AUSTRALIAN SECURITIES EXCHANGE RELEASE FOR IMMEDIATE RELEASE

General Manager Thursday 3rd May 2012 The Company Announcements Office Australian Securities Exchange Electronic Lodgement System

Dear Sir/Madam

CENTREX JV COMPLETES S.A. IRON MINE AND PORT SCOPING STUDY AND IMMEDIATELY COMMENCES A A$45 MILLION DEFINITIVE FEASIBILTY STUDY

HIGHLIGHTS • Scoping Study completed for Fusion Magnetite Iron Project (“Fusion”) and proposed new bulk commodities port on South ’s • A A$45million Definitive Feasibility Study underway for Fusion with completion expected in early 2013. The DFS will assume production of 5Mtpa - 10Mtpa • Large-scale 108,000m drill program ongoing for infill drilling and to expand resource base across Fusion • Scoping Study work indicates that on assumed production of 5Mtpa to 10 Mtpa exporting out of Port Spencer, Fusion will have estimated FOB operating costs including royalties of between A$71 and A$65 a tonne and require estimated capital investment including port facilities of between A$1.7b and A$2.6b. These cost estimates have accuracy tolerances of +/- 40% and 50%* • High-grade iron concentrate product able to be produced at relatively coarse P80 75µm grind size • Favorable logistics and infrastructure location

* At this stage Centrex has not yet estimated an indicated resource and progressed the Modifying Factors (as defined on page 8) sufficiently. Accordingly the 5 to 10 Mtpa assumed mine and plant capability, operating costs and capital investment indicated by the scoping study should not be used asonly use personal For a basis for investment decisions about shares in the company.

CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

SUMMARY

Centrex Metals Limited (“Centrex”) announces the completion of a Scoping Study for the Fusion Magnetite Iron Project (“Fusion”) and associated nearby Port Spencer proposal on ’s Eyre Peninsula.

Centrex holds a 40% interest in Fusion and a 50% interest in Port Spencer under two joint ventures, both with Wuhan Iron and Steel Co Ltd (WISCO).

The Scoping Study was compiled by Eyre Iron Pty Ltd (“Eyre Iron”), the management company for the Eyre Peninsula Joint Venture (“EPJV”) with the intention of assisting the EPJV in planning the next stages of exploration and evaluation of Fusion. By its nature, the scoping study is conceptual and is based on preliminary data. The results from the scoping study do not represent production targets that would be required to generate confirmed economics of the project. The results are simply conceptual models based around Inferred Resources and Exploration Targets.

The results of the scoping study have reassured Centrex and the EPJV that the Fusion and Port Spencer projects are prospective and based on those conceptual results, the EPJV has now commenced a Definitive Feasibility study for Fusion with an aim to further decreasing risk and adding value to commercial options.

SCOPING STUDY OVERVIEW

Fusion is located approximately 35km north of the city of on 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 40km NE via slurry pipeline to Port Spencer for export.

The Scoping Study established conceptual designs for mining and processing operations over Fusion’s deposits of Koppio, Brennand and Kapperna (roughly 10km total strike length) with a further mine life extension option over Fusion’s Iron Mount deposit.

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CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Figure: Location map showing high-resolution aero-magnetic image of Fusion.

Mine Design

Coffey Mining was engaged by Eyre Iron to develop conceptual mine designs for the Koppio, Brennand, Kapperna and Iron Mount deposits and to complete a subsequent mining scoping level study for Fusion including life of mine capital and operating cost estimates.

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CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Figure: Potential processing plant locations and conceptual final pit limits for Koppio, Brennand and Kapperna deposits.

Fusion Processing and Logistics

WorleyParsons was engaged by Eyre Iron to produce a scoping level study for a magnetite concentrate operation including associated infrastructure to transport the product to Port Spencer for dewatering and storage prior to shipping.

Composite diamond core samples were prepared for each deposit, and preliminary comminution and

beneficiation test work completed. The result of the metallurgical studies was the conclusion that a For personal use only use personal For high-grade magnetite concentrate product could be produced using conventional grinding and magnetic separation techniques at a relatively coarse grind size of P80 75µm.

CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Diamond Core Composite Wet LIMS Results At P80 75µm

Mass Recovery Concentrate Fe Concentrate SiO2 Deposit (%) (%) (%)

Koppio 27.4 67.7 3.8

Brennand 34.4 64.8 7.1

Kapperna 45.3 68.4 3.6

Average 35.7 67.0 4.8

From the test work results, WorleyParsons designed conceptual process flow sheets and preliminary engineering designs for the processing facility. Scoping level cost estimates were completed for a processing plant plus a 40km slurry pipeline, desalination plant, port dewatering circuits and storage facilities.

Figure: 3D visualisation of conceptual Fusion mine based processing facilities.

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CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Port Spencer

Figure: Location map of potential pipeline transport corridors from Fusion to Port Spencer.

Utilities

Make-up processing water for Fusion would be provided through a desalination plant located at Port Spencer. The Scoping Study estimated that 0.81m³ of water would be needed for each tonne of magnetite concentrate.

Osmoflo will be providing design support for the desalination facility in the next phase of studies and approvals.

ElectraNet has been engaged, and is currently working on, connections from both Fusion and Port Spencer to the proposed Eyre Peninsula network upgrade, currently the subject of a regulatory investment test for transmission (also by ElectraNet).

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CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Port Spencer

As previously announced, Centrex has entered into a 50/50 joint venture with WISCO for the development of a private multi-user deep-water Cape-capable port facility at Port Spencer, just 40km northeast of Fusion. A joint venture company, Port Spencer Pty Ltd, will manage the development of the facility going forward. The Port Spencer project includes construction of a 515m jetty and a berth in approximately 20m of water, a ship loader with 5000tph capacity, site earthworks, road works and power supply. Users of the port, including Eyre Iron, would provide their own receipt, dewatering and storage infrastructure onsite.

Port Spencer infrastructure included in the Scoping Study has a capacity of 20Mtpa which allows for spare capacity to be allocated to additional customers. The port financial estimates included in the Scoping Study did not incorporate revenue generated by potential additional customers. It is expected that other customers will utilise the port in the future, including Centrex’s Bungalow Joint Venture with Baotou Iron and Steel Group Co. Ltd, Centrex’s own Wilgerup hematite project as well as potential grain exports. Any increase in export volumes through the port beyond Fusion will further enhance the investment returns.

The capital and operating costs for Port Spencer were also developed on similar assumptions to those used in the mining study. Iron ore related infrastructure only was considered in the estimates for the study. Capital estimates were prepared for Port Spencer by Parsons Brinckerhoff. Centrex worked in conjunction with Patrick to prepare conceptual port operating costs estimates.

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Figure: 3D visualisation of proposed Port Spencer deep-water port facility.

CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

SCOPING STUDY RESULTS

In order to decide whether to continue with a DFS, the scoping study included estimates of the operating and capital costs for magnetite mines and processing plants with assumed production of between 5 and 10Mtpa and for the associated port costs. The volume targets used in the scoping study were based on Inferred Resources and Exploration Targets. Centrex has not yet estimated an indicated resource taking in to account mining, metallurgical, economic, marketing, legal, environmental, social and governmental factors ( the Modifying Factors) sufficiently and the full results of the scoping study may not provide sufficient certainty for Centrex to be able to release to the market at this stage. The assumed 5-10Mtpa mine and plant capability, operating costs and capital investment indicated by the scoping study should not be used as a basis for investment decisions about shares in the company. Centrex and the EPJV will need to upgrade the Mineral resource quantities and status before it can provide production targets and financial information that can be relied on with any certainty. Nonetheless, these numbers are important in informing the market as to why the decision to proceed to a DFS has been made.

Broadly, the Scoping Study work indicates that on assumed production of 5 to 10 Mtpa exporting out of Port Spencer, Fusion will have estimated Free-On-Board (FOB) operating costs including royalties of between A$71 and A$65 a tonne and require estimated capital investment, including port facilities of between A$1.7b and A$2.6b. These cost estimates have accuracy tolerances of +/- 40% and 50%.

FUSION RESOURCE DEFINITION

The EPJV going forward will need to undertake further work on developing a resource base for the Fusion Project. Eyre Iron currently has six drill rigs operating at Fusion undertaking a 108,000m program for 2012. This program includes infill drilling across Koppio, Brennand and Kapperna with the aim to establish Probable Ore Reserves as well as further exploration drilling to expand the Fusion resource base.

Centrex has previously announced total Inferred Mineral Resources for the Fusion project including the deposits of Koppio, Brennand, Kapperna and Iron Mount of 454Mt(1)(2). Additionally, 200Mt to 400Mt(2) of Exploration Targets over the Koppio, Brennand and Kapperna deposits are still to be assessed. The Exploration Targets quantities and grades presented are conceptual in nature, as there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if

further exploration will result in the determination of additional mineral resources other than those For personal use only use personal For stated. Updated resource estimates are expected for the deposits throughout 2012.

CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Figure: Oblique view to the north of Koppio, Brennand and Kapperna deposits showing completed drill hole locations and Exploration Target areas to be further assessed.

Exploration drilling outside of these deposits is also ongoing with positive results received already at Bald Hill, Charlton Gully and the newly defined Tom’s prospect. Significantly Tom’s represents an immediate southern strike extension to the current defined Koppio deposit. Combined Exploration Targets over Bald Hill and Charlton Gully were previously announced by Centrex as being between 501Mt and 615Mt(4). The Exploration Targets quantities and grades presented are conceptual in nature, as there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of additional mineral resources other than those stated. The exploration potential of Tom’s has yet to be defined with announcements expected by mid-2012.

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CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

Fusion Deposit Summary Mineral Resources & Exploration Targets

Head Grade Concentrate Grade Tonnage DTR Inferred Resource (Mt) Fe SiO2 (%) Fe SiO2 (%) (%) (%) (%)

Iron Mount(1) 135 25.5 36.7 29.3 62.1 9.1

Kapperna(2) 65.7 28.3 44.6 29.4 70.2 1.92

Brennand(2) 122.4 24.1 51.0 21.3 67.3 4.97

Koppio(2) 131.3 17.2 53.5 14.3 67.0 5.43

Total 454.4 23.1 46.5 22.8 66.1 5.9

Exploration Target Extension for Koppio, Brennand & Kapperna(2) All Deposits Minimum 200 20 17 Maximum 400 24 22

*DTR (percent weight recovery) and concentrate results were from Davis Tube test work performed at P80 passing -75µm *Mineral Resources and Exploration Target estimates were carried out following the guidelines of the JORC Code (2004) by Coffey Mining Ltd(2) and Golder Associates(1) *The Exploration Targets quantities and grades presented are conceptual in nature, as there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of additional Minerals Resources other than those stated.

Asonly use personal For previously noted the resource estimates include a significant proportion of internal dilution and further drilling and improved delineation of the magnetite rich horizons is expected to result in improved grades and recoveries particularly at Koppio.

CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

FORWARD WORK PROGRAM

Eyre Iron is already well underway with its Definitive Feasibility Study (“DFS”) for Fusion which it aims to complete in early 2013 at a cost of approximately A$45million. Baseline and approval studies have already commenced. WorleyParsons is currently completing detailed metallurgical test work studies to feed into the DFS process and infrastructure design. Golder Associates will undertake resource modeling and mining design for the study.

With the signing of the joint venture between Centrex and WISCO for Port Spencer, Port Spencer Pty Ltd will continue development and approvals studies for the port in line with Fusion’s development.

For further information please contact:

Ben Hammond or Jim White Chief Operating Officer Managing Director Eyre Iron Pty Ltd Centrex Metals Limited Ph (08) 8221 6177 Ph (08) 8100 2200

Competent Persons’ Statements

(1) The information in this report relating to Mineral Resources 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 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.

(2) The information in this report relating to Mineral Resources and current Exploration Targets 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 consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

(3only use personal For )The Exploration Targets quantities and grades presented are conceptual in nature, as there has been insufficient exploration to define an overall Mineral Resource and it is uncertain if further exploration will result in the determination of additional Minerals Resources other than those stated.

CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752

(4)The information in this report relating to Exploration Targets is based on and accurately reflects information compiled by Mr Alastair Watts of Centrex Metals Limited who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Watts 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 Watts consents to the inclusion in the report of the matters based on his information in the form and context in which it appear.

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CENTREX METALS LIMITED | LEVEL 11, 147 PIRIE STREET, ADELAIDE SA 5000 | PH: +61 8 8100 2200 ABN 97 096 298 752