February 2013

Charter Pacific Corporation Limited

Company Update

Managing Director Update


Dear Shareholders,
2012 was a busy year for Charter Pacific and 2013 looks set to follow suit.
On the financial front, in late January 2013 we had a return of loan funds of $2 million from Conquest Agri Ltd. We expect further returns to follow this year.
Developments at our Mauritania iron ore venture continue to progress following the increase in the exploration target for magnetite-bearing banded iron formation (BIF) to 4.4 billion tonnes at Permit 792 - an increase of 69% in the upper range from previous estimates. Late last year myself and fellow Director David Selfe, geologist, along with SEMS Exploration visited permit 792 in Mauritania and we saw first hand the substantial magnetite mineralisation and that the team is making good progress in developing the exploration program. We believe the cost of production will be considerably less than Australian production costs which will give us a competitive advantage.
With the loan funds returned from the Conquest Agri transaction, Charter Pacific has sufficient funds to progress the
Mauritania venture and develop the exploration program.
Elsewhere, good progress is being made at Monteray Mining Group (we hold a 25% stake) with its positive results from its maiden auger drilling program at one of the sites Monteray acquired in Burkina Faso in 2012.
The maiden auger drilling program on the southern portion of the Pepin permit has been completed, with results received and analysed. A total of 780 auger holes were drilled at Pepin South at a spacing of 200m on lines 400m apart covering an area of 74 km² with a total of 1,343 samples submitted for analysis for gold. Analysis and imaging of the results has found that cohesive gold anomalism has been highlighted. Auger drilling is on-going on the Pepin North grid with samples being sent for analysis at regular intervals. First results from that work are expected in the next few weeks. Monteray is also planning to commence RC drilling in March.
We look forward to updating you throughout the year.
Regards,

Kevin Dart

Special points of interest:

$US/tonne $US153 Iron Ore