Iron Road Limited (ASX:IRD) Announce Placement To Continue Fast Track Development Of Central Eyre Iron Project

Perth, Dec 2, 2010 AEST (ABN Newswire) - Iron Road Limited (ASX:IRD) is pleased to announce it has placed 14,801,397 shares at a price of A$0.55, raising total funds (before costs) of A$8.1M. Funds raised under the issue will be primarily used to further advance the Central Eyre Iron Project (CEIP) and to allow for the completion of the prefeasibility study (PFS) by March 2011.

The shares have been placed to existing institutional investors, including several North American based institutions and clients of Southern Cross Equities Ltd. The shares have been issued pursuant to ASX listing rule 7.1.

Highlights

- Funds will allow further development of the CEIP beyond the current drilling programme and completion of the PFS due March 2011.

- PFS evaluating initial production of 10Mtpa of high grade iron concentrate - studies to date demonstrate excellent metallurgical properties, with relatively coarse grind sizes.

- Current drilling programme at Murphy South near completion, with JORC compliant mineral resource estimate report expected late January 2011. Exploration target for current program is 400-800Mt magnetite gneiss*. Combined with existing inferred resources at Boo-Loo, overall mineral resource target at CEIP from current program stands at 700 million to 1.1 billion tonnes of magnetite gneiss.*

- Additional resource expansion drilling programs for 2011 scheduled.

Iron Road Managing Director, Mr Andrew Stocks, said that the fund raising would allow Iron Road to continue its aggressive development of the Central Eyre Iron Project.

"We began 2010 with 110 million tonnes in inferred resources and have the potential to begin 2011 with around a billion tonnes of resource defined at the CEIP," said Mr Stocks.

"By any measure, this shows significant progress in developing the CEIP for the year and is a trend we intend to continue into 2011. The funds raised today will assist in keeping Iron Road on the fast track towards development.

"2011 will also see the completion of the CEIP PFS, which we are confident will establish robust economic parameters for the project.

"The strong institutional backing we have received and our ability to access the capital required to develop our projects is a key strength of Iron Road and will stand us in good stead as we continue to develop the CEIP," said Mr Stocks.

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

http://www.abnnewswire.net/media/en/docs/64334-ASX-IRD-518662.pdf

Contact

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