Coziron to Acquire Three Significant Resource Projects

Coziron Resources Limited

ABN: 91 112 866 869

Level 24, 44 St George's Terrace

Perth Western Australia 6000

PO Box Z5183

Perth WA 6831

Phone: [phone] Facsimile:[phone]

Website: www.coziron.com

The Company Announcements Office
ASX Limited Via E Lodgement 2 January 2012

COZIRON RESOURCES LIMITED ("Company" or "Coziron")

EXECUTES AGREEMENTS TO ACQUIRE THREE MAJOR RESOURCE PROJECTS

HIGHLIGHTS

- Coziron contracts to acquire significant and key tenement interests in the

Hamersley Basin, Midwest region and Earaheedy Basins of Western Australia.

- Tenements are highly prospective for significant iron ore as haematite and/or magnetite, titaniferous vanadiferous magnetite and manganese ore resources. The key Midwest and Pilbara tenements are exceptionally well located in respect of existing and planned infrastructure.

- Plans to fast track exploration and project development to become an integrated supplier of raw materials to steel producers will commence with a search for a suitable CEO to build a team to move the projects through exploration and development.

Coziron Chairman, Mr Adam Sierakowski, said today that:

"It is rare that the opportunity to acquire project footprints of this quality is presented to a company. We believe the suite of projects have enormous exploration potential given the location of the projects are in some cases immediately adjacent to some of the world's largest resource groups and operating mines."

PROJECT ACQUISITION

Coziron is pleased to announce that it has entered into agreements to acquire three separate projects in Western Australia, for a total consideration of 500 million shares at a deemed value of A$15M, together with an ongoing free carried interest for the vendors of 15% through until
conclusion of any Bankable Feasibility Study on each of the three projects. Terms of the Agreements are summarised at Annexure A
The projects are described in greater detail below, but provide Coziron with a significant presence in two of Western Australia's most prolific mineral fields, being the Hamersley Basin of the Pilbara, and the Archaen Gullewa Greenstone Belt of the Midwest region. These two projects are supplemented by a significant holding in the highly prospective but underexplored Earaheedy Basin in the Yilgarn craton 120 km northeast of Wiluna.
The acquisition of the projects will be subject to shareholder approval, which is anticipated to be put to shareholders during February 2012.

Zant hus Resour ces Pt y Lt d ("Za nt hus" )

The Company has entered into an agreement to acquire 100% of Zanthus. Zanthus holds seven contiguous granted exploration tenements and two granted prospecting licenses in the Pilbara's iron producing Hamersley Basin. The tenements are adjacent to the North West Coastal Highway and 120 kilometres southwest of Karratha and the Port of Dampier. Established infrastructure traverses the tenements, including the Robe River Railway and the Dampier-Bunbury gas pipeline. The proposed railway for the Australian Premium Iron (API) Joint Venture is expected to cross through the tenements and continue to the proposed Anketell Port, west of Cape Lambert.
The Archean Hamersley Province of the Pilbara is a major world iron ore province with high grade iron ore mines occurring over an area of 400km by 150 km. Banded iron formation (BIF) is the major source of iron with the sediments of the Hamersley Group containing the bulk of the deposits. Another significant source of iron ore mined in the Pilbara is the Channel Iron Deposit (CID).
The main economic rock units for BIF iron ore in the Hamersley region are the Brockman and Marra Mamba formations. Early stage exploration has mapped abundant outcrop with iron levels greater than 50% in similar stratigraphy to major operating mines.
In 2009 Zanthus commissioned UTS Geophysics to conduct a 25,555km aeromagnetic-radiometric line survey over the tenements, with data compilation and interpretation completed by Southern Geoscience. Both magnetic and radiometric signatures were used to infer lithologies and structures under cover, revealing that Hamersley Group rocks are very likely to exist under shallow cover away from known outcrop.
Brockman and Marra Mamba Formations outcrop over 26 kms and 29 kms of strike respectively with total strike length on the tenements as a result of magnetic imagery estimated at more than 50 kms. No drilling of these units has yet been conducted on the tenements.
CIDs are often found as pods within depressions in ancient palaeochannels and are a cheaply extracted source of high grade iron ore as the resources tend to have low strip ratios, can be dry mined and are conventional direct shipping ore. There are abundant CID operating mines and deposits in proximity to the Zanthus tenements.
Rio Tinto's Mesa A and Mesa J are both operating CID mines with combined annual production of
greater than 30 M tpa whilst undeveloped CID's in proximity to the Zanthus tenements include
Warramboo, Mesa B-F and Mesa H-K, as well as Jewel, Cochrane, Ken's Bore, Cardo Bore East and
Upper Cane.
Publicly listed Red Hill Iron Ore Ltd owns the rights to CID deposits in the western half of one
Zanthus tenement (E08/1685, shown on Figure 2) and have to date identified 71M tonnes of ore at
54.1% Fe. Red Hill have no rights to high grade hematite banded iron formations that may exist on the Zanthus tenements.
Additional CIDs have been mapped in the Eastern section of E08/1685 and potential exists for undiscovered CIDs under shallow cover.
The Leases to be acquired are identified below. Various maps showing the Tenement locations, infrastructure, geology and magnetic are shown in Figures 1 and 2.

Lease	Type	Area	Area Type
E08/1060	Exploration License	4	Blocks
E08/1684	Exploration License	141	Blocks
E08/1685	Exploration License	141	Blocks
E08/1686	Exploration License	148	Blocks
E08/1824	Exploration License	3	Blocks
E08/1825	Exploration License	5	Blocks
E08/1826	Exploration License	24	Blocks
P08/0529	Prospecting License	150.552	Hectares
P08/0530	Prospecting License	100.204	Hectares

Iron ore mining in the Pilbara region currently sees combined production of greater than 400 million tonnes of ore per annum, with numerous operating mines and large scale infrastructure supporting this annual movement. Ongoing demand has continued to drive intense capital investment in the region with several planned and recently completed projects aiming to expand production rates, such as:
- CITIC Pacific Mining is in the final stages of developing the Sino Iron project, 50 kms to the north of the Zanthus tenements. Five billion tonnes of magnetite ore resources have been established. Initial production is expected to be at an annualized 24M tpa, but the Project has the potential to expand to 70M tpa.
- Aquila Resources and American Metals and Coal International formed the Australian Premium Iron Joint Venture (API JV) in 2005 with the goal of developing a series of iron ore mines 10 to 60 kilometres to the south of the Zanthus tenements. The proposed mines are integrated with a planned transport network including a 160 km heavy haul railway and new port at Anketell Point. The API JV plans to export 25M tpa or ore with the first shipment planned for 2014.
- Fortescue Metals intends to connect their proposed central Pilbara railway to the port at
Anketell Point with plans to ship an additional 40 m tpa of ore.
- Robe River Iron associates (majority shareholder Rio Tinto) own and operate the Mesa A and Mesa J mines immediately south of the Zanthus tenements and plan to develop the adjacent Warrnambool deposit.
The examples above demonstrate the substantial ore resources in the region and the significant infrastructure and mining services being established. This will allow any ore resource discovered to be more easily developed with much less capital investment required.

Figure 1 - Regional Infrastructure, Geology and Location Figure 2 - Tenement Map B uddadoo Met als Pty Limit ed ("Buddad oo")

The Company has entered into an agreement to acquire 100% of Buddadoo and Buddadoo has 100% ownership of Exploration licence E59/1350, located 180 kms east of Geraldton and 70 kms from existing railway at either Morawa or Pindar. See Figure 3 below.
The Exploration Licence contains:
1. A layered mafic complex with outcropping magnetite horizons on which:
- Assays of up to 54% Fe have been obtained from massive magnetite outcrop over 8km strike;
- Recent drilling intersected 108m at 32.9% Fe, 0.2% V2O5 and 12.1% TiO2;
- -75 µm magnetic concentrate assayed 62.1% Fe in past metallurgical work.
2. A VMS copper-zinc target with past drill results of:
- 5.5 m @ 3.4% Zn from 99 - 104.5 metres
- 3.15 m @3.8% Cu from 188.7 - 191.85 metres;
- 1 m at 1.75% Cu and 4.4 g/t Au from 237.3 - 238.3 metres
3. Aeromagnetic data covering most of the tenement at 100m line spacing or better.
4. A second copper anomaly occurs in the south of the tenement, associated with a small gossan hosted by a sequence of basalt and dolerite and widespread surface malachite occurrences.
The Buddadoo Complex is a layered mafic intrusion (dominated by coarse gabbro) that has been emplaced into the Archaean Gullewa Greenstone Belt. The complex is approximately 8.6 kms long,
2.4 kms wide and dips steeply to the west. Layers of massive cumulate magnetite range in thickness
from 5cm to 4m and are separated by gabbro and anorthosite containing variable amounts of disseminated magnetite. Vanadium mineralisation is elevated within the magnetite bands also occur in economic concentrations in the adjacent gabbro layers.

Figure 3 - Buddadoo Location Kin gX Pty Lt d ("Kin gX") - The Kingston Project

KingX holds 12 contiguous pending tenements in the southern Earaheedy Basin on the margin of the
Yilgarn craton 120 km northeast of Wiluna, as shown in Figures 4 and 5. The Ground holding totals
965 blocks prospective for sedimentary manganese and iron ore deposits. A full tenement list is shown below. KingX holds 4 granted tenements and eight applications. Historic exploration has been limited with the potential for manganese only recognized over the last few years.
Prospect mapping undertaken by geologists demonstrats that manganese occurs at several stratigraphic levels within the basin over 120 kilometres of strike. High grade assays have been received with grades up to 45.5% manganese. 78 rockchip samples were collected from the Kingsland Prospect on the eastern tenement E38/2213. This prospect has a strike length of
1 kilometre with 25 of the 78 samples returning high grade manganese above 40%. This prospect,
along with several other areas of manganese outcrop, requires low cost geophysical surveys to define drill targets.
It is believed further manganese targets exist under cover at the junction of prospective stratigraphy with large regional structures. An airborne electromagnetic survey would be necessary to delineate target zones at these locations.
The Earaheedy Basin is considered analogous to the Kalahari Manganese field in South Africa as the two basins are of a similar age, coincident with a major episode of manganese deposition in the
Palaeoproterozoic period (approximately 2,000 million years ago). The parallels between the Earaheedy and Kalahari continue with the comparison of hydrothermal events within the basins. High grade manganese deposits within the Kalahari basin are a result of the transport of manganese from primary sediments due to circulating hydrothermal waters into structural taps. A similar pattern has been observed in the Earaheedy basin with hydrothermal fluids responsible for outcropping high grade manganese.
The similarities between the Kalahari and the Earaheedy Basins is important to the Kingston Project as the Kalahari is reported as having greater than 50% of the world's known manganese resources, with grades regularly over 40% and basin wide estimated resource of 360 million tonnes at > 40% Manganese.1
If the analogue is correct and the Earaheedy Basin has the potential to contain an average or greater size deposit, then an exploration target of one or more 50M tonne ore deposits grading 30% Mn is a realistic possibility. The Company advises that this is an exploration target only and the potential quantity and grade is conceptual in nature. There has been insufficient exploration completed to define a mineral resource and it is uncertain if further exploration will result in the determination of
a mineral resource

Lease	Status	Area	Area Type
E38/2213	Granted	70	Blocks
E38/2211	Granted	70	Blocks
E38/2212	Application	70	Blocks
E38/1433	Application	70	Blocks
E38/1434	Granted	69	Blocks
E38/1435	Application	70	Blocks
E38/1436	Application	70	Blocks
E38/1437	Granted	70	Blocks
E38/1622	Application	70	Blocks
E38/1623	Application	70	Blocks
E38/1624	Application	70	Blocks
E38/2573	Application	196	Blocks
	Total Holdings	965	Blocks

1 Tsikos, 2003

Figure 4 - Simplified Geology and Location Figure 5 - Tenement Map

For more further information regarding this announcement please contact Adam Sierakowski on
08 6211 5099.

Competent Persons Statement

The information in this report that relates to mineral resources and exploration results is based on information compiled by David Compston BScHons, PhD, MAIG. David Compston is a Consultant Geologist for the Creasy Group and 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, Mineral Resources and Ore Reserves". David Compston has given his consent to the inclusion in this report of the matters based on the information in the form and context in which it appears.

ANNEXURE A

SUMMARY SHARE SALE AND PURCHASE AGREEMENTS

Coziron has executed three individual Share Sale and Purchase Agreements with Zanthus, Buddadoo and KingX dated 30 December 2011 (the "Agreements"). All three Agreements are virtually identical and contain the following material terms:
1). The Agreements are subject to conditions that must be satisfied or waived within 165 days of the date of the Agreements.
2). It is a condition of the Agreemnents that CZR completes a capital raising for an amount of not less than $10 million at a price of 10c or better.
3). It is a condition of the Agreements that CZR obtains shareholder and regulatory approvals to achieve completion.
4). On or before completion of the Agreements CZR will enter into a Tenement Sale Agreement and Joint Venture Agreement. CZR must execute these documents with Zanthus, Buddadoo and KingX for completion to occur. The terms of these documents have already been agreed by the parties.
5). It is a term of the Joint Venture Agreement that the vendors maintain a 15% interest in the three
Joint Ventures until the completion of any Bankable Feasibility Study.
6). The consideration payable by CZR to the vendors is 500 million shares in Coziron.
7). CZR must until completion of the Agreements meet expenditure requirements on the Vendors tenements at least equal to the annual expenditure requirements of the Mines Department.
The terms above are a summary only and should not be considered a complete list of all the terms and conditions of the Agreements.