EXPLORATION TARGET

2D and 3D modelling of geophysical data by independent consultants estimated an initial global Exploration Target at Mayoko-Moussondji Iron Project with a range between 2.3 to 3.9 billion tonnes* of iron mineralisation at an expected grade of 30% to 65% Fe.

The global Exploration Target is the combination of five main prospects over 46km of anomalous strike and is comprised of:

• Potential enriched "hematite cap" iron mineralisation estimated to range between 500 to 900 million tonnes* at a grade of 40% to 65% Fe; and
• Primary magnetite Banded Iron Formation (“BIF”) mineralisation estimated to range between 1.8 to 3.0 billion tonnes* at a grade of 30% to 45% Fe.

DRILLING PROGRAM

During early 2011 Equatorial commenced a 33,000m drilling program at Mayoko-Moussondji using a combination of RC and Diamond drill rigs. Drilling is focused on the Makengui Prospect which is 12km long, up to 2km wide and lies only 500m from the existing, operational bulk haulage railway line.

The drilling program, scheduled for completion in mid-2012, is designed to define the extent and grade of the hematite and magnetite mineralisation at the Makengui Propsect with specific focus on the potential for high grade DSO material.

Initial assays results from the drilling program confirmed the potential for Makengui to host significant high quality DSO and also confirmed the geological model that enriched hematite caps overlay extensive zones of magnetite BIF at Makengui.

* Exploration Target: The estimates of exploration target sizes mentioned above should not be misunderstood or misconstrued as estimates of Mineral Resources. The potential quantity and grade of the exploration targets are conceptual in nature and there has been insufficient exploration to define a Mineral Resource in accordance with the JORC Code (2004) guidelines. Furthermore, it is uncertain if further exploration will result in the determination of a Mineral Resource.