MEDIA / ASX RELEASE 15 January 2014

COMPANY UPDATE

Corporate

In recent months Spitfire Resources Limited has been actively engaged in seeking new investment opportunities. The Board is of the firm belief that the cyclical downturn in the exploration and junior resources sector presents an opportunity to purchase assets on favorable terms and build future value for shareholders. To date a number of investment opportunities have been evaluated and the Company continues to work through the most promising of these. The Company is being assisted in its asset search by a number of partners including global professional service and advisory firms.
Spitfire's Managing Director, John Mackenzie, commented: "In 2013 I articulated my view to shareholders that the cyclical downturn in junior resources needed to be viewed as an opportunity and we continue working diligently towards that end. I'm confident Spitfire will emerge well positioned and I'm keen to progress with project investments, however, any decisions we make will be well calculated with a clear value proposition for existing shareholders and potential future investors in the Company".
Demonstrating long term faith in Spitfire's future prospects, Mr Mackenzie, Chairman James Hamilton and Director Russell Hardwick have all recently increased their shareholding in the Company. Mr Hamilton who is now the Company's second largest shareholder commented: "As a team we have confidence in each other and our ability to overcome the recent capital market challenges that have faced the sector".
Spitfire's cash position was recently strengthened with a $788,396 R&D tax rebate for the 2012 financial year which bolsters the Company's cash balance to $3.46M leaving it well positioned to fund existing operations and seek new opportunities. The Company expects to receive a further R&D tax rebate for the 2013 financial year.

South Woodie Woodie Manganese Project

Review and analysis of exploration work conducted to date at the South Woodie Woodie project has concluded that the scale of exploration required to progress the project efficiently and in a non-dilutionary manner for shareholders requires a strategic funding partner at the project level. Spitfire has spent more than
$11 million at South Woodie Woodie and has been successful as an exploration company by discovering 3 deposits in greenfields exploration territory and achieving a JORC inferred resource to date of 11.3MT @ 15% Mn with metallurgical testing showing potential for product grades of up to 44%Mn from simple beneficiation. Spitfire is currently discussing future funding possibilities with interested parties.

Mr Mackenzie commented: "The current market necessitates that we keep a focus on preserving value in our capital structure for shareholders. Therefore it makes sense for us to seek a strategic partner to commit capital to exploration at South Woodie Woodie as our shareholders will remain leveraged to any future value that is built into the project."
The key components of Spitfire's strategy focus can be summarised as follows:
- Preservation of existing value through prudent cost management
- Actively seeking new investment opportunities
- Evaluation of strategic partnerships at South Woodie Woodie

ENDS

Further enquiries should be directed to:

John Mackenzie

Managing Director

Spitfire Resources Limited

Telephone: (61-8) 6382 3700 www.spitfireresources.com

Competent Person's Statement

The information in this report relating to exploration results and mineral resources is based on information compiled by Mr. Stuart Peterson the Company's Exploration Manager who is a Member of the Australian Institute of Mining and Metallurgy. Mr Peterson has sufficient experience relevant to the style of mineralisation and to the type of activity described 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.'