CXM – Centrex Limited | Aussie Stock Forums

14 tenements covering approx 2,000 sq kms

projects:

1) wilgerup – (EL 3317, cxm 100%)

14.1Mt hematite jorc resource (13.3Mt @ 57.7% fe, 4.8% sio2, 2.8% al2o3, 5.0% loi, 0.51% p indicated [including 10.4Mt massive hematite @ 59.7% fe, 3.6% sio2, 2.3% al2o3, 4.6% loi, 0.49% p]; 0.8Mt @ 56.6% fe, 5.2% sio2, 2.5% al2o3, 4.0% loi, 0.57% p inferred), from the wilgerup north pod only (several other targets on this EL)

centrex recently received an offer of a 10-year mining lease (with conditions that cxm believes it will accept), cxm to submit a mine and rehablitation plan for approval by pirsa (cxm recently [march] applied for an ELA contiguous to 3317)

pre-sold under HoAs and linked to international benchmark prices (baotou to take up to 1M t p/a, also shenyang ), cash operating cost $38/t FOB; total cost $42/t FOB

ore to be mined via open cut methods (20 – 25 m pre-strip of sand cover), crushed and screened into lump (+6.3mm -31.5mm) and fine products (-6.3mm), ore road trained 18km to a new rail siding, railed to Port Lincoln using 56 wagons, train schedule calls for 1.7 trains per day carrying a total of 4,400tpd, for direct loading onto Panamax vessels (75,000dwt), export target is 1,600,000 t p/a, mine life 6.5 years

export via port lincoln – modifications at Port Lincoln: rail unloader #2, conveyor to the storage shed, existing Block 5 fertilizer shed (110,000t storage capacity) concrete reinforcement to load-bearing walls, tripper conveyor, negative pressurizing and dust collection, “pouch” conveyor, new shiploader and conveyors completely independent of ABB infrastructure, panamax (75,000t) ships every 18 days

port lincoln wharf da for export cxm confident of approval june, 9-12 months construction period

first shipments expected mid-2010

it is intended that wilgerup will be 100% self-funded by the wisco jv payments

2) cxm/wisco jv (ELs 3611(greenpatch), 3421(dutton bay), 3269(wanilla), 3731(carrow), 3877(mount hill) cxm 40%/wisco 60%)

wisco to pay cxm $186,000,000 for 60% iron ore rights, made up of:

$500,000 non-ref deposit paid to cxm 24/12/08

$51,500,000 payable on completion date (of jv agreement – expected to be finalised no later than july)

$26,000,000 payable 12 months after completion date

$27,000,000 payable on jorc inferred resource of 1.25Bt magnetite bif

$27,000,000 payable on jorc inferred resource of 1.50Bt magnetite bif

$27,000,000 payable on jorc inferred resource of 1.75Bt magnetite bif

$27,000,000 payable on jorc inferred resource of 2.00Bt magnetite bif

cxm expects to finalise and sign the Transaction Documents no later than July 2009

wisco to pay $75,000,000 into jv for exploration and study costs

stage 1 scope for exploration and studies is to develop 2 x 5Mt magnetite concentrate operations, with drilling at the priority Carrow deposit planned to commence July 2009, will accelerate resource evaluation of the Carrow deposit (projected 5Mtpa output), further drilling, pre-feasibility and a Bankable Feasibility Study will be completed by Q1 2012, with project to begin construction in 2012 (carrow to be first 5Mtpa project, bald hill/charlton gully second 5Mtpa project)

a review of these tenements has established a magnetite exploration target of 1,086Mt – 2,282Mt, [cxm 40% = 434.4Mt – 912.8Mt] to a depth of 200m (note: these tenements are highly prospective for hematite which has not been currently taken into account), comprising:

EL 3877 mt hill 266Mt – 1,048Mt (no historic drillholes);

“” “” bald hill 257Mt – 325Mt (2 historic drillholes, av 27.7% av DTS, 66.4% av wghtd Fe, 6.3% SiO2);

EL 3731 carrow 86Mt – 110Mt (15 historic drillholes, av 31.21% av DTS, 69.12% av wghtd Fe, 2.51% SiO2);

“” “” iron mount 26Mt – 39Mt (1 historic drillhole, 37.16% av DTS, 63.52% av wghtd Fe, 7.44% SiO2);

“” “” brennand 40Mt – 176Mt (1 historic drillhole, 25.4% av DTS, 69.39% av wghtd Fe, 2.47% SiO2);

“” “” koppio 57Mt – 74Mt (2 historic drillholes, av 29.7% av DTS, 67.54% av wghtd Fe, 5.6% SiO2);

EL 3269 charlton gully 244Mt – 290Mt (no historic drillholes);

“” “” greenpatch 78Mt – 163Mt (11 historic drillholes, av 27.47% av DTS, 68.99% av wghtd Fe, 2.62% SiO2);

EL 3421 dutton bay 32Mt – 57Mt (no historic drillholes)

the review further assessed targets to a depth of 250m as 1,421Mt – 3,006Mt [cxm 40% = 568.4Mt – 1,202.4Mt]

wisco to purchase 40M shares @ .25 for $10,000,000 – on the completion date of the jv trans docs (no later than july) wisco will subscribe for the 40,000,000 shares

50/50 jv to develop deep water port at sheep hill – wisco to arrange project finance for cxm if required

cxm 100% ownership of 260 acres of absolute gulf-front land (>18m water occurs within 450m of the shoreline) bought for the purposes of building a Cape capable port 18m deep water (at low tide) within 450m of the shoreline will enable direct loading of Cape sized vessels (160,000 –240,000dwt capacity) from a short jetty

low Capex urs estimate $95 million for off-shore infrastructure (jetty, berth and ship loader), total costs for port including initial shedding and road/pipeline access approx $150 million

ongoing discussion with native title claimants Barngarla and Nauo NT Claimants conducted a clearance survey in Sept 2008, the report has been withheld by the Barngarla legal representative

location central to several magnetite deposits with aggregate exploration potential in the billions of tonnes – 20kms from Carrow magnetite deposit, located close to the Eyre Peninsula rail network – a 27km spur line from Ungarra to Sheep Hill would connect the port to the entire Eyre Peninsula narrow gauge network

the development application is scheduled to commence in july 2009, will be completed by december 2009

cxm/wisco jv firb approval required – applications to the Foreign Investment Review Board and the National Development Reform Commission will be submitted in May 2009 [this has not yet been confirmed, most likely on finalisation of jv trans docs], the approval times for both the NDRC and FIRB are not known at this time but both companies believe that government consents and permits could reasonably be expected by mid-July 2009

cont’d/