ann pending, page-11

IOH Reoport - Pattersons

Phil's Creek - early cash flow, production mid-2010

The resource at this project is a direct-ship-ore (DSO) quality and comprises an Indicated mineral resource of 9.2 Mt
at 58.0% Fe, 5.7% SiO2, 3.1% Al2O3, 0.105% P and 7.5% LOI at 55% Fe lower cut-off grade.

Iron Valley - the company maker

Resources at Iron Valley were recently upgraded by 50% with total inventory now standing at 132mt. There is a high
grade component within this of 85.9mt @ 60.7% Fe which will support a 5-10mtpa mine development according to
IOH's preliminary scoping studies.
Product quality remains a key issue for IOH with the phosphorus grade likely to attract a discount of around $4/t at grades of 0.2%.
Iron Valley could show modest growth in tonnage down dip, however we note that any strike extensions are bounded
by the company's current tenement position, with FMG holding tenements potentially along strike.