South Darlot Gold Project (Australia)

Central Kalgoorlie - Historical Information

The South Darlot Gold Project area (SDGPA) is approximately 320km North West of Kalgoorlie and includes the British King mine which is 100% owned and NI43-101 compliant. The British King mine is 5km west of Barick's Darlot Mine. The British King Mine is currently under care and maintenance.

The Company has re-focused its gold strategy and is actively working towards increasing CIO's tenement holdings in the South Darlot region which will allow for regional and mine site exploration to commence. The Company's current tenement holdings cover an area of 324km2 and are listed below.

For the South Darlot Gold Project, the strategy and objective of CIO is to evaluate gold prospectivity and deliver on target generation and exploration access approvals over the next 12 months.

The Barrick JV Project is an agreement (Agreement) between Central Iron Ore Ltd (through a 100% CIO owned subsidiary, South Darlot Mines Pty Ltd) and Barrick (Plutonic) Limited and Barrick (Darlot) NL (together Barrick) to joint venture by way of earn-in into Barrick’s Southern Darlot Gold Project area (Joint Venture).

Barrick’s Darlot gold mine is an underground operation located on the Yandal Greenstone Belt, approximately 680 kilometers northeast of Perth, Western Australia. Ore is treated by conventional carbon-in-leach at the on-site mill. Proven and probable mineral reserves as of December 31, 2009 are estimated at 444,000 ounces of gold.

The Joint Venture tenements are situated south west of Barrick’s Darlot gold mine and are contiguous with CIO’s current holdings in the area which includes the British King gold mine which is 100% owned and NI43-101 compliant. CIO’s current South Darlot regional tenement package comprises some 336km2 of highly prospective country under tenure. The Barrick tenement areas covered by this Joint Venture are detailed below.

The Agreement outlines the conditions under which CIO may progressively acquire an initial 51% interest, and management of the Joint Venture area, with an option to then increase its interest to 70% should it so choose. The agreed initial earn-in period is 24 months from the date of execution of the Agreement. The total spend required over this period is AUD$450,000.

In addition to substantially increasing its effective contiguous tenement interests within its South Darlot Gold Project Area (SDGPA), the Agreement gives CIO access to Barrick’s extensive project data base and knowledge over the area of the Joint Venture tenements. It consolidates and gives the Company access to a number of known anomalies within the area of the Joint Venture tenements. CIO is hopeful it can and will advance these to the point they might be exploited to the benefit of the Joint Venture parties.

A number of potential inter-company synergies may also exist and which could also be taken advantage of to suit, and result in operational savings and efficiencies for, the Joint Venture parties in regard to any exploration and related activities in and about the general SDGPA.

For the Barrick JV Project, the strategy and objective of CIO is to evaluate gold prospectivity and deliver on target generation and exploration access approvals over the next 12 months