30th April, 2012

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QUARTERLY ACTIVITIES REPORT – MARCH 2012

HIGHLIGHTS

• Increased mine life and capital reduction at Irvine Island.

• Progresses with purchase of Cockatoo Island assets.

• Accepts a funding and joint venture proposal for Cockatoo Island, paving the way for a
$70m investment by Timeone Holdings.

• 100% conversion to Indicated Mineral Resource category for the Isthmus Region on
Irvine Island.

COMMENTS

Tony Schoer, Managing Director, said: “The quarter ended March 2012 has seen significant
development in activities that will add long term value to the Company.”

“The potential purchase of Cockatoo Island, and the subsequent proposal to form a 50/50 joint venture
with Timeone Holdings over this asset, which is subject to shareholder approval, will see Pluton become
a producer in the near term at little cost to the Company. The purchase of Cockatoo Island also adds
significant value to the Irvine project eliminating the need to duplicate certain infrastructure. We expect
to finalise all necessary agreements to complete the purchase and subsequent formation of the joint
venture in this current quarter.”

“We continue to advance the Irvine project. During the quarter we have completed further collection of
information requested by the EPA for submittal in our Public Environmental Review (PER), as well as
conducted further metallurgical testing of a 3mm grind product to finalise the completion of the process
flow sheet for the pre‐concentrator. Once this work has been completed we will commence the
Definitive Feasibility Study (DFS).”

“After a frustrating period for both the Company and our strategic partner, Timeone Holdings, Timeone
were able to replace an investor with Shanghai based mining and trading company, SS&T Group. With a
proposed financing package of $70 million, Pluton is well placed to advance both projects to their next
stage of evaluation and development.”
 IRVINE ISLAND
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Environmental

The focus of attention during the quarter was centred on the collection of further data required by the
EPA for submittal in the Public Environmental Approval (PER) document. The EPA requested one further
wet season flora and fauna survey to replace a survey conducted during what they consider to have
been an abnormal wet season. This survey was conducted in April with results expected in June.

Work is progressing on finalisation of the PER.

Exploration

During the quarter, diamond drilling continued at Hardstaff Peninsula with one rig operating on a 24/7
double shift cycle until the end of January 2012 when the drill rig, ancillary equipment and personnel
were demobilised from site. A reduced Pluton workforce is being maintained on the Island to complete
approved exploration and environmental work activities.

Exploration activities completed at the Hardstaff Peninsula is summarised below:

Exploration ‐ Hardstaff Peninsula

Drilling during the period has been completed for resource definition, geotechnical and environmental
purposes at the Hardstaff Peninsula.

Two diamond drill holes 11DDH133 (EOH 203.5m; site Y2‐21) and 12DDH134 (EOH 131.3m; site Y2‐4)
were drilled as a combined resource definition/geotechnical holes in the northern area of the Hardstaff
Peninsula.

Significant final assay results have been received from diamond drill holes 11DDH133 and 12DDH134
and are summarised in Tables 1 and 2 below.

Yampi Member

Table 1: Composite drill hole results through the Yampi Member, Hardstaff Peninsula, Irvine Island, Western Australia
(E04/1172).

Interval From True Thickness

Hole (m) (m) To (m) (m) Fe% Si02% Al203% P% S% LOI
11DDH133 5.6 147.4 153.0 5 40.2 18.6 3.12 0.05 0.007 1.10

Interval From True Thickness

Hole (m) (m) To (m) (m) Fe% Si02% Al203% P% S% LOI
12DDH134 7.6 61.7 69.3 7 53.2 21.5 0.19 0.02 0.02 1.77

19.8 75.0 94.8 18 44.5 34.6 0.42 0.02 0.02 0.75

incl 9.5 80.5 90.0 9 59.0 24.6 0.37 0.016 0.03 0.66

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 Wonganin Sandstone

Table 2: Composite drill hole results through the Wonganin Sandstone, Hardstaff Peninsula, Irvine Island, Western Australia
(E04/1172).
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Interval From True Thickness

Hole (m) (m) To (m) (m) Fe% Si02% Al203% P% S% LOI
11DDH133 7.6 65.8 73.4 7 27.4 57.7 1.71 0.02 0.004 0.86

5.0 76.0 81.0 5 23.6 61.4 3.09 0.03 0.003 1.81

10.6 84.0 94.6 10 24.3 55.0 2.62 0.02 0.003 0.97

11.3 108.0 119.3 11 26.8 51.1 6.30 0.04 0.005 1.33

Interval From True Thickness

Hole (m) (m) To (m) (m) Fe% Si02% Al203% P% S% LOI
12DDH134 11.8 16.0 27.8 11 31.0 44.7 6.66 0.03 0.02 1.27

Notes for Tables 1 and 2:

Drill hole 11DDH133 completed as an angled drill hole. Hole dip‐75°, bearing 005°.End of hole depth was 203.5m.
Drill hole 12DDH134 completed as an angled drill hole. Hole dip‐75°, bearing 005°.End of hole depth was 131.3m.
The true thickness of significant intervals of iron mineralisation has been rounded to the nearest metre.

To date, fifty‐four diamond drill holes for a total advance of approximately 10,220 metres have been
completed from the drilling program at the Hardstaff Peninsula.

Table 3 summarises the drilling work program completed during the quarter:

Table 3: Hardstaff Region, Diamond Drilling Completed Quarter 1, 2012.

Hole Number Site Number Metres Drilled Status Purpose Comment

11DDH133 Y2‐21 203.50 Drilled Resource/geotech Assays rec’d
11DDH134 Y2‐4 131.30 Drilled Resource/geotech Assays rec’d
Total 334.80

A drill hole collar plan for the Hardstaff Peninsula is given in Figure 1.

Resource Update

An update to the existing Inferred Mineral Resource estimate for the Isthmus Region was completed
during the quarter.

The updated Mineral Resource estimation includes all final diamond drill hole assays, structural and
geological information collected from the Phase II drilling program, and the results of a number of
technical studies that have been completed at the Isthmus Region. All of the previously reported
Inferred Mineral Resource (ASX announcement June 6th, 2011) for the Yampi Member at the Isthmus
Region has now been converted into higher confidence Indicated Mineral Resources in accordance with
the JORC Code1.
1
Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2004 Edition, prepared by the Joint Ore Reserves Committee of the
Australian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

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 The Yampi Member Indicated Mineral Resource now stands at 18.5 Mt @ 33% total iron, (no cut‐off
grade applied).

An updated resource statement has been prepared and is summarised in Table 4.

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Table 4: Yampi Member Mineral Resource, Isthmus Region, Irvine Island, Western Australia (E04/1172).

COG Tonnes Iron SiO2 Al2O3 S P LOI at

Classification
Fe (%) (Mt) (%) (%) (%) (%) (%) 950° C
Indicated Yampi Member ‐ 18.5 33.0 43.4 4.70 0.04 0.03 1.5

Supporting notes for Table 4.

1 The Mineral Resource is reported in accordance with the JORC Code¹.

2 All resources have been rounded to the nearest 100,000 tonnes.
3 CoG stands for cut‐off grade.
4 No cut‐off grade has been applied to the Yampi Member Indicated Mineral Resource.

Ore Reserves

An updated Ore Reserve estimate for the Hardstaff Peninsula was completed during the quarter.

The Probable Ore Reserve reported in accordance with the JORC Code now stands at 283Mt @ 26%
total iron and 26% weight recovery.

The delineation and updating of the Ore Reserves at the Hardstaff Peninsula continues to be in line with
the Company’s development strategy and represents a further key milestone in the development of the
Project.

The Hardstaff Peninsula Ore Reserve supports the production of an estimated 72 Mt of final concentrate
from the open pit with an estimated Mine Life of twenty‐one (21) years and an ore to waste strip ratio
of 0.4:1.

Capital investment expenditure was revised downward by A$54M to A$646 million (2011$) on the basis
of positive metallurgical test work indicating that a +40% iron pre‐concentrate can be produced at a
coarser 3mm grind size compared to the initial 1mm grind size in the Pre‐Feasibility Study. The estimate
includes owner’s costs, EPCM (Engineering, Procurement, Construction, and Management) and
contingency costs.

IRVINE VALUATION UPDATE

On 22nd February 2012, the Company announced the increase in the mine life of the Irvine project from
11 years to 21 years. The project is now expected to produce 72 million tonnes of final concentrate
averaging 67.5% iron, with potential to increase this amount.

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 In addition, based on studies and metallurgical test work on producing a 3mm grind pre‐concentrate,
expected capital costs were reduced by $54 million to $646 million.

Full details can be found in the ASX announcement on the 22nd February, 2012.
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Larger capital savings are expected once quotes are sourced from fabricating the pre‐concentrator and
associated plant in China. The Company is currently conducting final metallurgical testing and the design
of the 3mm process flow sheet. Once these tasks have been completed it is expected that the DFS will
commence.

COCKATOO ISLAND

Cockatoo Acquisition

The proposed acquisition of the Cockatoo Island assets is expected to be finalised over the next few
weeks.

The draft Sales and Purchase Agreement is currently being finalised. The draft agreement needed
substantial re‐work due to new legislation involving the transfer of “contaminated lands”.

The purchase of Cockatoo requires a number of third party consents. Gaining these consents is well
advanced and is expected to be finalised in time for the execution of the agreement. Regulatory
approval submissions, including FIRB, are currently being prepared.

The Stage 4 mining proposal has been submitted for government approval, which is expected shortly.

Mining of Stage 4 ore is on track for April, 2013.

Cockatoo Joint Venture

On 12th April 2012, Pluton announced that it had accepted an offer of a $70 million financing package to
enter into a 50/50 joint venture with Timeone Holdings over Cockatoo Island. The $70 million includes
the tranche 4 payment of $17.66 million at the previously agreed price of 35.5 cents per share.

Pluton and Timeone are currently finalising the binding term sheet for this proposal. Upon completion
of the term sheet, the drafting of the full joint venture agreement will commence and is expected to be
completed prior to the handover of Cockatoo Island from the present owners.

The $70 million package includes $17.66 million in cash for tranche 4, a $20 million bank guarantee to
use for environmental bonds, and $32.34 million in cash.

Under the proposal Pluton will be free‐carried through the acquisition of Cockatoo, and partially carried
for the development of stage 4 mining.

The full $70 million is being provided to Timeone by SS&T Group, a private Shanghai based mining and
trading company. Under the proposal SS&T will become a major shareholder in Timeone.

Further information on SS&T can be found at www.sstgroup.com.cn

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 As Timeone is a significant shareholder in Pluton the company will require shareholder approval to sell
50% of Cockatoo to Timeone, as well as a further approval to issue the portion of tranche 4 shares that
increases Timeone’s shareholding in Pluton above 19.99%.
For personal use only
The company is currently arranging an Independent Experts Report (IER) to assess the fairness of the
transaction. The IER will be sent to shareholders as an attachment to the Notice of Meeting for an
Extraordinary General Meeting to be held around the end of June, 2012.

Full details of the proposal can be found in the ASX announcement made by the company on the 12th
April, 2012.

FUNDING

At the end of March, Pluton had $0.593 million cash on hand.

The Company received $3 million (tranche 4A) from Timeone on the 12th April under the revised funding
arrangement.

A further $2 million (tranche 4B) is expected on the finalisation of the Cockatoo Island joint venture
term sheet with Timeone. The term sheet is in draft form and is expected to be executed over the
coming days.

The final funding commitment of $12.66 million (tranche 4C) is subject to shareholder approval at an
EGM expected around the end of June.

For further information please contact:

Investors and analysts

Tony Schoer, Managing Director 0411 232 711

Competent Persons Statements

The information in this statement relates to Mineral Resource Estimates, Ore Reserves, Exploration Results and Targets for the Irvine Island
Project and Cockatoo Island is based on information compiled by Mr A Griffith, who is a Member of the Australasian Institute of Mining and
Metallurgy and is a full‐time employee of the Company. Mr A Griffith has sufficient experience which is relevant to the style of mineralisation
and type of deposits 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’

________________________________________________________________________
About Pluton: Pluton Resources Limited is listed on the Australian Stock Exchange (ASX Code “PLV”).
Pluton has assembled a diversified portfolio of interests in tenements in Western Australia and
Tasmania. Tenements in Western Australia are prospective for iron ore, with the 100% owned Irvine
Island iron ore project progressing to the resource definition stage. Tenements located in Tasmania are
prospective for high grade or bulk tonnage copper, gold and silver. Further details on Pluton can be
found at www.plutonresources.com.
________________________________________________________________________

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 For personal use only

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 Figure 1: Drill Hole Collar
C and Drill Site Locatio
ons, Hardstafff Peninsula, Irrvine Island.
For personal use only

Figure 2:
2 Drilll Hole Collar and Drill Site Locations Phase III Area, Irvine Island.

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