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1 For personal use only 1 February 2013 Company Announcements ASX Limited Level 8, Exchange Plaza PERTH WA 6000 COMPANY UPDATE First phase metallurgical test work program now complete with encouraging results returned. For both the Laterite and Oolite ironstone, single pass, high intensity magnetic separation delivered superior iron beneficiation results in comparison to screening and gravity separation. High intensity magnetic separation provides a potential pathway to a pellet feed, iron ore concentrate. Second phase metallurgical test work program initiated and will focus on further reducing minor elements, whilst optimising iron grade and recovery. Marketing study focusing on the producers of Long Steel Products underway. As previously foreshadowed, resource definition drilling has recommenced with the Company having completed more than 90% of the planned 138 reverse circulation holes at the date of this announcement. Australian based iron ore exploration and development company, Kogi Iron Limited (ASX: KFE) ( Kogi or the Company ) is pleased to update shareholders in respect of activities related to its 100% owned Agbaja Iron Ore Project located in Kogi State, Republic of Nigeria, West Africa ( Agbaja or Agbaja Project ) (refer Figure 1). Metallurgical Test Work Program As advised to ASX on 9 November 2012 and 13 December 2012, the Company has commenced a metallurgical test work program on four representative, composite samples prepared from diamond core. The metallurgical test work program was designed by Trical Mining and Metallurgical Services ( Trical Mining ) in conjunction with the Company, supervised by Trical Mining and the laboratory test work is being carried out by ALS Metallurgy. The metallurgical test work samples were obtained from nine PQ diamond drill holes within the Stage 1 Resource Area (refer Figure 2) and comprise quartered core collected at consecutive intervals spanning the two principal domains of the Company s maiden Inferred Mineral Resource of 488Mt at 42.7% Fe (refer ASX Announcement dated 26 September 2012 for details) ( Maiden Mineral Resource ). Two of the composite samples represent Laterite ironstone (Zone A, and representing approximately 29%, of the Maiden Mineral Resource) and two represent Oolite ironstone (Zone B, and representing approximately 71%, of the Maiden Mineral Resource). Kogi Iron Limited ABN ASX: KFE 13 Colin Street West Perth Western Australia 6005 Australia PO Box 1934 West Perth Western Australia 6872 Australia Telephone: Facsimile: Website:

2 For personal use only The primary objective of the metallurgical test work program, which will continue throughout 2013, is to increase the iron grade to 56%-58% whilst minimising minor elements. Key parameters to be determined to enable the development of a process flowsheet are mass recovery (yield), product quality and product types (eg sinter fines, concentrate etc). Initial results from the test work program were reported to ASX on 13 December 2012 and the Company has now received metallurgical test results from the second part of the first phase program, which involved a detailed mineralogical assessment of one diamond hole, and a series of screening, gravity and magnetic separation tests on each of the four composites aimed at determining the best method to upgrade the iron mineralisation. Mineralogy For the mineralogical assessment, 19 samples were selected for analysis from diamond drill hole L11-39 (refer Figure 2). All 19 samples had semi-quantitative XRD analysis and eleven were selected for microscopic study, and from these ten were selected for semi-quantitative element mapping. From the semi-quantitative XRD analyses, the dominant iron minerals were determined to be goethite and magnetite/maghemite. Goethite is dominant within the samples taken from the upper zones of the drill core (0-8.3m) (Laterite ironstone). No magnetite/maghemite was found in this upper zone, however hematite was identified as a major phase in the samples taken from 0-2m. Within the underlying Oolite ironstone ( m), the iron minerals comprised primarily goethite and magnetite/maghemite. The phosphorus bearing minerals identified were apatite and a crandallite group mineral, typically occurring as discrete grains within the matrix and ooids. These phosphorous minerals, however, appear not to represent all the phosphorous present in most samples it appears other phosphorous is associated with goethite as an adsorbed species. Having regard to the deportment of phosphorous within the Laterite and Oolite ironstones, it is likely iron ore products from the Agbaja Project will have higher phosphorous levels that are more suited to Long Products (steel used in construction), which is less sensitive to phosphorous in the steel making process. Silica, alumina, sulphur and other minor elements are anticipated to be at typical market levels. As previously advised, the Company has commenced an iron ore marketing study focusing on Long Product steel manufacturers in China and India. The Company will continue this study through the course of 1H 2013, with the intention of clearly identifying the end user markets for the Company s iron ore concentrate. Initial high level review indicates a deep and growing market, for the Company s potential product. Iron Beneficiation For both the Oolite ironstone and Laterite ironstone, high intensity magnetic separation ( HIMS ) provided superior iron yields for rougher concentrates in comparison to screening and gravity separation. Iron yields for HIMS typically ranged from 80% to better than 95% with mass yields in the range of 70%-80% 1. Reducing the feed particle size distribution from -3.35mm+212µm to -212µm+53µm marginally improved iron yield, but was successful in reducing mass yield. Iron grades did not achieve target grade (56%-58% Fe) on a single pass HIMS test, indicating the Oolite ironstone and Laterite ironstone requires a further size reduction step (potentially to 100% passing 75µm or 45µm) followed by HIMS cleaning and recleaning. 1 Samples were de-slimed at 53µm prior to screening, and magnetic and gravity separation tests. 2

3 For personal use only Lower intensity magnetic separation Davis Tube Recovery tests at 100% passing 45µm and at a magnetic intensity of 3000G produced 56%-57% Fe iron grades to concentrate with mass and iron yields of 16%-34% and 20%-44% respectively. These data suggest iron yield (recovery) can be maximised by HIMS roughing at -212µm, followed by a size reduction to -75µm or -45µm, with HIMS cleaning and recleaning to achieve product iron grade. Having completed the first phase of the metallurgical test work program, the Company has initiated the second phase program, which involves further and detailed testing of HIMS to optimise grind size, iron recovery, iron grade and to minimise the grade of deleterious elements reporting to concentrate. This work is expected to take four to six months to complete, and the Company will continue to update the market as results come to hand. Resource Definition Drilling As foreshadowed in the Company s ASX Announcement dated 13 December 2012, resource definition drilling has recommenced at the Agbaja Project. The Company is currently completing 138 reverse circulation drill holes to conclude the planned program within the Stage 1 resource area. These remaining holes were unable to be completed prior to the onset of the wet season in August Recent favourable weather conditions at the Agbaja Project has allowed the Company to expedite the remaining Stage 1 drill program, which is now 90% complete. Post the completion of the Stage 1 program, the drill rig will move to the south of the Agbaja Project to complete a number of wide spaced drill lines as part of the Company s work program to update the Exploration Target size for the Agbaja Plateau. The Company s Non-Executive Chairman, Dr Ian Burston said, I am encouraged by the first phase of the metallurgical test program whereby a potential pathway to product has been identified. This not only uses conventional, mature magnetic separation technology not unlike the flow sheet being used by London Mining at its operating Marampa Project in Sierra Leone, but could also enable the realisation of value from the Laterite ironstone, which is lower grade and represents 29% of the Maiden Mineral Resource, and overlays the higher grade, Oolite ironstone. He further added that With the resource definition drilling almost complete, and the drill rig then moving to wide spaced step out drilling to the south, the Company remains on track to release an updated Exploration Target for the Agbaja Plateau in the first half of Yours faithfully Kogi Iron Limited Dr Ian Burston Non-Executive Chairman 3

4 For personal use only Competent Person s Statement: The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Kim Bischoff, a member of The Australasian Institute of Mining and Metallurgy. Mr Bischoff is a consultant to Kogi Iron Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bischoff consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this report that relates to Metallurgical Test Results is based on information compiled by Mr Joe Ariti, a member of The Australasian Institute of Mining and Metallurgy. Mr Ariti is a director of Kogi Iron Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ariti consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. 4

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6 About Kogi Iron Limited For personal use only Kogi Iron Limited (ASX: KFE) ( Kogi Iron or the Company ) is an ASX listed company focused on the exploration and development of its 100% owned Agbaja Plateau Iron Ore Project located in Kogi State, Republic of Nigeria, West Africa ( Agbaja or Agbaja Project ). The Agbaja Project is a shallow, flat-lying channel iron deposit uniquely positioned with its proximity to existing, underutilised rail, and port infrastructure. It typically comprises iron-bearing nodules (ooids, 1-2mm and pisoids, 2-9mm) in an iron rich matrix. Iron mineralisation occurs predominantly as goethite and maghemite/magnetite. In October 2011, the Company commenced a reverse circulation resource definition drill program at Agbaja with the objective of defining a maiden JORC resource by late Q On 28 September 2012, the Company announced a maiden JORC compliant mineral resource at its Agbaja Project of 488 million tonnes with an in-situ iron grade of 42.7% classified as Inferred. The Company is currently completing additional resource definition drilling, a metallurgical test program and is undertaking a number of reviews and studies to enable it to prepare a scoping study during Kogi Iron has on issue 285,184,126 fully paid ordinary shares, and 16,517,329 listed and unlisted options. Competent Person s Statements: The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Kim Bischoff, a member of The Australasian Institute of Mining and Metallurgy. Mr Bischoff is a consultant to Kogi Iron Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bischoff consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. The information in this report that relates to Metallurgical Test Results is based on information compiled by Mr Joe Ariti, a member of The Australasian Institute of Mining and Metallurgy. Mr Ariti is a director of Kogi Iron Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Ariti consents to the inclusion in this report of the matters based on the information in the form and context in which it appears. 6