET Hawsons Iron Project JV – Carpentaria 60%

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• Associates interest

CARPENTARIA EXPLORATION Hawsons Iron Project - Investment Highlights

Hawsons: large resource, long life project in NSW

• JORC Inferred Resource 1.4bn tonnes for 220m tonnes con’.*

• Exploration target[1] over 1000 Mt magnetite concentrate

Robust development case set, utilising existing infrastructure

• Development work based on utilising the 10 Mtpa of available

• transport infrastructure

• Potential low capital costs and short development time frames

• Inferred Resource 1.4 bt at 15.5% mass recovery at 69.9%Fe and 2.5% SiO2

• Exploration target 6-11 Billion tonnes at 14-17% mass recovery 69%Fe 2.5% SiO2

*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

1 The term "target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012), 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. Refer ASX Announcement released 23 March 2011. 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.

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CARPENTARIA EXPLORATION Hawsons Iron Project - Investment Highlights

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• Carpentaria to pursue development and be a producer

Strategy

• Introduce the right partner at the right time to

• underwrite initial construction funding

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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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CARPENTARIA EXPLORATION

Hawsons Iron Ore Project - Different to other magnetite

Points of Difference

• Long life project

• Large resource 220 Mt concentrate*

• Exploration Target over 1000 Mt concentrate*

• Premium iron concentrate

• Pellet feed concentrate

• High iron

– Very low phosphorous

• JORC Inferred Resource 1.4 Billion tonnes at 15.5% mass recovery for 69.9%Fe and 2.50% SiO2 Exploration target 6-11 Billion tonnes at 14-17% mass recovery 69%Fe 2.5% SiO2

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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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1 The term "target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012), 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. Refer ASX Announcement released 23 March 2011.

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CARPENTARIA EXPLORATION Hawsons Iron Ore Project - Different to other magnetite

Points of Difference

Existing Infrastructure

Potentially low capital costs

• existing rail to port - 13Mtpa spare capacity 50km from site

• existing port – spare berths, requires only stockpile, conveyors, loaders

• existing power line 35km from site

Potentially high margin

• low FOB costs, high price received

• low strip ratio, large scale

• soft rock, low power

• high grade 69.5%Fe

Shortest lead times to development due to existing infrastructure

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Spare berths
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CARPENTARIA EXPLORATION Hawsons Iron Ore Project – Low Capital Intensity

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Development case set utilising 400
Magnetite Projects (grey)
existing infrastructure to aim
Range 67-69%Fe
for; 350 Minas Rio 68% Fe
Karara
•
Low capital cost per 300
Southdown
tonne of capacity (capital
Fusion
intensity) 250
Some typical
Central Eyre
• Capital intensity similar to 200 hematite projects (red)
hematite projects
150
Mblam 63%Fe
•
Lower than comparable Roy Hill 55%Fe
magnetite projects 100
Pilbara 333 62%Fe
•
Low capital service costs 50 Roper Bar 60%fe RIO TINTO
•
Ahead of the pack 0
0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000
Total Capital Cost estimate A$M
Capital Intensity A$/t Capacity
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Source - refer Appendix

CARPENTARIA EXPLORATION Position on the 2016 cost curve

• Development case set to aim for second quartile of the cost curve indexed to 62% Fe equivalent

• Potential to withstand price fluctuations

• Demonstrates advantages of 69% Fe product

• Ahead of the pack

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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 1USD = 1.17AUD

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CARPENTARIA EXPLORATION Hawsons Iron Ore Project – Development Case Set

Robust Development Case set

• Capacity fits within existing infrastructure

• Reflect tight capital markets

• Long term iron ore prices

• Minimises costs

• Shortens development timeframes

• Sets framework for port, rail, and power advanced negotiations

• Current feasibility works continue

• • On track for environmental submission early 2015

• Next stage work program to focus on value adding steps

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Broken Hill
Rail Siding
Slurry pipeline
NSW – SA Border
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CARPENTARIA EXPLORATION Two Growth Streams…..

1. Hawsons Iron Ore Project

• Mining lease application lodged

• Major magnetite deposit

• Potential for excellent returns over long life

• Bankable feasibility study underway

2. Discovery Projects

• Great potential, strategic gold portfolio of quality projects

• Proven method

• Low cost acquisition

• Low cost decision points

• Rapid development

• Proven address

• Leverages shareholder funds

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Mt Isa Mt Morgan
Olympic Dam
Cobar
Broken Hill Parkes
Cadia
Cowal
Ballarat
Bendigo
Mt Lyell
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Blue and red CAP tenements and applications

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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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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 memebr 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	2590	12.4	210	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://www.ironroadlimited.com.au/images/files/projects/20110614%20Iron%20Road%20-%20CEIP%20Prefeasibility%20.pdf

• 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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HAWSONS IRON PROJECT APPENDIX

JORC Inferred Resource

Exploration Target[1]

• 1.4 Billion tonnes for 220 Million tonnes con’.

• 6-11 Billion tonnes at 14-17% mass

recovery 69%Fe 2.5% SiO2 (defined by drilling and assaying all magnetic anomalies combined with detailed magnetic modelling)

• 15.5% mass recovery

• 69.9%Fe and 2.50% SiO 2

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Exploration
Targets [1 ]
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Inferred
Resource area
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1 The term "target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012), 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. Refer ASX Announcement released 23 March 2011.

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CARPENTARIA EXPLORATION Braemar South

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Braemar South Exploration Target – 1.7 – 3.1 billion tonnes at 12-27% mass recovery for 200 – 900Mt concentrate at 63-67% Fe

1 The data that relates to Exploration Target is based on information evaluated by Mr Simon Tear who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “JORC Code”). Mr. Tear is a Director of H&S Consultants Pty Ltd and he consents to the inclusion in the report of the Exploration Target in the form and context in which they appear. Refer ASX Announcement released 29 November 2013.

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CARPENTARIA EXPLORATION Eastern Australia Gold Focus

• Quality drill ready targets

• Early mover Intrusion Related Gold

• Systems IRGS – underrecognised in E Aust.

• IRGS can be multi million ounce company makers (eg Kidston 4.5Moz, Fort Knox 9.2Moz)

• Advene – Historic Channel 16m at

• 6.95g/t au

• Two lode zones, 1000m strike defined,

• 20km potential

• Grong Grong –drilling 26m at 2.12 g/t Au

• Barellan – Historic channel sample 60m at 1.5g/t Au – work program surface sampling, drilling

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CARPENTARIA EXPLORATION

Advene – Central Lachlan

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Figure 1. ProjectRegional plan, showing historic sample sites and CAP rock chip channel sampling

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Classic Intrusion related setting Broad zones of anomalism

Figure 2. Josephine Moulder prospect area gold in soil results

Significant extensions and parallel lodes Regionally very poorly explored

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Figure 2. Josephine Moulder prospect area gold in soil results

CARPENTARIA EXPLORATION

Grong Grong

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GG95-13 GG95-2
26m at 2.12g/t Au
Harry Smith prospect cross section
22m at 2.06 g/t Au
Incl. 9m at 3.80g/t Au
Harry Smith prospect plan view
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