Highlights for the 2008 Financial Year• Successful completion of...

Highlights for the 2008 Financial Year
• Successful completion of sale agreement regarding the sale of the Company’s namesake magnetite iron ore
project (the “Project”) to MCC Mining (Western Australia) Limited (“MCC Mining” - a wholly owned
subsidiary of China Metallurgical Group Corporation) for AUD$400 million (with AUD$80million of this
being contingent on licences being obtained by the buyer within 2 years of the date of the sale agreement). A
AUD$5million cash deposit was received in June 2008. An additional cash payment of AUD$235million was
received on 6 August 2008 and a further AUD$80million cash payment was received on 15 September 2008;
• As a precursor to the sale and during the 2008 Financial Year, the Company completed substantial value adding
activities at the Project including;
• 113 reverse circulation (“RC”) drill holes for a total advance of 37,619m;
• 26 diamond holes for a total advance of 5,794m;
• 7,443 Davis Tube Recovery tests on composite RC chip samples;
• An updated mineral resource estimate of 1.56 billion tonnes grading at 31.2% Fe1;
• Preliminary mining, engineering and infrastructure studies;
• Metallurgical test work program commenced on diamond core; and
• Flora and fauna baseline environmental surveys, hydrogeological and geotechnical studies
commenced.
• The Company has retained a strategic position in the Pilbara region through its Cape Lambert South project
(“Cape Lambert South”). This project comprises an identified 3km long, untested, magnetic anomaly that
represents the southern extension of the Project sold to MCC Mining. Drilling is scheduled to commence in
October 2008.

Conversions and Issuances of Options
Subsequent to the end of the financial year, the following options have been issued or converted into ordinary fully paid
shares in the Company:
On 11 July 2008, the Company issued 823,770 ordinary fully paid shares pursuant to the exercise of options for cash
consideration of $228,185.
On 16 July 2008, the Company issued 56,075,143 ordinary fully paid shares pursuant to the exercise of options for cash
consideration of $15,532,815.
On 25 July 2008, the Company issued 1,437,000 ordinary fully paid shares pursuant to the exercise of options for cash
consideration of $458,049.
On 4 August 2008, the Company issued 8,350,000 options exercisable at $0.50 per option, expiring on 30 June 2010.
Based on a grant date share price of $0.62, expected volatility of 50%, an option life of 1.904 years, no dividend yield
and a risk free interest rate of 7.5%, the total value of these options is $2,107,540.
On 8 August 2008, the Company issued 5,494,000 ordinary fully paid shares pursuant to the exercise of options for cash
consideration of $1,571,838.
On 29 August 2008, the Company issued 49,180,000 ordinary fully paid shares pursuant to the exercise of options for
cash consideration of $16,072,860.
On 12 September 2008, the Company issued 3,751,950 ordinary fully paid shares pursuant to the exercise of options for
cash consideration of $1,039,290.

Details of unissued shares or interests under option are:
Issuing
Entity
Number of Shares Under Option Class of
Shares
Exercise Price of
Option
Expiry Date of N-Q Options

CFE 50,000,000 ORD $0.327 31 October 2009
CFE 28,000,000 ORD $0.377 31 October 2010
CFE 500,000 ORD $0.427 22 October 2008
CFE 3,300,000 ORD $1.400 30 June 2009


8 Number and +class of all
+securities quoted on ASX
(including the securities in clause 2
if applicable)

440,054,092
Fully Paid Ordinary
Shares

30,136,134
Options exercisable at
$0.277 each on or
before 31 October 2008