FairStar Resources Ltd

Steeple Hill Iron Project

Steeple Hill Tenements Hematite outcrops at Steeple Hill Hematite outcrops at Steeple Hill Hematite outcrops at Steeple Hill Steeple Hill, August 2008 Steeple Hill, August 2008 Lindsays Dam costeans after rain, November 2009 Steeple Hill Iron Project Detrital Pitting Jan to Feb 2010

Steeple Hill Iron Project - S.H.I.P.

The Steeple Hill Iron Project is the Company’s flagship project, located in Western Australia’s eastern goldfields and is 100% owned by FairStar.

Located just 80km east of Kalgoorlie, it is extremely well positioned being only 23km north of the heavy duty, Trans Australian Railway and only 480km from the deep water port at Esperance.

This prime location presents an excellent opportunity for developing the Project with relatively low capital expenditure required.

To date, the Project consists of approximately 24Mt of hematite product. This figure is derived from the Indicated Resource in accordance with the JORC code, compiled by Australian Mining Consultants (AMC). The Indicated Resource consists of 122Mt with an average recovery of 16% hematite recovery, for 20Mt of hematite product. The additional 4Mt has been estimated to be recoverable from the ultrafines.

The hematite product has an average grade of 58.4% Fe across the whole mineralised area, with no blending required. The most recent test work has improved the grade to 59.6% Fe.

In addition to the Indicated Resource contained within the main SHIP area, SHIP North holds great potential to add significantly to the current resource. From detailed studies of available historic data, mainly old drill holes, the area has demonstrated that the alluvial hematite material continues on from SHIP for a further 6kms, at a width of up to 3kms and at greater depths. It is possible that the hematite could continue up to the boundary of the SHIP North tenement which is approximately 8km long.

FairStar is well positioned to progress the Project rapidly, once funded, with many of the required approvals and necessary studies already achieved and in place. Some of these include Mining Lease granted, Native Title agreement signed, environmental studies of flora and fauna, various metallurgical studies, rail and port studies, and shipping logistics have been concluded.