HAMERSLEY IRON ORE PROJECT

The Hamersley Project is made up of one Exploration Licence (E47/1617) and one Mining Lease (M47/1450) located 50 km northeast of Tom Price in the Pilbara Region of Western Australia. The Fortescue Metals Group’s Solomon Project lies immediately to the north.

Exploration Licence E47/1617 covers approximately 58 km2 and the Mining Lease M47/1450, of approximately 10 km2 covers the Winmar Deposit.

Previous work completed by Cazaly Iron discovered a buried channel iron deposit (CID) at the Winmar Deposit from which a maiden Inferred Resource of 143mt @ 52.6% Fe (55.6% CaFe) was announced to the ASX in June 2010. The resource has been drilled over 1.5km of strike but remains open to the north with an estimated overall strike length of 2.8 km. The resource is also open at depth, and open to the northeast and southwest.

Extension and infill Reverse circulation drilling during 2011 resulted in a 70% upgrade to the resource as announced by Winmar on the 21st July 2011 to the ASX.

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There is significant potential for further extensions to the resource and Winmar have recently announced a $2.2M budget and appointed Terra Search to manage exploration at the Hamersley Project in 2012.

Initial metallurgical tests carried out on the Hamersley Project to date indicate potential to upgrade the CID material using a combination of conventional screening and gravity separation.