Magnetite Mines Limited announced a JORC Code 2012 Mineral Resource upgrade for the Razorback High Grade Iron Ore Concentrate Project This resource is separate to the previously released resources at Ironback Hill and Muster Dam. As part of the Pre-Feasibility Study (PFS), the Company has incorporated the results of refined geological understanding of mineral distribution. The re-modelling of the resources with significantly smaller block sizes was undertaken to optimise selective mining studies. Also, as a result of the re-classification of much of the near-surface weathering material from Inferred to Indicated Resource, the Company will be able to include this material as plant feed rather than waste, thus improving stripping ratios, particularly in the early years. The improved Mineral Resource estimate has increased the total tonnage of the Razorback Iron Project (JORC Indicated and Inferred) to 3.0 billion tonnes (from 2.7 billion tonnes) for the Razorback and Iron Peak deposits, which are currently the focus of the PFS. The increase in Mineral Resource tonnage, particularly at the higher confidence Indicated classification, and estimated mass recovery is the result of an improved geological dataset and studies related to an updated geological model and the near surface weathered zone, which has demonstrated amenability to mineral processing through the additional Davis Tube Recovery (DTR) testwork and geometallurgical studies. Of particular significance is the improvement in the total tonnage of Indicated Resource classification to 1.5 billion tonnes (from 1 billion tonnes). Indicated Mineral Resources are part of a Mineral Resource for which quantity, grade, density, shape and physical characteristics are estimated with sufficient confidence to allow the application of Modifying Factors in sufficient detail to support mine planning and evaluation of the economic viability of the deposit. The Mineral Resource estimate of 1.5 billion tonnes at Indicated classification is therefore critical to ore reserve estimation mine planning and optimisation studies which are currently the focus of PFS assessments. The increase in mass recovery in the new Mineral Resource model has positive implications for mineral processing. Global mass recovery for the deposits has increased to 15.8% (from 15.3%), with Razorback deposit now 15.6% and Iron Peak now at 16.9%. The mass recovery improvement should lead to better overall concentrate recovery during processing.