Iron Ore Projects in Western Australia

Flinders Mines is currently focusing on iron ore development at its project in the Pilbara region of northwest Western Australia, situated 1,100km north of Perth. Tenement holdings and exploration in the region are dominated by Rio Tinto, BHP Billiton and Fortescue Metals.

Flinders has also acquired the Canegrass Project tenement package in the emerging Mid West Iron Ore Province of Western Australia.

PILBARA IRON ORE PROJECT

In November 2007, Flinders announced the discovery of a major iron ore target at the Flinders' 100% owned tenement E47/882 in the Hamersley Ranges of Western Australia.

Since this time Flinders has raised funds to follow up on this discovery, establish a Flinders Iron exploration group and obtain necessary exploration approvals and clearances to commence exploration.

Flinders Mines’ Pilbara iron ore project is located in the Hamersley Ranges approximately 70km northwest of Tom Price in the Central Hamersley CID Province. Access to the tenement is via Rio Tinto’s Pilbara Iron railway access road, which follows the railway north from Tom Price and then via well graded pastoral and power line access tracks.

Exploration on site is supported by the Flinders Mines owned 20-person Blacksmith camp with comfortable air conditioned quarters and full satellite communications.

Drilling on the project commenced in July of 2008 and the maiden Inferred Resource of 476Mt at 55.4% Fe was announced on 1 April 2009. Further drilling in the 2009 campaign has extended this resource to 511Mt @ 55.4% Fe.

> More information on the Pilbara Iron Ore Project

CANEGRASS PROJECT

In May 2009, Flinders Mines Limited (Flinders) reached an agreement with Maximus Resources Ltd (Maximus) to purchase the Canegrass magnetite iron ore project, with Maximus retaining a 2% net smelter royalty.

The tenement package is located approximately 60km southeast of Mt Magnet in the emerging Mid West Iron Ore Province of Western Australia. The tenement package includes seven granted exploration licences, 37 prescribed prospecting licences and 2 exploration licence applications. Flinders carried out due diligence on the area and determined that it is highly prospective for gabbro hosted magnetite iron ore deposits.

The Canegrass Project has an area of 685 sq km, with large scale magnetite concentrations over an area greater than 20 km long and up to 3km wide. Previous work undertaken by Maximus has identified an exploration target of 1.7-3.0 billion tonnes of magnetite-rich gabbro containing 20-35% magnetite. This target is based on detailed magnetic and gravity surveys carried out over the area combined with a series of Reverse Circulation (RC) drilling traverses and three diamond drill holes.

Flinders is excited about this opportunity and views this acquisition as an excellent addition to the Company’s current portfolio of hematite-based iron ore resources and exploration targets associated with Flinders’ Hamersley project. Flinders will initially be fully evaluating all available Canegrass data to determine how to optimise this strategic addition.