ASX Announcement January 2013

FUSION RESOURCE UPDATE

General Manager 14th January 2013

The Company Announcements Office Australian Securities Exchange Electronic Lodgement System

Dear Sir/Madam

FUSION MINERAL RESOURCES UP BY 30% TO 653Mt

Highlights • Total Fusion Mineral Resources increase by 30% to 653Mt • Indicated/Measured Resources increased by more than 400% to 287Mt • Additional update for the Brennand deposit within Fusion expected early in 2013 • Overall WISCO joint venture resources now at 867Mt

Summary Centrex Metals Limited (“Centrex”) announces a 30% increase in Mineral Resources for the Fusion Magnetite Project (“Fusion”) located on South ’s . The upgrade brings the total Mineral Resource to 653Mt for the project. This includes a more than 400% increase in Indicated and Measured Resources to 287Mt.

The latest estimations were based on additional drilling conducted at the adjacent deposits of Koppio, Brennand and

Kapperna (“KBK”) that form part of Fusion. A further update is expected in the coming months for Brennand. Once For personal use only use personal For finalised, this will complete the resource definition phase across KBK and these deposits will form the start-up mine life for the project. Initial exploration drilling has also recently been completed at the Bald Hill and Charlton Gully deposits which have the potential to further increase the Fusion project resource base, along with the already defined Iron Mount deposit. Studies for a 5Mtpa magnetite concentrate operation at Fusion are continuing. ASX Announcement — January 2013

Centrex holds a 40% interest in Fusion that is the focal point of a wider joint venture with Wuhan Iron & Steel Group Co. (“WISCO”), the world’s 4th largest steel group. The joint venture, managed by Eyre Iron Pty Ltd (“Eyre Iron”), covers 5 exploration licences on the Southern Eyre Peninsula and also includes the Carrow and Greenpatch projects. With the latest announcement the total Mineral Resources for the joint venture have reached 867Mt.

Fusion Summary Mineral Resources

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Measured 10.8 22.7 52.3 18.0 68.2 4.1

Indicated 276.1 24.4 50.5 21.5 68.5 3.8

Inferred 365.9 25.0 45.3 24.5 65.6 6.2

Combined Mineral Resources

Total 652.7 24.7 47.6 23.1 66.8 5.2

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm *Includes the deposits of Koppio, Brennand, Kapperna and Iron Mount, detailed breakdowns shown below.

Kapperna Brennand KOPPIO

Figure: 3D oblique view of KBK deposits.

Resource estimation for KBK was completed by Golder Associates, full details can be found in the attached resource

statements. For personal use only use personal For

CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, , , 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752

ASX Announcement — January 2013

FUSION OVERVIEW

Fusion is located approximately 35km north of the city of on the Southern Eyre Peninsula, South Australia. The project comprises numerous prospective magnetite deposits spanning a 50km anomalous magnetic BIF trend. Fusion aims to establish a centralised processing facility to access all deposits within the project area and transport magnetite concentrate 40km to the NE via slurry pipeline to for export. Centrex holds a 50% interest in the development of a deep-water export facility at Port Spencer with WISCO again holding the remaining share. State Government development approval was recently received for the first stage of Port Spencer.

The focus of mining and project studies to date at Fusion has been at KBK however further drilling across the project area completed in 2012, in particular at Bald Hill and Charlton Gully has demonstrated potential to increase the project resource base. The overall resource base would support a long-term iron ore industry in the region. Fusion is likely to act as a catalyst to the development of vital infrastructure on the Southern Eyre Peninsula including Port Spencer as well as potentially underpinning a new transmission network that could have the added benefit of unlocking much of the Eyre Peninsula’s green energy (wind) potential.

Figure: Location map showing high-resolution aero-magnetic image of Fusion. only use personal For

CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752

ASX Announcement — January 2013

RESOURCE SUMMARIES

Koppio Resources Summary

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Measured 10.8 22.7 52.3 18.0 68.2 4.1

Indicated 106.6 24.3 52.0 19.9 68.6 3.6

Inferred 99.6 24.5 52.3 21.1 68.8 3.4

Combined Mineral Resources

Total 217.0 24.3 52.1 20.4 68.7 3.5

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm

Brennand Resources Summary

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Indicated 131.0 23.0 51.4 18.7 67.5 4.8

Inferred 107.9 23.9 50.0 19.9 67.6 4.5

Combined Mineral Resources

Total 238.9 23.4 50.8 19.3 67.6 4.7

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm For personal use only use personal For

CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752

ASX Announcement — January 2013

Kapperna Resources Summary

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Indicated 38.5 29.7 43.1 35.1 69.9 2.2

Inferred 23.3 29.7 43.8 32.8 68.9 3.3

Combined Mineral Resources

Total 61.8 29.7 43.3 34.3 69.6 2.6

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm

Iron Mount Resources Summary

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Inferred 135.0 25.5 36.7 29.3 62.1 9.1

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing - 75µm *Refer ASX release 28th September 2011

only use personal For

CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752

ASX Announcement — January 2013

Carrow Resources Summary

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Indicated 72.4 27.3 40.1 28.7 68.5 3.3

Inferred 86.8 27.2 41.6 27.0 65.4 6.7

Combined Mineral Resources

Total 159.2 27.2 41.0 27.8 66.9 5.2

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm *Refer ASX release 1st June 2011

Greenpatch Resources Summary

Tonnage Head Grade DTR Concentrate Grade Classification (Mt) (%) Fe (%) SiO2 (%) Fe (%) SiO2 (%)

Inferred 54.8 24.9 33.8 26.8 68.3 3.0

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing - 75µm *Refer ASX release 12th January 2012

For further information please contact:

Phil Staveley Ben Hammond Gavin Bosch General Manager Chief Development Officer Company Secretary Centrexonly use personal For Metals Limited Centrex Metals Limited Centrex Metals Limited Ph (08) 8100 2200 Ph (08) 8100 2200 Ph (08) 8100 2200

CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752

ASX Announcement — January 2013

Competent Persons Statement

The information in this report relating to Mineral Resources for Fusion is based on and accurately reflects information compiled by Mr Alan Miller of Golder Associates who is a consultant and adviser to Eyre Iron Pty Ltd and who is a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Mr Miller has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Miller consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

The information in this report relating to Mineral Resources for Carrow and Greenpatch is based on and accurately reflects information compiled by Mr Alex Virisheff of Coffey Mining Limited who is a consultant and adviser to Eyre Iron Pty Ltd and who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Virisheff has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Virisheff consented to the inclusion of this information in the 1st June 2011 and 12th January 2012 announcements in the form and context in which it appeared in

those documents. For personal use only use personal For

CENTREX METALS LIMITED Unit[Type 1102, text] 147 Pirie Street, Adelaide, South Australia, 5000 | P: +61 8 8100 2200 | centrexmetals.com.au | ABN 97 096 298 752

11 January 2013 Reference No. 127641014-007-L-Rev0

Mr Scott Duncombe Eyre Iron Pty Ltd Level 9, 420 King William Street ADELAIDE SA 5000

MINERAL RESOURCE STATEMENT: FUSION MAGNETITE PROJECT

Dear Scott

Golder Associates Pty Ltd (Golder) has completed resource models for the Koppio, Kapperna and Brennand magnetite deposits, which make up the Fusion Magnetite Project located on the Eyre Peninsula in South Australia. The Koppio and Brennand Mineral Resource estimates use all available assay data as of 2 November 2012. The Kapperna Mineral Resource update uses all available assay data as of 14 August 2012. The resource estimates are Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 Edition

Classification of the resource estimates was completed by Golder geologists, as described below, based principally on data density, geological confidence criteria, estimation confidence and representativeness of sampling.

This resource statement includes the Koppio, Brennand and Kapperna deposits as shown in plan-view in Figure 1, Figure 2 and Figure 3 respectively.

Geology The Fusion Magnetite Project is located adjacent to the Kalinjala Mylonite Zone (KMS). The deposits are structurally complex with north-west to south-east trending faults disrupting the continuity of prospective horizons. Folding is also present with fold limbs, in general, dipping steeply to the north-west. Shears may also disrupt the sequence order.

High grade amphibolite to granulite facies metamorphism has occurred throughout the project region. The recognised lithologies include amphibolite, granite, gneiss, schist and banded iron formation (BIF).

Establishing the continuity of the iron rich horizons is challenging given the structural setting. The target horizons are generally steeply dipping (~65° to 80°) at Koppio West whereas the Koppio and Toms Well deposits dip gently at about 25°. At Brennand the target horizons are generally steeply dipping (~80° to 90°) and the dip angle decreases from 80 to horizontal at the southern extent of the deposit. The target horizons at Kapperna are generally steeply dipping (~65° to 80°).

There is colluvium and duricrust ferricrete (canga) covering the oxidised and fresh units in some areas. The thickness of these covering units varies. The depth of oxidation and weathering varies between 5 m and 55 m based on downhole observations. The iron rich horizons are typically more resilient and therefore the

depth of oxidation is less in these materials. For personal use only use personal For

Golder Associates Pty Ltd Level 3, 1 Havelock Street, West Perth, 6005, Australia (PO Box 1914, West Perth WA 6872) Tel: +61 8 9213 7600 Fax: +61 8 9213 7611 www.golder.com Golder Associates: Operations in Africa, Asia, Australasia, Europe, North America and South America A.B.N. 64 006 107 857 Golder, Golder Associates and the GA globe design are trademarks of Golder Associates Corporation. Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Figure 1: Plan View of Mineralisation Domains for the Koppio, Koppio West and Toms Well Deposits For personal use only use personal For

Figure 2: Plan View of Mineralisation Domains and Drill Holes for the Brennand Magnetite Deposit

2 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Dom 2

Dom 3

Dom 1

Figure 3: Plan View of Mineralisation Domains and Drill Holes for the Kapperna Magnetite Deposit For personal use only use personal For

3 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Assumptions and Methodology This Mineral Resource estimates are based on a number of factors and assumptions:

All of the available drilling data was used for the Mineral Resource estimation.

Stratigraphic horizons were modelled in three dimensions to define geological domains that were used to flag the sample data for statistical analysis and estimation.

The survey control using a Differential Global Positioning System (DGPS) for collar positions was considered adequate for the purposes of this study.

The quality assurance and quality control (QAQC) program for the Fusion magnetite project includes company standards and field duplicates submitted at a rate of 1 in 20 samples submitted for analysis. No apparent discrepancies were identified in the QAQC data.

Statistical and geostatistical analysis was carried out on drilling data composited to 2 m downhole for head assays and 4 m downhole for Davis Tube concentrate (DTC) assays. This included variography to model spatial continuity in the geological domains.

Un-sampled intervals within mineralised domains were assigned default head grades based on the stratigraphy logged. Default Davis Tube Recovery (DTR) values of 0.001 wt% were inserted in un- sampled DTR intervals within the mineralised envelope.

The Ordinary Kriging (OK) interpolation method was used for resource estimation of Fe, SiO2, Al2O3, P, CaO, MgO, Mn, S, Na2O, K2O, TiO2 LOI, DTR, DTC Fe, DTC SiO2, DTC Al2O3, DTC P, DTC CaO, DTC MgO, DTC Mn, DTC S, DTC Na2O, DTC K2O DTC TiO2 and DTC LOI, using variogram parameters defined from the geostatistical analysis. DTR is the wt% (mass recovery) produced from Davis Tube test work on 4 m drill samples. DTC Fe is the Davis Tube concentrate grade, etc.

Estimations for concentrate grades were weighted by DTR in order to appropriately reflect the relationship between DTR and the DTC assays. Weighting was completed by calculating the accumulation (DTR × DTC assay) and subsequently back calculating the DTC assay estimates by dividing by relevant estimated DTR values

In situ density for Koppio was estimated using an Ordinary Kriging (OK) interpolation method from wireline geophysics density data was composited to 2.0 m.

In situ density for Brennand and Kapperna was based on density determinations from drill core and assigned to the mineralised and waste domains.

Estimates representing extrapolations greater than 160 m from drilling are not included in this resource statement. Mineral Resource Statement The resource estimates were classified in accordance with the Australasian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC Code, 2004). The classification was considered appropriate on the basis of drill hole spacing, sample interval, geological interpretation, estimation performance and representativeness of all available assay data.

The in situ Mineral Resource is constrained to the mineralisation domain boundaries which were defined using geological boundaries and a nominal cut-off grade of 10% DTR.

All estimated and reported concentrate grades were weighted by DTR.

For personal use only use personal For The resource is based on the Ordinary Kriging interpolated block models Koppio_OK_final.bmf, Brennand_OK_final.bmf and Kapperna_OK_final.bmf and is reported below the topography for fresh material by classification. Table 1 shows the Mineral Resource estimate for the Fusion Project. Table 2, Table 3 and Table 4 show the Mineral Resource estimates for Koppio, Brennand and Kapperna respectively at a 0.001% wt DTR cut-off within the mineralised domains.

4 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Table 1: Fusion Project In Situ Mineral Resource - Fresh Rock at a 0.001 wt% DTR Cut-Off Grade Class Measured Indicated Inferred Grand Total Mt 10.77 276.07 230.88 517.72 Fe% 22.71 24.44 24.75 24.54

SiO2% 52.30 50.47 50.35 50.45

Al2O3% 4.71 3.96 3.58 3.81 P% 0.17 0.20 0.22 0.21 S% 0.23 0.18 0.19 0.18 LOI% 0.09 -0.03 -0.16 -0.08 CaO% 3.57 3.98 4.27 4.10

K2O% 0.63 0.61 0.62 0.62 MgO 4.06 3.94 3.87 3.91 Mn% 0.13 0.26 0.30 0.28

TiO2% 0.27 0.25 0.22 0.24

Na2O% 0.76 0.62 0.58 0.60 DTR wt% 18.04 21.46 21.73 21.51 Recovered Mt* 1.94 59.24 50.18 111.36 DTC Fe% 68.22 68.46 68.31 68.39

DTC SiO2% 4.08 3.79 3.84 3.82

DTC Al2O3% 0.33 0.30 0.28 0.29 DTC LOI% -3.05 -3.06 -3.00 -3.03 DTC P% 0.038 0.033 0.037 0.035 DTC S% 0.13 0.11 0.15 0.13 DTC CaO% 0.27 0.29 0.33 0.31 DTC MgO% 0.25 0.23 0.26 0.24 DTC Mn% 0.02 0.10 0.10 0.10

DTC K2O% 0.01 0.01 0.01 0.01

DTC Na2O% 0.02 0.03 0.03 0.03

DTC TiO2% 0.10 0.08 0.08 0.08

in situ tonnage multiplied by DTR wt%. For personal use only use personal For

5 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Table 2: Koppio In Situ Mineral Resource - Fresh Rock at a 0.001 wt% DTR Cut-Off Grade Grand Total Class Measured Indicated Inferred Koppio Mt 10.77 106.58 99.63 216.98 Fe% 22.71 24.27 24.51 24.30

SiO2% 52.30 52.02 52.26 52.15

Al2O3% 4.71 3.86 3.63 3.80 P% 0.17 0.19 0.21 0.20 S% 0.23 0.20 0.19 0.20 LOI% 0.09 0.04 -0.35 -0.14 CaO% 3.57 3.33 3.46 3.40

K2O% 0.63 0.52 0.62 0.57 MgO 4.06 3.40 3.34 3.41 Mn% 0.13 0.15 0.18 0.17

TiO2% 0.27 0.23 0.21 0.23

Na2O% 0.76 0.66 0.62 0.65 DTR wt% 18.04 19.89 21.12 20.36 Recovered Mt* 1.94 21.20 21.04 44.18 DTC Fe% 68.22 68.60 68.80 68.68

DTC SiO2% 4.08 3.61 3.36 3.51

DTC Al2O3% 0.33 0.30 0.26 0.28 DTC LOI% -3.05 -3.01 -3.04 -3.02 DTC P% 0.038 0.037 0.039 0.038 DTC S% 0.13 0.15 0.20 0.17 DTC CaO% 0.27 0.26 0.27 0.27 DTC MgO% 0.25 0.20 0.18 0.19 DTC Mn% 0.02 0.03 0.03 0.03

DTC K2O% 0.01 0.01 0.01 0.01

DTC Na2O% 0.02 0.03 0.03 0.03

DTC TiO2% 0.10 0.10 0.09 0.10

in situ tonnage multiplied by DTR wt%. For personal use only use personal For

6 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Table 3: Brennand In Situ Mineral Resource - Fresh Rock at a 0.001 wt% DTR Cut-Off Grade Grand Total Class Indicated Inferred Brennand Mt 131.02 107.91 238.93 Fe% 23.04 23.88 23.42

SiO2% 51.37 50.00 50.75

Al2O3% 4.69 3.85 4.31 P% 0.19 0.21 0.20 S% 0.18 0.20 0.19 LOI% -0.11 -0.05 -0.08 CaO% 3.82 4.75 4.24

K2O% 0.80 0.70 0.75 MgO 4.31 4.30 4.31 Mn% 0.27 0.38 0.32

TiO2% 0.32 0.26 0.30

Na2O% 0.69 0.61 0.66 DTR wt% 18.73 19.90 19.26 Recovered Mt* 24.54 21.47 46.01 DTC Fe% 67.52 67.59 67.56

DTC SiO2% 4.82 4.52 4.68

DTC Al2O3% 0.38 0.32 0.30 DTC LOI% -3.04 -2.94 -2.99 DTC P% 0.043 0.042 0.043 DTC S% 0.12 0.15 0.13 DTC CaO% 0.33 0.39 0.36 DTC MgO% 0.28 0.32 0.30 DTC Mn% 0.11 0.17 0.14

DTC K2O% 0.02 0.02 0.02

DTC Na2O% 0.04 0.03 0.04

DTC TiO2% 0.11 0.10 0.10

in situ tonnage multiplied by DTR wt%. For personal use only use personal For

7 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

Table 4: Kapperna In Situ Resources - Fresh Rock at a 0.001 wt% DTR Cut-Off Grade Grand Total Class Indicated Inferred Kapperna Mt 38.47 23.34 61.81 Fe% 29.66 29.73 29.68

SiO2% 43.06 43.77 43.33

Al2O3% 1.73 2.17 1.89 P% 0.25 0.26 0.25 S% 0.12 0.14 0.13 LOI% 0.07 0.19 0.12 CaO% 6.34 5.46 6.01

K2O% 0.21 0.27 0.24 MgO 4.16 4.16 4.16 Mn% 0.56 0.38 0.49

TiO2% 0.04 0.06 0.05

Na2O% 0.26 0.21 0.24 DTR wt% 35.12 32.83 34.25 Recovered Mt* 13.51 7.66 21.17 DTC Fe% 69.94 68.94 69.58

DTC SiO2% 2.20 3.29 2.59

DTC Al2O3% 0.17 0.23 0.19 DTC LOI% -3.17 -3.08 -3.13 DTC P% 0.011 0.014 0.012 DTC S% 0.029 0.043 0.034 DTC CaO% 0.25 0.30 0.27 DTC MgO% 0.19 0.30 0.23 DTC Mn% 0.17 0.11 0.15

DTC K2O% 0.01 0.01 0.01

DTC Na2O% 0.02 0.02 0.02

DTC TiO2% 0.02 0.03 0.02

in situ tonnage multiplied by DTR wt%. For personal use only use personal For

8 Mr Scott Duncombe 127641014-007-L-Rev0 Eyre Iron Pty Ltd 11 January 2013

The Competent Person responsible for the Mineral Resource estimation and classification is Mr Alan Miller who is a full-time employee of Golder Associates Pty Ltd and a Member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Alan Miller has sufficient relevant experience to the style of mineralisation and type of deposit under consideration and to the activity for which he is undertaking to qualify as a Competent Person as defined in the JORC Code (2004 Edition). Yours faithfully

GOLDER ASSOCIATES PTY LTD

Alan Miller Associate - Principal Resource Geologist

ADM/JNF/hsl

m:\jobs412\mining\127641014_eyre_iron_fusion_dfs\correspondenceout\127641014-007-l-rev0- combined mineral resources.docx For personal use only use personal For

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