ASX Announcement February 2013

FUSION RESOURCE UPDATE

General Manager 18th February 2013

The Company Announcements Office Australian Securities Exchange Electronic Lodgement System

Dear Sir/Madam

FUSION MINERAL RESOURCES REACH 680Mt

Highlights • Total Fusion Mineral Resources increase to 680Mt • Indicated/Measured Resources now at 312Mt • Overall Eyre Iron joint venture resources reach 894Mt

Summary Centrex Metals Limited (“Centrex”) announces an increase in Mineral Resources for the Fusion Magnetite Project (“Fusion”) located on South ’s . The updated estimate brings the total Mineral Resource for the project to 680Mt. This includes Indicated and Measured Resources of 312Mt.The update comes from additional drilling completed late in 2012 at the Brennand deposit within Fusion.

Fusion forms part of the Eyre Iron Joint Venture with Chinese steel major Wuhan Iron & Steel (Group) Co. (“WISCO”) in which Centrex holds a 40% interest. The joint venture covers additional magnetite iron ore projects at Carrowonly use personal For and Greenpatch along with numerous other iron ore exploration prospects. With the Fusion update total Mineral Resources for the joint venture have now reached 894Mt. ASX Announcement — February 2013

WISCO are funding the first A$ 75 million of development for the projects. In addition WISCO will pay four tranches of A$ 27 million directly to Centrex if the joint venture reaches resource milestones of 1.25Bt, 1.5Bt, 1.75Bt and 2Bt, for a total potential value of A$ 108 million.

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 300.9 24.9 50.2 21.3 68.5 3.7

Inferred 368.4 25.2 45.4 23.9 65.4 6.3

Combined Mineral Resources

Total 680.0 25.1 47.7 22.7 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. *Due to the effects of rounding, overall totals may not be able to be reproduced from individual classification totals.

Kapperna Brennand KOPPIO

Figure: 3D oblique view of KBK deposits.

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 — February 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 northeast via a 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 the adjacent deposits of Koppio, Brennand and Kapperna (“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:only use personal For Location map showing high-resolution aero-magnetic image of Fusion.

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 — February 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 155.8 24.2 50.8 18.8 67.8 4.5

Inferred 110.4 24.6 50.2 18.0 67.2 4.9

Combined Mineral Resources

Total 266.2 24.4 50.6 18.5 67.6 4.7

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

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 — February 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 — February 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:

Ben Hammond Steve Brown Acting CEO Chief Operating Officer Centrexonly use personal For Metals Limited Eyre Iron Pty Ltd Ph (08) 8100 2200 Ph (08) 8221 6177

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 — February 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

15 February 2013 Reference No. 127641014-009-L-Rev0

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

MINERAL RESOURCE STATEMENT: BRENNAND MAGNETITE DEPOSIT

Dear Scott

Golder Associates Pty Ltd (Golder) has completed a resource model update of the Brennand magnetite deposit, which is part of the Fusion Magnetite Project located on the Eyre Peninsula in South Australia. The Mineral Resource update uses all available assay data as of 22 January 2013. The resource estimate was classified in accordance with “the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2004 Edition)”.

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

The in situ Mineral Resource is constrained to the mineralisation domain boundaries shown in Figure 1. Estimates representing extrapolations greater than 160 m from drilling are not included in this resource statement.

Geology The Fusion Magnetite Project is structurally complex with deposits located adjacent to the Kalinjala Mylonite Zone (KMS). Faults roughly orientated north-west to south-east disrupt the continuity of prospective horizons.

High grade metamorphism (amphibolite to granulite facies) has occurred throughout the project region. The recognised lithologies include amphibolite, granite, gneiss, schist, calc-silicate and banded iron formation (BIF). Mineral assemblages vary for most of these lithologies. Establishing the continuity of the iron rich horizons is challenging given the structural setting. The target horizons are generally steeply dipping (~80° to 90°). The target horizon dip angle decreases from 80 to horizontal at the southern extent of the deposit.

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 overlying 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 127641014-009-L-Rev0 Eyre Iron Pty Ltd 15 February 2013

Figure 1: Plan View of Mineralisation Domains and Drill Holes for of the Brennand Magnetite Deposit

Assumptions and Methodology This Mineral Resource estimate is 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 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 of all assayed samples. 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 For personal use only use personal For parameters defined from the geostatistical analysis. DTR is the wt% (mass recovery) produced from Davis Tube testwork 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

2 Mr Scott Duncombe 127641014-009-L-Rev0 Eyre Iron Pty Ltd 15 February 2013

accumulation (DTR × DTC assay) and subsequently back calculating the DTC assay estimates by dividing by relevant estimated DTR values.

In situ density was estimated using the OK interpolation method within each stratigraphic unit, based on immersion and downhole geophysical determinations from 97 diamond and reverse circulation drill holes. Variograms from Fe head grades were used as a Fe head grades showed a close relationship with density. 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.

This resource has been defined using geological boundaries. All estimated and reported concentrate grades were weighted by DTR.

The Mineral Resource is based on the Ordinary Kriging interpolated block model Bren_2013_OK_final.bmf and is reported below the topography for all the fresh material. Table 1 shows the Mineral Resource for Brennand reported at 0.001 wt%, DTR cut-off grade. Table 1: Brennand In Situ Mineral Resource - Fresh Rock at a 0.001 wt% DTR Cut-Off Grade Class Indicated Inferred Total Mt 155.8 110.4 266.2 Fe% 24.19 24.60 24.36

SiO2% 50.77 50.24 50.55

Al2O3% 4.14 3.69 3.95 P% 0.208 0.218 0.212 S% 0.159 0.212 0.181 LOI% -0.23 -0.23 -0.23 CaO% 3.76 4.17 3.93

K2O% 0.66 0.64 0.65 MgO 4.14 4.05 4.10 Mn% 0.28 0.34 0.31

TiO2% 0.28 0.25 0.27

Na2O% 0.64 0.57 0.61 DTR wt% 18.77 18.04 18.47 Recovered Mt* 29.24 19.92 49.17 DTC Fe% 67.80 67.21 67.56

DTC SiO2% 4.49 4.90 4.66

DTC Al2O3% 0.34 0.34 0.34 DTC LOI% -3.05 -2.85 -2.97 DTC P% 0.039 0.044 0.041 DTC S% 0.105 0.213 0.149 DTC CaO% 0.32 0.39 0.35 DTC MgO% 0.27 0.34 0.30

DTC Mn% 0.13 0.14 0.13 For personal use only use personal For

DTC K2O% 0.02 0.02 0.02

DTC TiO2% 0.09 0.10 0.10

DTC Na2O% 0.04 0.03 0.03 *“Recovered” tonnage is the modelled in situ tonnage multiplied by DTC wt%.

3 Mr Scott Duncombe 127641014-009-L-Rev0 Eyre Iron Pty Ltd 15 February 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). Mr Alan Miller consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Yours faithfully

GOLDER ASSOCIATES PTY LTD

Kiran Hudson Alan Miller Geologist Associate - Principal Resource Geologist

KMH/ADM/slj

\\pth1-s-file02\jobs-mining\jobs412\mining\127641014_eyre_iron_fusion_dfs\correspondenceout\127641014-009-l-rev0-resource statement brennand update - copy.docx For personal use only use personal For

4