the future, page-47

Hi all,

Not too bad even after farm-in, HAW has an exploration target for Mt Bevan between 1 and 1.5 billion tonnes grading between 30% and 40% (magnetite). They indicated there also exists significant potential shallow DID and DSO hematite that could provide early stage mining.

Points to note:
- HAW mentioned in the event a significant magnetite deposit is identified, a number of Chinese steel mills have indicated to the Company they would consider a proposal to enter into off-take agreements, with the view to beneficiation/upgrade the magnetite content of the ore before transporting the product to existing magnetite separation and pellet plants in overseas markets, thereby heavily reducing the capital costs of development.

- HAW indicated the RC drilling is aimed at defining the thickness on the magnetite (grading 30-40% Fe) as well as test shallow DSO hematite (+60% Fe) and DID iron mineralisation.

- Further drilling will help defining at best the location of orebody, however if you looked at the BIF at N1 and N2 areas and further south (re diagrams below), the target seems indicated Banded-iron formations (BIFs) with potential grading between 55-60% Fe and +60% Fe.

- So far phase 1 drilling program reported thickness of the magnetite in shallow dipping attitude similar to Jupiter at their Mt Ida magnetite project.

- Mt Bevan project has all key economic considerations, meaning its close proximity to infrastucture including highways, a major rail line at Menzies and available deep-water port facilities at Esperance.

- Nearby projects are Jupiters's Mt Mason hematite (5Mt @ 60% Fe) and Mt Ida magnetite deposits (1-1.3Bt @30-40% Fe), and Cashmere Iron hematite/magnetite deposit (Jorc +1Bt).

- A good diversified company with potential Gold projects (Deep South project and Yundamindera projects).

- Other plus I see is Mt Bevan Program is fully funded to pre-feasibility stage.

- Recall that magnetite ore could be beneficiated to concentrate product grading +57% Fe:
As a comparison with SDL's itabirite Fe grading: 2.3bt @ 38% Fe (March 2011).

Example of:
- SDL itabirite concentrate product (68% Fe)
- GBG magnetite concentrate (+65% Fe)

MT Bevan - Drill section showing DSO Hematite and underlying magnetite


MT Bevan - BIFs and main target areas



"The Mt Bevan Iron Ore Project is considered to hold excellent potential for the definition of substantial DSO hematite and magnetite iron resources that are located close to existing road, rail and port facilities"

Cheers,