if u missed the stellar announcement

TERRITORY IRON START MINING IN MAY - PROJECT UPDATE

Iron ore company Territory Iron Limited (ASX:TFE) today announced the Company is on
track to commence mining in May at the Frances Creek project in the Northern Territory.

The development timeline is now set with railing of iron ore to the Port of Darwin in July and
the first shipment planned for the third quarter this year.

The 100% owned 1.5 mtpa Frances Creek project is located north of the regional town of
Pine Creek on the Stuart Highway, 190 km south of Darwin with the existing Alice Springs to
Darwin rail line running within 15 kms of the project.

"Territory Iron has the significant benefit of having rail and port infrastructure in place
mitigating project risk and enabling the Company to simply focus on digging and delivering,"
Chairman Michael Kiernan said.

"With all site infrastructure virtually complete and capital costs set at $15.1 million, the next
six months will see Territory Iron achieve the mining producer status for the benefit of all
shareholders. The development and funding activities are all well advanced positioning the
Company to shortly enter the ranks of an iron ore exporter to capitalise on the strong market
in China."

"From this base our intention is to aggressively explore other iron ore deposits on our project
leases targeting both a doubling of production and reserves within twelve months of shipping
our first ore to China" Kiernan added.

Territory Iron is pleased to provide shareholders with an update on the development
progress including:

Exploration
An exploration program of 25,000 metres of RC Drilling has been committed for the 2007
calendar year. It is the Company's intention to significantly boost this drilling program to
increase mine life beyond the current five years and target annual production increase to 3.0
mtpa.

Mining
Following a cost benefit analysis of contractor versus owner mining, Territory Iron will
operate Frances Creek as an owner-miner to ensure a cost effective operation while
maximising ongoing quality control. The Company has entered into a fully maintained
equipment supply agreement with HSE Rental, a WA based mining fleet rental specialist.
The agreement is four years with an annual cost of approximately A$7.5 million.

The Company has completed the recruitment of most senior management and supervisory
staff. Plant operators will be drawn from Darwin, Katherine and locally.



Logistics
Territory Iron has contracted with Freight Link to provide rolling stock and rail transport into
the Port of Darwin. The Darwin Port Corporation has committed $24 million for the provision
of bulk material handling facilities with commissioning of the ship loader expected late May.
Shipments will be undertaken in Panamax vessels with 70,000 tonne capacity and as Darwin
is Australia's closest port to Asian markets freight rates will be more than competitive.

Marketing
Marketing will be undertaken by the Hong Kong based Noble Group Limited (SGX: NOBL)
who are market leaders in global supply chain management.

Noble plays a key role as intermediary in the supply chain of iron ore into China from India,
Australia and Brazil. They currently trade approximately 20 million tonnes annually into
China. Noble is an ideal trading partner for Territory Iron's entry into the Chinese market with
its 61% Fe product.

Territory Iron has also entered into a life of mine marketing agreement with Noble and
proposes to enter into a life of mine supply agreement with Noble on a FOB basis. Noble's
logistics division operates one of the largest technical ship management companies in the
world.

Approvals
Native Title
In March 2007, Territory Iron reached agreement with the traditional owners of the area
covering the Company's Frances Creek operations. The Northern Land Council assisted
with the structure of the agreement whereby the traditional owners will receive a royalty and
assistance with training and mentoring for employment at the operations.

Environmental
The Public Environmental Review Report has been lodged and environmental approval
granted subject to normal conditions. Mineral Leases
Mining Leases over the project area are expected to be granted within the next two weeks. Mining Management Plan
The Mine Management Plan is expected to be approved in April 2007 ahead of the mine
start up in May.

Funding
As at the end of February, Territory Iron had $16.9 million in cash.

In February 2007, Crawley Resources Limited (Hong Kong base group Noble Group Limited
70% and local mining identity Michael Kiernan 30%) agreed to take a placement of 60 million
shares at 50c in two tranches, the first of which was completed in mid February.

Subject to shareholder approval, Crawley Resources Limited will invest the balance (a
further $20 million) in Territory Iron by way of the second tranche, Crawley Resources would
then own 30.8% of Territory Iron.

The Company also has credit approval for a $17 million facility from Societe Generale CIB
Australia which is currently being documented.