Ann: Quarterly Activities Report , page-2

Corporate & Finance
 TCW Interim Financing Facility restructured.
 C$31.5 million Institutional Placement bookbuild completed October 2010:
o 42 million shares at C$0.75/share with a 1 for 3 (14 million), 3 year attaching
warrant/option exercisable at C$1.00.
o Shareholder approval for the Institutional Placement will be sought at a meeting of
shareholders scheduled for 26 October 2009.
 Share Purchase Plan arrangements being finalized.

Spinifex Ridge Molybdenum Project
 A$120 million worth of major long‐lead items of equipment delivered to Perth.
 Feasibility engineering and detailed design work on the 10Mt/a project commenced.

Spinifex Ridge Iron Ore Project
 Pre‐Feasibility Study completed:
o Indicated and Inferred JORC Resource:
 6.1 million tonnes Indicated Resource, 59% Fe.
o 1Mt/a production rate:
 3 to 1 strip ratio.
 60:40 fines:lump.
o A$9.4 million capital cost, plus port access pre‐payment.
o A$45.7/t operating cost.
 Mining proposal submitted, approval due by December 2009.
 Development timetable:
o Construction Q1, 2010.
o Pre‐strip – Q2, 2010.
o First Ore on Ship – Q3, 2010.
 Port access secured at the new Utah Point development:
o 0.8Mt/a from 1 July 2010 through February 2012.
o Ship loading prepayment due October 2009.

Markets
 Molybdenum markets showed signs of recovery during the quarter climbing from US$10.30/lb to
US$18.00/lb before settling back around US$13.40/lb at Quarter end (Ryan’s Notes)
 Iron ore market spot market continues to perform strongly closing at US$85.00/t CIF China at
Quarter end (Metal Bulletin)