MACRO METALS LIMITED — Capital/Financing Update 2013

Sep 11, 2013

ASX Announcement & Media Release

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12 September 2013

KOGI TARGETING 5 MTPA IRON ORE OPERATION AT AGBAJA

Highlights

• Launch of Scoping Study on a 5 Mtpa iron ore operation at Agbaja

• Simple mining utilising surface miners

• Simple beneficiation using just low intensity magnetic separation

• Transport to Port Warri by river barges on the Niger River

• Transhipment from Port Warri to load cape size vessels

Australian based iron ore exploration and development company, Kogi Iron Limited (ASX: KFE) (“Kogi Iron” or the “Company”) is pleased to announce the commencement of a detailed scoping study for a first stage 5 million tonne per annum iron ore operation at its 100% owned Agbaja Iron Ore Project located in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”).

The Agbaja Project is a shallow, flat lying channel iron deposit uniquely positioned with its proximity to existing, underutilised rail and port infrastructure. The Company has a vision to establish a mining and beneficiation operation on the Agbaja plateau initially producing 5 Mtpa of iron ore concentrate. The Agbaja deposit consists of shallow, friable channel iron deposits and lends itself to a mining operation utilising surface miners. This will reduce the mining operating costs compared to a conventional hard rock iron ore operation requiring drill and blast.

The mining is expected to commence at the northern extent of this area near the town of Agbaja. The mined ore, at a grade of around 42% Fe, will be hauled to a crushing plant and crushed to around <10mm by a simple low intensity two stage crushing system. The crushed ore will be further milled and fed to a beneficiation plant and through a simple magnetic separation process, a final upgraded iron ore concentrate of 55-56% Fe will be produced. Kogi Iron recently achieved a breakthrough in simplifying the beneficiation process by designing a simple, two stage low intensity magnetic separation (LIMS) process that maximizes both product yield and final product grade. Previous requirements for gravity pre-concentration and ultrafine cyclones have been removed from the flow sheet, which results in much lower capital and operating costs.

The final concentrate will be slurried and pumped from the Agbaja plateau down to the Banda Barge Facility about 20 kilometers south east of the Agbaja Project. Based on the outcomes of a recently completed barging study, the Company has decided to use barge transportation to Port Warri as a first stage transport solution. The barging study demonstrated a lower capital and operating cost scenario for the proposed 5 Mtpa operation, compared to using the existing heavy haulage railway which is more suited to larger annual tonnages. The Company will continue to advance access and usage agreements for the heavy haulage railway, as this remains an important part of a longer term transport solution for an expanded production profile beyond 5 Mtpa.

13 Colin Street West Perth Western Australia 6005 Australia

Kogi Iron Limited ABN 28 001 894 033 ASX: KFE

PO Box 1934 Telephone: +61 8 9200 3456 West Perth Western Australia 6872 Facsimile: +61 8 9200 3455 Australia Website: www.kogiiron.com

First Phase Production - Transportation

The slurried iron ore concentrate will be dewatered and stockpiled at the Banda Barge Facility where it will be loaded on 3,000 tonne river barges. River barges will transport via the Niger River to a stockpile facility at Port Warri, an established, well-developed port on the southwest coast of Nigeria. From Port Warri, a separate fleet of deep draught sea-going barges will make use of deeper river channels to transport the iron ore concentrate to an offshore transhipment facility where cape size ocean going vessels will be loaded.

– Figure 1 5 MTPA Operation

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Beneficiation
Crusher Plant
Surface Mining ROM
Tailings AGBAJA PLATEAU Water
Approx 20 km
Banda Barge Facility Warri Port Transshipment
3,000 t River 11,500 t Ocean Barge
Barge
Niger River 508 km Gulf of Guinea 125 km 170,000 t OGV
Movie
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Kogi’s Managing Director, Iggy Tan said that the Company is now entering a very exciting stage of its development.

“There have been tremendous achievements to date with drilling and the establishment of a significant JORC compliant resource at Agbaja, which has the potential to support a profitable iron ore operation. In addition, there have been excellent studies to identify an optimal transport solution for the first stage of the project, as well as geological and metallurgical testwork to lay the foundations for the viability and feasibility of the project.”

“Based on this background work and studies, the Company is now in the position to launch a detailed Scoping Study on a very firm mining, production and transport scenario. Subject to feasibility, and funding, the Company intends to commence iron ore concentrate production at Agbaja at the rate of 5 million tonnes per annum. In addition to the technical and commercial feasibility of the project, the Scoping Study will also address potential markets for the Agbaja iron ore.”

“The Company has appointed various key contractors and consultants to complete the Scoping Study. We look forward to announcing the results of the scoping work by the end of the March quarter next year.”

For more information, please contact:

Corporate Media Contact Iggy Tan Michael Vaughan Managing Director Cannings Purple Kogi Iron Limited Tel (office): +61 8 9200 3456 Tel (office): +61 8 6314 6300 Email: info@kogiiron.com Email: mvaughan@canningspurple.com.au

About Kogi Iron (ASX: KFE)

Kogi Iron Limited (“Kogi Iron” or the “Company”) is an ASX listed company focused on being an African iron ore producer through the development of its 100% owned Agbaja iron ore project located in Kogi State, Republic of Nigeria, West Africa (“Agbaja” or “Agbaja Project”).

In recent years Nigeria has sought to diversify its economy, which is dominated by hydrocarbons, into minerals and related industries. Nigeria is the largest country by population in Africa. Nigeria had a GDP real growth rate of 7.2% in 2011, and in 2007 passed a new Mining and Minerals Act, which includes favourable fiscal terms for foreign investment in mining.

The Company holds a land position of approximately 400km2 covering 15 tenements, with the main focus being EL12124 covering most of the Agbaja Plateau. The Agbaja Plateau hosts an extensive, shallow, flat-lying channel iron deposit with an Inferred Mineral Resource of 488 million tonnes with an in-situ iron grade of 42.7% reported in accordance with the JORC Code. This mineral resource comprises approximately 20% of the prospective Agbaja plateau area within EL12124. The Agbaja Project is uniquely positioned with transport infrastructure access to Warri port via an existing and underutilised standard gauge railway, and the Niger River for barging.

Competent Person’s Statement

The information in this announcement relates to Exploration Results and Mineral Resources 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 Kogi Iron 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 this presentation of the matters based on the information in the form and context in which it appears.