Charter Pacific Corporation Ltd : High Grade BIF Rock Chip Sample Results for Charter Pacific’s Mauritanian Iron Ore Project

29 November, 2012

High Grade BIF Rock Chip Sample Results for Charter Pacific's Mauritanian Iron Ore Project

• DTR tests show concentrate grade up to 70.43% Fe and mass recoveries of up to 56.1%

• High grade Banded Iron Formation (BIF) sampled above 40%Fe

• Field inspection and sampling confirms earlier exploration results and confidence in the exploration target of 4.4Bt***

• A number of direct drill targets have been identified along with suitable trenching targets

• To date mapping, ground magnetics and surface sampling has identified extensive magnetite BIF which has characteristics typical of magnetite iron ore deposits with potential to produce high grade Fe, low impurity, concentrates.

Table 1 Notes:

1. Samples sieved to 75um
2. Results for Mass Recovery >30% are tabled, full results in Table 2
3. DTR performed by ALS (Ireland)

Charter Pacific Corporation Ltd (Charter Pacific) is pleased to announce the latest results of Davis Tube Recovery (DTR)* Tests on surface rock chip samples collected during September and October from the Kaoua El Khadra Iron Ore project (Permit 792) in the West African nation of Mauritania.

Especially pleasing are the samples that returned concentrate recoveries above 50% and a high proportion producing concentrate recoveries above 30%. This gives the Board of Charter Pacific further confidence that a marketable concentrate could potentially be produced from the Kaoua El Khadra Iron Ore project which is in line with our announcement dated 10 September 2012 upgrading the exploration target** for the magnetite-bearing BIF to the range of 2.6Bt to 4.4Bt at 18% Fe to 39% Fe.

*    DTR - Davis Tube Recovery, a standard analytical technique for determining the grade of recoverable magnetic fractions in siliceous iron formations.
**  It should be noted that the potential tonnages and grades outlined by SEMS Exploration for the exploration target within the Kaoua el Khadra permit remain conceptual in nature as there has been insufficient exploration to define a Mineral Resource as defined in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the 2004 JORC Code). Furthermore, investors should be aware that based on the information currently available it remains uncertain whether further exploration will result in the determination of a Mineral Resource.
*** Bt - Billion Tonnes (1,000,000,000).

Summary of DTR Test Results

DTR tests were performed on BIF samples collected prior to and during Charter Pacific's recent field trip to Mauritania in October (see AGM Presentation 9 November 2012) by ALS Ireland. The results for mass recoveries greater than 30% are tabled above.

The results continue to show typical ranges for magnetite iron ore projects with some exceptional results. The BIF concentrates with low silica, alumina, phosphorous and sulphur are all within the typical ranges for magnetite concentrates on comparable projects.

It should be noted that these are surface rock chip samples that have been affected by weathering and oxidation processes which may affect the physical properties of the samples. More consistent properties are expected in "fresh" rock beneath the surface.

Charter Pacific intends to conduct trenching and drilling on the BIF targets as soon as possible.

Charter Pacific's Kaoua El Khadhra iron ore project is developing into a highly prospective iron ore region in Mauritania which has established rail and port infrastructure and plans to expand country production to become a top 10 world producer.

Sample Locations

Figure 1 below shows the overall location of the samples taken in the September/October campaign. The sample sites are overlaid on a landsat image and regional geology to show the sand dunes and structures.

Figure 1 - Kaoua El Khadhra permit 792 showing Central and Eastern BIF clusters and sampling

Figures 2 to 5 below are close up locations of the Central and Eastern BIF clusters showing head grade iron grades (Fe%) and mass recoveries (recovery %).

Figure 2 - Central BIF cluster area showing sampling and head grade Fe

Figure 3 - Central BIF cluster area showing sampling and DTR mass recoveries

Figure 4 - Eastern BIF cluster area showing sampling and head grade Fe

Figure 5 - Eastern BIF cluster area showing sampling and DTR mass recoveries

Figures 2 to 5 Notes:

1. Full results are listed in Table 2
2. Samples located by hand held GPS.
3. Interpreted BIF outlines are in Brown shading

Table 2- Full DTR results for BIF samples

About the Kaoua El Khadra Iron Ore Project

Kaoua El Khadra is a highly prospective magnetite iron ore BIF occurrence on Permit 792 in the West African country of Mauritania. The project covers an area of 960km2 and is located 345km from the port of Nouadhibou.

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by David Selfe, who is a Member of The Australasian Institute of Mining and Metallurgy (AusIMM). David Selfe is a Director of Charter Pacific Corporation Limited. Mr Selfe has sufficient experience which is relevant to the style of mineralisation and type of deposit 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'. Mr Selfe consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.