WEEBIT NANO LTD — Interim / Quarterly Report 2014

Apr 30, 2014

Quarterly Activities Report For the three months ended 31 March 2014

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ACN 146 455 576

Overview

The Board of Radar Iron Ltd (“Radar”) is pleased to present its quarterly activities report for the quarter ended 31 March 2014. A number of significant developments have occurred in the reporting period that highlight and validate the extensive project generational activities undertaken by Radar in recent times.

Radar’s focus has been on the acquisition, both within Australia and globally, of iron ore projects with available infrastructure that can be developed in a short time frame for a low capital cost.

ASX Release

30 April 2014

Suite 7, 55 Hampden Rd Nedlands WA 6009 PO BOX 994 Subiaco WA 6904

P + 61 8 9389 9919 F + 61 8 9389 0576 E info@radariron.com.au W www.radariron.com.au

Contact

Jonathan Lea Managing Director E jlea@radariron.com.au

Damon Sweeny Company Secretary E damon@ampereltd.com.au

Directors

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

Issued Capital

81,340,070 Ordinary Shares 7,675,000 Unlisted Options

ASX Code

RAD (Fully Paid Ordinary Shares)

Key developments during the quarter included:

•  Acquisition in April 2014 of a large iron ore tenement holding in the south west region of Western Australia. The project area contains the major Yerecoin deposit within approximately 150km of Perth and is adjacent to an accessible rail line.

•  Radar gaining a new cornerstone investor, related to the financing of the Yerecoin acquisition.

•  Commencement of the farm-in at the Uruara iron ore project in Brazil with exploration producing positive results – drilling planned in coming quarter.

•  Involvement in the process leading to the imminent announcement of the successful developer of the expanded Port of Esperance.

With the acquisition of the Yerecoin deposit, Radar intends to change its focus from acquisition to one of project development, with a focus on Yerecoin, with the intent of developing a low capital cost operation in the next 2-3 years.

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Figure 1: WA Project Location

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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YERECOIN PROJECT

Radar Iron Ltd announced this month the purchase of a large iron ore tenement holding in the south west region of Western Australia from a JV headed by Cliffs Magnetite Holdings Pty Ltd. Cliffs determined that the project did not fit its development criteria and following a multi-stage bidding process Radar successfully acquired the assets.

The project area contains a major deposit within approximately 150km of Perth and is adjacent to an accessible rail line. The Yerecoin Deposit has been drilled with sufficient density to enable resource estimation – which stands at 404Mt Inferred – as announced in Radar’s ASX release “Major Project Acquisition” dated 24/04/14.

Key aspects of the project/acquisition are as follows:

•  A large iron ore tenement holding (501km[2] ) in the south west region of Western Australia, including tenements surrounding Northam and the Yerecoin Project close to Perth with a 404Mt JORC Inferred resource.

•  $3.74M acquisition cost spread over 12 months;

•  $0.86M on signing agreement

•  $1.44M, by November 30, 2014

•  $1.44M, 12 months from signing

•  Royalty $1/dry tonne of concentrate

•  Yerecoin, the first planned development involves a coarse grained easily processed magnetite with excellent metallurgical properties;

•  Concentrate at >68% Fe with very low contaminant levels – sought after on world markets as the current average grade of iron ore mined continues to decline;

•  105 micron grind – economical to produce and transport and can be direct fed to sinter plants similar to DSO fine ores.

•  The location of the deposit directly adjacent to a WA Government owned rail line will enable transport to the port of Kwinana for relatively low cost with several berth options being considered to enable export.

•  Radar has an industry leading, very low capital and low risk development approach, targeting moderate concentrate production initially while the metallurgical treatment process is optimised and transport solutions are optimised. Technical and financial studies completed by Radar in conjunction with consultant group Engenium (owned by RDG) indicates the potential economic viability of the development and support this development strategy.

•  Major shareholders behind Resource Development Group Ltd (RDG) an ASX listed mining services business, have agreed a 17.2M share placement in Radar at 5 cents per share (well above the recent trading range) to raise $0.86M. RDG is the owner of leading project delivery company Engenium which has carried out engineering studies on the project, reinforcing the validity of the development assumption.

•  Radar aims to complete sufficient studies in coming months to demonstrate Stage 1 development viability. Concurrently Radar will continue the work required to obtain development approvals and finalise the optimal transport network with the aim of commencing development in the near term and scaling up production in subsequent years.

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For the Three Months Ended 31 March 2014

Quarterly Activities Report

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RADAR’S MAGNETITE BUSINESS MODEL

Radar believes that with the depletion of high grade direct shipping iron ore, global demand for high grade magnetite concentrate (which can be used to supplement lower grade DSO ore) will increase substantially.

Radar has determined that an orderly progressive approach to the development of new magnetite ore bodies is preferable. Initial smaller scale economic projects can be repeated or scaled up to successfully enter the high quality iron feedstock business.

This new approach to magnetite project development substantially de-risks the process by negating the need for significant capital prior to the processing and transport characteristics being fully understood.

This strategy drove Radar’s acquisition of this project, that has the potential to initially produce approximately 250,000 tonnes of high quality (68%+) magnetite concentrate per annum using a small scale production plant for an estimated capital cost of approximately $20-30m. Radar considers that this acquisition meets Radar’s investment criteria and complements Radar’s existing iron ore projects in the Yilgarn and enables the exploitation of a major mineral resource in a measured and progressive way.

URUARA BRAZIL PROJECT

Following due diligence early completed early in the Quarter, Radar entered a farm-in agreement to acquire 50% of the Uruara high grade iron ore project in Para State Brazil, from a private Brazilian company.

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Figure 2: Uruara Project Location

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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Figure 3: Tenement Location plan and current activity

The Uruara Project covers about 68,000Ha of tenements with excellent exploration potential for iron ore. Previous reconnaissance mapping and rock chip sampling indicated the presence of substantial surface occurrences of high grade hematite and magnetite mineralisation. Rock chip assay values are commonly above 60% Fe with low levels of contaminants. Key aspects of the project/acquisition are as follows:

•  The Uruara Project is located in Para State, Brazil, approximately 600km inland and approximately 7km from the major Trans Amazonian Highway with ready access to the Amazon River at several locations.

•  The project comprises 1 exploration license of approximately 10,000Ha hectares with a binding right to acquire 6 adjacent applications of 58,000Ha.

•  Radar will earn a 50% interest on the granted exploration license by spending $1.5M on exploration within 18 months. The remaining 6 leases require $0.5M expenditure to earn 50% at which time a joint venture will commence.

•  Tenement vendor payments are payable commencing in approximately 4 months and will be based on the number of licenses that Radar wishes to include in the farm-in process. Total payments over a 30 month period could total $2M if all 7 tenements have exploration potential and are retained in the farm-in.

•  The agreement includes joint venture terms typically found in an agreement of this nature, including dilution and management.

•  The tenements lie in the Amazon Basin geological terrain – formed from recrystallised and enriched sediments. The weathering profile is thin; generally less than 1m, with the

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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project area being covered by a combination of heavily grassed open farm land and forest with sparse outcrop.

•  Mapping surface sampling and trenching has been undertaken to date on only one of the seven licenses. No drilling or regional aeromagnetic data exists. The trenching suggests the mineralisation continues to at least 4m below surface.

•  Outcrops of massive high grade hematite and magnetite mineralisation have been identified which when joined together can be interpreted as forming continuous mineralised corridors. The ready identification of large areas of high grade massive iron ore at surface in a virgin area is considered highly encouraging and the potential to further extend the mineralised area is considered excellent.

•  Three main corridors have been interpreted to date forming zones 150-400m in width and up to several kilometres in length. The mineralisation commences at surface, extends to at least 4m depth.

•  Using surface sampling and mapping data an exploration target for the high grade mineralisation is 20Mt-40Mt at 58-65% Fe has been estimated. The potential quantity and grade is conceptual in nature. 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.

•  Should mining be possible, the proposed production route would involve onsite crushing and screening prior to the ore being trucked to a deep water river port for direct loading or via barge onto ships.

•  The Trans Amazonian Highway leads to the ports of Vitoria du Xingu and Santarem. Panamax (60,000t) size ships can navigate the Amazon River in the area and there are numerous operating Panamax ports in the region.

•  Initial trial mining approvals for approximately 300,000tpa per lease may be obtained in Brazil normally after a six month to twelve month process. Drilling approvals are routinely gained in this area.

•  High grade lump ores have a market in Brazil as well as internationally and can command a premium price on the world market.

With only a small part of the 68,000Ha lease area being explored to date, mapping and sampling of the tenements has continued during the quarter. 40 surface sampling assay results were been returned from two programmes reinforcing the potential presence of high grade mineralisation grading above 60% Fe with low levels of impurities (Table 1). The recent geological mapping and sampling has increased the known extent of the mineralisation and revealed the potential for new iron rich zones across large areas in what is a largely unexplored region. The Cacao prospect in particular demonstrated very high grade massive iron mineralisation at surface over an area roughly 600m by 500m (Figure 4 and Table 1) with the highest grades being over 66% Fe.

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Quarterly Activities Report For the Three Months Ended 31 March 2014

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Figure 4. Mineralisation and Sample Location – Southern Part of EL 850.245

In those areas where mineralisation has already been defined – a ground magnetic survey was completed aimed at defining first pass drill targets for testing in the second quarter of 2014. The results showed a very good correlation between magnetic signature and mapped outcrop, and suggest a high degree of continuity under cover along and across strike for the iron ore mineralisation.

The results of the magnetic survey and further assay results are considered highly significant and clearly indicate that drill testing is warranted. The widths and continuity indicated for the mineralisation increases the potential for substantial zones of mineralisation to be defined.

Identification of drilling rig options continued with the preference being for man-portable diamond core rigs which will be suitable for both the open farm land and partially forested areas. Selection of a drilling contractor is expected in April/May with a nominal start date for drilling in May. The exploration plan is aimed at a rapid transition from appraisal to in-ground testing so that a resource base can be established in 2014.

Rapid assessment of all 7 leases is planned in coming months to establish the prospectivity of each lease. Should any tenements not have significant potential they will be excluded from the farm-in process to minimise vendor payments.

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Quarterly Activities Report For the Three Months Ended 31 March 2014

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Table 1. Uruara Rock Sample assay results (South American 1969 datum, Zone 22S)

Sample ID	East	North	Fe%	Al2O3%	SiO2%	CaO%	LOI%	MgO%	MnO%	P%	TiO2%
NI-01A NI-01B NI-03 NI-09A NI-09B NI-11 NI-14A NI-14B NI-18 NI-19 NI-25 SU-0001 SU-0003 SU-0007 SU-0011 SU-0012 SU-0013 SU-0017 SU-0018 SU-0020 SU-0021 SU-0024 SU-0026 SU-0031 SU-0034 SU-0035 SU-0036 SU-0037 SU-0038 SU-0039 SU-0040 SU-0041 SU-0042 SU-0043 SU-0101 SU-0102 SU-0103 SU-0104 SU-0105 SU-0106 SU-0107 SU-0108 SU-0109 SU-0112 SU-0113 SU-0114 SU-0115 SU-0116 SU-0117 SU-0118 SU-0119	223119 223119 224437 224686 224686 227094 227087 227087 223755 223721 224581 225749 225809 225950 226233 226906 226976 227072 227114 227383 227070 225176 224876 222735 227101 227002 227008 227043 227017 227042 227406 227386 227392 227459 223600 223595 223410 224407 224438 224598 224203 226691 223971 227291 227304 227506 226692 224301 224623 224780 224755	9603176	62.34	1.01	3.05	0.17	6.22	0.12	0.05	0.04	0.05
		9603176	59.32	1.31	5.55	0.04	7.84	0.10	0.05	0.05	0.08
		9604714	63.83	0.48	2.77	0.13	4.96	0.12	0.07	0.02	0.04
		9604784	56.40	1.53	4.77	0.03	11.62	0.10	0.75	0.19	0.06
		9604784	38.01	2.30	35.40	0.03	7.12	0.10	0.03	0.17	0.12
		9603012	64.50	1.50	2.98	0.14	2.86	0.10	0.18	0.03	0.03
		9603227	60.76	0.47	2.59	0.01	10.14	0.10	0.02	0.04	0.01
		9603227	66.13	0.66	2.20	0.20	1.81	0.10	0.15	0.01	0.02
		9604438	64.44	0.35	1.47	0.03	5.63	0.13	0.03	0.06	0.01
		9603317	65.86	0.30	2.72	0.16	2.12	0.32	0.07	0.01	0.01
		9603416	64.27	0.69	3.72	0.24	3.04	0.22	0.05	0.02	0.04
		9602671	39.34	0.35	37.59	0.02	5.52	0.10	0.08	0.01	0.01
		9602670	32.92	0.87	46.55	0.04	4.79	0.10	0.47	0.02	0.02
		9602690	43.90	0.14	27.45	0.02	7.62	0.10	1.23	0.01	0.01
		9602879	48.71	0.44	22.33	0.02	7.01	0.10	0.05	0.01	0.01
		9603529	52.91	0.31	20.71	0.23	2.55	0.26	0.10	0.02	0.01
		9603451	66.01	0.48	2.93	0.28	1.09	0.22	0.17	0.01	0.03
		9603398	61.02	1.00	3.82	0.04	7.64	0.10	0.05	0.02	0.03
		9603474	42.08	10.34	17.91	0.01	9.84	0.10	0.03	0.09	1.57
		9603448	62.53	0.84	3.01	0.01	6.37	0.10	0.03	0.08	0.02
		9603307	59.54	1.85	3.17	0.02	9.33	0.10	0.03	0.08	0.06
		9603283	38.29	0.24	40.22	0.04	4.43	0.10	0.01	0.01	0.01
		9603491	44.41	0.25	33.69	0.02	2.16	0.10	0.02	0.01	0.01
		9603165	64.35	0.98	4.82	0.77	-0.12	0.39	0.60	0.01	0.05
		9603298	57.86	1.79	4.80	0.05	10.05	0.10	0.10	0.06	0.03
		9603304	62.14	0.79	3.97	0.07	5.82	0.10	0.07	0.05	0.02
		9603404	64.68	0.74	3.58	0.05	2.91	0.10	0.06	0.05	0.01
		9603563	50.81	5.50	8.56	0.02	11.28	0.10	0.36	0.21	1.07
		9603658	35.11	4.71	37.91	0.04	6.03	0.10	0.80	0.08	0.30
		9603809	60.43	1.07	7.75	0.29	3.92	0.10	0.10	0.03	0.04
		9603241	50.89	2.15	14.90	0.04	9.09	0.10	0.10	0.21	0.17
		9603272	62.05	0.83	3.50	0.05	6.34	0.10	0.06	0.05	0.01
		9603327	57.28	1.93	9.11	0.21	4.99	1.00	0.35	0.20	0.08
		9602853	39.95	13.16	16.22	0.02	11.69	0.10	0.03	0.16	1.28
		9603328	57.59	1.79	11.34	0.54	2.88	0.23	0.26	0.03	0.05
		9603414	59.64	2.39	6.83	0.40	4.48	0.23	0.17	0.03	0.10
		9603170	64.86	0.42	4.38	0.39	1.70	0.26	0.04	0.02	0.01
		9603605	32.22	0.20	50.09	0.07	3.51	0.10	0.02	0.01	0.01
		9603583	49.83	0.18	22.50	0.03	6.04	0.10	0.02	0.01	0.01
		9603383	37.26	0.37	42.72	0.03	3.54	0.10	0.12	0.01	0.01
		9604617	57.47	1.23	7.79	0.05	8.11	0.10	0.19	0.06	0.05
		9603199	66.39	0.34	1.58	0.08	2.48	0.17	0.07	0.02	0.01
		9603671	52.82	1.28	16.91	0.04	5.06	0.10	0.73	0.02	0.03
		9603393	63.79	1.32	2.08	0.07	3.64	1.52	0.13	0.05	0.05
		9603486	62.06	0.68	2.63	0.03	7.50	0.10	0.11	0.06	0.01
		9603544	51.09	0.39	17.97	0.04	8.20	0.10	0.18	0.01	0.02
		9603545	59.87	1.97	6.06	0.41	5.23	0.10	0.38	0.02	0.07
		9603797	59.84	0.18	12.72	0.28	0.70	0.14	0.07	0.01	0.01
		9603265	65.56	0.50	3.61	0.37	1.16	0.37	0.09	0.02	0.01
		9603596	45.54	0.61	25.98	0.03	7.85	0.10	0.30	0.01	0.03
		9604815	62.45	0.47	2.54	0.03	7.47	0.10	0.03	0.07	0.01

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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YILGARN PROJECT

Figure 5: Yilgarn Project Location

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Within its Central Yilgarn Project Radar has defined resources of hematite and magnetite. The WA State Government is continuing the process of selecting a preferred developer to expand the export capacity of the Port of Esperance. Radar is well positioned to develop its Johnston Range hematite deposits in this time frame. Once the developer is appointed and timing for operation clarified then Radar will recommence project development activity.

At Johnston Range multiple hematite targets up to approximately 800m in length (generated through a combination of geological mapping, aero-magnetic and gravity geophysical interpretation) have been identified. Radar has progressively drill tested these zones with the aim of delineating sufficient resources to justify mining by the time the port of Esperance is expanded to enable export.

The prospects lie around the Horse Well Anticline that defines the 40km long belt of banded iron formation on the Johnston Range tenements (Figure 6) and also on adjoining banded iron formation (BIF) ridges in the Evanston project. Johnston Range is comprised of multiple bands of BIF which represent a target of several hundred linear kilometres of BIF with potential for hematite enrichment.

Johnston Range remains Radar’s key focus given the significant potential for hematite mineralisation. Drilling to date has only tested the more obvious targets at Johnston Range and the presence of multiple BIF bands and the variable strike length of the mineralisation means there are a significant number of potential hematite targets yet to be drill tested.

The Muldoon Prospect has been drilled with sufficient density to enables resource estimation – which stands at 2.1Mt at 57.6% Fe – as announced in ASX release “Maiden Hematite JORC Resource for Muldoon Prospect” dated 8/05/12. Recent mapping and drilling has indicated potential for the resource to be increased.

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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Figure 6: Yilgarn Prospect Location

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The potential for a major body of magnetite mineralisation at the Die Hardy Range (see Figure 6) was indentified in 2010 through reconnaissance mapping. A substantial RC drilling programme in 2011 resulted in the estimation of a maiden mineral resource estimation by consultant firm CSA Global in October 2011 and resulted in a JORC reportable Indicated and Inferred Mineral Resource at a 20% Fe cut-off grade of 353 million tonnes at 26.1% Fe (215Mt 26.7% Fe Indicated and 138Mt at 25.2% Fe Inferred). Details of the resource estimation procedure and ore body characteristics were provided in Radar’s ASX announcement “Maiden 353Mt Magnetite JORC Resource for Die Hardy” on 08/05/2012 and in the December Quarterly report to the ASX on January 31, 2012.

Radar is seeking a partner to progress this project, with the next stage of work expected to involve further resource drilling and metallurgical test work. The scoping study completed in 2011 suggested the project had robust economics, and the work to date along with the realistic regional transport options suggest a significant magnetite operation can be successfully established at Die Hardy.

The deposit outcrops as a ridge of magnetite bearing banded iron formation (BIF) over 3km in length. The BIF is partially demagnetised to a depth of 40-50m. Reverse circulation (RC) drilling intersected massive magnetite mineralisation with widths from 100 to 300m to a depth of 350m below surface. Drilling to date has not yet fully defined the extent or the depth of mineralisation.

The mineralisation has been tested for approximately 40% of its strike extent on Radar’s tenements and remains open along strike and at depth. Davis Tube Recovery (DTR) results and metallurgical test work indicates that a concentrate can be produced exceeding 69% Fe with low levels of contaminants at a grind size of 50 micron. This indicates that the mineralisation can be treated and has excellent potential for producing a saleable concentrate.

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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Corporate

As part of the acquisition of the Yerecoin Project, Radar agreed to place shares to Lightshare Investments Pty Ltd (Lightshare) to finance the initial payment for the project. The placement will be made in early May, 2014.

Lightshare (a private company owned by the major shareholders of ASX listed Resource Development Group Ltd) agreed a 17.2M share placement in Radar at 5 cents per fully paid ordinary share to provide the initial payment for the acquisition. Lightshare will own 17.5% of Radar’s issued capital following this transaction.

Lightshare has been offered a non-executive Board position with Radar and has nominated Mr David Sourbutts. Mr Sourbutts is an experienced civil engineer and executive director of Engenium. Mr Sourbutts is expected to commence with Radar in April 2014 and his appointment will provide further valuable technical knowledge and capability to Radar’s Board. The existing Directors of Radar welcome Lightshare as a cornerstone investor and strongly endorse David’s appointment.

Radar’s cash position at the end of the quarter was $485 thousand.

Announcements

The Company made the following announcements during the quarter.

Date	Headline
15/01/2014	Brazil Update 2
16/01/2014	Replacement Brazil Update2
20/01/2014	Trading Halt
21/01/2014	Brazil Update 3–Uruara Project Option Exercised
30/01/2014	BrazilUpdate4
31/01/2014	December 13 Quarterly Activities Report
31/01/2014	December 13 QuarterlyCashflow Report
17/02/2014	Clarification - December 13QuarterlyActivities Report
20/02/2014	BrazilUpdate 5
14/03/2014	Half Yearly Accounts
02/04/2014	BrazilUpdate 6
16/04/2014	Notice of General Meeting/Proxy Form
22/04/2014	Trading Halt
24/04/2014	Major ProjectAcquisition

For or on behalf of Radar Iron Ltd

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Jonathan Lea Managing Director

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Quarterly Activities Report

For the Three Months Ended 31 March 2014

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COMPETENT PERSON’S STATEMENT

The information in this report that relates to Exploration Results is based on information compiled by Mr Jonathan Lea, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Lea is a full-time employee of Radar Iron Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 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.

PREVIOUS REPORTED RESULTS

A Mineral Resource was established previously for the Yerecoin Magnetite Deposit in 2014. This information was reported under the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. The Mineral Resource was detailed in an ASX release and is available to view on the Company’s website www.radariron.com.au. The ASX release was:

1. “Major Project Acquisition” on 24/04/2014

Information in this report which relates to exploration results for the Yerecoin deposit, together with any related assessments and interpretations is based on information approved for release by Mr Giles Rodney Dale of G R Dale and associates. Mr Dale holds a Fellowship Diploma in Geology from RMIT; is a Fellow of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dale consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information in this report which relates to the Mineral Resource estimation the Yerecoin deposit, together with any related assessments and interpretations is based on information approved for release by Patrick Huxtable who is full time employee of Tetra Tech Australia. Mr Huxtable holds a BSc in Geology from Curtin University and is an RPGeo and Member in good standing with the Australasian Institute of Geosciences and has sufficient experience which is relevant to the style of mineralisation under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Huxtable consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

There is information in this announcement relating to surface sampling assays at the Uruara Project completed in two sampling programmes in 2013 and one in 2014. These were detailed in ASX releases and available to view on the Company’s website www.radariron.com.au. The ASX releases were:

1. “Brazilian Iron Ore Project – Update 1” on 18/11/2013 and

2. “Brazilian Iron Ore Project – Update 2” on 15/01/2014

3. “Brazilian Update – Uruara Project Option Exercise” on 21/01/2014

4. “Brazilian Iron Ore Project – Update 6” on 02/04/2014

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the data in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

An Exploration Target was established previously for the Uruara mineralisation following assessment in 2013. This was detailed in an ASX release and is available to view on the Company’s website www.radariron.com.au. The ASX release was:

1. “Brazilian Iron Ore Project Acquired” on 13/11/2013

The potential quantity and grade for Exploration Targets is conceptual in nature. There has been insufficient exploration to estimate a mineral resource and it is uncertain if further exploration will result in the estimation of a mineral resource.

As specified in the text of this and the previous ASX release the Exploration Target was based on surface mapping and interpretation along with widely spaced surface sampling results. Further work as outlined will include additional mapping and sampling, magnetic surveys and drill testing to validate the Exploration Target. This work should be completed in the first half of 2014.

The tonnage was estimated by assuming mineralised corridors averaging 200m wide to a depth of 5m with a length of 10km covered by the 3 corridors of mineralisation identified to date. A bulk density of 3.5 was applied to estimate tonnage. The range of tonnage was rounded off to 20-40Mt to indicate the uncertainty in

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this estimate. The grade was estimated using the average of the 16 ore grade assays results from the 24 samples taken that indicate ore grades will be approximately 62%Fe. The range was applied using practical knowledge of common maximum mined grades for iron ore deposits and a likely lower economic grade for extraction. The final grade will depend ultimately on the results obtained through drill testing and the economic cut off grade applied to any resource estimation.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the data in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Mineral Resources were established previously for the Die Hardy Magnetite Deposit and the Muldoon Hematite Prospect in 2011 and 2012 respectively. This information was first reported under the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. and has not been updated. The Mineral Resources were detailed in ASX releases and are available to view on the Company’s website www.radariron.com.au. The ASX releases were:

2. “Maiden 353Mt Magnetite JORC Resource for Die Hardy” on 16/11/2011, and 3. “Maiden Hematite JORC Resource for Muldoon Prospect” on 08/05/2012.

Information in this that relates to the Mineral Resource estimate for Muldoon reflects information compiled by Mr Alexey Zharnikov a full time employee of CSA Global Pty Ltd, who is a member of the Australian Institute of Geoscientists (AIG). Mr Zharnikov has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting 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 Zharnikov consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appears.

The information in this report relating to exploration results, sampling data validity and quality, mineralisation density and general project descriptions used in the Die Hardy Resource Estimate accurately reflects information prepared by competent persons (as defined by the Australasian Code for Reporting of Mineral Resources and Ore Reserves). It was reviewed by Aloysius G.W. Voortman of CSA Global Pty Ltd who is a Fellow and Chartered Professional of The Australasian Institute of Mining and Metallurgy with the requisite experience in the field of activity in which he is reporting. Mr Voortman 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 Voortman consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Information in this report that relates to the Mineral Resource for Die Hardy estimate reflects information compiled by Mr Aloysius G.W. Voortman of CSA Global Pty Ltd who is a Fellow and Chartered Professional of the AusIMM. Mr Voortman is a Competent Person as defined by the JORC and is a full time employee of CSA Global Pty Ltd as Principal Resource Geologist and Geostatistician. He has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is reporting 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 Voortman consents to the inclusion in the report of the matters based on the information compiled by him, in the form and context in which it appears.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and that all material assumptions and technical parameters underpinning the data in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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APPENDIX 1

YERECOIN PROJECT DETAILS

The acquisition is comprised of multiple iron ore tenements (10 exploration licenses covering 501 km[2] ) in the Yilgarn region of Western Australia, located within 150km north and east of Perth, WA. The style of mineralisation is typical for Western Australia – being banded iron formation hosted.

It contains two 100% owned project areas:

• Yerecoin Project – 5 tenements covering 320 km[2]

• Northam tenements – 5 tenements covering 181 km[2]

A fenced property containing a large storage shed at the town of Calingiri (south of Yerecoin) was also purchased for use as a project development base.

Yerecoin was originally discovered by Giralia Resources NL. Radar’s Chairman was at that time employed by Giralia and worked on the early stages of the project development. Giralia was taken over by Atlas Iron Ltd who subsequently sold the project to the current vendors who have undertaken drilling and a number of substantial studies to advance the projects.

YERECOIN RESOURCE

Yerecoin is located approximately 140km north of Perth and is the most advanced project with three zones of mineralisation having been defined through drilling. The Main deposit as below is clearly the focus for immediate development with its coarser grind and higher Davis tube recovery (DTR). There is significant potential to increase the resource size at Yerecoin with the current JORC reportable resource being:

Table 1: Yerecoin Inferred JORC Resource (October 2012)

Class	Name	Tonnes (Mt)	DTWR %	DTC Fe%	DTC **SiO2% **	DTC S%	DTC **Al2O3% **	DTC P%	Fe_ head%
INF	Yerecoin Main	146.5	35.36	68.83	2.82	0.03	0.24	0.007	29.14
	Yerecoin Sth	115.9	28.05	67.88	4.20	0.75	0.41	0.013	29.76
	Yerecoin Nth	141.6	21.98	67.56	4.39	0.67	0.54	0.015	26.29
	Total	404.0	28.57	68.11	3.77	0.46	0.39	0.012	28.32

OK method @ DT_WR 15% cut-off for 68% passing (Main) and 85% passing (North and South) 75µm. Figures may vary due to rounding.

The Yerecoin resource was estimated using data from 119 RC drill holes and 83 diamond drill holes with the grade interpolated using ordinary kriging and verified using other estimation methods. The work was completed be consultant group Tetra Tech.

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Metallurgical testing was completed on four samples from the Yerecoin Main deposit. Test work shows that a suitable quality concentrate could be produced at a grind size of 80% passing (P80) 105 microns.

The product is characterised by high iron, low phosphorus, low alumina and other contaminants which means it could be positioned as a high quality iron ore source to the steel making industry as shown below:

Table 2: Concentrate Chemical Specifications - Yerecoin Main Deposit

Fe%	**SiO2% **	**Al2O3% **	CaO%	MgO%	P%	S%	Zn%	MnO	TiO2	**Na2O **	**K2O **	LOI
68.6	4.3	0.12	0.17	0.28	0.014	0.008	0.002	0.057	0.027	0.005	0.007	3.13

The concentrate is envisaged to provide a high grade direct sinter feed (i.e. does not require pelletising) that is expected to attract a premium price due to its value in use benefits. These favourable metallurgical attributes offer significant competitive advantages relative to other magnetite projects. Such attributes are particularly attractive in an environment of globally deteriorating iron ore quality.

Cliffs completed a scoping study for the project with the results indicating that, using a conventional development strategy, the overall outcomes were inconsistent with the Joint Venture Parties’ production criteria (5-10Mtpa concentrate) and their current strategic objectives. As a consequence a decision was made to divest the project.

Yerecoin has advantages over many other iron ore projects in terms of proximity to infrastructure with an operational narrow gauge rail line passing through the tenements. The open access, rail infrastructure traverses a total distance of 223km to connect the envisaged Yerecoin mine site to the bulk cargo Port of Kwinana. Rail operating costs are attractive given the relatively short haulage distance to port compared to existing operations in the Pilbara or Yilgarn regions.

High voltage power is available within some 80km of the project and the requisite water supplies have also been identified.

Information relevant to the exploration results and mineral resources for Yerecoin appears as announced in Radar’s ASX release “Major Project Acquisition” dated 24/04/14.

NORTHAM PROJECT

The other project area at Northam is in an earlier stage of exploration evaluation. The 5 tenements covering 181 km[2] lie adjacent to the standard gauge Trans-Australia rail line. Regional exploration has indicated the potential for magnetite mineralisation with a similar coarse nature found at Yerecoin. Further evaluation of the project is required.

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APPENDIX 2

Exploration Data – Uruara

The ground magnetic survey was completed in February/March on 100 or 200m line spacing over the existing identified zones of mineralisation.

As much of the project area is covered by a thin veneer of soil, long grass or scrub the actual width and continuity of the interpreted zones of mineralisation had not been defined. The ground magnetic survey was deemed to be a cost effective way to assist in this process and to determine the effectiveness of the method in the event later airborne surveys are considered.

The magnetic survey was limited to the areas of open farm land and regrowth Cacão plantation and did not extend to cover the areas of high grade iron mineralisation that has been identified in the forest areas on the lease.

The ground magnetic response has shown excellent correlation with mapped outcrop of high grade iron mineralisation and demonstrating that the mapped trends do indeed continue under cover along strike and are potentially significantly wider than previously estimated. This outcome is considered highly significant and increases the potential for substantial zones of mineralisation to be identified.

The Cacao Prospect in particular (Figure 1) appears to be over 1km in length with a width of several hundred metres and has potential for extension to the north.

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Jacare Prospect
Limao Prospect
Cacao Prospect
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Figure 1: Magnetic coverage and Prospect Location plan – southern part of EL 850.245

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Figure 2: Magnetic Image and Assay results – Limao and Jacare Prospects Recent Assays - pink dots

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Figure 3: Outcrop in open farm land – Limao Prospect

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Figure 4: Magnetic Image and Assay results – Cacao Prospect Recent Assays - pink dots

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Jacare Prospect
Cacao Prospect
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Figure 5: Assay results and interpreted mineralisation – Limao and Jacare Prospects

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Cacao Prospect
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Figure 6: Assay results and interpreted mineralisation – Cacao Prospect

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