27 th October 2008 EXCELLENT FIRST DRILL RESULTS FROM WELD RANGE Atlas Iron Limited (ASX Code: AGO) is pleased to announce a number of high grade results from the first drilling programme completed at its Weld Range DSO Project in the Midwest region of Western Australia. This first round of drilling was designed to test two parallel mineralised zones along strike from an existing open pit. A total of 14 RC holes were drilled for 1,131 metres to test two parallel lodes over a strike length of 350 metres. Intercepts corresponded well to interpretations based on previous drilling and surface mapping. Mineralisation remains open at depth over the entire strike. Better intercepts include: 58 metres at 65.1% Fe and 0.05% P from 62 metres in WRRC006 56metres at 63.7% Fe and 0.06% P from 18 metres in WRRC004 51 metres at 66.3% Fe and 0.03% P from 52 metres to end of hole in WRRC011 We are very pleased with these results, they are better than we had anticipated and we look forward to the outcome of resource estimation and scoping studies due for conclusion by year end. commented David Flanagan, Atlas Iron s Managing Director. The lodes outcrop discontinuously over a strike length of over 1,000 metres. In drilling completed to date the main lode varies in width between 30 and 50 metres and the hanging wall lodes vary in width between 10 to 15 metres. Some holes ended in mineralisation as a result of difficult drilling conditions. Further drilling will utilise larger drill rigs, with sufficient capacity to achieve target depths. Background Atlas Iron Limited Atlas recently commenced mining at its 100%-owned Pardoo Iron Ore Project in the Pilbara of Western Australia where it is targeting its first shipment in December 2008. Atlas is fully funded with approximately $100 million cash at bank and zero debt as it completes commissioning of Stage One and ramp up to 1Mtpa. Atlas is planning to export 1 million tonnes during its first 12 months of operations at the Pardoo Project, growing to 3 Mtpa for year 2. With additional export tonnages from Abydos, the Company is targeting exports of 6 Mtpa for 2010, growing to 12 Mtpa by 2012. Together with Mount Gould, Weld Range forms part of Atlas 100%-owned Midwest Iron Ore Project. Both deposits are located on granted mining leases with historical iron ore production. The tenements are located within 30km of the planned railway infrastructure being proposed for development as part of the Oakajee Port Development. Consistent with Atlas strategy, the Midwest tenements present a low capital cost mining opportunity with potential for start-up using road trains trucking to facilitate exports through the existing Geraldton Port prior to completion of the new port at Oakajee. The Company is targeting a resource of 30 to 40Mt of iron ore grading 60-66% Fe across the two projects.
For further information please contact David Flanagan, Managing Director Andrew Paterson, Geology Manager Ken Brinsden, Operations Manager Tel (08) 9476 7900 Exploration Results The information in this report that relates to exploration results is based on information compiled by Mr. Mark Gunther who is a member of the Australian Institute of Geoscientists and is an employee of Atlas Iron Limited. Mark Gunther has sufficient experience which is relevant to the style of mineralisation 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 Reporting of Exploration Results. Mark Gunther consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. References to Exploration/Production targets and Potential While the company remains optimistic it will report resources and reserves in the future at its Midwest Projects, any discussion in relation to exploration targets, resource potential, reserves or ore is only conceptual in nature, as there has been insufficient exploration to define a Mineral Resource at the company s Midwest Projects and it is uncertain if further exploration will result in the determination of a Mineral Resource.
Midwest - Project Location Plan
Drill hole location Plan Drill hole section A-B
WELD RANGE RC DRILLING RESULTS East North Az Depth Width SiO2 Al2O3 P LOI Hole ID MGA94 MGA94 Dip (MGA) (m) From to (m) Fe% % % % % WRRC001 567773 7019515-50 330 42 6 12 6 56.03 8.0 7.0 0.08 3.83 20 32 12 64.07 3.4 2.8 0.06 1.71 Includes 28 32 4 66.18 2.4 1.7 0.03 0.91 WRRC002 567833 7019500-50 330 96 42 90 48 62.73 4.5 3.7 0.03 1.57 Includes 70 76 6 65.82 2.6 2.0 0.02 0.84 Includes 82 90 8 65.21 2.8 2.4 0.03 1.21 WRRC003 567879 7019521-50 330 90 56 80 24 65.65 3.0 1.9 0.02 0.79 Includes 62 80 18 66.3 2.7 1.5 0.02 0.61 WRRC004 567795 7019490-50 330 78 18 74 56 63.7 3.3 3.1 0.06 1.87 Includes 38 44 6 66.92 1.7 1.5 0.03 0.76 Includes 52 72 20 66.26 2.0 1.5 0.04 1.23 WRRC005 567888 7019548-50 330 84 24 74 50 64.96 3.4 2.2 0.03 1.26 Includes 24 34 10 66.07 2.3 2.1 0.03 0.92 Includes 46 72 26 65.86 3.2 1.4 0.02 0.99 WRRC006* 567657 7019361-50 330 120 62 120 58 65.12 2.9 2.3 0.05 1.35 Includes 70 86 16 66.28 2.3 1.6 0.05 0.96 Includes 92 120 28 67.26 1.6 1.1 0.03 0.72 WRRC007 567662 7019352-70 150 66 22 36 14 58.92 3.3 2.2 0.13 9.63 WRRC009 567875 7019461-50 330 42 14 38 24 59.27 6.1 5.5 0.07 3.09 WRRC010* 567714 7019391-50 330 114 74 114 40 65.6 2.5 2.0 0.03 1.09 Includes 76 80 4 65.67 2.5 2.1 0.03 1.03 Includes 84 114 30 66.2 2.2 1.7 0.03 0.94 WRRC011* 567804 7019482-60 330 103 52 103 51 66.28 2.4 1.7 0.03 1 Includes 54 103 49 66.43 2.3 1.6 0.03 0.97 WRRC012 567911 7019546-50 330 79 48 68 20 65.65 3.5 1.7 0.02 0.81 Includes 50 68 18 65.83 3.4 1.6 0.02 0.76 WRRC013 567883 7019511-60 330 102 76 92 16 66.53 2.3 1.8 0.03 0.73 Includes 78 92 14 66.89 2.0 1.6 0.02 0.66 WRRC014 567733 7019371-60 330 43 8 38 30 60.52 4.0 3.6 0.09 5.4 includes 14 18 4 66.49 1.6 1.6 0.02 1.73 Note: 2m composite samples, riffle split sampling, 55.0% Fe lower cut, no upper cut, maximum internal waste of 2 m, analysis by X-Ray Fluorescence Spectrometry Method with Loss on Ignition (LOI) determined using Thermo-Gravimetric Analyses. Note: * denotes mineralisation to end of hole.