Discussions with China Korea and Middle East, page-19

Darren I know who I am in the morning, If you bother reading the Company announcment, you might learn something

Considerable publicity has been generated and has put the Oakajee project back on the
map. One of the clear outcomes of the interest generated has been clarification by China
in particular of its interest in magnetite as reported in The West Australian on 15 April
2014. Chinese officials indicated to the Premier that China wants magnetite concentrate
production to increase from 8-9 million to 50 million tonnes per annum for use in more
sophisticated and higher-value steelmaking which consumes less energy and causes less
pollution. Based on Geraldton Iron Ore Alliance figures the Midwest has around 21 billion
tonnes of JORC compliant iron ore assets which provide a significant asset for future
exploitation as a source for Chinese steel mills.

Investment interests in Padbury have emanated from China, the Middle East and Korea.
It is proposed to progress those discussions in China and Korea by way of meetings to
be undertaken later this month / early July.

The level of interest of the Korean EPCs remains strong and Padbury will continue to
work on its proposal with them to bring Oakajee to fruition. Chinese interest has been
expressed through a company originally involved in the creation of the intellectual
property (IP) which Padbury holds for Oakajee and through an existing Midwest investor.
The Middle East interest is from an investor looking for long term returns and its key
interest in infrastructure projects such as port and rail.