HAWTHORN RESOURCES LIMITED — Capital/Financing Update 2012

Jan 22, 2012

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An NMDC Group Company

Legacy Iron Ore Limited

ASX Announcement 23 January 2012

The Company Announcements Office ASX Limited

About Legacy Iron Ore

Legacy Iron Ore Limited (“Legacy” or the “Company”) is a Western Australian based Exploration Company, focused on iron ore and gold exploration and discovery.

Legacy’s mission is to increase shareholder wealth through capital growth, created via the discovery, development and operation of profitable mining assets.

The Company was listed on the Australian Securities Exchange on 8 July 2008. Since then, Legacy has had a number of iron ore, manganese and gold discoveries which are now undergoing drilling and resource definition.

Via E Lodgement

Legacy and Hawthorn review Term Sheet

Legacy Iron Ore Limited (“Legacy”) notes the announcement made this morning by Hawthorn Resources Limited (“Hawthorn”) regarding the term sheet announced on 21 December 2011, whereby Legacy proposed to invest $5m to acquire up to 60% of the issued capital in Hawthorn in return for the cancellation of the Joint Venture Agreement on the Mount Bevan iron ore project (“Term Sheet”).

Board and Management

Sharon Heng, Executive Director & Managing Director Subimal Bose , Non-Executive Director Narendra Kumar Nanda , Non-Executive Director

Swaminathan Thiagarajan , Non- Executive Director Tao Han , Non-Executive Director John Hebenton Chief Executive Officer Capt. S P Singh , Chief Operating Officer Ben Donovan , Company Secretary

Legacy wishes to confirm that they are in discussions with Hawthorn on alternative transaction methods with a view to establishing a new term sheet with renegotiated terms.

Legacy advises that it has terminated the current Term Sheet announced on 21 December 2011, and that Legacy will continue under the Joint Venture Agreement whereby Legacy will earn a 60% interest in the Mount Bevan iron ore project via spending $3.5m.

The Joint Venture will continue unaffected.

Key Projects

Mt Bevan Iron Ore Project Hamersley Iron Ore Project Robertson Range Iron Ore and Manganese Project South Laverton Gold Project East Kimberley Gold, Base Metals and REE Project

Legacy will provide an update to the market in due course.

Yours faithfully,

LEGACY IRON ORE LIMITED

Enquiries

Sharon Heng Managing Director Phone: +61 8 9421 2005

Sharon Heng

Managing Director

ASX Codes: LCY, LCYOA, LCYOB

LEVEL 5, CITIBANK HOUSE 37 ST GEORGES TERRACE PERTH WA 6000

PO BOX 5768 ST GEORGES TERRACE WA 6831

Phone: +61 8 9421 2005 Fax: +61 8 9421 2001 Email: info@legacyiron.com.au Web: www.legacyiron.com.au