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Charter Pacific Announces Exploration Target of between 2.4 and 2.6 Billion Tonnes (Bt)

SEMS Exploration ("SEMS"), a leading mining consultancy based in West Africa, has collated publicly available data for the Kaoua el Kahdra permit (Exploration Permit 792), which covers a total area of 960 square kilometres (km²).

Based on the results of this exercise, as well as drilling and gravity surveying in an adjoining third-party held project, SEMS considers that a 300km² portion of Exploration Permit 792 offers potential for an exploration target of between 2.4 and 2.6 billion tonnes (Bt) at an average grade ranging between 28 and 32% Fe.

This view is based on remote sensing data suggesting the presence of shallow westerly dipping structures over the entire permit area, which implies that any iron Fe deposit is likely to be at shallow depths. Approximately 30 - 40 % of the project area is covered by shifting sand dunes with less than 0.2km² of outcrop evident (0.02% of project area). The observed outcrop is considered representative for the western portion of the project area (300km²) and is similar to the banded iron formations ("BIF") outcrops drilled approximately 1.5km to the south in the adjacent Transafrika Resources Ltd tenements.

It should be noted that the potential quantities and grades outlined by SEMS for the exploration target within the Kaoua el Kahdra 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.

Going forward, gravity and magnetic geophysical surveys are planned over this western portion of the project area. A ground magnetic survey is intended to define areas for follow-up gravity surveying. In turn, the gravity survey is likely to identify areas under sand cover that would be recommended for testing by drilling.

Cetal Permit Update

Until recently, Charter Pacific's exploration activities in Mauritania have focused on the Cetal Exploration Permit 791. As outlined in the Company's 19 July 2011 ASX release, SEMS Exploration was engaged to complete a ground magnetic survey with interpretation for the potential of iron mineralisation. SEMS has undertaken modelling of the data from the ground magnetic survey over the Cetal Permit 791 and is planning a drilling program to define and report a JORC Code compliant Mineral Resource for the BIF's defined by previous geophyscial surveying.

Background

The Kaoua El Khadhra tenement (Exploration Permit 792) is the southern project of some 960km², and is 250km northeast of the capital, Nouakchott, by paved road. It is located a short distance from the copper-gold mining operations at Guelb Moghrein and the district capital of Akjoujt.

The Cetal tenement (Exploration Permit 791) permit is the northern project of some 498km², and is located less than 70km south of heavy gauge rail and road infrastructure and a further 180km east, by rail, of the port of Nouadhibou. It lies immediately north and along strike of the eastern most of the two exploration licences of the Lebtheinia iron ore project owned by Sphere Minerals Ltd (ASX:SPH). Sphere has reported a combined JORC Code compliant Mineral Resource of 2.74Bt (2.18Bt Indicated and 560Mt Inferred) (refer Sphere's ASX announcement: 22 October 2009) from its central deposit which is located 30km west of the Company's Cetal project.

Competent Person's Statement

The information in this report as it relates to Exploration Results was prepared by Harry van den Berg, who is a full-time employee of SEMS Exploration Services Ltd with the title of Consultant Geophysicist and Database and GIS Manager. Mr van den Berg has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration. The work has been reviewed by Simon E. Meadows Smith, Bsc Geology, Managing Director of SEMS Exploration Services Ltd who is a member of a 'Recognised Overseas Professional Organisation'(ROPO), the Institute of Materials, Minerals and Mining and who is a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, and has consented to the inclusion of the above information in the form and context in which it appears.

Charter Pacific
Kevin Dart, +61 7 5538 2558
Managing Director
or
Kirkwoods Corporate Relations
Justin Kirkwood, +61 2 9231 5600
Fax: +61 411 251 324