Magnetite Mines Limited is a mineral exploration company exploring for iron ore and copper in South Australia and for iron, gold and uranium in the Northern Territory.

Our main focus is the Mawson Iron Project (MIP), a very large magnetite province located 240km NNE of Adelaide, South Australia - 100% owned and operated by Magnetite Mines Limited. The project has a JORC 2004 compliant resource of over 2.7 Billion tonnes (Indicated and Inferred) at the Razorback Ridge Deposit (Razorback) with an additional 1.2 Billion tonnes (Inferred) in the nearby Ironback Hill deposit. There remains up to a conservative 16 - 35 Billion tonnes as an exploration target at grades of 18 to 45% Fe. Razorback occurs in an infrastructure rich area that has access to nearby existing open user rail, port, power, gas, heavy engineering and dormitory towns. Presently a MOU between Magnetite Mines and Braemar Infrastructure exists for the implementation of an innovative slurry pipeline - infrastructure corridor to deliver iron ore concentrate from mine to ship in the Spencer Gulf.

Strategy

Magnetite Mines Limited is funded by its shareholders and asset sales. The company's strategy is to pursue mineral commodities, in particular Iron Ore, that it believes can return shareholder value through development into a mining operation. Where project development post exploration is not deemed viable under the company's criteria, the project is sold to enable the company to focus on those that are likely to succeed.

This strategy has seen Magnetite Mines take control of the Mawson Iron Project (ex. Red Dragon Venture) while exiting the Pilbara and Mid-West in WA. Within a period of three years, Magnetite Mines has taken the Mawson Iron Project from an exploration target to a JORC-compliant magnetite resource of 3.9 Billion tonnes and completed a Prefeasibility Study on the flagship area, the Mawson Iron Project.

Business Objectives

With the finalisation of resource definition and Prefeasibility Study at the MIP, Magnetite Mines Limited objective is to now find a strategic, financing partner to develop it into an 100 million tonnes per year magnetite concentrate producer. This will be done by offering direct ownership in the project through funding of the Feasibility Study and committing to debt funding for project construction. Iron ore pricing and, more significantly, views on economic growth and therefore iron ore demand, will impact on Magnetite Mines Limited ability to secure that partner.

Magnetite Mines will continue to pursue other opportunities, including additional magnetite prospects in the MIP and surrounding areas.

Over the next year, Magnetite Mines expects to focus principally on the promotion and financing of the MIP while optimising and progressing low-cost metallurgical and exploration studies of the existing PFS.