core sector communique

SRK APPOINTED TO LEAD CONCEPT STUDY ON IOH’S

BUNGAROO SOUTH PROJECT

Highlights:

 SRK appointed to lead a Concept Study on Bungaroo South Deposit.

 Objectives of the Concept Study are to consider and evaluate mine development concepts and preliminary financial parameters for the project.

 Bungaroo South is part of IOH’s large Bucklands Hill tenement in the Western Pilbara, in close proximity to existing and planned mine and rail infrastructure.

 Bungaroo South contains a 241Mt JORC Resource @ 57.2% Fe.

Discussion:

Iron Ore Holdings (IOH) today announced that Steffen Robertson Kirsten (SRK) has been awarded the Concept Study contract for the Bungaroo South Project. The Project is located approximately 45 km south east of Pannawonica, 35 km from existing Robe rail infrastructure and 50 km from the proposed Australian Premium Iron (API) JV’s planned rail infrastructure to Anketell port (see Figure 1 and 2).

The Bungaroo South channel iron deposit currently contains 241 million tonnes of JORC Resource of average 57.2% Fe grade (see Figure 3). Further drilling in close proximity to the deposit will be undertaken in the next few months. The Resource is expected to support the production of a high quality direct shipping fines product.

The Concept Study is targeted for completion in Q2 of CY2011, and will consider all key mine design concepts, identify risk factors and long lead activities required for the development of a mine, and develop preliminary financial parameters for the project. Subject to results of the Concept Study, IOH will consider taking the Project to an advanced study phase.

IOH's Managing Director, Mr Alwyn Vorster, said the appointment of a reputable service provider such as SRK is an important milestone in the development process of Bungaroo South. "The Concept Study is also an important part of the broader IOH 2011 business plan which includes an extensive drilling program, the implementation of a Prefeasibility Study on the Iron Valley deposit, and specific commercialisation initiatives to create a pathway to the market for both the Iron Valley and Bungaroo South deposits."