SHD Area C Bulk Sample Pit

Mine Operating Plan

11 September 2013

Barry Coulter – Executive Chairman

1 Sherwin Iron

Project Highlights Site Infrastructure established Mining ◦ HG ore of 80kt at 59.5% Fe mined from pit stage 1; ◦ Pit Stage 2 Overburden mining commence; ◦ Surface Miner will commence from mid Sept; ◦ 100kt HG will be mined July and August 2013.

Crushing HG ore of 60kt crushed with product of Fines at 60.3% Fe and

Lump at 59.0% Fe; Crushing rate of 3kt/day with day shift only; Crushing capacity of 6kt/day with day and night shifts; Total 70kt HG will be crushed to produce 53kt Fines and 17kt

Lump in July and August .

Haulage 40kt HG Fines hauled to Darwin Port by the end Aug; 22 road-trains with 3,00t/day now; 75kt Fines will be hauled to Darwin Port by 10 Sept 2013.

Project Highlights

First shipment of 70,000 t fines by 20 Sept

2013 (includes ship loading)

Second shipment of 70,000 t fines by 15 Oct

Third shipment of 70,000 t fines by 10

November 2013

Bulk Sample Pit Project – Mine Operating Plan

1. Introduction

2. Operation Chart and Manning

3. Site Infrastructure

4. Grade Control

5. Stockpile Management

6. Mining

7. Crushing

8. Road Train Haulage

9. Shipping Specifications

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Introduction – Location Map

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• Area C Bulk Sample Pit • – 400,000 tonnes Iron ore to be

mined, crushed and transported to Darwin Port

Katherine

Project C

Introduction - Project Characteristics Element Description

Life of project (bulk sample

production).

7 months

Extraction quantities:

Ore ( High Grade DSO)

Waste+ MG + LG

Total

400,000 tonnes.

1,600,000 tonnes .

2,000,000 tonnes

Depth of mine pit 5-23 metres below ground surface

Area of disturbance (including pit,

associated infrastructure and access).

28 hectares

Construction of Haul Road between

Roper Highway to Mine site

Completed

Operations Status Mining, Crushing and Haulage

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2 - Operation Manning SHD

1. Mine Manager (or Project Manager)

2. Technical Staff (Engineers, Geologists and Pit Technician)

3. 10 Staff

Balmoral

1. Site Supervision and Management

2. Mechanics & Services

3. 30 mine operators

4. 22 roadtrains 24/7

5. Total SHD and Balmoral staff 60

6. Indigenous workforce 19

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Area C Bulk Sample Project

Completion of Access Road from Roper Hwy to Site

9 Sherwin Iron

Area C Buck Sample Project Area

Sherwin Iron 10

Pit

ROM, mobile crusher and stockpile Area

3 – Site - Pit Area

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Open Pit

Crusher/Screen

3 – Site Crusher and Stockpiles

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Crushed Ore stockpile

HG Ore ROM Crusher/Screen

3 – Material Management Procedure

Top soil to be used as bund wall protection with 3m bench from the pit crest

Overburden waste to be utilised for construction of ROM pad, road and other earthworks

Low grade material to be stockpiled inside pit area

Medium grade and high grade ore to be stockpiled separately on ROM pad

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4 Grade Control Description RC Drill -- 12.5m spacing over Stage 1 to 4 pits.

Drill from Stage 1 to Stage 4.

Over 300 holes for at least 4000m in total

Drill test both high grade layers and +2m.

0.25m depth sampling including 0.5m either side of ore

Submit in pit ore zone samples to NTEL for assay

Retain samples in ore below pit for future assay

RL Survey of all drill RC collars

Leave a 0.5m waste cover at base of pre strip

Align Trimble/Vecta to same Datum

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6 – Mining Sequence and Activities Procedure 1. Drilling and Blast Overburden

2. Overburden removal

3. Grade control drilling

4. Ore Mining by layers

5. Mining Sequence – Stage 1, 2, 4 and 3

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Stage 1

Stage 2

Stage 4

Stage 3

Min

ed T

opo 2

5 July

2013

Min

ing

Pla

n –

Augu

st 2

013

Surface Miner Mining

7 Crushing In August/Sept 2013

Mining ore of 58.5% Fe from stage 1 and

59.5% from stage 2 to ROM to ROM

Mining some MG

HG (high grade) crushing

◦ Target crusher feed at 59.0% Fe

◦ Expect lump at 58.5% Fe

◦ Expect fines at 60.4% Fe

Increase crushing rate to 6kt/day

.

8 - Haulage

Triple Roadtrains working two shifts

Haulage distance of 575km from mine site to Darwin Port

Split haul with decoupling-recoupling at Mataranka

8 Roadtrains from Site to Mataranka return

16 Roadtrains from Mataranka to Darwin return

Detailed Traffic Management Plan for Roper Highway haulage (escorted convoys, signage)

Upgrade Roper High Way maintenance contract awarded

Balmoral and traditional land owner joint venture road maintenance being established

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Locations Plan – Site to Darwin Port

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9 – Shipping Specifications Predicted First Shipment Fines Product Specifications

◦ Fe: 60.0%

◦ SiO2: 10.0%

◦ Al2O3: 1.5%

◦ P: 0.01%

◦ S: 0.01%

◦ MgO: 0.07%

◦ LOI: 2.0%

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Darwin Port Iron Ore Stockpile

Unit 4, 4 Shepherd Street, Darwin NT 0800

Telephone: +61 8 8941 3844 Fax: +61 8 8941 4355

www.sherwiniron.com.au

Rodney Illingworth – Rodney.Illingworth@sherwiniron.com.au

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