Ann: Quarterly Activities and Cashflow Report, page-61

1. HIGHLIGHTS • Brockman signed a Native Title Mining Agreement with the Nyiyaparli people covering all tenements comprising the Ophthalmia Iron Ore Project. The signing of this agreement paves the way for the granting of mining leases over the project area once an infrastructure solution is established to facilitate development of the project. • Following the victory in the Supreme Court in September 2014 (in which the Supreme Court ruled that Brockman’s Access Proposal was valid and complied with the requirements of section 8 of the Access Code), Brockman has been awarded costs which will be deposited into our legal advisers trust account awaiting the outcome of the TPI appeal. • Brockman is carrying out cost optimisations of projected capital and operating costs for the Marillana Iron Ore Project in the current operating environment in preparation for the securing of a rail infrastructure solution for the project. • In line with current market conditions, Company-wide cost reductions have been implemented with reduced overheads to be realised in the coming quarter.