Roper River Iron Ore Project EL 26412 Annual Report for period 14 April 2011 to 13 April 2012

Abstract

Exploration Licence 26412 (EL 26412) forms part of Sherwin Iron's Roper River Iron Ore Project in the Northern Territory, and is 100% owned by Sherwin Iron Limited. EL 26412 was granted on14th April 2008 to Exploration & Resource Development Pty Ltd (ERD), a Darwin based company, for a period of six years. On February 05th 2009 ERD changed its name to Australian Ilmenite Resources Pty Ltd (AIR). The licence area of 500 sub-blocks was originally applied for to target uranium anomalies as well as the iron ore potential in the southerly portion of the EL and the assessment of the diamond prospectivity of the area. Batavia Mining Limited (BTV) entered into an agreement in early 2010 to acquire the Roper River Iron Ore Project, which included EL 26412. Upon acquisition of the project late in 2010 BTV was renamed Sherwin Iron Ltd. This report details all exploration activity carried out over the tenement by Sherwin Iron Ltd for the 2011/2012 reporting period. Iron ore exploration in the current reporting period has included three separate programmes of helicopter based mapping/ rock chip sampling to assess and prioritise targets for exploration drilling. Initially six target areas were selected for sampling based on mapped Sherwin Formation outcrop occurrences and available historic and WDR exploration data. All available magnetics and radiometrics data was also assessed. A total of 123 rock chip samples were assayed for the full iron ore suite. Assay results were very encouraging indicating potential for DSO grade material in at least three areas. The second phase of rock chip sampling focussed on Yumanji West, South and East (East Limb and West Limb) with 46 samples collected for assay to infill the best target areas from the first phase. Highly encouraging results were received from this follow up programme. A further helicopter visit was arranged to assess road access and estimate likely thickness and tonnage potential of each prospect. This information collected is retained in- house. A third phase of rock chip sampling was conducted in March 2012. This programme was designed to assess the iron potential of the Munyi Member Sandstone Unit which is exposed within the northern portion of EL 26412. This unit is noted as being ferruginous in NTGS mapping. The sampling was conducted in an area of the tenement that was being considered for inclusion into the Limmen National Park. A total of 16 samples were collected from within this unit, which is outside the Sherwin Formation. A total of 5 of these samples returned results in excess of 40% Fe over at least a 20km strike distance. This is significant in indicating potential for economic iron oxide outside the Sherwin Formation. A summary report was prepared by John Fabray and Associates.