Mt Richardson Project

The development of the Mt Richardson Project has been managed by Cliffs Asia Pacific Iron Ore Pty Ltd (“Cliffs”) within the terms of an Option to Purchase agreement finalised in August 2008 that resulted from early exploration success by Iron Mountain in late 2007.

On 13 July 2010, the sale of the Mt Richardson Project to Cliffs was finalised. Settlement occurred with the handover of required documents and mining titles and the receipt of AUD 6,000,000 representing the balance of the consideration. This followed earlier payments from Cliffs of AUD 3,000,000 and AUD 1,000,000 on 1 October 2008 and 2 March 2010 respectively.

Under the terms of the agreement, Cliffs had the right to explore and the option to acquire total ownership of E29/571 subject to agreed milestones and payments. A total of AUD 10,000,000 was payable under the Option to Purchase and has now been received. Iron Mountain retains a royalty of 2% on average/tonne FOB sales value of iron ore product that departs E29/571 as well as a one off payment of AUD 0.50 per dry metric tonne on tonnages in excess of independently evaluated Indicated or Measured resources of 10,000,000 tonnes.

Portman Iron Ore Ltd (“Portman”) was a 100% subsidiary of Cliffs Asia-Pacific Pty Ltd following compulsory acquisition that followed its takeover offer on 3 November 2008. Portman was subsequently delisted from the ASX on 10 December 2008 but continued as the operator of the Mt Richardson Project under the original terms of the Option to Purchase agreement with Iron Mountain. On 27 January 2009 Cliffs Asia-Pacific Pty Ltd changed its name to Cliff Natural Resources Pty Ltd with Portman subsequently changing its name to Cliffs Asia Pacific Iron Ore Pty Ltd on 10 March 2009.

Future updates on the drilling and development progress of Mt Richardson will be announced as provided by Cliffs.