Eastern Resources Limited reported on the results from the Feasibility Study (`FS') relating to the Nowa Nowa Project ("Project"). The Study is the third assessment undertaken by EFE for the entire Project following successful completion of the Scoping Study in 2012 and Feasibility Study in 2014. This Study has been revised as of January 2022 to reflect the current product philosophy and operational approach, along with updated financial metrics.

The FS shows the Project is technically robust and under the assumptions of the FS would be likely to generate positive financial returns. This FS outlines the findings for the Project and includes assessment on the following: geology and mineral resource; metallurgical testwork; mining, crushing & screening; infrastructure requirements; utilities supply (power, water, fuel and communications); product haulage; port product handling and export; operations management and human resources; health and safety management; environmental and social impacts; project approvals process; cultural heritage and native title; and capital costs, operating costs and financial modelling. The following describes the key elements of the Project's base case: life of mine of approximately 6 years; mining from a single pit, the Five Mile deposit, using conventional drill, blast, load and haul mining methodology; produce approximately 1 Mtpa magnetite direct shipping ore (DSO) -30 mm product with average grade of 51.75% Fe over the life of mine; haulage via a trucking operation to the Eden port, 234 km one way from the mine site; approximately 12 - 14 shipments per annum exported through the port, operated by Pentarch Logistics (ANWE); capital cost of AUD 15.7 million (15% contingency) cash operating costs of AUD 72.00 per tonne of DSO including royalties (FOB); and pre-tax NPV (8%) of AUD 61.94M and IRR of 11.8%.

The Project is located 7 km north of the township of Nowa Nowa, Victoria. It is some 320km by road east of Melbourne, and approximately 234km by road west of the Port of Eden. The Mineral Resource at Five Mile was estimated by H&SC in accordance with the JORC Code 2012.

This estimate assumes a commercially minable lower cut-off of 40% iron. The operating strategy is summarised as follows: engage a mining contractor for ore extraction and stockpiling at the ROM pad; engage a mining contractor for crushing plant encompassing all crushing, screening, and stockpiling; engage a road haulage contractor for product haulage from the mine to the port; product unloading, stockpile, reclaim, ship loading and all charges at the port; and miscellaneous indirects and services for the supply of operations infrastructure and support. The FS indicates a plan to produce magnetite DSO at a 1.0 million tonnes per annum over a six-year LOM (totally approximately 4.65 million tonnes), with the opportunity to expand production once existing inferred resources at Five Mile deposit is upgraded to measured and/or indicated resources.

An open cut mine is proposed, with an average waste to ore ratio of 3.22 over the six years mining including pre-strip period. Ore will be crushed and screened to produce DSO lump product ("Product"), with estimated average product grade of 51.75% over the LOM. The Product will be trucked from mine to the Port of Eden predominantly by sealed road, where it will be stockpiled prior to being loaded directly into Panamax ship vessels for export to customers.

The Company is studying further opportunities to enhance the value of the Project, include the potential as follows: Extending the LOM by upgrade existing inferred resources in Five Mile deposit to measured and/or indicated resources; Exploration upside based on areas of Seven Mile project where iron ore has been identified; Increasing the production rate materially to 1.5Mtpa; Improvements in operational efficiencies and reduction of operating costs Project partnership arrangement. The key risks identified for the Project include: A significant strengthening of the Australian currency against the US currency; A significant decline in the iron ore price from the forecasted price in the FS; Delays in obtaining necessary approvals/permits; Restrictions in access to ANWE port facilities; Increased operating costs and shipping costs; Shortages in suitable staffing and contractors.