HIGHLIGHTS. Drilling intersects wt% recovered DTR concentrate grading 69.8% Fe, including 27 metres in excess of 21% DTR.

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1 DISCOVERY OF LARGE TONNAG E-POTENTIAL MAGNETITE MINERALISA TION FROM HAWSONS IRON PROJECT DRI LLING HIGHLIGHTS Excellent Davis Tube Recovery (DTR) concentrate chemistry reported in drill samples average of 70.1% iron (Fe) with very low deleterious elements. Drilling intersects wt% recovered DTR concentrate grading 69.8% Fe, including 27 metres in excess of 21% DTR. Recent drilling results and magnetic modelling indicates a magnetite exploration target 1 from one of the 5 identified magneticunits of million tonnes 2 at 20 to 21% DTR. Only one of the five parallel magnetic units comprising the core anomaly tested by drilling to date. Potential for higher DTR grades remains to be tested. Other large untested aeromagnetic anomalies outside the core anomaly provide additional tonnage potential. Located close to Broken Hill, transcontinental rail line and other key infrastructure. The Directors of Carpentaria Exploration Limited (ASX: CAP) are pleased to announce that the Davis Tube Recovery and assay results from the recent drilling at the Hawsons Iron Project confirm a significant magnetite-iron discovery, with potential to be the largest iron project in NSW. Executive Chairman Nick Sheard stated the Davis Tube Recovery (DTR) results are very encouraging because the initial drilling has tested only one magnetic unit out a total of five within the core anomaly. Should similar material be present in the other four units, this anomaly will have very large magnetite mineralisation tonnage potential. In addition, the aeromagnetic data within the Hawsons Project area highlight several other untested magnetic features of similar size to the core anomaly. These other magnetic features provide scope to explore for additional large tonnage and potentially increased grade magnetite mineralised systems. 1 The term "Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve. 2 Refer page 4 for exploration target estimate assumptions. Page 1 of 5

2 He added This is a significant discovery for both Carpentaria and potentially western NSW given the scale of mineralisation and proximity to infrastructure. It clearly warrants further work to define resources. Project Background The Hawsons Iron Project is located 60km southwest of Broken Hill (Figure 1). It occurs within the Neoproterozoic Braemar Iron Formation and is covered by two exploration licences. The southern licence, EL 7208, is 100%-owned by Carpentaria and the northern licence, EL 6979, is a joint venture (JV) with Perilya Broken Hill Limited (ASX: PEM) where Carpentaria can earn a 51% interest initially with the expenditure of $825,000 (Refer to December 2008 ASX Quarterly Report for detail). Three reverse circulation drill holes, comprising a total of 606 metres, testing across strike of an elongate magnetic anomaly (Unit 3 - Figure 4) within the core anomaly were completed. Drilling details including locations are contained in ASX announcement of July 20 th Davis Tube Recovery Results Figure 1 Location of Hawsons Iron Project and infrastructure The Davis Tube Recovery results confirm geological observations of the drill chips that thick magnetite mineralisation has been discovered at the Hawsons Iron Project. Best results from the drilling for intervals carrying no internal waste using a 20 wt% DTR cut are: RC09BRP01: 24.65% DTR with a DTR grade (DTRG) of 70.6% Fe from 194m. RC09BRP02: 21.86% DTR with DTRG of 69.7% Fe from 163m 20.33% DTR with DTRG of 70.1% Fe from 183m Page 2 of 5

3 These highlighted intersections are contained within a wide envelope of magnetite mineralisation (Figure 2 cross section) averaging 18.0 percent recovered DTR concentrate. The summary table below shows the drill intersections with a recovered DTR concentrate greater than or equal to 18 percent. Drill Hole From (m) To (m) Interval (m) DTR% DTRG Fe% RC09BRP includes RC09BRP (EOH) includes RC09BRP The quality of the recovered concentrate (DTRG) at the standard 38 micron grind used by the laboratory is excellent, with the average for all composites analysed being: %Fe %SiO 2 %Al 2 O 3 %TiO 2 %V %P %S The DTRG indicates the concentrate is composed of a pure iron magnetite with negligible silica and other deleterious elements. Figure 2 Hawsons Iron Project Schematic Cross Section (no vertical exaggeration) Page 3 of 5

4 Exploration Target The magnetic Unit 3 intersected by drilling is one of five parallel units within the Hawsons core anomaly identified in aeromagnetic data (Figure 4). Based on the drilling and modelling of the aeromagnetic data it is interpreted by the Company that magnetic Unit 3 represents an exploration target 1 of: million tonnes at 20-21% DTR with a DTRG of 69-71% Fe million tonnes at 18-19% DTR with a DTRG of 69-71% Fe The exploration targets for magnetic Unit 3 are based on a tabular bedding interpretation and assumptions outlined in the table below. Magnetic strike length (m) True thickness (m) Oxidation base depth (m) Dip (deg) Vertical depth extent (m) DTR concentrate (Wt%) DTR Concentrate Fe% - Grade Specific Gravity g/cc Tonnage Range(Mt) % % % % Additional Hawsons Potential The other four magnetic units within the core Hawsons anomaly have not been tested by drilling and it is clear there is a very large tonnage potential within these units and other large magnetic features identified in the project area (Figure 3). Figure 3 Tilt Filter of Aeromagnetic Data - highlights magnetic units interpreted to be magnetite units 1 The term "Target" should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2004), and therefore the terms have not been used in this context. It is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Mining Reserve. Page 4 of 5

5 ASX ANNOUNCEMENT 26th Aug 2009 Figure 4 Zoom of Tilt over core anomaly showing interpreted magnetite units with drill holes shown in yellow These results are considered to be very encouraging and Carpentaria intends to undertake further exploration of the untested magnetic units within the core anomaly and the other large magnetic features in the project area. Orientation engineering and metallurgical research is underway to investigate the economic opportunities presented by this new discovery. For further information, please contact: NICK SHEARD EXECUTIVE CHAIRMAN Phone: 61(7) info@capex.net.au The information in this report that relates to Exploration Results is based on information compiled by S.N.Sheard, who is a Member of the Australian Institute of Geoscientists and is also a Registered Professional Geoscientist - Mineral Exploration and Geophysics and has had sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporti ng of Exploration Results, Mineral Resources and Ore Reserves'. S.N.Sheard is an employee of Carpentaria and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 5 of 5