ASX and Media Release WARWICK_ A

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					ASX and Media Release
19 June 2009


                             WARWICK, ATLAS IRON AND HANNANS
                        TO CONSOLIDATE EAST PILBARA IRON PROJECTS

KEY POINTS

•        Warwick purchases Jigalong Project iron rights from Hannans Reward Ltd (ASX:HNR)

•        Strategy is to develop Warwick into a major iron company by consolidating iron projects
         located in the East Pilbara region of Western Australia

•        Combined Warwick and Hannans iron projects have direct shipping ore (DSO) exploration
         target of 113 – 221 million tonnes at 56-60% Fe1

•        Atlas Iron Ltd (ASX:AGO) to increase shareholding in Warwick (moving initially to 22.37%);
         Hannans to become the second largest shareholder of Warwick (17.85%)


Pilbara explorer, Warwick Resources Limited (ASX:WRK) is pleased to announce that it has entered into
agreements with Hannans Reward Ltd and Atlas Iron Ltd to purchase the Jigalong Project iron rights in the
East Pilbara region of Western Australia.

This transaction is an important first step in the consolidation process of iron projects located in the East
Pilbara. With the support of major shareholder and iron mining company Atlas Iron, Warwick has the
technical iron expertise (exploration / mining) and financial capacity to develop from a junior iron exploration
company into a major East Pilbara iron company.

The Company’s short term focus will be to prove up the iron potential at Woggaginna and at Jigalong and its
other Pilbara based iron projects. In addition, development options will be investigated with other iron
focused companies with a view of establishing a new iron ore mine in the region.

Commenting on the transactions, Warwick’s Chairman Will Burbury said,

“This is a terrific result for Warwick, Atlas and Hannans and their shareholders. Combining these iron
projects creates a highly strategic land holding which will play an important role in unlocking an infrastructure
solution in the region that can support a new mining operation.”

“This transaction is a credit to the management teams of Hannans, Warwick and Atlas Iron, who share a
vision of pooling iron projects to achieve the critical mass required to create a major East Pilbara iron
company.”

Atlas’ Managing Director, David Flanagan said,

“This is a very exciting opportunity and Atlas wholeheartedly supports the vision of creating a substantial iron
project in the Eastern Pilbara. By increasing our shareholding in Warwick, Atlas’ shareholders gain further
exposure to this unique opportunity.”


1
  Warwick and Hannans have not yet reported Mineral Resources at Woggaginna, Western Creek or Jigalong and any
discussion in relation to targets and Mineral Resources is conceptual in nature. There has been insufficient exploration to define
a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource.
                                                        2

The Combined Iron Projects

The Jigalong tenements are located within 20km of Warwick’s existing tenure (Figures 1 & 2). Drilling at
Jigalong has confirmed the existence of high grade bedded Marra Mamba iron mineralisation from depths of
50 metres grading up to 63% Fe (see Hannans ASX release 10 December 2008).

The overall strike length of the iron mineralisation is approximately 10km and is situated between the
Robertson Range and Davidson Creek iron ore projects owned by Ferraus Limited (ASX:FRS) (Figure 3)
which have combined DSO resources of 166 million tonnes (Ferraus Ltd ASX release 3 June 2009).

Based on drilling already completed and the strike length of the iron mineralisation, coupled with the results
reported from the Marra Mamba Formation on the adjacent Ferraus Ltd tenements, the Company considers
the Jigalong project to have a DSO exploration target of between 50 and 100 million tonnes grading between
57 and 59% Fe.

The Company announced on 17 June 2009 an exploration target at its Woggaginna project of between 50
and 100 million tonnes at grades of 57% to 60% Fe. It follows that the combined projects have a substantial
target of between 113 and 221 million tonnes of DSO, excluding the Company’s Jimblebar Range,
Caramulla South and the CID prospective region.

The status of the combined iron ore projects is set out below:

    Project                   Ownership                  JORC Inferred Resource         Exploration Target
    Woggaginna                100% Warwick               -                              50-100Mt @ 57-60%
    Jigalong                  100% Hannans               -                              50-100Mt @ 57-59%
                    2
    Western Creek             100% Warwick               -                              13-21Mt @ 56-59%
                        3
    Jimblebar Range           100% Warwick               12.6 Mt @ 57.5%                -
                        4
    Caramulla South           100% Warwick               13.8 Mt @ 53.9%                -
    CID Prospective Region    100% Warwick               -                              -
    Total                                                26.4 Mt                        113-221 Mt

Warwick and Hannans have not yet reported Mineral Resources at Woggaginna, Western Creek or Jigalong
and any discussion in relation to targets and Mineral Resources is conceptual in nature. There has been
insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the
determination of a Mineral Resource.

Summary of the Transactions

1. Purchase price of $5,250,000 payable in cash, Warwick shares and Atlas shares.
2. On completion, Hannans shall be paid the following:
       a. $750,000 cash;
       b. $2,100,000 through the issue of 14,000,000 fully paid ordinary shares in Warwick at a deemed issue
           price of 15 cents per share;
       c. Warwick shall procure the issue by Atlas of 700,000 fully paid ordinary shares in Atlas at a deemed
          issue price of $1.65 per share ($1,155,000);
3. Deferred consideration of $1,245,000 through the issue of 8,300,000 fully paid ordinary shares in
   Warwick at a deemed issue price of 15 cents per share:
       a. 3,333,333 shall be issued upon the earlier of 6 months or the reporting of a JORC resource of at
           least 50 Mt at Jigalong; and


2
  See ASX release dated 9 February 2009
3
  See ASX release dated 11 June 2009
4
  See ASX release dated 29 January 2009
                                                                     3

      b. 4,966,667 shall be issued upon the earlier of 12 months or the reporting of a JORC resource of at
          least 100 Mt at Jigalong.
4. Hannans retains other mineral rights at the Jigalong Project.
5. The acquisition is conditional on due diligence by Warwick which is expected to be finalised shortly.
6. Warwick has also entered into a convertible note agreement with Atlas, whereby Warwick has agreed to
   repay the Atlas loan ($1,155,000) through the issue to Atlas of 7,700,000 fully paid shares at a deemed
   issue price of 15 cents per share.
7. The Company intends to hold a general meeting of shareholders prior to 31 July 2009 in relation to the
   transaction. The notice of meeting documentation is being prepared and will be despatched shortly.
8. On completion:
      a. Atlas will increase its shareholding interest to 22.37%, Hannans’ initial shareholding interest will be
         12%.
      b. Hannans shall be invited to nominate a representative to the Board of Warwick.
9. On completion of the deferred consideration shares and assuming no further share issues, Atlas’ interest
   will reduce to 20.88% and Hannans’ shareholding interest will increase to 17.85% (shares escrowed on
   voluntary basis for 18 months from the date of the agreement):
          Shares currently on issue                                                                     94,938,605
          Total consideration shares to Hannans                                                         22,300,000
          Atlas consideration                                                                             7,700,000 new shares
          Total                                                                                        124,938,605


For further information, please telephone Bruce McQuitty or Will Burbury on +61 8 9227 6680 or Warrick
Hazeldine/Ryan McKinlay, Purple Communications on 0417 944 616 / 0408 347 282.


Competent Persons Statement
The information in this report to which this statement is attached that relates to Exploration Results, Mineral Resources or Ore Reserves
is based on information compiled by Mr Bruce McQuitty, who is a Member of the Australian Institute of Geoscientists. Mr McQuitty is a
full-time employee of the Company and has sufficient experience which is relevant to the style of mineralisation and type of deposit
under consideration and to the activity they are 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’. Mr McQuitty consents to the inclusion in
this report of the matters based on his information in the form and context in which it appears.

The Jimblebar Range inferred resource estimate was prepared by Chris De-Vitry who is a full time employee of Quantitative Group
(QG). Chris De-Vitry acts as the competent person for the resource estimate while Bruce McQuitty acts as the competent person in
respect of the geological interpretation and data quality on which the estimate is based. Mr Chris De-Vitry is a member and registered
practicing geologist of the Australian Institute of Geoscientists (AIG). Mr De-Vitry has sufficient experience in the estimation of iron ore
deposits to act as the competent person for this estimate as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral
Resources and Ore Reserves”. Mr De-Vitry consents to the inclusion in this report of the Jimblebar Range resource estimate in the form
and context in which it appears.

The Caramulla South inferred resource estimate was prepared by Bosta Pratama, who is a full time employee of Quantitative Group
(QG). QG are aninternationally recognised, independent consultancy group specialising in resource evaluation. This estimate was
prepared under the supervision of, and with technical review by, Chris De-Vitry who is a full time employee of QG. Chris De-Vitry acts as
the competent person for the resource estimate while Bruce McQuitty acts as the competent person in respect of the geological
interpretation and data quality on which the estimate is based. Mr Chris De-Vitry is a member and registered practicing geologist of the
Australian Institute of Geoscientists (AIG). Mr De-Vitry has sufficient experience in the estimation of iron ore deposits to act as the
competent person for this estimate as defined in the 2004 Edition of the “Australian Code for Reporting of Mineral Resources and Ore
Reserves”. Mr De-Vitry consents to the inclusion in this report of the Caramulla South resource estimate in the form and context in
which it appears.

Forward Looking and Exploration Target Statements
Some statements in this announcement regarding future events are forward-looking statements. They involve risk and uncertainties that
could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements
concerning the Company’s exploration programme, outlook, target sizes, resource and mineralised material estimates. They include
statements preceded by words such as “potential”, “target”, “scheduled”, “planned”, “estimate”, “possible”, “future”, “prospective” and
similar expressions. The terms “Direct Shipping Ore (DSO)”, “Target” and “Exploration Target”, where used in this announcement,
should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code
(2004), and therefore the terms have not been used in this context. Exploration Targets are conceptual in nature and it is uncertain if
further exploration or feasibility study will result in the determination of a Mineral Resource or Reserve.
                                                      4

Background

Warwick Resources Ltd

Warwick Resources Ltd (ASX:WRK) is an emerging iron ore explorer with a strong asset portfolio near
Newman in the Pilbara region of Western Australia which is host to world class iron ore mines. The
Company’s projects have a combined area of 3,000km². Since listing on ASX in February 2007, the
Company has rapidly identified significant iron ore targets on its existing tenure and has recently acquired
further iron ore prospective ground. Through its relationship with Peak Drilling, the company has access to
drill rigs to aggressively explore its projects. Pilbara iron ore producer Atlas Iron Ltd is Warwick’s largest
shareholder with a 19.37% stake.

Hannans Reward Ltd

Hannans Reward Ltd (ASX:WRK) has developed a suite of prospective exploration projects within Australia
covering iron, manganese, nickel and gold. Its shareholders are exposed to share price appreciation through
exploration success at the following projects:

    •   Forrestania - nickel project 7km north of Western Area’s Flying Fox nickel mine
    •   Jigalong - iron, manganese & base metals located 150km east of Newman, WA
    •   Queen Victoria Rocks - joint venture with Companhia Vale do Rio Doce (Vale), WA
    •   Lake Johnston - located 25km south east of Norilsk’s Maggie Hays nickel mine
    •   Sunday - joint venture with Australian Mineral Fields Ltd, 10kms east of Leonora, WA

Atlas Iron Limited

Atlas Iron Ltd (ASX:AGO) is mining at its 100%-owned Pardoo Iron Ore Project, located 75 kilometres by
road from Port Hedland, in the Pilbara region of Western Australia and completed its first shipment of Pardoo
Direct Shipping Ore in early December 2008. Atlas is planning to export 1 million tonnes during its first 12
months of Pardoo operations and together with Wodgina and Abydos the company is targeting exports at an
annualised rate of 6 Mtpa in 2010, growing to 12 Mtpa with production from Mt Webber by 2012.
5
Figure 1 Tenement Location Map
Figure 2 Location of Mijimiji iron prospect within the Jigalong Project

				
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