Annual Report EL 24307, EL 24665, EL 24944, EL 25672, EL 26759 and EL 26992, Roper Bar Project for the period 16 April 2011 to 15 April 2012 Year 4

Abstract

The Roper Bar Project consists of six granted exploration licences (EL 24307, EL 24655, EL 24944, EL 25672, EL 26759 and EL 26992) which are 100% owned by Western Desert Resources (WDR) through its wholly owned subsidiary, WDR Iron Ore Pty Ltd. The tenements are located about 240 km east of Mataranka in the Gulf Country of the Northern Territory. Exploration is being undertaken for hematitic iron ore within the Sherwin Formation. The Roper Bar project is situated within the Bauhinia Shelf of the McArthur Basin. The McArthur Basin is an intracratonic platform basin of Palaeo to Mesoproterozoic age. Exploration within the area has concentrated on the Sherwin Formation within the Maiwok Subgroup of the Roper Bar Group. Exploration activities carried out during the reporting period included a 318 line km airborne gravity survey, 154 outcrop structural measurements, 580 reverse-circulation (RC) drill holes (30,409 m), 11 PQ diamond core holes (641.03 m), a metallurgical testwork program on high grade halo ore and beneficiable ore, and a JORC compliant resource estimate upgrade on Area F. The resource estimate, which now includes the Area F drilling from 2011, has upgraded the total resource to 321.5 million tonnes at an average grade of 40.1 % Fe. The resource estimate includes direct shipping ore (DSO) of 15.5 Mt at 59.5% Fe from Area F and 4.7 Mt at 55.6% Fe from Area E East. Further resource definition and exploratory drilling is planned for the 2012/2013 reporting period. The focus will be to upgrade confidence in the existing resources at Area F, Area E and Area D for feasibility requirements, as well as to explore beyond the existing resource limits at Area B increasing the overall project size. To achieve these goals, RC drilling, resource diamond drilling, geotechnical diamond drilling and metallurgical diamond drilling and ore testwork will be conducted.