michael kiernan flags future direction

MEDIA RELEASE 9 May 2007

TERRITORY IRON FLAGS FUTURE DIRECTION

Territory Iron Limited (ASX:TFE) advised today that the company is to be renamed Territory Resources Limited to reflect the Company’s future direction as a diverse
carbon steel commodity supplier.

As part of this change Managing Director Doug Stewart advised he would retire from the Company late July 2007.

Mr Kiernan acknowledged the excellent contribution of Mr Stewart in taking Territory Iron from commencement to production at the Company’s Frances Creek iron ore
project in the Northern Territory. “Doug has led the Company and taken it to where it is today and shareholders are most grateful for his determined efforts. The hardest aspect of building a company is getting a project started and Doug has done that in an
outstanding manner” Mr Kiernan said.

In the interim Territory Iron Chairman Michael Kiernan will assume the role of Executive Chairman and work with Doug Stewart in a national search to locate a new
Managing Director who will play a key role in developing the Company in to a mid tier Australian resource group. The development and new company direction has the
support of Hong Kong based Noble Group who together with Michael Kiernan will become Territory’s major shareholder subject to approval of a second tranche
placement at a shareholder’s meeting called for 30 May 2007.

About Territory Iron

In March 2005, Perth based Territory Iron listed on the ASX to raise capital to explore
and develop iron ore tenements within the Northern Territory.

Following exploration success the Company resolved to develop the Frances Creek tenements haematite iron ore project on mineral tenements located some 200 km
south of Darwin near the township of Pine Creek.

The project is 15 km from the existing Alice Springs to Darwin rail line and is served by sound local and regional roads.

Frances Creek enjoys huge advantages by way of infrastructure – both at a regional level where rail and bulk handling facilities are in place and locally where previous mining has provided haul roads. In addition, the nearby picturesque Pine Creek town is highly suited to housing employees at reasonable costs.

As at February 2007 total resources were 9.73 million tonnes at 60.7% Fe with 4.81 million tonnes in reserves.
The Company’s simple strategy is to develop the Frances Creek iron ore operation, conduct significant exploration to increase the current 5 year mine life to possibly 10 years.

Territory Iron proposes to diversify into a range of carbon steel material commodities via mergers or acquisitions.

Visit: www.territoryiron.com.au