1st Annual Group Technical Report Roper River Iron Ore Project GR260/12 covering EL 24101, EL 24102, EL 26412, EL 28497 for the period 27 February 2012 to 27 February 2013

Abstract

EL 24101 technical activity is reported for the period 20th August 2012 to 27th February 2013. During this time the technical sign off for the High grade Indicated Resource, based on infill drilling (previously reported) was achieved with a total DSO reported resource of 21Mt at 57.5 percent Fe, a programme of trenching and sampling was completed within the panel drilling area at Deposit C to confirm the optimum location for a bulk sample. In addition the bulk sample MMP and work programme to extract 200,000 tonnes of high grade iron oxide was carried out. Various other agreements and approvals to facilitate the transport to Darwin and export to China were also prepared along with other necessary approvals to facilitate transport and export from Darwin port. In addition an NOI was completed and lodged by Sherwin. As part of the bulk sample MMP preparation a range of RC drill and drill core samples were collected from the site to assess potential for acid mine drainage. Results of this work indicate that acid mine drainage is unlikely to be an issue though additional monitoring is recommended. Additionally Size By Analysis testing has been conducted to determine the optimum crushing and screening specifications for maximum Fe grade and minimum Si grade. EL 24102 has an Anniversary date of 13th August 2012 and activity since that date has included block modelling of the infill drill data (previously reported) resulting in new Indicated Resources for each of Hodgson Downs Deposits W and X, totalling 18Mt at 57 percent Fe. As in the case of Deposit C this resulted significant Indicated Resources at W and X being reported. In addition the NOI was prepared which has included transport proposals for mining. EL 26412 has seen no real exploration activity since the Anniversary date of 14th April 2012 as funds have been focussed on early mine development elsewhere from existing resources in the other tenements. EL 26412 has attracted attention in terms of review of transport and infrastructure options for the long term project. Some areas were flown to assess suitability of transport haulage routes for future consideration and a work programme for mapping and drilling has been planned. The NOI has been prepared with the expectation that DSO resources are likely to be identified on this tenement. At EL 28497 there has been no activity since the 31st August 2012 Anniversary date. This tenement needs an on ground review of Sherwin Formation and Munyi Member presence to assess its likely iron oxide potential. Tenement expenditure has been reported separately and demonstrates that the Annual Group expenditure commitment has been met when previous expenditure reporting is considered.