Quarterly Report 31 March 2008 

Quarterly Report for the Period Ending 31 March 2008  

Positive Scoping Study completed based on a 10Mtpa Iron Ore Project at Marillana.

Total Mineral Resource estimate of 1.1 billion tonnes of iron ore at Marillana

Potential NPV’s ranging from A$876M to A$1,006M and IRR’s of 47-54% for three

alternative development scenarios for a 10 Mtpa Project

Includes 338Mt of Indicated Resources within the North-West Sector

Potential for +550Mt of Final Product grading 57.5-59.5% Fe

Scoping Study excluded this +1billion tonne detrital resource. An expanded Pre-Feasibility

Study encompassing detrital resources to commence during June 2008 Quarter.

Estimated capital costs for 10 Mtpa Project ranging from A$542M to A$755M, depending

on different logistical and infrastructure options

General Manager – Project Development commenced 21 April

Commencement of hydrogeological and environmental field programmes for early start-up

(2 Mtpa Case) and major Project (10 Mtpa Case) requirements

Further RC, Sonic and Caldwell drilling proceeding to extend mineralisation estimate and

further refine metallurgical testwork for design of Beneficiation Plant

Field analyses at Duck Creek (Iron Ore Tenement) to commence in May 2008

Recent trip to China confirmed strong interest in Brockman Resources and Marillana iron

ore Project/Product

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IRON ORE PROJECTS

Marillana Iron Ore Project (E47/1408 – 100% Interest) During the quarter, Brockman has made significant advances at the Marillana Project in the Pilbara region of Western Australia, which have the potential to reposition the Project as a world-class iron ore project. Positive Scoping Study Completed A positive Scoping Study has been completed for the Marillana Project, which indicates a Net Present Value using a 12% discount rate (NPV12%) ranging from A$876 to A$1006 million based on a 10 million tonne per annum (Mtpa) production rate. The Scoping Study assumed a mine life of 11 years, with all operating and capital costs modelled on the basis of mining and processing of the Channel Iron Deposit (CID) Ore delineated at Marillana. Initial production for the 10Mtpa Case study has been assumed from 2011. The Scoping Study excluded the recently announced resource upgrade to 1.1 billion tonnes of Indicated and Inferred Mineral Resources. Capital costs are forecast in the range of A$542 to A$755 million depending on different logistical development and ore transportation options, with the Internal Rate of Return (IRR) ranging from 47% to 54% and capital paybacks ranging from 2-3 years. The Scoping Study has considered a variety of Operating Scenarios ranging from 2-10Mtpa. The Study reviewed three principal options for the development of a 10Mtpa Production Project at Marillana:

Option 1: The utilisation of the BHP Billiton rail system, accompanied by the full funding of a car dumper (unloader)* at Port Hedland;

Option 2A: The utilisation of the Fortescue Metal Group (FMG) rail system, with the full capital cost of a rail spur from Marillana to Cloud Break; and

Option 2B: The utilisation of the FMG rail system, with the rail spur from Marillana to Cloud Break being captured as an Operating (OPEX) cost.

* Note Option 1 has not modelled any “revenue” being generated from other potential end-users

of the car dumper (utilising the +20Mtpa latent capacity in the car dumper). It should be noted that Brockman does not currently have any third party rail or port access agreements in place with BHP Billiton, FMG or any other third party. The economics associated with the three principle options are presented below:

Option

Production Mt/a

Capex (A$M)

Opex (A$/t)

NPV A$M

(12%)

IRR

Production Commencement

Payback Period Years

1 10 714 29.20 1,006 47% 2011 3

2a 10 755 28.90 986 44% 2011 3 2b 10 542 36.70 876 54% 2011 2

Following the positive results from the Scoping Study, Brockman’s Board has given approval to proceed immediately to a Pre-Feasibility Study on the Marillana Project. The Company will commence this Study during the second quarter of 2008 and it will be expanded to incorporate the detrital mineralisation within the Project area. This Study is expected to be completed during 2009.

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A financial analysis of the three principal 10Mtpa development options was conducted utilising price forecasts for iron ore and currency exchange rates provided by CRU Financial Analysis, a leading independent, international commodities forecaster. Capital costs were developed by Engenium, in accordance with their industry experience and association with other major iron ore projects currently being undertaken within the Pilbara district. The capital cost estimates included allowances for a 10Mtpa processing plant (including a 10,000tph train loader and conveyors), associated minesite infrastructure including a 400-person permanent and construction camp, airstrip and power generating capacity, mine pre-strip (approximately $70 million) and ore transport infrastructure including (depending on the scenario) rail loops and sidings, rail spur lines, haul roads and a car dumper (unloader) at Port Hedland. The operating cost estimates represent the total estimated cost from mining to ship loading (including demurrage), inclusive of administration and corporate overheads. A discount rate of 12% has been used in determining the NPV for the Project. The capital cost estimates are in December 2007 dollars and are fully inclusive of indirect costs and a 15% contingency. Capital and operating cost estimates have been escalated in line with various cost indices supplied by CRU Analysis. The Internal Rates of Return (IRR) for the three development options, at a 12% discount rate, range from 47% – 54%, and all have a capital payback of less than three years. Early Start-Up Scenarios (2-5Mtpa Production Rates) In addition to the three 10Mtpa development scenarios, three additional “short-term” start-up operating scenarios of 2-5Mtpa were considered and modelled to capitalise on the potential early development of the Marillana Project and the ability to establish early cash flow and operating performance. These project scenarios were modelled as “standalone” projects with a working life of 3-4 years only; all of these scenarios returned positive NPV’s. The combination of any of the start-up cases with the longer term operating scenarios outlined above is expected to improve the overall NPV of the Marillana Project, in its entirety. Staggered development of the Project will also facilitate better start-up opportunities for the full-scale Project and the early development of effective safety and operating procedures and policies. The 2Mtpa start-up scenario could commence as early as late 2009, subject to obtaining relevant Project Approvals and other critical path criteria. It should be emphasised that the Scoping Study was based solely on mining and processing of direct shipping mineralisation, with the overlying detrital mineralisation not incorporated into the Study. Incorporation of these additional substantial volumes of material in the model has the potential to substantially improve the value and extend the mine life of the Project. Mine stripping ratios would be substantially reduced, particularly for the start-up cases.

Pre-Feasibility Study - Forward Plan Environmental, heritage and cultural surveys/monitoring programs to support a Mining Proposal/Public Environmental Review have already commenced. A programme of hydrogeological investigations commenced during the period, with one potable water bore, one dewatering/process water test bore and six water monitoring bores successfully completed. A programme of test-pumping and ground water modelling to determine the mineralisation and basement aquifers’ hydraulic parameters will be carried out during May.

An Application (5C form) to the Department of Water (DoW) for water abstractions from the Potable bore is currently underway. Desktop environmental studies have been completed over the entire project area and indicated that no priority species have been recorded within the area. Field surveys over the entire tenement area have commenced.

Potential Project Layout A potential overview or Site Plan for the Marillana Iron Ore Project is presented below. The layout was completed as part of the Scoping Study, for design, approvals and costing purposes. The ultimate layout may change as an outcome of the Feasibility Study and/or early start-up Options.  

Figure 1. Conceptual plan showing proposed site layout at Marillana.

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Mineral Resource Upgrade The Company reported a substantial upgrade in the Mineral Resource for the Project following incorporation of the 2007 RC and sonic drilling results. The overall tonnage of haematite mineralisation contained within the Project area has increased to over 1.1 billion tonnes, encompassing both Channel Iron Deposits (CID’s) with grades ranging from 55-60% (55% Fe cut-off) and detrital ore with grades ranging from 40-62% Fe (see Tables 1). A plan showing the extent of the resource envelope is presented as Figure 2 and a cross-section of the resource model is shown as Figure 3. The upgraded Mineral Resource inventory is based on three deposits, the North-West Sector, Rockhole Bore and Abalone and represents a substantial increase on the previously announced Indicated Mineral Resource for the North-West Sector alone of 43.5 million tonnes at 57.6% Fe. Preliminary beneficiation testwork on the detrital mineralisation has demonstrated that the Project has the potential to produce in excess of 550 million tonnes of marketable product grading 57.5 – 59.5% Fe (DSO plus beneficiated ore). The resource estimate includes the previously reported Channel Iron Deposit (CID) mineralisation at the North-West Sector, as well as initial estimates for the CID and detrital mineralisation at the Rockhole Bore and Abalone deposits and the detrital mineralisation at the North-West Sector. Significantly, it includes an Indicated Mineral Resource for the detrital mineralisation at the North-West Sector of 232 million tonnes, which was not previously considered in the mining studies associated with the CID mineralisation. Table 1 Mineral Resource Summary for the Marillana project.

Deposit

Material

Type

Category

Tonnes

(Mt)

Grade (% Fe)

*Tonnes (Mt) after

beneficiation

*Grade (%Fe) after

beneficiation North-West Sector DSO** Indicated 47 57.6 47 57.6 North-West Sector Detrital Indicated 232 43.2 109 59.5 – 59.8 North-West Sector CID Indicated 59 46.4 28 59.5 – 59.8 Subtotal Indicated 338 45.8 184 59.0 – 59.8 Rockhole Bore DSO** Inferred 9 56.6 9 56.6 Rockhole Bore Detrital Inferred 375 43.7 176 59.5 – 59.8 Rockhole Bore CID Inferred 44 45.1 21 59.5 – 59.8 Abalone Detrital Inferred 300 44.5 141 59.5 – 59.8 Abalone CID Inferred 52 47.3 24 59.5 – 59.8 Subtotal Inferred 780 44.4 371 59.4 – 59.8 TOTAL 1118 44.2 555 59.3 – 59.8 * Indicative figures only, based on average results of beneficiation testwork (see ASX release dated 18 January, 2008). ** Calculated within a 55% Fe mineralisation envelope. Other categories are within a 40% Fe mineralisation envelope. The Mineral Resource estimation was prepared by Perth-based Snowden Mining Industry Consultants Pty Ltd (“Snowden”) within various grade envelopes and geological domains. The Mineral Resource estimated is in accordance with the guidelines of the 2004 JORC Code.  

  

  Figure 2 Marillana Iron Ore Project showing drill hole locations and extent of Mineral Resource wireframes.

  Figure 3 Cross-Section AB through the North-west Sector and Rockhole Bore portion of the resource model showing geology and resource wireframes (10 times vertical exaggeration).

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Exploration Update Exploration reverse circulation drilling recommenced in early March and by the end of the quarter a total of 31 holes for 1541m had been completed. Drilling has been concentrated on first pass reconnaissance and step-out drilling at 800m by 200m spacing over the Abalone prospect area. At the time of writing this first pass drilling at Abalone was complete and the rig had been relocated back to Rockhole Bore for infill drilling. No assay results have been received to date from the drilling. The sonic drilling rig is scheduled to arrive on May 7.

Iron Ore Regional Prospects Brockman is pleased to advise that the Company was successful in three tenement application ballots during the period. The successful ballots covered:

the northern part of E45/3144 at Lalla Rookh, within the Abydos region and containing a 6km strike extent of outcropping Iron Formation, and

E47/1845 and E47/1850 at Mt Stuart, both of which contain outcropping CID (channel iron deposits) mineralisation as mapped by GSWA. These tenements are also prospective for buried CID mineralisation.

During and subsequent to the quarter, Brockman has applied for new exploration licences at Duck Creek (five applications), Yandi Creek (two applications), Newman (three applications), Roy Hill (one application), Juna Downs (one application) and Shovelanna South(one application). With the exception of Shovelanna, all of these applications are competing with other applications and will be subject to a ballot to determine priority. Tenement locations are shown in Figure 4 A detailed airomagnetic survey over all of Brockman’s granted iron ore tenements in the Pilbara is scheduled to commence in early May. Initial sampling programmes over the Duck Creek and Lalla Rookh prospect area are scheduled to commence in May this year.

CORPORATE ACTIVITIES During the period, Brockman announced the appointment of an experienced Project Management Executive, Mr Paul Bartlett, to the newly created position of General Manager – Project Development. Mr Bartlett has 33 years experience in engineering, construction and mining operations in the resource sector, and joins Brockman from a senior role with project management, engineering and construction specialists, Calibre Projects Pty Ltd. He has extensive experience in the Western Australian iron ore industry, having played key project management roles for Calibre Projects, JR Engineering and Roche Mining at projects including the West Angelas 25mt/annum expansion project, the Marandoo Upgrade Project, the Yandi Expansion project and the Rio Tinto Brockman No. 2 Plant Upgrade. Mr Bartlett was most recently the General Manager – Engineering Services for Calibre Projects, having previously held a range of senior positions with the Calibre group in Queensland and Western Australia. Prior to joining Calibre, he was a Senior Project Manager for JR Engineering, Project Manager with Roche Mining, Project Manager for CSR – AWP Contractors and Construction Manager for CSR – Construction Materials. Interviews have commenced for the role of Marketing Manager – to assist with the future marketing and sale of the Brockman Ore.

A recent Business trip to China was conducted by the Managing Director – Wayne Richards and accompanying him was the Chief Geologist – Aning Zhang. Meetings and site visits were conducted across several different iron/steel producing Provinces. Discussions were held with various iron and steel producers, iron ore Traders and financiers. Further discussions and negotiations with iron ore end-users and preferential Trading Groups will proceed over the forthcoming quarters. Non-Iron Ore Projects: Preliminary discussions have been held with Palmary Resources regarding the alternatives for maximising value from the Carr Boyd Nickel Sulphide Project, which contains a resource of over 8,500 tonnes of nickel metal and is located only 100km north of Kalgoorlie by road. Palmary acquired their interest in the Joint Venture through their take-over of Consolidated Minerals Limited in late 2007. Brockman is also reviewing options around potential farm-out’s of several of its non-core gold projects located in the Eastern Goldfields of Western Australia. BROCKMAN RESOURCES

Wayne Richards Managing Director

29 April 2008 The information in this report that relates to Mineral Resources is based on information compiled by Mr M Nimmo and Mr A Zhang. Mr M Nimmo, who is a Member of the Australasian Institute of Geoscientists and a full-time employee of Snowden Mining Industry Consultants Pty Ltd produced the Mineral Resource estimate based on the data and geological interpretations provided by Brockman. Mr Nimmo has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that 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 Resource and Ore Reserves. Mr Nimmo consents to the inclusion in this report of the matters based on his information in the form and context that the information appears. Mr A Zhang, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Brockman Resources Ltd provided the geological interpretations and the drillhole data used for the Mineral Resource estimation. Mr Zhang has sufficient experience that is relevant to the style of mineralisation, type of deposit under consideration and to the activity that 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 Resource and Ore Reserves. Mr Zhang consents to the inclusion in this report of the matters based on his information in the form and context that the information appears. The information in this report that relates to mineralisation and exploration results is based on information compiled by Mr Colin Paterson, who is a Member of the Australian Institute of Geoscientists. Mr Paterson is a full time employee of Brockman Resources Ltd and 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 Paterson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Figure 4 Brockman Resources tenements in relation to mapped iron formations within the Pilbara region of Western Australia.