PlatSearch NL (ASX Code: PTS) is pleased to announce the sale to Eastern Iron Limited (Proposed ASX Code: EFE) of 80% of its interests in 15 tenements prospective for iron ore in the Cobar and Main Line areas. PlatSearch retains a 20% free-carried interest in the tenements until the completion of a favourable feasibility study and then it will contribute or may convert to a 2% NSR royalty interest. PlatSearch expended approximately $300,000 on the project prior to the sale of this interest to Eastern Iron and invested $200,000 in Eastern Iron’s pre-IPO fund raising. PlatSearch has entered into an agreement with Eastern Iron whereby certain commercial and technical services are being provided by PlatSearch. As a result of the above transactions, PlatSearch will hold 21,000,000 ordinary Eastern Iron shares, 5,000,000 Eastern Iron options (exercise price 35 cents and expiry date of 19 December 2012). Eligible PlatSearch Shareholders
(ie those holding a minimum of 8,000 PlatSearch shares at a date to be advised) have priority to subscribe for 10,000,000 Eastern Iron shares ahead of the public in the proposed IPO Prospectus. Eligible PlatSearch shareholders will also be given priority to apply for the balance of the Eastern Iron shares on offer (being 15,000,000), subject to Eastern Iron being able to meet the minimum shareholder spread requirement of the ASX Listing Rules.

Eastern Iron hopes to list on the Australian Securities Exchange (ASX) in the June 2008 quarter. If Eastern Iron is successful in its plan to raise $5 million and list on ASX, it is anticipated that PlatSearch will hold approximately 45% of the shares in Eastern Iron.

PlatSearch is an innovative company that focuses on the identification of new exploration projects and frontiers. New projects are developed to the stage where targets are defined and then the high cost drilling stages are funded through joint venture arrangements with other parties. The Company’s joint venture partners include:- Newcrest, Teck Cominco, Bondi Mining, Red Metal, Marathon Resources, Western Plains Resources, Perilya, WCP Resources, CBH Resources, Chesser Resources, Newport Mining, Crossland Uranium and now Eastern Iron.

Eastern Iron was formed in July 2007 by PlatSearch to explore for bulk tonnage iron ore in infrastructure rich, eastern Australia. Glenn Goodacre, the Chairman of Eastern Iron, has a background as an investor in resources and private equities. His experience encompasses the pre-float stages of mineral explorers through to management roles in established mining and exploration companies in Australia and the Pacific. Eastern Iron’s Managing Director is Peter Buckley who together with PlatSearch Managing Director, Bob Richardson has figured largely in the exploration concepts that led the Company to acquire its initial tenements. Director, Wendy Corbett brings extensive experience in mineral exploration administration with a large network of contacts within government and industry. We consider that the Company has gained a valuable advantage by moving quickly to acquire exploration rights to much of the area prospective for iron in New South Wales.

Eastern Iron has grouped the 15 licences into two projects, the Cobar and Main Line Projects. The Cobar Project is centered on rail infrastructure that currently transports mineral concentrates to the port of Newcastle. The Main Line project is centered on Australia’s main transcontinental rail line, which runs to Port Kembla, home to bulk tonnage coal exports and iron and steel manufacturing. An update on exploration work on these projects is in the attached Eastern Iron report.

Providing Eastern Iron achieves its planned IPO fundraising, substantial work programmes will be completed on these project areas aimed at discovering an economically viable iron ore resource. Furthermore, given the high calibre and experience of Eastern Iron management and the exploration focus of the new company, PlatSearch is confident that the exploration task ahead will be executed in a competent and expeditious manner.

Bob Richardson
Managing Director

Please direct any questions to Bob Richardson on (02) 9906 5220 or 0414 592 080.

To view  Eastern Iron's Exploration Update

please click on the logo below