it's all systems go!

There's plenty of rubbish out there running on hope and nothing else capped at $100 million plus so I find it hard to believe that IFE is only capitalised at $49 million when the company is on the verge of bringing into production a highly profitable iron ore mine.

It's all systems go as we can see from the following.

"IronClad Mining Limited

Annual Report 30 June 2010

Chairmans Letter

Dear Members,

It gives me particular pleasure to inform you of the progress your Company has made, in this my first full year as its Chairman.

Any residual sense of gloom and doom lingering on after the Global Financial Crisis (GFC) has been well and truly left behind and is but a blip on the horizon in the rear view mirror.

Last years comments by David Macoboy, the then chairman, proved indeed to be sage and prescient. He spoke of being involved in a commodity that was likely to weather the financial storm. Indeed his prediction that IronClad would emerge stronger, as a result, proved to be perfectly correct.

In December the Company delivered a pre feasibility study on the Wilcherry Hill, high quality, low contaminant magnetite. It showed the project to have an outstanding future with high potential profit margins. Standing in the way remained the vexing questions of the lack of a dedicated port to handle the Companys growth strategy, and a potentially high capital start up due to the need to build a wet processing plant as is the norm with all standard magnetite projects.

What has happened since sets your Company apart from the rest.

Your technical team has continued to deliver new, innovative and flexible solutions, such that hardly a beat has been missed and, despite some small delays outside of their control, the project is on schedule for an early 2011 start up. Indeed, had it not been for the naive intervention by the federal government in May this year (more later), it is likely that delivery would have been in 2010 as canvassed.

The team sought to capitalise on the many exceptional geological, physical and mineralogical properties of the ore at Wilcherry Hill. Was it possible that we could construct a world first - Direct Shipping Ore (DSO) magnetite? And thereby do away with major, up front capital costs?

Together with its joint venture partner, Trafford Resources Ltd, up to 10 geologists, four drilling rigs and a wide range of dedicated and skilled consultants were employed to answer these major questions. I am pleased, and proud, to report that all of the initial findings of this innovative approach have been positive and a low cost, early start up is in the offing. The more capital intensive stages can now be scheduled in from cash flow - a most enviable position.

The technical, logistics and marketing teams re-investigated port options and also have innovative solutions in hand that are highly likely to see our early export target of 2 million tonnes per annum realised without the construction of a major new port whilst maintaining excellent profit margins.

Within the year the Board has taken the opportunity of generally depressed market prices to offer additional shares to members by way of two rights issues - at 65c and 85c. They were both enthusiastically taken up, and I thank you all for those strong shows of support.

Already the signs for the new financial year are both encouraging and exciting. The project is on track, the market for iron ore remains strong, and is tipped to remain so for some time. But perhaps, more importantly, the commitment and enthusiasm of your corporate, technical and marketing teams remains extraordinarily high. The end of the beginning is in sight. The beginning of the end is soon to commence. (with apologies to Winston Churchill !!)

... your Company is clearly, well positioned to make a significant impact on the South Australian and national iron ore industry in the coming year.

As always, I am looking forward to it with immense anticipation.

Ian Finch,
Chairman."

From the IFE Annual Report available at http://www.asx.com.au/asxpdf/20101001/pdf/31svv9tpmdpz00.pdf