HAWSONS IRON LTD — Investor Presentation 2015

May 24, 2015

Carpentaria Exploration Ltd We find it. We prove it. We make it possible. Carpentaria Exploration Presentation Broken Hill - 25[th] May 2015

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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SHARP FOCUS

OUR GOAL:

To build a long lasting , low cost business supplying high value processed iron products to growing markets through the development of the Hawsons Iron project for the benefit of shareholders and communities

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WHY IS HAWSONS DIFFERENT?

• GEOGRAPHY – savings of ~$1billion in infrastructure costs

• GEOMETRY – very low waste to ore ratios leads to low mining costs

• GEOLOGY – Hawsons magnetite mineralisation is soft – further lowering mining costs

• GEOMETALLURGY – recent definitive metallurgical tests show that the Hawsons mineralisation produces a concentrate of unusually high purity.

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GEOGRAPHY = LOCATION, LOCATION, LOCATION…

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Pumping test water 5

GEOMETRY

Mining

• low strip ratio 0.47:1 waste to ore falling to near zero yr 8

• Low cost bulk mining methods- in pit crushing and conveying

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• 600m mining widths

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GEOLOGY

The Hawsons mineralisation is soft.

• Crushing and grinding consumes <40kWh/tonne

• By contrast crushing and grinding of skarntype magnetite mineralisation consumes ~50-60 kWh/tonne, and

• Crushing and grinding of Banded-IronFormation (BIF) magnetite mineralisation consumes ~80-100kwh/tonne

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GEOMETALLURGY

Superb processing results opens new high value direct-reduction (DR) markets, strengthening significantly potential project revenues and returns

								Na2O +			LOI
Fe	SiO2	Al2O3	CaO	MgO	P	S	MnO	K2O	Cl	TiO2
70.1	1.43	0.20	0.11	0.14	0.004	0.002	0.00	0.085	0.00	0.08	-3.00

Pilot plant testwork results April 2015 – ALS Iron Ore Technical Centre, Perth

Market possibilities

• Direct-reduction pellet feed or pellets

• High-grade blast furnace pellet feed or pellets

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HIGH PURITY CONCENTRATES ATTRACT SIGNIFICANT PRICE PREMIUMS

• DR pellet prices negotiated on index plus premium basis, and recent public information suggests premiums are large, reflecting high costs to produce, and benefits to steel makers

62% fines price 65% Pellet price DR pellet price Premium for DR USD (MBIO) USD (MBIO) USD 67.8%Fe* pellet USD $68/t $104/t $121/t $53/t

Data averaged from Metal Bulletin Index December 2014

• Significant premium for DR pellets of $53/t over 62%Fe fines, and $17/t over 65% Pellets

Source – *Al Tuwairqi Steel presentation March 2015

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Iron Ore Market

Pellet demand growth very strong

Source CRU Source Wood Mackenzie

• Global pellet demand going up 90Mtpa by 2020 and 200-400Mtpa by 2030

• productivity gains, environmental benefits and over 100Mtpa spare pelletising capacity in China,

• Pellet feed demand growth increasing in China and Middle East

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Pellet Supply Cost Curve

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Recent price low 83 c/mtu
Target for Hawsons
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Pellet supply cost curve FOB per iron unit (Source: Metal Bulletin Research March 2015). The spot price of USD 101/t CFR China for a 65%Fe pellet in February 2015 is corrected to USD 83/t to reflect USD 17/t shipping from Brazil, the dominant producer. This is then corrected for iron units to 128 cents/dry metric tonne unit as presented on the graph.

Target for Hawsons: to be in the first quartile of the pellet/pellet feed cost curve : that is, a target cost of 68% Fe pellet FOB ~$USD40-50/t.

• Hawsons has a $USD2 10/t location advantage over key markets in Asia that is not reflected in this - illustration. Hawsons’ 68%Fe pellet FOB cost target of $USD42 50/t (or 62-74 cents/mtu)

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Summary

• Project has potential to be in the first quartile of the pellet/pellet feed cost curve ensuring long term future and potential for very high returns

• Project products set to meet growing demand for quality high value products

• Project technical and approval pathway clear and achievable

• Potential attractive project returns in “new normal” pricing

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Where to from here?

• Project BFS ready

• Product marketing campaign targeting all markets

• China high grade Blast Furnace (BF) pellet/feed

• Middle East, India and other Se Asia – Direct Reduction (DR) grade pellet and pellet feed

• Japan Korea Taiwan- pellets and other

• Continue approvals process, targeting EIS completion

• Secure feasibility funding

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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 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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