DRILLING RESULTS FOR BEYONDIE IRON PROJECT OUTLINE IMPORTANT LARGE MAGNETITE DEPOSIT

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1 ASX/MEDIA RELEASE 19 February 2009 DRILLING RESULTS FOR BEYONDIE IRON PROJECT OUTLINE IMPORTANT LARGE MAGNETITE DEPOSIT Key Points The Beyondie Magnetite Project is developing to be a world class Western Australian agnetite project with potential for a long life iron ore operation. The drilling progra (21 RC holes totalling 2210 etres) has intersected 3 large adjacent agnetite schist bodies interpreted fro airborne agnetite studies as averaging up to 140 etres each wide over a 45 kiloetre strike length. Drill holes returned agnetite schist intersections of at least 90 etres true thickness with the end of ost of the holes being still in agnetite schist. Analytical results returned true widths of up to 76 etres averaging 30.8%Fe, equivalent to 43% contained agnetite, again open at the end of the hole. Internal waste of 8 etres used. The agnetite-schist features abundant agnetite, a relatively coarse grainsize and very low ipurities of aluinu (Al), titaniu (Ti), phosphorous (P), and sulphur (S). A second drilling progra is scheduled before the end of this Quarter with the ai of defining a large ineable resource of high grade agnetite over a 7 kiloetre segent of the known 45 kiloetres total strike length. A desktop/business plan study is in preparation prior to a pre-scoping study is progressing with engineers assessing aspects of production of agnetite concentrate, ining, etallurgical properties, processing, and transport options. Perth-based exploration copany Eergent Resources Liited (ASX: EMG) is pleased to announce excellent results fro its aiden drilling progra at the copany s flagship Beyondie Iron Project. Eergent s Managing Director, Garry Heing, said For such a recently listed sall-cap copany this is very exciting in light of the potential to advance to large scale production. The scale of the deposit, quality of the agnetite, expected low waste;ore stripping ratio and grainsize characteristics provide a preliinary indication of favorable cost structure for ining and processing. The Copany plans to develop the Beyondie Iron Project into a long life agnetite concentrate ining operation siilar to others developing in the region. Eergent has the right to earn up to an 80% interest at the project in a joint venture with De Grey Mining Liited. Eergent is of the view that there will be strong deand for agnetite in the future due to the diinishing grade of heatite ines in the Pilbara of Western Australia and in Brazil, and corresponding increasing ipurities. The Beyondie Project is located north of the developing Mid West Iron Province of Western Australia, iediately adjacent to the Great Northern Highway and Goldfields Gas Pipeline. Potential shared rail and port infrastructure developents are in progress. Magnetite versus Heatite Magnetite occurs in lower grade deposits than heatite however is beneficiated to a high grade concentrate which is sought after for Direct Reduction (DR) feed in the selting process. It has

2 very low ipurities (iniizes disruption to selting) and DR does not require coking coal. It attracts a preiu price. Figure 1. Location of drill hole traverses on detailed processed agnetics Details of the Drilling E52/1806, ELA52/2215 (EMG earning 80%) Eergent copleted a aiden drilling progra coprising 21 Reverse Circulation (RC) holes totalling 2210 etres during the Deceber 2008 quarter and analytical results have just been received for ost of the drill holes. A series of 3 thick, east striking Banded Iron Foration (BIF) horizons were drill tested over a 12 kiloetre strike length, a sall portion of the total 45 kiloetre strike of the BIF sequence. The 3 BIF horizons are naed Beyondie Magnetite Schist (BMS1, BMS2 and BMS3) and are portrayed on Figure 1. Traverse and collar locations were planned utilising EMG s recently acquired detailed airborne agnetic data. Each drill traverse coprises several holes spaced at 50 to 100 etres. Five hundred and fourteen (514) two etre coposite saples were subitted to Ultra Trace Geoanalytical Laboratories in Perth for a suite including Fe, Al, Si, P, S, Mn, Ti, K, Mg, Na, and LOI. The drilling confired the rearkable thicknesses and consistency of the agnetite schist horizons (BMS). Geophysical odelling, copleted by geophysicists, Resource Potentials Pty Ltd, suggests an average width to each band of up to 140 etres. The extraordinary widths and the horizons oderate dip, of approxiately 30 to 40 o to the north-west, is optial for low strip ratio in an open cut ine.

3 Table 1 below suarises the drill results with details in Table 2 & 3 (attached). The crosssections in figures 1, 2, & 3 below show Drill Traverses 3, 5 & 6 with outcropping BMS and significant intersections. The dip is such that drill holes show true widths of up to; 76 etres averaging 30.8%Fe, (equivalent to 44% contained agnetite). Note; The BMS is still open at the end of the hole. One 8 etre interval of internal waste occurs in the intersection. Table 1 Suary of Drilling Results Hole ID Fro To Width Fe2O3 Fe % SiO2 Al2O3 TiO2 P_XRF S_XRF BDC BDC BDC BDC BDC BDC BDC BDC The grade copares favorably to siilar developing agnetite operations in Western Australia. Intersections in the table include soe internal waste and iproveents in a grade control ining operation ay occur. Cross Sections; Figure 2 Traverse 6 shows partially tested wide BMS1

4 Figure 3 Traverse 5 shows wide BMS2 and partially tested BMS1 Figure 4. Traverse 3 showing thinning to the west of the BMS1 and BMS2 horizons to 50 etres each.

5 Work is continuing with engineers and etallurgists on a desk top Business Plan prior to proceeding with a Pre-scoping study which includes work on the geological odelling of the agnetite horizons (supported by the geophysical odels); etallurgy; process and engineering aspects, transport options, and approvals on environent, governent, and counity issues. For further inforation please contact: Garry Heing Jaes Moses Managing Director Media and Investor Relations Eergent Resources Mob: Mob: E: ghe@westnet.co.au Website: Technical inforation in this report has been prepared under the supervision of Mr Garry Heing, a director of the copany and a eber of the Australasian Institute on Mining and Metallurgy (AusIMM). Mr Heing has sufficient experience which is relevant to the style of ineralisation under consideration and to the activity which he is undertaking to qualify as a Copetent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Heing consents to the inclusion in this report of the Inforation, in the for and context in which it appears.

6 Table 2. Drilling Results Details Hole ID Fro To Width Fe2O3 Fe % SiO2 Al2O3 TiO2 P_XRF S_XRF BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC BDC Note: axiu internal interval of waste is 12 : lower cut of 25% Fe. Table 3. Hole Locations Details HoleID MaxDepth Datu National_East National_North DTM_RL Dip BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA BDC GDA Mag Azi LOI

7 Figure 5. Eergent Resources Liited Project Location Map