MINDAX LIMITED — Capital/Financing Update 2012

Apr 19, 2012

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ASX ANNOUNCEMENT

20 April 2012

ROBUST SCOPING STUDY DELIVERED ON MT FORREST DSO AND MAGNETITE PROJECTS

ASX Code: MDX

ABN: 28 106 866 442

Key Points:

Corporate Description

Mindax's Mt Forrest Iron Project is progressing through feasibility with a view to mining at the end of 2014.

The company is carefully putting in place necessary approvals and aligning infrastructure partners including rail and port.

Coupled with its significant iron assets, Mindax is also the greenfields discoverer of a new uranium province near Mukinbudin, Western Australia.

Through technically advanced exploration and an eye for detail, Mindax has successfully built a significant portfolio of 37 mineral exploration and mining tenements covering over 4,000 square kilometres. In addition, Mindax has applications in place for water and infrastructure covering over 2,400 square kilometres in support of the Mt Forrest Iron Project development.

Mindax aims to develop strategic resources through innovative exploration. Higher yield projects will be moved to production via strategic partnerships.

Key Projects

Mt Forrest DSO Iron, Magnetite Yilgarn-Avon JV Sedimentary Uranium Mortlock JV Copper-Gold

• Scoping Study contains both a Magnetite Product option and a DSO Regolith Product option. Both indicate potentially robust projects.

• The DSO Regolith option is based on production of 1.5 Mtpa of beneficiated hematite-goethite product over approximately a 7 year mine life.

• The Magnetite option is based on concentrate production of 10 Mtpa over approximately an 18 year mine life.

Address

Level 2, 25 Richardson Street West Perth WA 6005 Telephone: +61 8 9485 2600 Facsimile: +61 8 9485 2500 Email: info@mindax.com.au

• DSO Regolith operation slated to commence production in late 2014 and magnetite option by 2016.

Investor Enquiries

Greg Bromley Managing Director Email: info@mindax.com.au

Media Enquiries David Utting Mobile: +61 416 187 462 Email: david@davidutting.com

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement Robust Scoping Study delivered on Mt Forrest DSO & Magnetite Projects 20 April 2012

Mindax Limited is pleased to announce a very positive Scoping Study of the Mt Forrest Iron project (Figure 1) based on two independent iron production scenarios:

• Option One: Direct Shipping Ores – is based on a modest 1.5 Mtpa production of beneficiated DSO over approximately a 7 year mine life.

• Option Two: Magnetite Concentrates – is based on a large long life magnetite concentrate production of 10 Mtpa over approximately an 18 year mine life.

The Scoping Study is a further assessment of the business case and is to direct ongoing feasibility studies which will further quantify the technical and infrastructure solutions for the project. The company believes that the Scoping Study confirms a positive view of both Options. A conservative position has been taken to avoid overstatement. The Scoping Study level review has been completed at +/- 30%. Taxation has not been considered at this time.

Figure 1: Mt Forrest Project Location

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement Robust Scoping Study delivered on Mt Forrest DSO & Magnetite Projects 20 April 2012

The project key performance indicators for both these scenarios are summarised in Table 1.

Table 1: Project KPI’s

	Regolith	Magnetite
DSO Fines	$US110/tonne
Magnetic Concentrate		$US174/tonne
Product Cost (per tonne FOB)¹	$83.50	$96.95
Revenue²	$1,038M	$30,983M
Net Cash Flow	$204M ($45Mpa)	$12,974M
Capital (incl Feasibility)	$99M	$1,748M
Internal Rate of Return	32.8%	39.1%
Net Present Value (10%)	$86M	$1,748M
1. Excluding Capital 2. Exchange Rate USD/AUD 0.95

This Scoping Study is based on the current JORC resources at Mt Forrest, substantially of the indicated category (Appendix 1) and metallurgical test work recoveries. The financial models were constructed using recent quotations and supplier estimates measured against information in the public domain. Rail and power, capital and operating costs have been estimated by a third party provider servicing a number of operations in the area. The Study aimed to achieve an accuracy of +/- 30% in its estimates and in its conclusions as is the industry standard.

Regolith DSO

A pit optimisation study was completed based on conventional opencast mining using contractors to generate 1.5 Mtpa of product. Costs include, site establishment, haul roads, contractor costs, grade control, waste dumps, haulage to plant and personnel costs. A number of small pits are anticipated in this scenario.

Mining:	24.7 Mt of material total
Ore:	13.5 Mt @45.3% Fe, 23.3% SiO2, 5.08% Al2O3, 0.06% P, 0.07% S, 5.87% LOI
Product:	8.8 Mt @ 58.4% Fe, 6.1% SiO2,
Strip Ratio:	1 : 0.81
Mine Life:	~ 7 years
Production Cost:	$22.16/t (Mining and Milling)
Free on Board (FOB) Esperance	$83.50

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement Robust Scoping Study delivered on Mt Forrest DSO & Magnetite Projects 20 April 2012

Processing of Regolith ore would be based on conventional crushing and screening followed by Heavy Media Separation. Test work suggests recovery of 84% of iron content. Product grades of 58.4% Fe are achievable from 45% Fe ores and of 63% Fe from 54% ores.

For the Regolith study it is assumed the ore will be trucked to Menzies by the public road, loaded and trained to the Port of Esperance by way of Kalgoorlie. The rail from Menzies to Kalgoorlie (Brookfield Rail) will require incremental upgrade from its existing 1Mtpa. Transport is a major cost and while upgrading of the port and rail infrastructure proceeds there is uncertainty as to pricing. A generally conservative position has been adopted based on a mixture of proprietary and public domain costs.

Magnetite

The magnetite project scenario is based on the primary magnetite mineralisation underlying the DSO that extends >300m below surface. The Mt Forrest magnetite resource base includes extensive DTR sampling (almost 1,000 samples) indicating a range of ore types with excellent recoveries at grind sizes of 40 - 150 microns. These ores have significant processing cost advantages.

A pit optimisation study was completed based on conventional opencast mining using contractors to generate 10 Mtpa of concentrate product. Costs include, site establishment, haul roads, contractor costs, grade control, waste dumps, haulage to plant and personnel costs. A number of pits are anticipated with the major ones being at the Echidna and Emu prospects (see Figure 2).

Mining:	1.2 Btonne of material total
Ore:	563.9 Mt @ 32.2% Fe, 47.17% SiO2, 1.61% Al2O3, 0.06% P, 0.15% S
Product:	169.2 Mt @ 68% Fe, 4.6% SiO2
Strip Ratio:	1 : 1.07
Mine Life:	~ 18 years
Production Cost:	$43.52 /t (Mining and Milling)
Free on Board (FOB) Esperance	$96.95

For the Magnetite study, it is assumed the ore will be railed to Menzies and on to the Port of Esperance by way of Kalgoorlie. The rail between the site and Menzies is assumed to be third party provided. The rail from Menzies (Brookfield Rail) will have been incrementally upgraded and have sufficient capacity.

Again, transport is a major cost as with regolith ores and the same price uncertainty exists. A conservative position has again been adopted based on a mixture of proprietary and public domain costs.

An alternative approach is to slurry concentrate to Menzies that may offer advantages. A route has been secured and this option will be reconsidered during prefeasibility.

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement Robust Scoping Study delivered on Mt Forrest DSO & Magnetite Projects 20 April 2012

Figure 2: Proposed Pit Locations – DSO & Magnetite.

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement Robust Scoping Study delivered on Mt Forrest DSO & Magnetite Projects 20 April 2012

Recent Infrastructure Developments

The dynamics of infrastructure provision of both rail and at Esperance Port, have recently taken on a new dimension. In January, Transport Minister, Troy Buswell, pledged to go ahead with the multiuser Esperance Port capacity upgrade. In a written statement (19 January 2012) Minister Buswell said export capacity will potentially increase by up to 20 Mtpa in a staged plan, with the State Government formally committing to expansion of the port. This has led to a host of third party infrastructure provider interest in port and rail upgrades.

Mindax is advancing the levels of negotiation with key infrastructure providers for rail, port and power to facilitate the mining and transport of ore.

Summary

Mindax has a world class iron resource base at the Mt Forrest project including a wide range of potential iron product types. Our near term focus is on beneficiable Regolith iron production (hematite-goethite). Critically, we have identified the process metallurgy to unlock these Regolith resources.

Our objective is to grow production from an initial modest tonnage of 1.5 – 2 Mtpa, road hauled to Menzies from the end of 2013, incrementally moving to the production of 10Mtpa of a high quality magnetite concentrate.

This incremental expansion should grow product tonnages with increased iron content and quality and, being largely sustained from DSO cash flow, should moderate capital requirements through time. The Feasibility studies to be conducted during 2012 will collect further information to test the model and refine the production details to further test the business case. Until this work is done, any statements about future operations remain conceptual in nature.

The Mt Forrest Scoping Study was prepared by Mindax and its Consultants and compiled by Haslie Holdings Pty Ltd[1] ( Haslie Holdings ).

• Resources information has been generated by Optiro Pty Ltd (previously released to the ASX).

• Mine studies have been under taken by Haslie Holdings and Intermine Engineering Consultants.

• Processing testwork has been produced by Vulcan Technologies and Promet Engineers (previously released to the ASX).

• Certain cost information has been provided within commercial-in-confidence agreements.

• Complementary economic data has been sourced from recent public domain information, industry wide public releases and publicly available market analyses.

1 John Burgess, trading as Haslie Holdings Pty Ltd, is a mining engineer with 38 years’ experience in the mining industry. He has qualifications as a mining engineer (Associateship Mining Engineering, WASM) and as a geologist (BSc Geology, UWA). He is a member of the Australian Institute of Mining and Metallurgy and is suitably qualified and has the relevant experience to prepare this Scoping Study document.

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement Robust Scoping Study delivered on Mt Forrest DSO & Magnetite Projects 20 April 2012

Yours sincerely,

GREGORY J BROMLEY MANAGING DIRECTOR

The information in this report that relates to Exploration Results is based on information compiled by Mr Gregory John Bromley who is a member of the Australasian Institute of Mining and Metallurgy, with more than 5 years experience in the field of activity being reported on.

Mr Greg Bromley is a full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit 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”. Mr Bromley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information contact: Media:

Greg Bromley David Utting Managing Director David Utting Communications Mindax Limited Tel: +61 416 187 462 Tel: +61 8 9485 2600

APPENDIX 1 FOLLOWS ON PAGE 8

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MINDAX LIMITED | www.mindax.com.au

ASX Announcement APPENDIX 20 April 2012

APPENDIX 1

Table 1: Total Mt Forrest Iron Resources

Resource	Million	Mean Fe%	Mean **SiO2% **	Mean **Al2O3% **	Mean P%	Mean S%	Mean LOI%
	Tonnes
Magnetite	1,352.5	31.5	46.9	1.6	0.05	0.12	1.6
Regolith iron	14.7	45.4	23.5	5.0	0.06	0.07	5.8
Total	1,367.2	32.2	47.4	1.7	0.05	0.12	1.6

Table 2: Magnetite – Resource – November 2011

Resource Category	Million Tonnes	Mean Fe%	Mean **SiO2% **	Mean **Al2O3% **	Mean P%	Mean S%	Mean LOI%
Indicated	248.2	32.6	47.0	1.7	0.06	0.12	1.1
Inferred	583.5	32.4	47.1	1.5	0.06	0.17	1.0
Total	831.7	32.5	47.0	1.6	0.06	0.16	1.0

Table 3: Regolith Iron – Resource – November 2011

Resource Category	Thousand Tonnes	Mean Fe%	Mean **SiO2% **	Mean **Al2O3% **	Mean P%	Mean S%	Mean LOI%
Indicated	12,338	45.5	23.0	5.2	0.06	0.07	6.1
Inferred	2,367	44.8	26.4	4.5	0.05	0.06	4.6
Total	14,705	45.4	23.5	5.0	0.06	0.07	5.8

Table 4: Magnetite – Residual Resource – November 2011

Resource Category	Million Tonnes	Mean Fe%	Mean **SiO2% **	Mean **Al2O3% **	Mean P%	Mean S%	Mean LOI%
Inferred	521.1	31.4	48.7	1.7	0.04	0.07	2.7

Table 5: High Tenor Magnetite Resource

Resource Category	Million Tonnes	Mean Fe%	Mean **SiO2% **	Mean **Al2O3% **	Mean P%	Mean LOI%
Indicated	10.4	40.8	38.6	0.8	0.05	0.0
Inferred	16.3	42.9	35.5	1.3	0.05	0.1
Total	26.7	42.1	36.7	1.1	0.05	0.0

Note: Some inconsistencies due to rounding may occur.

Competent Person Statement:

Michael Andrew is a member of the Australasian Institute of Mining and Metallurgy (MAusIMM) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity to 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”. Michael Andrew is a full-time employee of Optiro Pty Ltd, and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Andrews 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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MINDAX LIMITED | www.mindax.com.au