2nd Annual Group Technical Report Roper River Iron Ore Project GR260 covering EL 24101, EL 24102, EL 26412 and EL 28497 for the period 27 February 2013 to 27 February 2014

Abstract

Exploration activity during the period was effectively limited to EL 24101 with little activity on other tenements. Exploration activity included submission and approval of an MMP (separate to the exploration MMP) to extract a large exploration bulk sample of high grade oxide iron ore from Area C (within MLA 29584), where high grade iron ore is exposed at and near surface. The bulk sample extraction commenced following DME approval in May 2013 for 400,000 tonnes to be shipped for export. To date approximately 130,000 tonnes of DSO (direct Shipping ore) has been extracted and trucked to Darwin Port for export to China. This operation has effectively validated the DSO exploration resource, shown that mining of DSO grade is achievable and provides cash flow and learning opportunity for Sherwin prior to full scale mining. The operation has included over 400 RC grade control holes to an average 14 metres depth on 12.5 x 12.5 m drill spacing. High grade iron ore is present in two relatively near surface and shallow dipping zones (A and B). Each zone varies in thickness (between 2 and 5 metres) and grade (typically 58 percent to 60 percent Fe) though consistently present within the bulk sample pit. The bulk sample operation includes up to four areas or stages of mining with two of these completed to date and a third near mining completion. Approval for a DSO mining operation, initially at 1.5 Mt per annum and incrementally increasing to 3Mt per annum over a 7 year period is planned over Deposit C.