Dynasty Metals Australia Limited Wins Application Priority In Two Tenements In Strongly Contested Ballot

Sydney - Dynasty Metals Australia Limited (ASX: DMA) are pleased to announce success in winning application priority for an additional two tenements, in a strongly contested ballot involving some major iron ore miners. The tenements are strategically located in the Pilbara region of Western Australia, and take Dynasty's tenement holding to ~4,569km2 (granted and in-application). Being drawn first in the ballot gives Dynasty priority over a number of competing applications by other major players for these areas. Securing priority for these areas in the ballot process advances the Company's strategy to increase its strategic holdings in the highly prospective Pilbara region and build on its exploration success on the Prairie Downs Iron Project. The ballot win follows the placement of shares to the steel maker Hebei XingHua Iron and Steel Co. Ltd, announced to the ASX on 8th October 2010.


E47/2396 (24.3km2)

Figure 1 (see link at the bottom of the release) shows the tenement is located 30km ENE of Tom Price in the Central Pilbara, or 8 km northwest of Hamersley Iron's (RTZ) Marandoo Mine and 5km southeast of their Marandoo West deposit. Both deposits occur in the Marra Mamba formation and initial resources for the Mine were published at 390Mt @ 62% Fe. The tenement is covered by recent sediments which may be covering basement iron formation (Marra Mamba), detrital or channel iron deposits.


E47/2404 (9.5km2)

Figure 1 (see link at the bottom of the release) shows the tenement is located 80km north of Tom Price in the Central Pilbara on the northern part of the Hamersley Basin. The tenement is mapped as being mostly covered by the Mt Sylvia Shale unit. There is an area of Brockman Iron Formation which will be prospective for Bedded Iron Deposits and there is potential for channel iron deposits and detrital iron deposits in the ancient drainage systems. There are known occurrences of high grade iron within the Brockman Formation ~4km to the south of the tenement.

Dynasty will include these tenements in its planned future exploration in the Pilbara Region where it now has 7 tenements covering ~527km2 containing rock units prospective for iron and a range of other metallic minerals.

The Pilbara Region tenements are in addition to Dynasty's ~4,042km2 it holds at Prairie Downs in the Pilbara Region of Western Australia. Prairie Downs is where the vast deposit of detrital iron has been discovered and previously announced.

First stage exploration in the Pilbara Region on these tenements when granted, will involve geological mapping and sampling, ground magnetic and gravity surveys designed to identify drilling targets.

Since announcing the ballot results for E52/2591 on 24 September, Dynasty has examined the available magnetic information on this area, which shows the presence of magnetic targets that may be associated with buried iron deposits, see below in Figure 4C (see link at the bottom of the release).

The figures (see link at the bottom of the release) below show the location of the new tenements, Dynasty's neighbours and the regional geological information.

For the complete Dynasty announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63961-ASX-DMA-509913.pdf


About Dynasty Metals Australia Limited:

Dynasty Metals Australia Ltd (ASX:DMA) is an emerging Australian iron ore exploration company focused on developing its 100%-owned tenements at Prairie Downs in Western Australia's Pilbara region.

In March 2010, Dynasty announced initial JORC-Compliant Inferred Resources of 453 million tonnes of Detrital Channel Iron and 23.3 million tonnes of Marra Mamba Iron Formation.

The 2010 exploration programs are underway and are aimed at further testing and significantly expanding the current resources, as well drilling a large iron-rich basal conglomerate for the first time. The exploration target is more than 1 billion tonnes of iron.

During 2010, Dynasty plans to commence detailed commercial investigations that will cover preliminary mine planning, beneficiation process design, mining and processing costs, transport infrastructure, capital costs, environment and native title clearances, and government approvals. A pre-feasibility study is anticipated to commence in late 2010.



Contact:

Malcolm Carson
Executive Director (Technical)
Dynasty Metals Australia Limited
Tel: +61-2-9229-2704
www.dynastymetals.com.au