MACRO METALS LIMITED - Capital/Financing Update 2012

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28 September 2012

Company Announcements Platform Australian Securities Exchange Perth WA

ASX ANNOUNCEMENT

Maiden 488 Million Tonne JORC Resource

Maiden JORC compliant mineral resource at Agbaja Project of 488 million tonnes with an in-situ iron grade of 42.7% classified as Inferred.
The resource estimate represents only:
13.9km[2] or approximately 15% of the prospective areas within Exploration Licences 12124 and 8886, which are collectively known as the Agbaja Project, and
approximately 9.2% of the Company’s 151km[2] landholding prospective for channel iron deposits.
First ever JORC iron ore resource reported for the Republic of Nigeria.
Resource update scheduled to be released in June 2013, with improved geological confidence expected to result in the majority of the resource reclassified as Indicated.
Metallurgical testwork on approximately 300m of PQ diamond core to commence with the objective of beneficiating the in-situ iron grade to greater than 58% Fe.
Maiden JORC resource enables the commencement of project development studies, as inputs to a pre-feasibility study .

Australian based iron ore development company, Energio Limited (ASX: EIO) (“Energio” or the “Company”) is pleased to announce an Inferred 488 million tonne maiden JORC mineral resource (“Maiden Resource”) at its 100% owned Agbaja Iron Ore Project located in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”) (refer Figure 1).

The Agbaja Project is a shallow, flat-lying channel iron deposit (“CID”) uniquely positioned with its proximity to existing, underutilised rail, and port infrastructure. It typically comprises iron bearing nodules (ooids, 1-2mm and pisoids, 2-9mm) in an iron rich matrix. Iron mineralisation occurs predominantly as goethite, maghematite and limonite.

Commenting on this maiden JORC resource estimate for the Agbaja Project, Dr Ian Burston, Non-Executive Chairman of Energio said:

“This is a landmark result considering drilling commenced in late October 2011 and in less than 12 months the Company has released its maiden JORC resource, which is very much due to the extraordinary efforts of our team based in Nigeria and the support and assistance of our hosts, the Nigerian government and local Agbaja community.”

13 Colin Street PO Box 1934 Telephone: +61 8 9200 3456 West Perth Western Australia 6005 West Perth Western Australia 6872 Facsimile: +61 8 9200 3455 Australia Australia Website: www.energio.net.au

Energio Limited ABN 28 001 894 033 ASX: EIO

“With this substantial maiden JORC resource complete, and the considerable opportunity for resource growth, we will now commence a number of development studies as a foundation to preparing a preliminary feasibility study.”

Maiden JORC Inferred Mineral Resource Estimate

The maiden Inferred Mineral Resource estimate is 488 million tonnes at 42.7% Fe above a 20% Fe lower cut-off. This estimate covers approximately 95% of the 14.7km[2] Stage 1 resource definition area in the north of Exploration Licence 12124 (refer Figure 2). This represents approximately 15% of the prospective plateau area of 90km[2] at the Agbaja Project and as such the Company is confident it can be increased substantially.

The mineral resource estimate was prepared and classified by independent, international mining consultancy, Coffey Mining (SA) Pty Ltd (“Coffey”) in South Africa and is reported in accordance with the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources (“JORC”). A summary of Coffey’s Mineral Resource Statement is attached to this announcement.

The mineral resource estimate is based on all assay results received to 28 August 2012, which totals 535 reverse circulation (“RC”) drill holes drilled on a 100m by 200m spacing, for a total advance of 13,264m completed at the Agbaja Project.

The iron mineralisation was divided into two domains referred to as Zones A and B based on geological and geochemical interpretation of the drill logs and test pits. The first domain, Zone A, comprises surficial lateritic interlayered sandstone and oolitic-pisolitic ironstone and has an average thickness of 5.7m. Zone B underlies Zone A and comprises oolitic-pisolitic ironstone and has an average thickness of 12.5m. Commonly Zone A adjoins Zone B, but locally the two zones can be separated by 2m to 6m of ferruginous sandstone, which typically grades 10% to 30% Fe.

A summary of the Inferred Mineral Resource estimate for each domain is set out in Table 1.


		Table 1 Mineral Resource Classification Table
Zone	Tonnage (Mt)	Fe (%)	SiO2(%)	Al2O3(%)	P(%)	S(%)	TiO2(%)	LOI(%)
		INFERRED MINERAL RESOURCE
A	140.5	35.4	22.0	14.5	0.33	0.04	0.95	10.7
B	347.2	45.7	10.4	10.4	0.92	0.06	0.26	10.6
TOTAL	487.7	42.7	13.7	11.6	0.75	0.06	0.46	10.6

Note: Above 20%Fe lower cut-off.

Resource Growth

The first resource update is planned for June 2013 and will include assay results received after 28 August 2012 (and not included in the Maiden Resource), an additional planned 130 RC resource definition holes, 7 deep RC holes to test for concealed ironstones at depth and approximately 30 additional diamond holes for QA/QC and bulk metallurgical samples. The Company expects this program will lead to a significant portion of the Maiden Resource being reclassified as Indicated.

The Company currently has one multipurpose drill rig located at the Agbaja Project and following the end of the wet season, which is now expected to be mid-November, this rig will return to resource definition drilling, followed by step out drilling to the south. The step out program will enable the Company to determine a JORC Exploration Target for the Agbaja Project, providing an indication of the significant potential of the Agbaja plateau.

The Company holds 15 granted Nigerian Exploration Licences, which cover a total area of 448km[2] . Of particular interest are eight of these Exploration Licences (totalling 303km[2] including the Agbaja Project), which based on earlier reconnaissance exploration are believed analogous to the Agbaja Project and are considered prospective for CID deposits. The total plateau area prospective for CID deposits is approximately 151km[2] , including the 90km[2] comprising the Agbaja Project. With the exception of the 14.7km[2] Stage 1 resource definition area at the Agbaja Project, none of these regional targets has been tested by drilling. This therefore presents substantial potential to significantly increase the CID resource inventory with further drilling.

Energio is proposing to conduct regional fieldwork to rank the prospectivity and define reconnaissance drill targets on the surrounding 13 granted Exploration Licences in the first half of 2013 with the aim of preparing a global JORC Exploration Target for its entire landholding in Nigeria.

Metallurgical Testwork

Up to the cessation of drilling for the annual wet season in August 2012, the Company had completed 11 PQ (85mm diameter) diamond holes for approximately 300m. The PQ core was shipped to Australia and initially used to determine bulk density for the Maiden Resource.

This diamond core provides representative run-of-mine composite samples for metallurgical testwork. The metallurgical testwork is aimed at increasing the in-situ iron grade to equal to or greater than 58% Fe, and to reduce the concentrations of minor and trace elements (SiO2, Al2O3, P, etc). Key parameters to be determined are liberation size, mass recovery (yield), product quality, product types (e.g. sinter fines and concentrate) and process flowsheet.

Initial results from the metallurgical testwork program are expected in early November 2012.

Yours faithfully Energio Limited

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Dr Ian Burston Non-Executive Chairman

Attc: Summary Report on Resource Estimation of Agbaja Iron Ore Project (Coffey Mining (SA) Pty Ltd)

Competent Person’s Statement:

The information in this report that relates to Exploration Results is based on information compiled by Mr Kim Bischoff, a member of The Australasian Institute of Mining and Metallurgy. Mr Bischoff is a consultant to Energio Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that 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”. Mr Bischoff consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Competent Person’s Statement:

The information in the report to which this statement is attached that relates to Mineral Resources is based on information compiled by Mr Brendan Botha, a member of the South African Council for Natural Scientific Professions, a Recognised Overseas Professional Organisation. Mr Botha is an employee of Coffey Mining (SA) Pty Ltd that consults to Energio Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that 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”. Mr Botha consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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