WEEBIT NANO LTD — Capital/Financing Update 2011

Aug 28, 2011

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Scoping Study supports business case for Die Hardy magnetite

Highlights

ACN 146 455 576

• Strong business case for Die Hardy magnetite

• Low tonnage option will enable more rapid start up and lower capital cost

ASX Release

29 August 2011

Suite 2, 12 Parliament Place West Perth WA 6005 PO BOX 902 West Perth WA 6872

P + 61 8 9482 0580 F + 61 8 9482 0505 E info@radariron.com.au W www.radariron.com.au

Contact:

Jonathan Lea

Managing Director E jlea@radariron.com.au

• Realistic infrastructure options identified

Radar Iron Ltd (ASX: RAD) is pleased to announce the results of a Scoping Study supporting the business case for its Die Hardy Range magnetite project in Western Australia’s Yilgarn iron ore province.

The viability of the project has been underlined by the results of a Scoping Study, which also identified credible production and transport solutions to meet the future transport, power and water requirements.

With the Scoping Study completed, the maiden resource estimate for Die Hardy Range is expected in November 2011. Following this, Radar will review options to expedite the project’s development.

Key findings of the Scoping Study include:

Phillip Wingate

Company Secretary E pwingate@radariron.com.au

Directors:

Alan Tough - Chairman Jonathan Lea - Managing Director Ananda Kathiravelu - Non-Executive

• Positive results for a range of production options from 2- 10mtpa of concentrate.

• Mine life of at least 20 years.

• Project development capital estimated at just $530M for a 2mtpa production option and $2,335M for 10mtpa.

• The 2mpta option provides a pathway to more rapid production as project approvals and timing to access infrastructure are likely to be reduced.

• Positive NPVs and IRRs of:

Issued Capital: 62,880,112 Ordinary Shares 20,626,704 Listed Options 22,750,000 Unlisted Options

ASX Code:

RAD (Fully Paid Ordinary Shares) RADO (Listed Options)

Media Enquiries:

Fortbridge +612 9331 0655 Luke Dean 0414 535 433

o 2mtpa: A$282M and 23%

• 10mtpa A$3,538M and 41%

• Well located to existing key project infrastructure with realistic transport, port, power and water solutions.

• A recommendation to proceed with further drilling and development studies.

Highly encouraging results from ongoing resource drilling and metallurgical studies, along with the Company objective to rapidly develop its hematite and magnetite resource, led to the commissioning of a scoping study aimed at providing support for further drilling and project development studies.

The findings exceed expectation and indicate the project clearly warrants further work. The low tonnage option indicates a staged development is feasible to de-risk the project by reducing the initial capital required.

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SCOPING STUDY – DIE HARDY

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Figure 1: Regional Location
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Study Scope and Outcomes

Consultant Group, Engenium, was commissioned by Radar to complete a Scoping Study for the Die Hardy Range magnetite project.

The study was aimed at providing justification for ongoing studies and to identify key aspects of the forward work programme such as production strategy and transport solutions. Work to date by Radar includes approximately 6,000m of RC drilling and 166 Davis tube tests to provide an indication of metallurgical performance. Resource drilling is currently in progress at the project (see Radar Iron’s press release dated August 24[th] , 2011 for a recent update).

Assay results from three drill sections indicate that this high grade magnetite mineralisation varies in width from 100m to 300m and averages 29-30% Fe. Radar has defined an exploration potential for the Die Hardy mineralisation as 700-1,200Mt at 2933% Fe*.

• The potential quantity and grade of iron deposits reported as exploration potential is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

Metallurgical test work (Davis tube tests) indicates a potential concentrate grade of 69.4% Fe, silica at 4.1% and a mass recovery of 40.3% at a relatively coarse grind size of 50 micron.

The Scoping Study considered multiple options for the mining, services and transport requirements of the Die Hardy Project based on existing project data and Engenium’s

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SCOPING STUDY – DIE HARDY

extensive knowledge of infrastructure in the region. The key parameters considered were:

Production Rate – 2mtpa and 10mtpa options used, with further options involving a ramp up from 2 to10mtpa.

Mining and Processing – conventional open pit mining and concentrating consisting of crushing milling and up to three stages of magnetic separation.

Transport - combinations of trucking and rail to the ports of Esperance, Kwinana, Albany and Geraldton.

• For the 10mtpa option, trucking the concentrate 112km to a rail head and then train to Esperance; (chosen as the base case owing to the benefits of the deep water port and current expansion plans).

• For the 2mtpa option, containerised road transport and ship loading selected as the base case.

Power – gas, diesel generation along with grid connection reviewed. Grid connection assumed for the high production rate (10Mmtpa) and diesel generation on site for the 2mtpa case.

Water – supply from aquifers in the area with desalination as necessary.

Ore price – based on long term standard industry projections.

Results for the two and ten million tonnes per annum of concentrate being transported through Esperance are:

	Table 1: Scoping Study	Table 1: Scoping Study	Summary	Results
Production Rate	Capital Cost (M$)	Operating Costs ($/t)	NPV (M$)	IRR(%)	Payback (Years)
**2mtpa **	530	98	282	23	5
**10mtpa **	2,335	78	3,538	41	4

Note: NPV: Net Present Value IRR: Internal Rate of Return Mtpa: Million Tonnes per Annum

Discussion

Engenium concluded from the study that, “The technical and financial evaluations in the Scoping Study have concluded that further project development is justified based on information currently available…”. An indicative schedule for the 10mtpa option proposed first ore production in the second half of 2015, and for the 2mtpa option a start up in 2014 was considered possible.

Apart from the endorsement this study provides, the figures for financial return clearly indicate that the project has robust economics and - possibly as important - that there are realistic transport options that can be accessed with reasonable capital outlay. This

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SCOPING STUDY – DIE HARDY

results from the government ownership of the rail and port facilities in the Yilgarn region and recent government support to expand the capacity at the Port of Esperance.

The 2mpta option in particular have the benefit of relatively low capital cost and the potential to be an early production option with start up in 3-4 years. The 10mtpa option is likely to take 4-5 years to commence production. A scenario of a staged development is likely so that the initial capital required is reduced substantially and technical aspects such as processing can be refined prior to expanding to 10mtpa.

The maiden resource estimate for Die Hardy Range is expected in November this year and following that confirmation of resource and based on this Scoping Study result Radar will review options to expedite the development.

Yours faithfully,

For or on behalf of Radar Iron Ltd

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Jonathan Lea Managing Director

The information in this report accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It is compiled by Mr Jonathan Lea, an employee of the Company who is a Member of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Lea has sufficient experience which is relevant to the style of mineralisation and the type of deposit under consideration 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 Lea consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The potential quantity and grade of iron deposits reported as exploration potential is conceptual in nature and there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.

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SCOPING STUDY – DIE HARDY

Background

Magnetite ores typically require processing to remove silica and increase the iron grade prior to export. Development of magnetite resources involves significantly higher capital input and the provision of substantial power and water supply to allow grinding and magnetite separation of the mineralisation. For this reason magnetite developments typically take longer and are more technically challenging. The prices received for magnetite concentrates however are typically substantially higher than for direct shipping ores.

Davis tube recovery test work simulates the likely performance of magnetite ores being processed through a typical magnetic separation process in a concentration plant. After fine crushing or pulverising the sample is passed by a magnet and the magnetic fraction is then assayed and weighed. Typically a mass recovery of greater than 30% with iron grades around 70% and silica below 5% is considered desirable.

The grind size required to separate the magnetite from the silica within the BIF is a key variable. Energy costs increase exponentially as the grind required becomes finer. Many Australian deposits require between 25-45 micron grind size to reduce the silica content below approximately 5%. A coarser grind size can lead to substantially lower operating costs.

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Figure 2: Project Location Plan
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SCOPING STUDY – DIE HARDY

Figure 3: Die Hardy Range Project

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Figure 4: Mineralisation Cross Section

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