INTERVIEW WITH KEITH WHITEHOUSE, MANAGING DIRECTOR OF IRON MOUNTAIN MINING LIMITED (IRM)

“Iron Mountain and Portman Limited Enter Joint Venture”

http://www.brr.com.au/event/49376

THURSDAY, AUGUST 14, 2008, 11:00 AM.

            BRR    Good morning and welcome to Boardroom Radio. Today, we are speaking with Mr. Keith Whitehouse, Managing Director of Iron Mountain Mining

10                    Limited. Thanks for joining us today, Keith.

            IRM      Thanks, Eddie. Good to be back.

            BRR    Keith, somewhat of an interesting situation yesterday. We saw an announcement come out from Portman Limited and then your stock went on

15                    trading halt. Did you want to give our listeners just an update on the events that led up to this and why this was the case?

            IRM      Yes, indeed. What actually happened was there was a slight mistake. We had certainly been negotiating an agreement with Portman over one of our properties. There was an internal mistake in Portman and the announcement

20                    was made just a little bit early. So they announced and we even had to go onto a trading halt while we finalised and signed documents and so on and got the whole thing underway. We had already agreed as to the  quantum of the deal, but we had not quite finished signing it off. However, that is all done and dusted and we are very pleased to have come to this arrangement with

25                    Portman.

            BRR    Okay, so that is obviously very good to hear, Keith. But what does this arrangement mean for Iron Mountain Mining? Where does it come from and why have you guys made this agreement with Portman Limited?

30        IRM      We have been exploring on our Mt. Richardson lease over the past year. We have reported good results from there, encouraging results. We had identified a couple of pods of iron ore that are probably in the order of 5 million tonnes of high grade haematite greater than 60%. We were planning to get back in there later this year to continue drilling, and in the meantime had

35                    commissioned environmental surveys to provide baseline information on the flora/fauna in the area, etc. so that we could proceed with this through to a mining situation. During the time we have been doing that though, we have actually had quite a bit of interest in the lease from various other companies and we have had a number of unsolicited offers for the lease. All the offers

40                    have been quite substantial, but Portman came through with an offer that we felt was very interesting. One of the reasons why we have been talking to some of these companies and accepting the discussion and offer with them was on its own, I think Mt. Richardson, while it has got a lot of potential and we think has potential for a resource in excess of 20 million tonnes on the

45                    property, on its own, it is not going to be enough to make it economic and it needs to be worked in conjunction with other properties. Now, Portman Mining are major players in that part of the world so they are obviously looking at it to bulk up other deposits that they have identified, and I think together, it can probably go forward to sneak a proposition, whereas by itself, perhaps it could not. As to the offer we got from Portman Mining, the option arrangement we have come to provides for a payment of $3 million upfront by the first of October. Following that, another $3 million when approvals to undertake further work on the site are received that is really conditional on the

5                      finalisation of these flora surveys we are doing, environmental impact management plans, and then two further transfers of $2 million over the following two years to see Portman take full control of the lease. We also have negotiated, despite of that, a 2% royalty on any iron ore product produced on the site, working on the assumption that there might be a 300

10                    million tonne resource there with a nominal selling price, say, of $50 a tonne (inaudible) (0:03:59) work out but that is a pretty good sort of return on the property. So we are very pleased with what we have negotiated here. It will provide us with a cash flow in a market that is not very (inaudible) (0:04:14) to raising money, and we will be cashed up as we move forward working on

15                    some of our other projects, in particular Miaree.

            BRR    Obviously some fantastic opportunities coming out of this for Iron Mountain Mining, Keith. We thank you for your time today and we look forward to speaking to you soon.

20        IRM      Sounds good. Thanks very much, Eddie.

            BRR    That was Keith Whitehouse, Managing Director of Iron Mountain Mining Limited. If you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I am Eddie

25                    (Inaudible) (0:04:49) and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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