patersons securities buy rating ($1.22 value)

COASTAL IRON ORE

Investment Highlights

· WDR is a Northern Territory focussed explorer building a large iron ore resource at its Roper Bar JV project adjacent to the Gulf of Carpentaria. This project will initially underpin a direct ship ore operation to be followed by a large scale (~15mtpa) beneficiated ore project. The Roper Bar project is a company making project and we are initiating coverage with a BUY rating ($1.22/share valuation).

· Upcoming Catalysts:

o Resource Growth at Roper Bar. We expect 2 additional resource updates prior to the end of CY2009.

o Development and financing progress. Roper Bar stage 1 and 2 financing ($160m equity).

· Roper Bar Iron Ore JV Highlights:

o Large scale. The Roper Bar JV potentially contains 750+ of easily beneficiable (~40% Fe) material in addition to 60mt of higher grade material which will facilitate a direct shipping operation.

o Upgradeable. The Sherwin Ironstone Member is low in Phosphorus and has lithological characteristics meaning that it can be upgraded relatively easy.

o Proximity to coast. Roper Bar is circa 30km from the coast which will result in a relatively low capital cost for export infrastructure.

o Ease of Mining. The SIM in the area of interest to WDR is a relatively continuous, gently folded seam of iron ore mineralisation. Mining will be limited by strip ratio.



Disclosure: Patersons Securities Limited acted as Lead Manager and underwriter to a renounceable rights issue of approximately 20.8m ordinary fully paid shares at an issue price of $0.40/share to raise $8.33m in November 2009. It received a fee for this service.