WEEBIT NANO LTD — Capital/Financing Update 2011

Feb 15, 2011

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SALE OF NON-CORE IRON ORE ASSETS TO RADAR IRON IN CASH PROCEEDS TO BE USED TO SUPPORT SXG’S GOLD PRODUCTION STRATEGY

Highlights

• $2M cash, scrip and mineral rights deal to divest non-core WA iron ore assets to ASXlisted iron ore explorer Radar Iron Limited (“Radar”).

• Radar to acquire SXG’s iron ore rights at Johnston Range and Jackson Range for $1.5M in cash and 1M Radar shares.

• SXG to acquire non-iron ore rights on Radar’s tenements surrounding SXG’s highly prospective Copper Bore copper-gold prospect.

• Proceeds will strengthen SXG’s cash position, underpinning the recently announced feasibility study on a production strategy targeting initial 30,000oz pa production over 5 years.

Southern Cross Goldfields Limited (ASX: SXG – “SXG” or “the Company”) is pleased to advise that it has reached agreement with Radar Iron Limited (ASX: RAD – “Radar”) to sell its portfolio of iron ore exploration rights at its Johnston Range and Jackson Range Projects in the Central Yilgarn Mineral Province of Western Australia to Radar Iron Limited (Radar) for a combination of cash and shares. SXG retains tenement ownership and non iron rights to the tenements on which Radar has acquired iron rights.

The agreement also involves the acquisition by SXG of the non-iron ore rights held by Radar surrounding SXG’s highly prospective Copper Bore project.

The proposed transaction is consistent with SXG’s focus on the development of its oxide gold assets in the Southern Cross region as part of its recently announced gold production strategy ( see ASX Announcement – 10 February 2011 ), which is based on the establishment of a 400,000tpa gold processing facility at the Marda Project and initial targeted production of 30,000oz per year over 5 years.

The consideration payable by Radar for the acquisition of the iron ore rights is:

• $1.5 million in cash;

• the issue to SXG of 1 million fully-paid Radar shares; and

• the transfer of the rights to all other minerals except iron ore on Radar’s tenements surrounding SXG’s Copper Bore exploration prospect, increasing its strategic footprint in this highly prospective area.

The sale is subject to tenement due diligence by Radar with completion expected in March 2011.

Southern Cross Goldfields Ltd ABN 71 124 374 321 ACN 124 374 321 Street Address: Level 2, 123B Colin Street, West Perth Mailing Address: PO Box 708, West Perth 6872

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Radar is focused on building a significant iron ore portfolio in the Central Yilgarn Mineral Province, which is emerging as a region with substantial iron production (Cliffs Asia Pacific Iron Ore Pty Ltd producing at 8.5mtpa and targeting 11mtpa by 2012) and with active exploration by Cliffs Asia Pacific Iron Ore Pty Ltd and Mineral Resources Limited, amongst others.

SXG’s Managing Director, Mr Glenn Jardine, said he was pleased to have reached agreement to divest these non-core iron ore assets to a focused iron ore exploration and development company.

“This transaction enables us to realise an immediate cash return from our iron ore assets which we can apply to the development of our gold assets, as well as securing an investment in the continued growth and development of Radar in this strategic iron ore region”, Mr Jardine said.

“The transaction also includes a significant acquisition of the non-iron rights around our Copper Bore prospect, where we are currently conducting preliminary exploration activities to follow up some very significant historical copper intersections,” he added. “This area could develop as an area of significant interest to SXG and we are very pleased to have increased our tenement holding in the area.”

SXG is pursuing a gold production strategy in the Southern Cross region which is initially based on the establishment of a 400,000tpa gold processing facility at Marda, producing at least 30,000 ounces of gold per year where the Company’s resource base is centred.

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For further details, please contact

Glenn Jardine, Managing Director – Southern Cross Goldfields Ltd Telephone: +61 8 9215 7600, email glennj@scross.com.au Refer to www.scross.com.au

For media inquiries, please contact: Nicholas Read – Read Corporate Telephone: +61 9388 1474, email nicholas@readcorporate.com.au

Forward-Looking Statements

This document contains forward looking statements concerning the projects owned by SXG. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on SXG’s beliefs, opinions and estimates as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Data and amounts shown in this document relating to capital costs, operating costs and project timelines are internally generated best estimates only. All such information and data is currently under review as part of SXG’s ongoing development and feasibility studies. Accordingly, SXG makes no representation as to the accuracy and/or completeness of the figures or data included in the document until the feasibility studies are completed.

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For news and information visit www.scross.com.au ASX:SXG
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JORC – Exploration Targets

It is common practice for a company to comment on and discuss its exploration in terms of target size and type. The information in this document relating to exploration targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. Hence the terms Resource(s) or Reserve(s) have not been used in this context. The potential quantity and grade is conceptual in nature, since there has been insufficient work completed to define them beyond exploration targets and that it is uncertain if further exploration will result in the determination of a Mineral Resource.

Disclaimer

This document has been prepared by Southern Cross Goldfields Limited (SXG). The information and opinions contained in this document are derived from public and private sources which we believe to be reliable and accurate but which, without further investigation, cannot be warranted as to their accuracy, completeness or correctness. This information is supplied on the condition that SXG, and any director, agent or employee of SXG, are not liable for any error or inaccuracy contained herein, whether negligently caused or otherwise, or for loss or damage suffered by any person due to such error, omission or inaccuracy as a result of such supply. In particular any statements concerning mining reserves and resources and cash flow forecasts contained in this document are preliminary, are for discussion purposes only and undue reliance should not be placed on this document.

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For news and information visit www.scross.com.au ASX:SXG
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