South Woodie Woodie Manganese Project

Project Overview

The South Woodie Woodie Project is located about 1,200km north of Perth and 230km north east of Newman in the emerging East Pilbara Manganese Province of Western Australia.

The project covers a total area of over 1,500km2, and lies adjacent to Consolidated Minerals’ 1 million tonne per annum Woodie Woodie Manganese Mining Centre, which accounts for approximately 10% of the global supply of high-grade manganese ore.

South Woodie Woodie also lies in close proximity to several emerging manganese projects which are being actively explored.

Spitfire has continued to expand its tenement position in the East Pilbara and was successful in a ballot in April 2010 held to determine competing applications for a prospective 111 sq km manganese exploration project located 50km south-east of the main South Woodie Woodie tenement package.

This new tenement lies immediately north of the Nicholas Downs Manganese Project, where Mineral Resources Limited (ASX: MIN) recently commenced mining under an agreement with Hancock Prospecting, with a production target of 40,000 tonnes per month of 40% ferruginous manganese.

Spitfire’s total East Pilbara ground holding now comprises its original 80%-owned tenement holding of 430.1 sq km at South Woodie Woodie, applications for a further 1,015.1 sq km to the south-east and the new application of 110.7 sq km.

The previous and new applications, totalling 1,125.9 sq km, are 100% owned by Spitfire.

Tally-Ho Manganese Deposit

Spitfire commenced its maiden drilling program at South Woodie Woodie in April 2008, and in November 2008 reported the discovery of a significant zone of near-surface manganese mineralisation in a completely untested area in the southern portion of the project, now named Tally-Ho.

This promising new discovery comprises multiple stacked narrow seams of in-situ manganese mineralisation close to surface.

An initial JORC Code compliant Inferred Mineral Resource estimate was completed for the South West Zone of the Tally-Ho deposit in September 2009, comprising 205,000 tonnes grading 10.2% Mn.

In May 2010, this resource was significantly upgraded to an Inferred Resource of 2.94Mt @ 7.07% Mn with results from preliminary metallurgical test work indicating that the material can be beneficiated to achieve a manganese product grading around 40%.

The May 2010 JORC compliant Inferred Mineral Resource estimate, which was calculated by independent resource consultants Optiro Pty Ltd, is summarised below:

Tally Ho Inferred Resources

Tonnes

Mn%

Fe%

SiO₂%

Al₂O₃%

Pb%

2,940,000

7.07

9.13

62.93

6.65

0.01

0.04

0.01

The updated resource is based on the results of extensional drilling which increased the resource strike length by approximately 480 metres to 680 metres.

Importantly, the deposit remains open in most directions, particularly to the north and north-east and Spitfire believes there is potential to further increase the resource tonnage by undertaking further drilling in these areas.

The Tally-Ho deposit is a flat-lying, tabular body of mineralisation comprising multiple stacked narrow seams of in-situ manganese mineralisation located close to surface grading up to 46% Mn.

As with the previous resource estimate, the new JORC resource represents a fully diluted resource. The resource grade of 7% Mn reflects the inclusion of barren material between the high grade seams.

Manganese Exploration

Exploration over the past two years has delineated multiple geophysical and geological targets prospective for high-grade manganese and Spitfire is currently drilling at South Woodie Woodie to provide the first definitive test of multiple targets for high-grade(+40% Mn) manganese

These targets are located throughout EL46/616, which also hosts Spitfire’s recently discovered Tally-Ho manganese deposit.

Spitfire regards the Tally-Ho Deposit as a pathfinder for the discovery of primary “direct shipping ore” manganese deposits within the South Woodie Woodie tenements.