HAWTHORN RESOURCES LIMITED — Capital/Financing Update 2012

Aug 23, 2012

ABN 44 009 157 439

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Level 2, 90 William St Melbourne Victoria 3000 Australia

ASX MARKET ANNOUNCEMENT

Telephone: +61 3 9605 5950 Facsimile: +61 3 9605 5999 Email: info@hawthornresources.com Website : www.hawthornresources.com

Melbourne, 24 August 2012 , The Board of Directors of Hawthorn Resources Limited (“Hawthorn” or “the Company”) (ASX code : HAW) is pleased to announce that it has been in negotiations with a Consortium of Chinese investors which has significant links with the mining industry and a number of Australian mining companies.

At the time of seeking a Trading Halt on Wednesday 22 August 2012 it was considered that the formal execution by Hawthorn and each of the Consortium members would have been concluded by this morning. That has not yet happened. Accordingly, the Company will keep the market informed as to the finalisation of the negotiations.

The subject of the negotiations has been for the Consortium members, subject to shareholder approvals, to make a significant equity investment in Hawthorn so that an aggressive programme of exploration may be undertaken on the Company’s gold projects whilst continuing to develop the Mount Bevan Iron Ore Project.

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For further information contact:

Mourice Garbutt, Company Secretary Hawthorn Resources Limited + 61 3 9605 5917

Footnote:

About Hawthorn Resources Limited

Hawthorn Resources Limited (“Hawthorn”) (ASX Code: “HAW”) is an Australian diversified minerals exploration company with tenement holdings and joint venture primarily focused in the Kalgoorlie District and Eastern Goldfields of Western Australia.

Hawthorn’s exploration is focused on the progression of its highly prospective portfolio of Gold and Iron Ore tenements with its key project areas of:

• GOLD: Deep South, Trouser Legs – Anglo Saxon, Yundamindera – Coffee Bore, Edjudina – Triumph, and Whiteheads;

• IRON ORE: Mount Bevan Iron Ore Joint Venture– Central Yilgarn Iron Province