PRELIMINARY DRILLING RESULTS FROM FIVE NEW DRILL HOLES EXTEND IRON MINERALISATION AT MARIELA

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1 LATIN RESOURCES LIMITED ACN: Suite 2, Level 1, 254 Rokeby Road Subiaco, Western Australia, P F E info@latinresources.com.au 30 January 2013 PRELIMINARY DRILLING RESULTS FROM FIVE NEW DRILL HOLES EXTEND IRON MINERALISATION AT MARIELA Highlights Preliminary results from five new drill holes at Mariela confirm that a magnetic anomaly is associated with magnetite iron mineralisation, which was intersected by each of the five new holes along more than 1 km of strike. Drill hole MA20-06 intersected several Fe mineralised zones including 40.4% Fe from m followed by 34.5%Fe from 538.9m: Hole ID From To Interval Fe (%) MA MA mainly no assays MA MA individual samples between 0.3m and 2.2m thickness were selected for copper analyses and showed values up to 0.50% with a continuous interval of 5.34m assaying 0.34% Cu. Preliminary results are available for 7 holes (out of 11 completed) with 4 holes currently being logged or assayed. Five holes are underway. 6 drill rigs continue to operate on the project. A total of twenty (20) exploration diamond drill holes were planned to test a coincident magnetic-gravity anomaly measuring some 3,000 x 1,000 m (reported 29 Feb 2012). The project is located immediately adjacent to a major road transport route and only 60 km from the mining port of Ilo. Exploration of the Mariela project is being managed by Junefield as per the Earn-In Option Agreement (reported Nov 2011). The agreement allows Junefield to earn up to 70% of the Mariela Project by funding all activities to the completion of a Bankable Feasibility Study or to a total cost of US$35 million. Latin Resources Limited (LRS.ASX) has received updated preliminary assay results of drilling at the Mariela Project from Total Genius Iron Mining SAC (TGIM), Junefield s Peruvian subsidiary, in a letter stating that the results will be subject to verification by a competent third party (SRK geological consultants) in the near future (See full TGIM letter enclosed as Appendix 2). New results included in the letter are summarised in tables in Appendix 1. Page 1

2 The results in Appendix 2 include previously reported results for drill holes MA-02 and MA18-04 and are incomplete, with samples representing only intervals where Fe mineralisation was visually observed. Table 1 compares total meters sampled in each hole with the total depth of the hole. The samples were analysed by SGS laboratories in Lima, Peru, for Total Iron (by volumetry), and a very limited selection of these samples were analysed for Copper (by mixed acid digest, with AAS finish), Sulphur (by LECO), Phosphorus (by colorimetry) and Ferrous Iron Oxide (by volumetry). Table 1 Total meters sampled for each hole against hole depth Hole Number Intervals Sampled (m) Hole Depth (m) % of drill hole sampled MA MA MA MA MA , The most significant Fe mineralisation intersection was in the drill hole MA20-06 of m grading 42.0% total Iron (15% cut-off) from m to m included within a thicker unit of 40.4% Fe from m. Numerous other intersections of lesser thickness were obtained from the incomplete sampling of MA20-06 and from the other four new holes (MA20-03, MA14-06, MA29-06 and MA33-05): Drill holes MA20-03 and MA14-06 intersected multiple Fe mineralised zones from 294.0m to m and from 90.6m to m, respectively, with grades ranging from 16.1% to 48.7% Fe; Drill hole MA29-06 intersected multiple Fe mineralized intervals from m to m, including 27% Fe (from m to m) and 31.4% Fe (from 499.6m to m); Drill hole MA33-05 intersected multiple Fe mineralised zones from to m with grades ranging from 16.2% to 23.6% Fe. (Fore detail see Tables 5 to 9 in Appendix 1). Sporadic samples were analysed for sulphur (40 out of 583), phosphorus (38 out of 583) and copper (67 out of 583) details are shown in Table 2 - with the drill hole MA20-06 also presenting the most significant intersection of copper mineralisation ( % Cu). No samples have been assayed for gold or silver. Table 2 Statistics of assays results for sulphur, phosphorus and copper for new drill holes at Mariela Hole Number Sulphur Phosphorus Copper Number of Samples Concentration Ranges (%) Number of Samples Concentration Ranges (%) Number of Samples Concentration Ranges (%) MA MA < MA < MA < MA < < < TGIM has also provided the Company with drilling status update confirming eleven completed drill holes and five additional holes currently being drilled (Table 3 and Figures 2-4). Page 2

3 Hole Number Table 3 Drill holes completed and underway at the Mariela project. Easting (me PSAD56) Northing (mn PSAD56) R.L. (masl) Azimuth Dip Depth (m) Status MA º Completed MA Completed MA Completed MA º Completed MA Completed MA Completed MA Completed MA , Completed MA Completed MA , Completed MA , Completed MA , Underway MA º Underway MA Underway MA Underway MA Underway Latin is very pleased to continue receiving such encouraging preliminary results from its exploration partner at Mariela and Managing Director, Mr Chris Gale, commented, We are very pleased with these additional preliminary results which have extended the iron mineralisation zone to over one kilometre of strike confirming that Mariela is an important mineralised system with good Iron grades and suggested potential for associated copper mineralisation. About Mariela: The Mariela project comprises 7 contiguous mining concessions covering 5,200 hectares in the Islay Province of Arequipa in Southern Peru. Figure 1 shows the location and proximity to the paved Panamerican Highway that crosses the concession area. Following up a regional aeromagnetic anomaly, exploration geophysical work by Latin successfully delineated a large and intense coincident magnetic and gravity anomaly. The buried anomaly is interpreted to comprise a central magnetite-rich core (defined by a combined magnetic and gravity anomaly) flanked on both sides to east and west by the adjacent gravity anomalies. Drilling was planned to target primarily the magnetic anomaly for Marcona and Pampa del Pongo style massive magnetite mineralisation. The Marcona iron deposit in south-central Peru contains some 1,900 Mt of ore at 55.4% Fe and 0.12% Cu and is the preeminent central Andean iron oxide deposit (Table 9). Continuing exploration at Pampa Del Pongo looks set to displace Marcona from such pre-eminence. In 2008, Cardero Resources with SRK estimated an inferred resource of 863Mt of ore at 41.3% Fe and 0.10% Cu (Table 4). Cardero finalised the sale of the Pampa de Pongo Deposit to Nanjinzhao Group Co., Ltd in January 2010 for a total final price of US$100M. Since taking control of the project, Nanjinzhao has undertaken extensive exploration and is currently finalising development studies. A recent publication in the proceedings of the XVI Peruvian Geology Congress and Society of Economic Geologists Conference (September 2012) cites the Pampa del Pongo Deposit as having an estimated potential mineralisation of 40%Fe, 0.1% Cu and 0.1 g/t Au 1. 1 Rodríguez, O., Calvo, G., Serrano, M., Tornos, F., Rodríguez, R., Velasco, F., Contreras, M., Ochoa, J., Urbina, M., y Sapacayo, M. (2012) El Skarn Magnésico de Pampa Del Pongo: Un Megayacimiento de Hierro en la Cordillera de la Costa del Sur del Peru. XVI Congreso Peruano de Geología y Conferencia SEG Page 3

4 Table 4 Published Resource Estimates for the Marcona and Pampa del Pongo Iron Deposits. Deposit Resource Cut-off grade Tonnes Total Fe (%) Cu (%) Au (g/t) Category (% Total Fe) Marcona 2?? 1,900 Mt 55.4% 0.12% Pampa del Pongo 3 Inferred 15% 863 Mt 41.3% 0.10% 0.07 g/t Pampa del Potential? >3,000 Mt 40% 0.10% 0.1 g/t PongoError! Bookmark defined. not Although covered by Quaternary sands, the Mariela anomaly occupies a similar geological setting to that of the Marcona and Pampa del Pongo deposits being hosted within Jurassic age volcanic arc lithologies, and like other deposits of this style there is also potential for co-incident copper/gold mineralisation, (eg. Mina Justa IOCG deposit, 0.67%Cu indicated/inferred resource located adjacent to the Marcona deposit and the Tia Maria copper gold prospect, 0.39% Cu, 0.16g/t Au, located just 25 km WNW of the Mariela Project ). The updated drill hole results provided by TGIM confirm that the magnetic anomaly at Mariela is associated with iron mineralisation. The intersection in Hole Number MA-02 at Mariela % Fe, previously reported) was confirmed in Hole Number MA % Fe). Those intersections can be compared favourably to the initial intersections of Iron mineralisation reported by Cardero Resources from their Pampa del Pongo deposit in a similar geological environment some 400 km further north west along the Peruvian Coast. TGIM will continue with the drilling program in order to define Mariela s mineral resources. 2 Chen, H; Clarke, A.H. & Kyser, T.H. (2010) The Marcona Magnetite Deposit, Ica, South Central Peru. Economic Geology v 105 pp Note Hawkes, Clarke & Moody (2002) gave this resource as 54.1% fe and 0.10% Cu. (Marcona and Pampa de Pongo: Giant Mesozoic Fe-(cu-Au) Deposits in the Peruvian Coastal Belt. In Porter T.M. (Ed) Hydrothermal Iron Oxide Copper-Gold and related deposits: A Global Perspective, Vol 2 pp SRK Consulting (2008) Pampa de Pongo Iron Project. Preliminary Economic Assessment Technical Report for Cardero Resource Corp dated September 30, Page 4

5 Figure 1 Location of the Mariela Project with respect to major Metallogenic Belts of Southern Peru. Note the Project is located on the Panamerican Highway and 60 km north of the Ilo mineral port. PANAMERICAN HIGHWAY Page 5

6 Figure 2 Drill Holes at Mariela plotted on Residual Gravity Anomaly. Page 6

7 Figure 3 Drill Holes at Mariela plotted on Reduced to Pole Ground Magnetic Anomaly. Page 7

8 Figure 4 Drill Holes at Mariela plotted on topography with superimposition of modelled magnetic and gravity bodies at 425m depth. Page 8

9 For further information please contact: Australia United Kingdom United States Chris Gale Managing Director Latin Resources Limited David Tasker PPR finncap (Broker) Ben Thompson Elizabeth Johnson Allen & Caron Rudy Barrio About Latin Resources Latin Resources Limited is a mineral exploration company focused on creating shareholder wealth through the identification and definition of mineral resources in Latin America, with a specific focus on Peru. The company has a portfolio of projects in Peru and is actively progressing its two main projects: Guadalupito Iron and Heavy Mineral Sands Projects and the Ilo Iron Ore-Copper-Gold Projects. Competent person statement The information in this report that relates to Geological Data and Exploration Results is based on information provided by Total Genius Iron Mining SAC, Junefield s Peruvian subsidiary and operator of the Mariela project, and subsequently compiled by Mr Andrew Bristow, a full time employee of Latin Resources Limited s Peruvian subsidiary. Mr Bristow is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralization and the type of deposit under consideration to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Bristow consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. info@latinresources.com.au Page 9

10 APPENDIX 1 Summary Tables of New results from Mariela. Table 5 Intersections compiled from preliminary results of incomplete sampling of the drill hole MA20-03 at Mariela (15% Total Iron cut-off). Hole number From (m) To (m) Intersection (m) Total Fe (%) MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA eoh 7.05 Fe < 15% Table 6 Intersections compiled from preliminary results of incomplete sampling of the drill hole MA14-06 at Mariela (15% Total Iron cut-off). Hole number From (m) To (m) Intersection (m) Total Fe (%) MA No Assays MA MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA Page 10

11 MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA Page 11

12 MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA eoh Table 7 Intersections compiled from preliminary results of incomplete sampling of the drill hole MA20-06 at Mariela (15% Total Iron cut-off). Hole number From (m) To (m) Intersection (m) Total Fe (%) MA No Assays MA No Assays MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA Page 12

13 MA No Assays MA MA No Assays MA MA No Assays MA20-06 # MA No Assays MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA No Assays MA MA MA No Assays MA MA eoh # at 15% Fe cut-off, intersection includes twelve intervals of internal waste with Fe ranging from 9.9% to 14.9%. Table 8 Intersections compiled from preliminary results of incomplete sampling of the drill hole MA29-06 at Mariela (15% Total Iron cut-off). Hole number From (m) To (m) Intersection (m) Total Fe (%) MA No Assays MA MA No Assays Page 13

14 MA29-06 a MA No Assays MA MA No Assays MA29-06 b MA No Assays MA29-06 c MA eoh 3.00 Fe < 15% a) intersection includes one interval of internal waste: to (2.35m@13.4%Fe), b) intersection includes seven intervals of internal waste with Fe ranging from 8.1% to 14.9%, c) intersection includes three intervals of internal waste with Fe ranging from 12.9% to 13.8%. Table 9 Intersections compiled from preliminary results of incomplete sampling of the drill hole MA33-05 at Mariela (15% Total Iron cut-off). Hole number From (m) To (m) Intersection Total Fe (%) (m) MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA No Assays MA MA MA No Assays MA MA No Assays MA MA , No Assays MA , , MA , , No Assays MA , , No Assays MA , , eoh 0.40 Fe < 15% Page 14

15 APPENDIX 2 Letter from Total Genius Iron Mining SAC Page 15

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