4 February 2013 ASX ANNOUNCEMENT Non-renounceable Rights Issue

Sherwin is pleased to announce the terms of a non-renounceable rights issue ("Rights Issue") on the basis of one fully paid ordinary share for every thirty-two (32) fully paid ordinary shares held by shareholders of Sherwin with a registered address in Australia or New Zealand (Eligible Shareholders) at 5pm (Sydney time) on 13 February
2013 (Record Date).
The Rights Issue shares will be offered at an issue price of 9 cents per share, being the VWAP of the Sherwin shares as traded on the ASX in the 30 days prior to today. The maximum number of shares which may be issued under the Rights Issue is 22,444,653 fully paid ordinary shares.
The Rights Issue will raise approximately $2,020,019 (before expenses) if all shareholders subscribed for their entire entitlement to shares.
The funds raised will permit the Company to further develop its Roper River iron ore project, in particular, to complete approvals and prepare for the extraction and shipping of a bulk sample of 200,000 MT commencing in April 2013. A further $6 million in funds are expected to be available upon completion of the current negotiations for the convertible note (announced on 31 January 2013).
The Record Date for entitlements under the Rights Issue is 13 February 2013 and the final date for receipt of applications for shares pursuant to the Rights Issue is 28 March 2013 (subject to variation).
Further details of the terms and conditions of the Rights Issue are set out below.

DETAILS OF THE RIGHTS ISSUE

Key features of the Rights Issue include: