Territory Iron finalises agreement with NLC and Traditional...

Territory Iron finalises agreement with NLC and Traditional Owners

Northern Territory iron ore company Territory Iron (ASX:TFE) has struck an agreement with
the traditional owners of the area covering the company’s Frances Creek operations in the
Northern Territory. The Parties have agreed between them in relation to the grant of mining
interests and development of the Frances Creek iron ore project

The iron ore project comprises 13 tenements and is located approximately 28 km north of the regional town of Pine Creek on the Stuart Highway, 190 km south of Darwin.

The Northern Land Council assisted with the structure of the agreement whereby the traditional owners will receive a royalty and Territory Iron will assist with training and mentoring indigenous men and women who may seek employment at the operations.

The agreement relates to the grant of mining interests including mineral leases 24727, 25087, 25088, 25152 and 25396 and development of the Frances Creek mine. (See map).

The tenements cover an area of 430 hectares over a strike length of 13 km and include areas where Territory Iron expects to mine in the next four years and beyond.
Territory Iron Managing Director Doug Stewart said the agreement with the Northern Land Council and the traditional owners was a positive outcome that would benefit both the Frances Creek project and Territorians as a whole.

“This agreement is a key milestone in the granting of mineral leases and allows us to accelerate activity at the project and to move closer to mining. “It is anticipated that mining will commence this May and shipping of iron ore to China will take place in August this year,” he said.

Mr. Stewart said he looked forward to building the company’s relationship with the traditional
owners and other indigenous people in the surrounding region.

About Territory Iron

Perth-based Territory Iron secured the Frances Creek iron ore project in the Northern Territory in
March 2005.

The recently constructed Alice Springs to Darwin Railway passes through Pine Creek and at its
closest point is 15km south west of the project area.
The mine’s reserves recently increased to 4.81 million tonnes, with total resources at Frances Creek
now 9.73 million tonnes at 60.7 % Fe. The company has a memorandum of understanding with two
Chinese steel mills, with one mill to purchase up to 800,000 tonnes and a second to purchase 400,000 tonnes.

Territory Iron also signed an agreement with FreightLink to provide transportation services to carry
iron ore to the port of Darwin.

Plans for camp construction at Pine Creek are also progressing well and the pad for the stockpile
area at the Darwin port (East Arm Wharf) has been completed and construction of Territory Iron’s
conveyors has begun.

“It is anticipated that mining will commence this May and shipping of iron ore to China will take place in August this year”

Cheers!