Iron Road : Half Year Report to 31 December 2021

onlyCONTENTS

INTERIM REPORT

FOR THE HALF YEAR ENDED 31 DECEMBER 2021

ABN 51 128 698 108

Dir ctors' Report ...............................................................................................................................	1
Auditor's Independence Declaration .................................................................................................	6
Consolidated Statement of Comprehensive Income .........................................................................	7
useConsolidated Statement of Financial Position ...................................................................................	8
Consolidated Statement of Changes in Equity ..................................................................................	9
personalFor
Consolidated Statement of Cash Flows ..........................................................................................	10
Notes to the Financial Statements ..................................................................................................	11
Directors' Declaration........................................................................................................................	22
Independent Auditor's Review Report to the Members of Iron Road Ltd .........................................	23

GPO Box 1164, Adelaide 5001 South Australia	T [phone]
[e-mail]	ironroadlimited.com.au	ABN: 51 128 698 108

DIRECTORS' REPORT

The Directors present the consolidated report of Iron Road Ltd and its controlled entities for the half-year ended 31 December 2021.

Throughout this report, the consolidated entity is referred to as the Group.

Directors

The following persons were directors of Iron Road Ltd during the whole of the half-year and up to the date of this report except where indicated:

Peter Cassidy	Non-Executive	Chairman
onlyJerry Ellis AO	Non-Executive	Director
Ian Hume	Non-Executive	Director
Glen Chipman	Executive	Director
use
Review of Operations

Cross reference announcements:

• 2021 AGM Chief Executive Officer's Presentation

CEIP Iron Ore

personalDespite COVID-19 challenges, Central Eyre Iron Project (CEIP) discussions with potential partners continued to progress, including those assisted by South Australia's Department for Trade and Investment (DTI) and Austrade representatives within Australia and Asia.

The CEIP remains well placed as the most advanced greenfield high-grade iron concentrate project in Australia (not yet in construction), hosting Australia's largest magnetite Ore Reserve with a Definitive Feasibility Study (DFS) and

ptimisation studies complete.

Iron Ore Market

Spot benchmark (62% Fe Fines) and high grade (65% Fe Fines) iron ore price indices remain resilient in contrast with market consensus adopting a bearish price forecast stance in 4Q 2021. As of mid-February 2022, the 65% Fe Fines index is trading at a circa 20% premium to the spot 62% Fe Fines index. Sustained strength in high-grade premiums highlight the growing trend for steel mills to source higher quality feedstock combined with comparatively tighter supply-side availability in the seaborne market.

For

Source: Bloomberg, Mysteel

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DIRECTORS' REPORT (continued)

Cape Hardy port

Iron Road, Eyre Peninsula Co-operative Bulk Handling (EPCBH) and Macquarie Capital (Macquarie) are parties to a Joint Development Agreement (JDA) based on advancement of the proposed Cape Hardy Stage I multi-user, multi- commodity (grain-led) port facility.

onlyPortalis (the joint venture) confirmed that in conjunction with a grain trading business of international standing, work commenced on evaluating potential operating models that feature a reduced capital expenditure (for Cape Hardy Stage I). A modified scenario is being assessed that considers strategic grower-owned upcountry grain storage, whilst maintaining export facility scalability and wider port precinct optionality.

Iron Road and Ardent Underground (Ardent) executed a Memorandum of Understanding (MoU) to collaborate on the potential for Ardent to develop and construct their storage technology at Cape Hardy for green hydrogen. Ardent provides a unique hydrogen storage system which offers cost effective, safe, large-scale storage of compressed hydrogen gas in purpose built underground vertical shafts.

useIron Road and Andromeda Metals Ltd (Andromeda, ASX: ADN) executed an MoU to investigate options for Andromeda to establish an export facility at Cape Hardy for processed and unprocessed bulk commodities. The proposed development of a deep-water port at Cape Hardy and the proximity to Andromeda's projects such as those in the Mount Hope region, presents opportunities that support Andromeda's future growth plans.

Cross referenced announcements:

• Iron Road Consolidates Cape Hardy Port Precinct Land Package
• September Quarter Review
• Portalis Grain-led Cape Hardy Stage I Port Update and Iron Road Green Hydrogen Strategy
• December Quarter Review

personalGreen Hydrogen / Green Manufacturing Planning

The SA Government has identified Cape Hardy as one of three hubs for green hydrogen production, liquefaction / c nversion, water desalination, storage, and export (SA Hydrogen Export Prospectus, 2020).

Introductions and various meetings with several interested parties have been facilitated by an advisor connected with both the Australia-Korea Business Council (AKBC) and Australia Japan Business Co-operation Committee (AJBCC). These discussions have centred around CEIP iron concentrate specifications and associated green hydrogen opportunities including "green iron" pellet manufacturing.

The State Government announced the selection of seven short listed projects for converting the state-owned site at Port Bonython, in the Upper Spencer Gulf, into an export hub for green and blue hydrogen. Iron Road is preparing an Expression of Interest (EOI) process targeting Australian and international green hydrogen project proponents for the 100% owned site at Cape Hardy. Experienced industry consultants are assisting the Company in the early phase of this process.

ForCEIP Indigenous Land Use Agreement (ILUA)

F llowing an extended period of collaboration and negotiations through 2021, the parties to the CEIP ILUA executed a Deed of Novation and Variation of the CEIP ILUA. An application has been submitted to the Native Title Registrar to register the amended CEIP ILUA in the Register of Indigenous Land Use Agreements. This will give effect to the agreement pursuant to the Native Title Act 1993 (Cth), which, among other things, includes native title consents for the CEIP, including the proposed Cape Hardy port. Flexibility has now been embedded into the location of the CEIP infrastructure corridor to enable an optimised mine to port export route.

Cross referenced announcements:

• Amended Indigenous Land Use Agreement Endorses Cape Hardy Multi-Commodity Port

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DIRECTORS' REPORT (continued)

Community and stakeholder engagement

The Company continued to engage with the general community and directly with various South Australian state government agencies and the CEIP Taskforce, which includes representatives from Department of Energy and Mines (DEM), as well as independent advisors. The Company also continued engagement with the Department for Trade

onlyand Investment (DTI) and Austrade representatives within Australia and Asia.

Corporate

On 16 December 2021 Iron Road announced a placement of ordinary shares in the Company (Shares) raising up to $5 million for an aggregate subscription of up to $5.175 million. The placement involved three investments; initial investment raised $1.25m for $1.34m worth of IRD shares; the second investment (at Iron Road's discretion) may raise $1.25m for $1.34m worth of IRD shares and; the third investment, raising up to $2.5m may be conducted by mutual consent of the Investor and the Company.

For usepersonal

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15.07

3,681

14.40

1,550

15.55

2,131

Fe

(%)

Metric Tonnes

(Mt)

Resource

Classification

DIRECTORS' REPORT (continued)

Mineral Resources and Reserves

Table 1 - CEIP Ore Reserve Summary - 24Mtpa option onlyProved

Probable

Total

SiO2Al2O3

(%)(%)

53.7812.85

53.5812.64

53.7012.76

The Ore Reserves estimated for CEIP, involving mine planning, is based on and fairly represents information and supporting documentation compiled by Mr Bob McCarthy, a Member of the Association of Professional Engineers and Geoscientists of British Columbia (Canada) and a full time employee of SRK Consulting (North America). Mr McCarthy has sufficient experience relevant to the style of mineralisation and the

useinvolving aspects other than mine planning is based on and fairly represents information and supporting documentation compiled by Mr Larry Ingle, a Member of the Australian Institute of Mining and Metallurgy and a full-time employee of Iron Road Ltd. Mr Ingle has sufficient experience relevant to the style of mineralisation and the type of deposits under consideration and to the activity which he is undertaking to q alify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources

type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr McCarthy consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Ore Reserves estimated for the CEIP

	and Ore Reserves". Mr Ingle consents to the inclusion in the report of the matters based on his information in the form and context in which it
	appears. This report includes results that have previously been released under JORC 2012 by the Company on 2 May 2016. The Company is
personal
	not aware of any new information or data that materially affects the information included in this announcement and all material assumptions
	nd technical parameters underpinning the Ore Reserve continue to apply and have not materially changed.
	Table 2 - CEIP Global Mineral Resource
		Location	Classification	Tonnes	Fe	SiO2	Al2O3	P	LOI
				(Mt)	(%)	(%)	(%)	(%)	(%)
			Measured	2,222	15.69	53.70	12.84	0.08	4.5
	Murphy South/Rob Roy	Indicated	474	15.6	53.7	12.8	0.08	4.5
			Inferred	667	16	53	12	0.08	4.3
	Boo-Loo/Dolphin	Indicated	796	16.0	53.3	12.2	0.07	0.6
			Inferred	351	17	53	12	0.09	0.7
	Total			4,510	16	53	13	0.08	3.5

The Murphy South/Rob Roy Mineral Resource estimate was carried out following the guidelines of the JORC Code (2004) by Iron Road Ltd and peer reviewed by Xstract Mining Consultants. The Murphy South - Boo-Loo/Dolphin oxide and transition Resource estimate was carried out Forfollowing the guidelines of the JORC Code (2004) by Coffey Mining Limited. The Boo-Loo/Dolphin fresh Mineral Resource estimate was carried ut following the guidelines of the JORC Code (2012) by Iron Road Ltd and peer reviewed by AMC Consultants. This report includes results that have previously been released under JORC 2004 and JORC 2012 by the Company on 30 June 2010, 28 May 2013 and 27 February 2015. The C mpany is not aware of any new information or data that materially affects the information included in this announcement and all material

assumptions and technical parameters underpinning the Mineral Resource continue to apply and have not materially changed.

Table 3 - CEIP Indicative Concentrate Specification - 106 micron (p80)*

Iron (Fe)	Silica (SiO2)	Alumina (Al2O3)	Phosphorous (P)
66.7%	3.36%	1.90%	0.009%

* The concentrate specifications given here are based on current data from metallurgical test work, bulk samples and simulation modelling designed specifically to emulate the proposed beneficiation plant.

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