EXPLORATION AND BUSINESS DEVELOPMENT 2011 Prairie Downs

Dynasty's flagship iron project is located on Prairie Downs Station, 40km south west of Mt Newman in the Pilbara Western Australia.

To date, a massive 1.4 billion tonne detrital ironstone deposit and a smaller 23 million tonne hematite deposit, have been identified on the tenements.

The following summarises current status of the project and the proposed exploration, evaluation and development strategy for 2011.

Current Status Prairie Downs Iron Project

Progress at Prairie Downs since September 2009, includes:

• Drilling in 2009 identified a massive Spearhole Detrital Iron Deposit and a smaller hematite deposit of Marra Mamba Iron Formation.
• JORC Compliant Inferred Resources of 453 million tonnes and 23 million tonnes repectively were announced in March 2010.
• Drilling during 2010 extended the Spearhole Deposit 4 km to the southeast, and increased both grade and tonnage of the resource.
• JORC Compliant Inferred Resources of 1.4 billion tonnes for the Spearhole Detrital Iron Deposit were announced in October 2010, representing a 300% increase.
• The current Spearhole resource includes 932 million tonnes at 27% Fe.
• Preliminary test-work has continued to indicate that simple, low-cost processing can potentially upgrade this detrital iron to Direct Shipping Ore (‘DSO’).

Interim 2011 Exploration Program

Dynasty has maintained the continuity of its exploration program during the summer months of 2011, gathering information pertinent to the program which will commence in April/May, by way of an Interim Exploration Program which covers:

• Further beneficiation testwork and flow-sheet design.
• Regional exploration to define drill targets for further iron deposits from interpretation of aerial geophysics, flown in 2010, reconnaissance mapping and sampling.
• Base line environmental studies required to support mining lease application and approvals.
• Developing an effective sampling method for massive iron-rich portions of a basal conglomerate to the south of the Spearhole Detrital Iron Deposit.

Pre-feasibility Study

Dynasty has developed a business plan and budgets which include the essential elements of a Pre-feasiblity Study:

• Intensive close-spaced drilling to upgrade resources and define reserves.
• Mine planning and pit optimisation studies.
• Beneficiation testwork, including large bulk samples to further refine the design and costing of the process flow sheet.
• Investigate with input from engineering consultants, the range of infrastructure options and commence negotiations with Government and third parties.
• Commence steps of a mining lease and related approvals.
• Commence negotiations with potential off-take parties to support financing.

A decision to commit to a Pre-feasibility study is expected to be made in mid 2011.

Project Development

Dynasty considers there is scope to develop this massive deposit and also within its vast tenement portfolio in the Prairie Downs area, to discover additional ironstone deposits and additional higher grade hematite deposits . Such additional material will enhance the economics of the Spearhole Detrital Iron Deposit.

The commercial viability of the deposit will be tested by way of a Pre-feasibility Study followed by a Bankable Feasibility Study. The potential development of the Spearhole Detrital Iron deposit is likely to benefit from the following economic advantages:

• Economies of scale (>15 Mtpa operation);
• Low mining costs due to a low to negligible strip (waste to ore) ratio and a free digging, relatively soft, unconsolidated iron deposit; and
• Simple physical processing to achieve marketable grades of iron & silica.
• A range of infrastructure options, including existing infrastructure and new routes/concepts.

Regional Exploration Prairie Downs and Pilbara

Only about 2% of Dynasty’s extensive (~4,000km²) tenements at Prairie Downs have been tested to date.

There is considered to be scope for additional iron deposits and other minerals within Dynasty's vast tenement portfolio at Prairie Downs and its other tenements in the Pilbara. Exploration in 2011 includes an intensive reconnaissance effort on these areas to identify targets and to test their potential to host viable deposits.

A summary of the proposed work programs and the prospectivity of the tenements is summarised in the presentation of 27th October 2010 and the announcements of 16th December 2010 and 27th January 2011.