Atlas Iron Limited (ASX: AGO)

DRILLING RESULTS ADD TO WODGINA INFRASTRUCTURE POTENTIAL

Atlas Iron Limited [ASX Code: AGO] is pleased to report on further drilling success at Wodgina, located 100 kilometres South of Port Hedland in the Pilbara of Western Australia.  Atlas owns 100% iron ore rights at Wodgina.

On 17 February 2009 Atlas reached agreement to utilise the Talison owned Wodgina mine infrastructure, including the crushing and screening capacity and camp facilities, initially constructed to support the Wodgina tantalum mine. This agreement allows Atlas to support the commencement of Atlas�� Abydos iron ore project for significantly reduced capital costs, with a much reduced environmental impact.

With this production infrastructure secured, Atlas is actively engaged in drilling extensions to the Anson deposit on the granted mining lease immediately adjacent to the Wodgina mine infrastructure. 

Atlas announced the maiden resource for the Anson deposit on 15 January 2009, just two months after the first hole was drilled at Wodgina. The Anson deposit borders a granted Mining Lease less than three kilometres from the Wodgina production infrastructure.

New intercepts from further drilling targeting the extensions to the Anson deposit include:

46 metres at 58.3% Fe and 0.06% P from surface in WDRC162

38 metres at 59.1% Fe and 0.07% P from surface in WDRC028

26 metres at 60.8% Fe and 0.03% P from 64 metres in WDRC027

26 metres at 59.1% Fe and 0.03% P from 50 metres in WDRC204

28 metres at 57.2% Fe and 0.05% P from surface in WDRC091

34 metres at 57% Fe and 0.10% P from 4 metres in WDRC111

Drilling has concentrated on initial testing of Direct Shipping Ore (DSO) targets in the south and extensions to the Anson deposit in the north on the granted mining lease adjacent to Talison��s Wodgina mine infrastructure.

��These Anson extensions are only 2.6 kilometres from the Wodgina production infrastructure which was recently secured by Atlas for our initial mine production�� commented David Flanagan, Atlas Managing Director.

��The North Pilbara, in close proximity to the world��s largest iron ore port, is clearly under-explored. We very much look forward to drilling more holes, making more discoveries and starting some very good mines in this well endowed region.��

Since November 2008, Atlas has embarked on a drilling campaign totalling approximately 550 RC holes for 28,000 metres to test 15 DSO targets located within the Wodgina north and south areas. Over half the program is now completed with over 350 holes drilled for some 18,000 metres. Assay results have been returned for the first 206 holes.

In the northern area, drilling is testing an initial target of mapped surface enrichment spanning 3.4 kilometres in length. Recent drilling has concentrated on the northwest strike extension to the current Anson resource where near surface iron enrichment has been delineated over a 600 metre strike length and up to 50 metres true thickness. The drilling programme is expected to be completed by the end of March 2009 and Atlas expects to provide a Resource Update on the Anson deposit in the second quarter of 2009.

As shown on the attached Project location plan, Wodgina is well located, less than 5 kilometres from the Great Northern highway and less than10 kilometres from the Fortescue Metals Group and BHPB railways.

Atlas has also received all remaining assays for broad-spaced exploration drilling to the south of Wodgina completed in December and early January. There are several areas where follow-up drilling is required, and a number of prospects at Wodgina South appear likely to have considerable exploration potential.

Background Atlas Iron Limited

Atlas recently commenced mining and shipping ore from its 100%-owned Pardoo Iron Ore Project in the Pilbara of Western Australia.  Atlas is planning to export 1 million tonnes during its first 12 months of operations at the Pardoo Project, growing to 3 Mtpa for year 2.  With additional export tonnages from Abydos, the Company is targeting exports of 6 Mtpa for 2010, growing to 12 Mtpa by 2012.  Atlas is currently on target to ship its third vessel of iron ore in the last week of March 2009.

For further information please contact

David Flanagan, Managing Director         

Andrew Paterson, Geology Manager

Tel (08) 9476 7900

Exploration Results

The information in this report that relates to exploration results is based on information compiled by Mr. Mark Gunther who is a member of the Australian Institute of Geoscientists and is an employee of Atlas Iron Limited. Mark Gunther 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��. Mark Gunther consents to the inclusion in the report of the matters based on his information in the form and context in which it appears

Greater Abydos Project

Atlas has reported a resource of 8.1 million tonnes at 57.5% Fe at Wodgina, which is part of the Greater Abydos exploration project. While the Company intends to do further exploration in the Greater Abydos area and remains optimistic it will report additional resources and reserves in the future, any discussion in relation to targets, resources, reserves or ��ore�� over and above the resource of 8.1 million tonnes at 57.5% Fe is only conceptual in nature. There has been insufficient exploration to define a Mineral Resource over and above the resource of 8.1 million tonnes at 57.5% Fe, and it is uncertain if further exploration will result in the determination of a Mineral Resource over and above the resource of 8.1 million tonnes at 57.5% Fe.

Figure 1: Wodgina drilling completed in 2009

Figure 2: Wodgina drilling cross section

Note: 2m composite samples, cone split sampling, 55.0% Fe lower cut, no upper cut, maximum internal waste of 2 m, analysis by X-Ray Fluorescence Spectrometry Method with Loss on Ignition (LOI) determined using Thermo-Gravimetric Analyses.

Note that a minimum reporting criteria for Anson of 15m at 57% Fe, and 6m at 56% Fe for the other prospects has been used to reduce the volume of results.

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