Mr. Brett Hodgins reports

CENTRAL IRON ORE LTD.: DRILL RESULTS OF 7M AT 27.1G/T AU INCLUDING 1M AT 159 G/T AU AT SOUTH DARLOT GOLD PROJECT CONFIRM HISTORICAL DRILLING OF HIGH GRADE GOLD

Significant gold intercepts have been revealed through Central Iron Ore Ltd.'s recent drilling program at its South Darlot gold project. The results from the first 14 holes, which included gold grades of up to 159 grams per tonne (g/t), support historical and earlier work conducted on the project area. The recent drilling program focused on the first two of the 31 gold targets identified within the South Darlot gold project area (being 24 targets located on tenements that are the subject of the Barrick joint venture and seven targets on 100-per-cent-CIO-owned tenements).

Highlights

• Significant gold intercepts:
  • Four metres at 50.3 g/t Au including one m at 158 g/t Au from 43 m;
  • Seven m at 27.1 g/t Au including one m at 159 g/t Au from 46 m;
  • Four m at 23.2 g/t Au including one m at 81.8 g/t Au from 28 m;
• Endeavour prospect:
  • Eight reverse circulation drill holes for 502 m;
  • One geotechnical diamond hole tail for 52 m;
• Mermaid prospect:
  • Six reverse circulation drill holes for approximately 421 m;
  • One geotechnical diamond hole tail for 42 m;
• Barrick joint venture:
  • On completion of the drilling program spend the company envisages that it will have earned a 51-per-cent interest in the Barrick JV tenements. CIO can earn an additional 19-per-cent interest (equal to a total interest of 70 per cent) by spending an additional $250,000 (Australian).

Endeavour prospect

The drilling at the Endeavour prospect included five holes for resource definition, two holes for metallurgical testwork and one diamond tail hole for geotechnical testwork. A total of 554 metres were drilled at the Endeavour prospect as part of this program. The highlights of the drill results include:

• Four m at 50.3 g/t Au including one m at 158 g/t Au from 43 m;
• Seven m at 27.1 g/t Au including one m at 159 g/t Au from 46 m;
• Four m at 23.2 g/t Au including one m at 81.8 g/t Au from 28 m.

The drill results confirm and extend the results from historical drilling while recent surface sampling and mapping infer further extensions. The significant historical results for the Endeavour prospect were:

• Four m at 70.6 g/t Au from 36 m;
• Eight m at 23.6 g/t Au from 34 m.

The widths described are drill intersection lengths, and the true widths have not been estimated. The true widths will be estimated as part of the exploration target process.

Geotechnical data

Diamond drilling at the Endeavour prospect (END005) totalled 51.6 m (40 m precollar) and intercepted the gold-hosting shear at 42 m. Geotechnical rock mass measurements have been attained from the drill core. In addition 148 orientated discontinuity measurements were collected. Excellent drill core preservation will ensure functional reuse of the drill core as the Endeavour prospect progresses.

Emperor structure (2.5-kilometre strike length)

The recent drilling also confirmed a west-northwest-trending shear zone named the Emperor structure. It has been interpreted from a linear trend of historical gold workings, gold occurrences within drill holes, as well as observations from the diamond drill core and reverse circulation chips of the recent drilling at the Endeavour prospect. Interpretations generated from aeromagnetic and gravity geophysics support the view that the structure extends farther to the west-northwest, ultimately causing a greater-than-100-metre displacement of stratigraphy. The gives the structure a 2.5-kilometre strike length, a direct association with gold endowment and a favourable geological setting to host significant gold accumulation. Currently, vein-hosted gold mineralization has been modelled at the A1 prospect and the Endeavour prospect. Potential exists to explore for extensions of this structure to the east-southeast as well as across strike.

A1 prospect historical results

The significant historical results for the A1 prospect were:

• One m at 19.2 g/t Au from 22 m;
• Two m at 4.3 g/t Au from 37 m.

The company envisages that an exploration target will be completed for the Endeavour prospect in the next few weeks.

Mermaid prospect

The drilling at the Mermaid prospect included three reverse circulation drill holes for resource definition, two holes for metallurgical testwork and one diamond tail for geotechnical testwork. A total of 463 metres will drilled at the Mermaid prospect as part of this program. The highlight drill results include:

• Three m at 1.8 g/t Au including one m at 3.8 g/t Au from 66 m;
• One m at 1.2 g/t Au from 57 m;
• One m at 1.6 g/t Au from 51 m;
• One m at 1.6 g/t Au from 56 m;
• 1.35 m at 1.9 g/t Au from 86.15 m.

The drill results confirm the structure identified from historical drilling, and recent surface sampling and mapping. The significant historical results for the Mermaid prospect were:

• Five m at 348.9 g/t Au including one m at 1,510 g/t Au from 79 m;
• Three m at 13.0 g/t Au from 11 m;
• Four m at 13.0 g/t Au from 7.9 m.

The widths described are drill intersection lengths, and the true widths have not been estimated. The true widths will be estimated as part of the exploration target process.

Geotechnical data

Diamond drilling at the Mermaid prospect (MER004) totalled 42.4 m (59.9 m precollar) and intercepted the gold-mineralized quartz vein at 85.8 m. Geotechnical rock mass measurements have been attained from the drill core. In addition 99 orientated discontinuity measurements were collected. Excellent drill core preservation will ensure functional reuse of the drill core as the Mermaid prospect progresses.

Mermaid structure

The recent drilling confirmed the geometry and orientation of a vein-hosted gold structure at the Mermaid prospect. It has been interpreted that this structure has very high gold intercepts that are not consistent throughout the structure (this feature is commonly known as the nugget effect). Future exploration is required to quantify this effect, and exploration will continue to the west, to focus on the interpreted intersection of the Mermaid structure and the Emperor shear zone.

                 SUMMARY OF DRILL RESULTS
                                                     Grade
                           AHD                Width   (g/t
Prospect    Hole ID        (RL)  From     To     (m)    Au)

Endeavour   END0001      446.2     46     53      7   27.1
including                          46     47      1  159.0
Endeavour   END0002      446.2     28     32      4   23.2
including                          29     30      1   81.8
Endeavour   END0003      446.3     43     47      4   50.2
including                          44     45      4  158.0
Endeavour   END0004      446.3
Endeavour   END0005      446.3
Endeavour   END0006      446.3
Endeavour   END0007      446.3
Endeavour   END0008      446.3
X Endeavour WDRC0101       450     36     40      3   70.6
X Endeavour WDR1220        450     34     42      8   23.6
Mermaid     MER0001      445.5     57     58      1    1.2
Mermaid     MER0002      445.5     66     69      3    1.8
including                          68     69      1    3.8
Mermaid     MER0003      445.5     51     52      1    1.6
and                                56     57      1    1.6
Mermaid     MER0004      445.6  86.15   87.5   1.35    1.9
and                              88.5     89    0.5    1.9
Mermaid     MER0005      445.5
Mermaid     MER0006      445.6
X Mermaid   WDRC0099       450     79     84      5  348.9
X including                                       1  1,510
X Mermaid   PDERB0002      450     11     14      3   13.0
X Mermaid   WDRC0111       450     31     35      4    7.9
X A1        BRC0093        450     22     23      1   19.2
X A1        WDRC0033       450     37     39      2    4.3

X indicates historical results.
The widths described are drill intersection lengths.

Quality control and analytical procedures

The company has a rigorous QA/QC program in place to ensure best practices in sampling and analysis of drill samples. Commercial standards, blanks and duplicates were inserted in every batch of samples submitted for analysis in accordance with industry practice. Gold analysis was carried out by ASL in Kalgoorlie, Western Australia, with a 30-gram charge by fire assay with atomic absorption finish method. ALS is certified and registered in each region with global application of standard procedures and audits to maintain standard practice throughout the laboratory network.

Summary

The Endeavour and Mermaid prospects are a part of the Barrick JV properties. The drilling program was carried out on mining lease 37/631. The importance of the status of this being a granted mining lease should not be underestimated in a development context as it gives CIO a significant cost and time advantage of the order of 18 to 24 months.

The exceptional drill results from the Endeavour prospect and the confirmation of the Emperor shear zone provide CIO with a platform to rapidly explore and exploit this target. The company envisages that an exploration target will be completed for Endeavour prospect in the next few weeks.

Brett Hodgins, president and chief executive officer, said: "We are delighted with the results from the recent drilling program at our South Darlot gold project. Endeavour is shaping up as a very important prospect for CIO. The high-grade gold results, combined with the prospect being on a granted mining lease, allow CIO to rapidly add value to this asset.

"I believe this to be an important moment for CIO with high-grade gold discovered close to surface, the identification of a structure, which can be extended along strike, and the first stage of the Barrick JV farm-in almost complete. This combined with our 31 targets and a large propertyholding of over 320 square kilometres provides CIO with the platform to grow our gold resources rapidly."

South Darlot gold project (Western Australia)

The South Darlot gold project area is approximately 320 km northwest of Kalgoorlie and includes:

• The British King mine, which is 100 per cent owned by the company and National Instrument 43-101 compliant. The British King mine is five km southwest of Barrick Gold's Darlot mine. The British King mine is currently under care and maintenance;
• 100-per-cent-CIO-owned tenement package covering 324 square km;
• The Barrick JV tenements, in which CIO can earn an interest of up to 70 per cent.

100-per-cent-CIO-owned South Darlot gold tenements

The company's current 100-per-cent-owned South Darlot gold project tenement package covers 324 square km.

Project               Tenement         Status      Area (square km)

South Darlot           E37/882        Granted            141
South Darlot          E37/1054        Granted             33
South Darlot          E37/1085        Granted             24
South Darlot          E37/1086        Granted              3
South Darlot          E37/1106        Granted            123
British King            M37/30        Granted            0.1
British King          P37/7026        Granted            0.1

For the South Darlot gold project, the company's strategy and objective will be to evaluate the gold prospectivity of the region, generate targets, expand the tenement position and acquire all access approvals. The company currently has seven prospective targets identified on its 100-per-cent-owned tenements and will systematically evaluate these targets over the next 12 months.

Barrick joint venture tenements

The Barrick JV tenements are situated southwest of Barrick's Darlot gold mine and are contiguous with CIO's current holdings in the area, which include the British King mine, which is 100 per cent owned by CIO and which is NI 43-101 compliant. The tenements covered by the Barrick joint venture are detailed in an attached table.

Project               Tenement         Status       Area (ha)

Barrick JV             M37/421        Granted            381
Barrick JV             M37/552        Granted            200
Barrick JV             M37/631        Granted            776
Barrick JV             M37/632        Granted            595
Barrick JV             M37/709        Granted             98
Barrick JV            M37/1045        Granted             90
Barrick JV            P37/7364        Granted            197
Barrick JV            P37/7365        Granted            200
Barrick JV            P37/7366        Granted            113
Barrick JV            P37/7367        Granted             45

For the Barrick JV tenements, the strategy and objective of CIO will be to evaluate the gold prospectivity, and deliver on target generation and access. The company currently has 24 targets identified on the Barrick JV tenements and will systematically evaluate these targets over the next 12 months. CIO has prioritized the exploration on the Endeavour prospect.

The company envisages that on the completion of the current drill program spend it will have earned a 51-per-cent interest in the Barrick JV tenements. CIO can earn an additional 19-per-cent interest (equal to a total interest of 70 per cent) by spending and additional $250,000 (Australian).

Qualified person

Darryl Mapleson, who is a fellow of Australasian Institute of Mining and Metallurgy, has compiled the information within this report relating to mineralization. Mr. Mapleson has sufficient experience relevant to the style of mineralization and type of deposit under consideration, and to the activity currently being undertaken to qualify as a competent person as defined in National Instrument 43-101 -- Standards of Disclosure for Mineral Projects.

We seek Safe Harbor.