Iron Road Limited (ASX:IRD) Announces Stage IV Drilling Approval At Central Eyre Iron Project, South Australia

Perth, May 27, 2010 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) is pleased to announce that a significant exploratory drilling programme at the Company's wholly owned Central Eyre Iron Project (CEIP) has been approved by Primary Industries and Resources South Australia (PIRSA).

This is the second drilling programme of several planned for 2010 as the company works towards achieving its strategic objectives for 2010.

The second of several drilling programmes planned by Iron Road at the Central Eyre Iron Project during 2010 has now been approved by PIRSA and is planned to commence on 07 June 2010. The Stage IV programme will test seven high potential targets that have been selected based on geophysical as well as historical data.

Iron Road Managing Director, Mr Andrew Stocks, said that the programme continued the significant amount of project development work underway at Iron Road.

"This is now our second drilling programme for the year and very much indicates our intention to rapidly develop the Central Eyre Iron Project. Iron Road has set out a pathway during 2010 to achieve a substantial amount of progress, including the delivery early in 2011 of a pre-feasibility study. I look forward to the results and shareholder value that will be delivered as we continue to drive this development forward," said Mr Stocks.

The drilling programme will be undertaken by Gomex Drilling for the RC component and Coughlan Drilling for the diamond drilling component. The programme will utilise one RC drill rig and two diamond drill rigs. Since the programme is designed to be scalable (new programmes are subject to PIRSA approval) a third diamond drill rig has already been secured. When appropriate, diamond drilling may move to a double shift basis to accelerate progress further.

This drilling programme forms part of a planned strategy to establish a long-life +10Mtpa magnetite concentrate export operation. 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.

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

http://www.abnnewswire.net/media/en/docs/62966-ASX-IRD-492540.pdf

Contact

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