FEASIBILITY STUDY COMPLETED CONFIRMING ROBUST...

FEASIBILITY STUDY COMPLETED CONFIRMING ROBUST CASH
MARGINS.

Feasibility Study completed on a 2 million tonne per annum iron sand mine for the Jogjakarta Iron Project.

? Strong projected cash margins and low capital cost per annual tonne of production
? US$24.20 per tonne operating cost (FOB) for 55% Fe concentrate
? US$158.3 million capital cost
? Project IRR 44.5% (before tax)
? 163.5 million tonnes Probable Mining Reserve (surface sands) @ 13.7% Fe
? Final Project approvals well advanced
? Mining operations targeted to commence within 18 months.

At spot iron ore pricing and foreign exchange rates, the Project has an IRR of 83.1% (before tax).