WESTERN YILGARN NL — Capital/Financing Update 2012

Jun 26, 2012

ASX Release

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27 June 2012

FORWARD MINING EXECUTES BLYTHE PROJECT OPTION TO PURCHASE WITH RESTRUCTURED PAYMENT OF A$1,300,000

Iron Mountain Mining Ltd (Iron Mountain, ASX: IRM) is pleased to announce that Forward Mining Ltd today formally acquired the Blythe River Project in Tasmania from Iron Mountain and Red River Resources Ltd (50:50). Forward Mining Ltd executed its Option to Purchase the Blythe Project under the name Blythe River Iron Pty Ltd with the payment of A$650,000 to each of Iron Mountain and Red River Resources Ltd (total payment A$1,300,000).

This payment is in accordance with mutually agreed restructured execution terms that reflect the volatile nature of current market conditions and provide improved conditions for the successful development of a sustainable long-term mine at Blythe.

Under the originally agreed terms (ASX 28 March 2011), total consideration payable to Iron Mountain and Red River Resources Ltd was A$6,300,000 conditional on milestones such as Forward Mining Ltd being admitted to the Official List of the ASX, decision to mine and first shipment of iron ore from the project tenements.

Under the mutually agreed restructured execution terms, total consideration of A$6,300,000 is still payable but under the following amended milestones aimed at reducing barriers to project development:

• Payment of A$1,300,000 on or before 30 June 2012 to execute the Blythe Option to Purchase

• Payment of A$1,000,000 upon the first shipment of iron ore extracted from the Blythe Project tenements

• Payment of A$2,000,000 upon the first anniversary of the first shipment of iron ore extracted from the Blythe Project tenements

• Payment of A$2,000,000 upon the second anniversary of the first shipment of iron ore extracted from the Blythe Project tenements

The originally agreed royalty of 1.5% payable on the gross Free on Board revenue from all shipments of iron ore from the Blythe tenements remains intact.

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The company acknowledges that all potential future payments from the Blythe Project sale are dependant on the successful development and commissioning of a sustainable iron ore export operation. Following discussions with Forward Mining Ltd, the company was impressed with the progress being made at Blythe and the proposed plans for the expedited development of the project. Given the realistic potential for successful commercial development, the company decided against committing to the original short-sighted payment milestones and agreed to adopt restructured milestone payments that would defer financial impediments until operating cash flow had been established.

The company is confident that the Blythe Project has the potential to be commercially developed by Forward Mining Ltd and thus deliver all outstanding milestone payments as well as an ongoing royalty revenue stream.

Future updates on the status of the Blythe Project will be announced as provided by Forward Mining Ltd.

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ROBERT SEBEK

Managing Director 27 June 2012

The information within this report as it relates to geology and mineral resources was compiled by the Managing Director, Mr Robert Sebek. Mr Sebek is a Member of the Australian Institute of Mining and Metallurgy. Mr. Sebek has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration 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, the JORC Code”. Mr Sebek is employed by Iron Mountain Mining Limited and consents to the inclusion in the report of the matters based on information in the form and context which it appears.

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