Iron Road Limited (ASX:IRD) Completes Resource Expansion Drilling At Central Eyre Iron Project, South Australia

Perth, May 20, 2010 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) is pleased to announce that the interim resource expansion drilling at the Company's wholly owned Central Eyre Iron Project is now complete. This drilling programme will be followed by another programme that is currently with the Department of Primary Industries and Resources of South Australia (PIRSA) for approval.

The first of several drilling programmes planned for the Central Eyre Iron Project during 2010 is now complete. The programme included both additional drill holes at Boo-Loo West and Dolphin as well as the deepening of selected drill holes from previous programmes at Boo-Loo to fully intersect magnetite gneiss at depth. One Gomex Drilling RC drill rig on single shift and two Coughlan Drilling diamond drill rigs working double shifts were utilised.

This latest drilling programme better defines the extent of magnetite gneiss at the prospective Boo-Loo and Dolphin area and is expected to result in a significant increase in the existing 110Mt mineral resource estimate at Boo-Loo.

Several other programmes are planned to test large high potential targets within the Kopi and Hambidge clusters in addition to other targets within the Warramboo cluster where the most recent drilling has taken place. An application for Exploration Work Approval (EWA) is currently under review by PIRSA.

Iron Road Managing Director, Mr Andrew Stocks, said that Iron Road was on track to achieve its ambitious corporate goal set for 2010 to outline a significantly increased mineral resource.

"Iron Road is looking to fast track project activities in 2010, working towards the conclusion of a pre-feasibility study in early 2011. The drilling campaign just completed and future planned campaigns awaiting approval to commence will underpin a significant increase in resources to feed into the current project studies," said Mr Stocks.

The recent drilling programmes form part of a planned strategy to establish a long-life +10Mtpa magnetite concentrate export operation at the CEIP. Test work from the Stage I and II drilling programmes indicates that a high quality concentrate may be produced from the Warramboo project area grading ~70% iron with low impurities. In addition metallurgical test work indicates excellent beneficiation characteristics with good potential for optimisation leading to a reduction in operating costs.

As announced on 31 March 2010, a Pre-Feasibility Study (PFS) is underway examining the viability of a long life mining and beneficiation operation at the CEIP initially producing 10Mtpa of magnetite concentrate. The PFS completion is expected in Q1 2011.

Iron Road's corporate objectives for 2010 include increasing the mineral resource across the Central Eyre Iron Project to 500Mt, outlined at the Company's 2009 Annual General Meeting. The project has an exploration target size defined by Coffey Mining to be to be between 2.8-5.7 billion tonnes of magnetite gneiss.

The potential quantity and grade of the Exploration Target in this statement is conceptual in nature, that there has been insufficient exploration to define a Mineral Resource of this amount and that it is uncertain if further exploration will result in the determination of a Mineral Resource of this amount.

For the complete Iron Road announcement including figures, please view the following link:

http://www.abnnewswire.net/media/en/docs/62907-ASX-IRD-491767.pdf

Contact

Andrew Stocks Managing Director Iron Road Limited Tel: +61-8-9200-6020 Mob: +61-403-226-748 Email: astocks@ironroadlimited.com.au