Flinders Mines : Further High Grade BID intersected at PIOP

Hole From (m) To (m) Interval (m) Fe% SiO2% Al2O3% P% LOI%

HPRC1276

0

10

10

60.1

3.7

2.9

0.08

6.5

HPRC1277

0

16

16

56.9

2.4

2.8

0.12

12.6

HPRC1658

0

22

22

59.3

3.5

2.2

0.10

8.9

HPRC3599

0

10

10

59.1

2.9

2.2

0.08

8.8

HPRC5602

0

30

30

63.4

2.2

1.8

0.12

4.2

HPRC5604

0

16

16

58.7

3.7

2.1

0.11

8.7

HPRC5607

0

22

22

58.8

2.9

2.0

0.09

10.2

HPRC5611

0

26

26

60.2

2.8

2.5

0.13

7.8

HPRC5612

0

18

18

59.3

1.7

2.9

0.13

9.7

Hole

Deposit

From (m)

To (m)

Interval (m)

Fe%

SiO2%

Al2O3%

P%

LOI%

MGA E

MGA N

RL

Azimuth

Dip

HPRC1265

Champion

NSI

548105

7553117

636

0

-90

HPRC1266

Champion

4

8

4

55.2

7.4

3.8

0.07

9.5

547934

7553126

612

0

-90

HPRC1267

Champion

NSI

548005

7553022

612

0

-90

HPRC1268

Champion

0

22

22

59.3

3.5

2.2

0.10

8.9

547920

7552909

633

0

-90

HPRC1269

Champion

NSI

547890

7552849

635

0

-90

HPRC1270

Champion

0

16

16

57.3

5.4

3.1

0.10

9.0

547880

7552791

646

0

-90

HPRC1271

Champion

NSI

546672

7551524

646

0

-90

HPRC1272

Champion

NSI

546632

7551661

630

0

-90

HPRC1273

Champion

NSI

546608

7551756

630

0

-90

HPRC1274

Champion

NSI

546509

7551642

617

0

-90

HPRC1275

Champion

NSI

546459

7551516

618

0

-90

HPRC1276

Champion

0

10

10

60.1

3.7

2.9

0.08

6.5

546351

7551514

632

0

-90

HPRC1277

Champion

0

16

16

56.9

2.4

2.8

0.12

12.6

545988

7551199

632

0

-90

HPRC1278

Champion

NSI

545790

7551008

647

0

-90

HPRC1279

Champion

0

4

4

54.1

8.0

3.0

0.09

10.8

545802

7551068

641

0

-90

HPRC1280

Champion

0

4

4

54.8

5.9

3.4

0.10

11.6

545845

7551137

630

0

-90

HPRC1280

Champion

6

10

4

54.4

6.7

3.7

0.09

11.1

545845

7551137

630

0

-90

HPRC1281

Champion

0

8

8

55.7

3.6

4.0

0.11

12.0

545813

7551232

623

0

-90

HPRC1282

Champion

0

6

6

56.7

6.6

2.5

0.11

9.1

543705

7552796

695

0

-90

HPRC1283

Champion

NSI

543953

7552831

703

0

-90

HPRC1284

Champion

NSI

544261

7552838

640

0

-90

HPRC1285

Champion

NSI

544367

7552982

652

0

-90

HPRC1286

Champion

NSI

544443

7552892

637

0

-90

HPRC1656

Blackjack

0

10

10

55.7

6.8

3.1

0.11

9.6

542537

7553778

723

0

-90

HPRC1656

Blackjack

14

18

4

57.6

7.6

3.0

0.05

6.5

542537

7553778

723

0

-90

HPRC1657

Blackjack

16

26

10

55.4

6.3

4.3

0.12

9.3

542551

7553878

716

0

-90

HPRC1657

Blackjack

28

50

22

58.3

4.4

3.3

0.21

8.2

542551

7553878

716

0

-90

HPRC1657

Blackjack

52

56

4

58.1

8.2

1.2

0.13

7.1

542551

7553878

716

0

-90

HPRC1658

Blackjack

NSI

541532

7554117

643

0

-90

HPRC1659

Blackjack

NSI

541626

7554241

628

0

-90

HPRC3598

Paragon

0

14

14

55.8

5.7

3.2

0.07

10.3

550592

7554809

592

0

-90

HPRC3599

Paragon

0

10

10

59.1

2.9

2.2

0.08

8.8

550612

7554900

581

0

-90

HPRC3600

Paragon

NSI

551329

7554446

565

0

-90

HPRC3601

Paragon

NSI

551475

7554411

564

0

-90

HPRC3602

Paragon

NSI

551582

7554410

560

0

-90

HPRC5599

Delta

0

10

10

56.9

6.5

2.0

0.07

9.5

552917

7550804

643

0

-90

HPRC5599

Delta

12

16

4

54.4

8.1

2.9

0.07

10.6

552917

7550804

643

0

-90

HPRC5600

Delta

0

22

22

58.6

5.0

1.9

0.08

8.7

552875

7550830

643

0

-90

HPRC5601

Delta

0

24

24

59.2

3.0

2.0

0.07

9.4

552828

7550775

626

0

-90

HPRC5602

Delta

0

30

30

63.4

2.2

1.8

0.12

4.2

552799

7550818

618

0

-90

HPRC5603

Delta

0

18

18

58.7

3.9

3.2

0.10

7.5

551280

7550282

667

0

-90

HPRC5604

Delta

0

16

16

58.7

3.7

2.1

0.11

8.7

551304

7550374

630

0

-90

HPRC5605

Delta

0

16

16

59.5

2.4

2.2

0.10

9.0

551328

7550334

643

0

-90

HPRC5606

Delta

0

16

16

58.3

3.5

2.7

0.12

9.6

551314

7550250

647

0

-90

HPRC5607

Delta

0

22

22

58.8

2.9

2.0

0.09

10.2

551341

7550482

633

0

-90

HPRC5608

Delta

0

20

20

56.1

6.3

3.4

0.15

9.4

548143

7551017

668

0

-90

HPRC5609

Delta

0

22

22

59.1

4.0

2.0

0.11

8.7

548147

7551079

650

0

-90

HPRC5610

Delta

0

18

18

57.6

4.7

2.7

0.13

9.7

548046

7551043

657

0

-90

HPRC5611

Delta

0

26

26

60.2

2.8

2.5

0.13

7.8

548089

7551112

635

0

-90

HPRC5612

Delta

0

18

18

59.3

1.7

2.9

0.13

9.7

548112

7551179

622

0

-90

HPRC5613

Delta

0

12

12

58.4

2.5

2.1

0.10

10.8

548173

7551164

618

0

-90

Criteria

Commentary

Sampling techniques

• Reverse Circulation (RC) drilling was used to collect 2m downhole samples for assaying.

• Typically, a 4 to 5kg sample was collected using a cone splitter. This sample was sent for major and trace element analysis via XRF of fused discs. All RC samples were submitted for analysis.

• Grade standards (Certified Reference Materials - CRM's) and field duplicate samples were used to monitor analytical accuracy and sampling precision.

• Diamond drilling methods were used to twin a number of the RC drillholes to test sample representivity and to collect samples for metallurgical test work.

• All diamond drillholes employed triple tubed coring methods with half core samples used for

QAQC purposes and whole core used for metallurgical test work.

Drilling techniques

• The vast majority of the downhole samples were collected from Reverse Circulation (RC) drill holes of approximately 140mm diameter utilising a face sampling hammer button bit.

• PQ sized Diamond (DD) holes were drilled for metallurgical work and HQ sized holes for geotechnical and QAQC purposes. All geotechnical holes were angled and the core was oriented.

Drill sample recovery

• Sample quality and recovery of both RC and DD drilling were continuously monitored during drilling to ensure that samples were representative and recoveries maximised.

• RC sample recovery was recorded as good (G) or poor (P) based on visual appraisal of sample size. The majority of all samples were logged as good.

• Diamond core recoveries are routinely recorded in the database as a measure of length of core recovered versus the depth drilled.

• Results of previous RC-DD twin holes indicate that there is no significant bias in the RC assays related to the presence of water, the sample particle size or the material types comprising the sample.

Logging

• Detailed geological logging of all RC and DD holes captured various qualitative and quantitative parameters such as mineralogy, colour, texture and sample quality.

• RC holes were logged at 2m intervals.

• The logging data is utilised for both Mineral Resource estimation and future mining and processing studies.

• All diamond core was digitally photographed.

• Logging data is collected via ruggedised laptops using Ocris logging software which applies inbuilt validation checks as data is entered. The data is subsequently downloaded into a dedicated Geobank database for storage.

Sub-sampling techniques and sample preparation

• RC drilling samples were collected in pre-labelled bags via a cone splitter mounted directly below the cyclone.

• Wet and dry samples were collected via the same technique. The majority of samples collected were dry.

• Samples were stored on site prior to being transported to the laboratory. Wet samples were allowed to dry before being processed.

• Samples were sorted, dried and weighed at the laboratory where they were then crushed and riffle split to obtain a sub-fraction for pulverisation. The pulverised sample was reduced further and combined with various reagents prior to oven fusion to create a fused disc.

Criteria

Commentary

Quality of assay data and laboratory tests

• All RC samples were submitted to Ultra Trace laboratory in Perth, an accredited laboratory with the National Association of Testing Authorities (NATA). Ultra Trace completed both the sample preparation and analytical assaying.

• All samples were analysed via X-Ray Fluorescence (XRF) of a fused disc for a standard suite of elements including: Fe, SiO2, Al2O3, TiO2, MnO, CaO, P, S, MgO, K2O, Zn, Pb, Cu, BaO, V2O5, Cr, Ni, Co, Na2O.

• Multi-point Loss On Ignition (LOI) was determined at 425, 650 and 1000 degrees celsius via thermo-gravimetric analysis.

• Field duplicates were collected and inserted anonymously into the sample stream at a rate of

4 per 100 samples.

• Pulp standards (CRM's) were inserted into the sample stream as blind samples by field geologists at a rate of 5 per 100 samples.

• No significant issues or concerns were apparent with the analysis of the field duplicates or standards.

• Laboratory duplicates and standards were also used as quality control measures at different sub-sampling stages. No significant issues have been identified.

• No formal analysis of sample size versus grain size has been undertaken, however, the sampling techniques employed are industry best practice.

• Approximately 5% of all samples have been sent to an umpire laboratory as an independent check. No significant issues were identified and an excellent correlation exists between the laboratories.

Verification of

sampling and assaying

• Significant intersections have been independently verified by company geologists using geological logging and observation of the mineral assemblage.

• Twin hole (RC v DD) analysis demonstrates a high degree of intersection and grade compatibility between the dominant RC samples and the twinned core with no evidence of any significant grade bias due to drilling method.

• Twins formed by RC drillhole pairs also show good correlation between the original and twin hole.

• Assay data is loaded directly into the Geobank database which is managed by Flinders staff. Visual comparisons are undertaken between the recorded database assays and hard copy records at a rate of 5% of all loaded data. No errors have been identified.

• Several unannounced audits of the assay laboratory were conducted while Flinders' samples were being processed. No issues or concerns were apparent.

Location of data points

• Drillhole collar locations have been surveyed using a Differential GPS with an accuracy of

• Collar surveys are validated against planned coordinates and the topographic surface.

• Downhole surveys have not been carried out as the vast majority of the drillholes are vertical and relatively shallow meaning that any minor departures from the planned drilling direction will have minimal to no impact.

• The primary grid used is Map Grid of Australia 94, Zone 50 (GDA94). Vertical datum is the

Australian Height Datum (AHD).

• Topographic surface uses Lidar 50cm contours captured in 2009.

Data spacing and distribution

• The drill grid spacing varies between deposits.

• For the majority of deposits, a nominal spacing of approximately 100m by 125m is achieved. The Delta deposit is drilled at a spacing of approximately 50m by 50m over much of its area while Ajax is approximately 100m by 500m with infill in some areas to 100m by 125m.

Orientation of data in relation to geological structure

• As the mineralisation comprises predominantly flat lying valley infill deposits, the vertically orientated drilling represents an ideal sampling orientation. The underlying bedded deposits are hosted by sub-horizontal Banded Iron Formation meaning that the sampling is also near ideal.

• Localised high angle structures within the basement lithologies, particularly in the hills, may result in less ideal sampling situations.

Criteria

Commentary

Sample security

• Sample chain of custody is managed by Flinders.

• Samples in calico bags are packed into polyweave bags and then placed into heavy duty bulk bags for transport to Tom Price. They are then transported via commercial freight directly to the laboratory.

• Consignment notes for each submission are tracked and monitored.

Audits or reviews

• No formal audits or reviews have been undertaken. Optiro (independent Mineral Resource Consultant) has reviewed QAQC and twin hole analysis reports prepared by Flinders and undertaken independent validation of the database. No significant issues were identified.

Criteria

Commentary

Mineral tenement and land tenure status

• The Pilbara Iron Ore Project (PIOP) comprises two 100% FMS owned tenements, M47/1451 and E47/1560, located approximately 70km NW of Tom Price.

• The tenements lie within the Eastern Guruma Native Title Determination. Flinders has a current Native Title Agreement in place.

Exploration done by other parties

• Very little previous exploration has been undertaken by other parties. Robe River Mining undertook regional scale iron exploration while a number of other parties have undertaken diamond exploration.

Geology

• Local bedrock geology is dominated by the Dales Gorge, Whaleback Shale and Joffre Members of the Brockman Iron Formation. Incised into this bedrock are channel systems which contain buried Channel Iron Deposits (CID) and Detrital Iron Deposits (DID). Some areas of the bedrock are also mineralised forming Bedded Iron Mineralisation.

Drill hole Information

• A summary of drill hole information material to the understanding of the exploration results is included in the accompanying release (Table 2).

• A diagram showing the location of drill hole collars is included in the accompanying release

(Figure 1).

Data aggregation methods

• All intersections are determined using a minimum 50% Fe cut, maximum 10% SiO2 and a maximum of 2m internal dilution.

• As all samples are the same length, assays are averaged over the total intersection.

Relationship between mineralisation widths and intercept lengths

• The majority of drillholes are vertical and the ore body is predominantly horizontal, thus any intersection quoted represents an approximation of the true width of the mineralisation. Minor localised high angle structures may result in exceptions to this in some drillholes.

Diagrams

• Appropriate diagrams are included as part of the accompanying release, including a plan of drill hole collar locations and defined Mineral Resource areas.

Balanced reporting

• Intercepts for all drill holes from the current drilling are shown in Table 2 of the release.

Other substantive exploration data

• Nothing to report.

Further work

• There are currently no plans to undertake further drilling or exploration activities.