328Mt Iron Ore Mineral Resource Reported At Iron Road Limited (ASX:IRD) Central Eyre Iron Project In South Australia

Perth, June 30, 2010 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) is pleased to announce a tripling of reported iron ore resources at its Central Eyre Iron Project (CEIP) in South Australia.

Resources at the project now stand at 328Mt, a tripling of the previous resource. The resource increase flows from a significant programme of drilling, structural, geotechnical, geophysical and metallurgical investigations designed to support the ongoing Pre-Feasibility Study (PFS) at the project. The PFS is scheduled for completion in early 2011.

Iron Road has set a corporate goal of further increasing the mineral resource to 500Mt of iron ore at the CEIP by year-end. As a result of the current resource increase, Iron Road remains confident of achieving this objective. Coffey Mining has previously established an exploration target of 2.8 to 5.7 billion tonnes of magnetite gneiss at the project*. (* Refer ASX Announcement dated 01 September 2009 and notices at the back of this release.)

The resource estimation was compiled by independent resource consultants, Coffey Mining. Details of the resource estimation study are provided in the attachment and supersede the last ASX statement dated 07 August 2009.

Iron Road Managing Director, Mr Andrew Stocks, said that the resource upgrade was a significant event for the Central Eyre Iron Project and the ongoing pre-feasibility study.

"The resource increase reported today amply demonstrates the significant potential resource at the Central Eyre Iron Project. With only a small portion of the entire project adequately drilled we have delivered what is already a very substantial resource position," said Mr Stocks.

"This result is important to Iron Road, as it more than underpins the resource base needed for the current Pre Feasibility Study underway at the CEIP. We are determined to ensure that we have the resources to underwrite at least a 20 year project at the CEIP and the result today shows us that this is more than achievable."

"We have set a corporate objective of achieving 500Mt in iron resource for 2010 and with the resource increase announced today and our ongoing exploration programmes I am confident we can achieve this objective."

"We have moved to significantly increase the pace of our drilling and pre-feasibility activities thanks to our confidence on the project and I look forward to reporting the results of the PFS," said Mr Stocks.

"Metallurgical test work associated with the resource increase also continues to deliver consistent, reliable results with a very high grade concentrate produced, giving us great confidence in the quality of the product than can be produced," said Mr Stocks.

Test work demonstrates that the iron grade will more than double at the first stage magnetic separation, early in the beneficiation process and prior to power intensive fine grinding. The iron ore is very coarse grained, with over 60% of the waste material being rejected at sizes over 3mm. The current test work programme is further exploring this characteristic relating to dry and wet magnetic separation processes.

A key finding of the drilling and latest report is the consistency of mineralisation. The results of the resource expansion programme support the Company's ambitions to develop a long life iron ore mining and beneficiation operation and its rationale to accelerate drilling and prefeasibility activities.

Approximately 1000 additional Davis Test-tube Recovery (DTR) analyses were conducted for this resource expansion study.

The current Mineral Resource focuses on a 4.2km portion of the project's total strike length of more than 95km. The remainder is currently being selectively drilled and whilst still to be fully tested, is considered by the Company to be similar in scale and quality and is likely to host several substantial deposits.

Iron Road is continuing on its development roadmap with a view to establishing a long-life export operation, initially producing 10Mtpa of high quality magnetite concentrates.

Commencement of the PFS was announced in March 2010 with the appointment of Mineral Engineering Technical Services (METS).

The following companies have been engaged to complete various components of the study.

- Evans & Peck - study oversight, project implementation plan, scheduling, personnel, risk & opportunity management;

- Coffey Mining - geology, geotechnical, structural and mining;

- Mineral Engineering Technical Services (METS) - metallurgical test work (including dry magnetic separation), beneficiation plant design, mine site infrastructure, mine to port concentrate transport and power supply;

- Sinclair, Knight, Mertz (SKM) - Port options and ground water;

- Community Engagement Group Australia (CEGA) - Community engagement and access;

- Aldam Geoscience - approvals pathway; and

- Various consultants are contributing to the marketing, environment, financial analysis portions.

For the complete Iron Road Limited announcement including data tables and figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63200-ASX-IRD-495845.pdf

Contact

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