19 JANUARY 2015

About

Board of Directors Mr Michael Walters Chairman

Mr Peter Cunningham

Managing Director

Jeremy Sinclair

Non-Executive Director

ASX: SRR

Capital Structure

Shares on issue: 903,315,606

Unlisted options: 62,650,000

Major Shareholders

Atlas Iron: 43.76%

Bryve Resources: 9.69% Raydale Holdings: 4.97% OM Holdings: 4.01%

Contact

Ground Floor, 1205 Hay Street

West Perth WA 6005

PO Box 1259

West Perth WA 6872

Telephone: +61 (08) 9226 4455

Facsimile: +61 (08) 9226 4255

Email: [email protected]
For more information about Shaw River or to join the electronic mailing list visit: www.shawriver.com.au

DECEMBER 2014, QUARTERLY REPORT

 The Companies 100% owned Otjozondu Manganese Project ("Otjo Project") in Namibia made its first shipment of manganese product on 28th December 2014 from the bulk sample mined from Labusrus Pit B.

 Mining of the first bulk sample from Labusrus Pit B was complete during December 2014 and Pit A was blasted in preparation for mining early in the New Year.

 1463 lineal metres of costean exploration during the quarter to complete the current program which was commenced in the September 2014 quarter.

 3439m of RC drilling during the quarter to complete the infill drill program which was commenced during the September 2014 quarter.

 2750m of grade control drilling during the quarter to complete the program which was commenced during the September 2014 quarter.

 One of the Otjo sites existing jig plants is being commissioned to begin beneficiation of material won from the bulk sample mining exercise. Processing of this material is expected to commence in the third week of January 2015 and proceed until the new jig is installed.

 It has been confirmed by the supplier of the new 100tph jig plant that delivery will be delayed from the scheduled mid-January to late February 2015 / early March 2015. Beneficiation will continue with the existing plant until the new facility is commissioned.

 No activities were undertaken on the Ghana assets.

 The Company received notification from the Namibian Competition Commission that they approved the proposed merger between Bryve Resources and Pty Ltd and Shaw River Ltd.

 The Company announced that it had signed a purchase contract with Noble Resources International Pte Ltd for the sale of up to 30,000 tonnes of manganese ore.

 All Resolutions at the General Meeting of the Company held on 11 November 2014, was unanimously passed.

 All Resolutions at the Annual General Meeting of the Company held on 21 November 2014, was unanimously passed.

 The Company drew down $950K under the facility with

Bryve Resources Pty Ltd

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DETAILS

Shaw River Manganese Limited ("Shaw River" or "the Company") (ASX: SRR) is pleased to provide the following update on its activities during the December 2014 quarter.

OTJO PROJECT - NAMIBIA:

1. Project Activities

After completion of the infill RC drilling and grade control drilling at the 3 Labusrus pits, mining of the bulk samples commenced. It is planned to selectively mine approximately 100,000 tonnes of material for testing, from which batches will be crushed, screened and sold into an ore sale contract on the basis it complies with agreed quality specifications. Grades in infill and grade control drilling have been determined by analysis through our onsite laboratory utilising a portable Niton XRF unit.
Labusrus Pit B was drilled, blasted and excavated to 5m depth during the quarter. 5507 BCM (approximately 21,000 tonnes) of manganiferous material was mined, of which approximately
2,000 tonnes was selectively sent to the plant for crushing, screening and sampling. 3100BCM
of eluvium was moved from Pit A and B and 2869 BCM of waste were mined from Pit B.
Labusrus Pit A was drilled and blasted just prior to Christmas and will be excavated at commencement of operations in January 2015.
Labusrus Pit D blast hole drilling commenced and is expected to be blasted in January 2015. The first manganese shipment sailed from the Walvis Bay port on 28 December. The cargo
was containerised and consisted of 1033 wet tonnes as determined by the onsite certificated
weigh bridge. Material was loaded into containers on the back of haulage trucks, hauled to the rail siding in Okahandja, loaded onto rail cars and then transported to the port of Walvis Bay.

2. Exploration Activities - Period October 2014 to December 2014

Exploration programs and grade control programs developed to fast track production and bulk sampling at the project have involved costean trenching, RC infill drilling and grade control drilling. These programs have now been completed as per the summary below. Results from these programs have been used to plan pits for the bulk sample programs and strategically
plan longer term production activities.

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CORPORATE

At the General Meeting of the Company held on 11 November 2014, shareholders unanimously voted in favour of the funding arrangement with Bryve Resources Pty Ltd (Bryve)
The Company was advised on 15 December 2015 by the Namibian Competition Commission that they approved the proposed merger between Bryve Resources and Pty Ltd and Shaw River Ltd without any conditions.
Shareholders also unanimously approved all the resolutions at the Annual General Meeting of the
Company held on 21 November 2014.
On 22 October 2014, the Company announced that it had signed a purchase contract with Noble Resources International Pte Ltd for the sale of up to 30,000 tonnes of manganese ore from its flagship Otjozondu Manganese Project in Namibia. The sales contract is structured for fixed pricing at different product specifications which enables the Company to sell various manganese ore products with more certainty over revenue within a flexible time frame. Under the terms of the agreement the company can, at its election, sell up to 30,000 tonnes to Noble before 31 March
2015.
During the Quarter the Company drew down $950K under the Bryve facility to utilise the funds as working capital to progress its Otjozondu Manganese Project in Namibia.
In December 2014, 30,000,000 unlisted options issued to the previous Managing Director lapsed as per the terms and conditions attached to these options

SHAREHOLDER INFORMATION

At quarter end, Shaw River had 903,315,606 ordinary shares on issue and 62,650,000 unlisted options. The top 20 shareholders held 73.86% of the Company's issued capital.

Peter Cunningham

Managing Director

+61 (0)8 9226 4455

Join the electronic mailing list and find more information about Shaw River at:

www.shawriver.com.au

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About Shaw River

Shaw River is a manganese-focused development and exploration company headquartered in Perth, Western Australia. The Company is targeting a low-cost, scalable start-up development of its flagship 100% owned Otjozondu Manganese Project in Namibia.

Competent Person Statement:

The information in this announcement that relates to Exploration Results was extracted from Shaw River's ASX announcements dated March 11th, April 4th and May 1st, 2014 entitled "First Area Successfully Tested In Blast Hole Sampling Program At Otjozondu Project" and "Three More Areas Successfully Tested In Surface Sampling Program" which are available to view on the Company's website at www.shawriver.com.au. The information in the original ASX announcements that related to Exploration Results is based on information compiled by Mr. Braam Jankowitz of Gemsbok Consulting Services CC. Mr Jankowitz has sufficient experience that is relevant to the

style of mineralization and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Shaw River confirms that it is not aware of any new information or data that materially affects the information included in the or iginal ASX announcements. Shaw River confirms that the form and context in which the Competent Person's findings are presented in this announcement have not been materially modified from the original ASX announcements.

Forward Looking and Exploration Target Statements:

Some statements in this announcement regarding future events are forward-looking statements. They involve risk and uncertainties that could cause actual results to differ from estimated results. Forward-looking statements include, but are not limited to, statements concerning the Company's exploration program, outlook, target sizes, resource and mineralized material estimates. They include statements preceded by words such as "potential", "target", "scheduled", "planned", "estimate", "possible", "future", "prospective" and similar expressions. The terms "Direct Shipping Ore (DSO)", "Target" and "Exploration Target", where used in this announcement, should not be misunderstood or misconstrued as an estimate of Mineral Resources and Reserves as defined by the JORC Code (2012), and therefore the terms have not been used in this context. The potential quantity and grade of Exploration Targets are conceptual in

nature and it is uncertain if further exploration or feasibility study will result in the determination of a Mineral Resource or Reserve.

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Appendix 1 - Shaw River Manganese Limited Tenement Schedule as at

31 December 2014

Shaw River

Equity %

100
100
100
100
100
100

Farrell Well / Western Australia E45/2996 Granted 10(1)

Butre / Ghana

Prospecting Licence
LVB1044/96 Granted 90
Notes:
(1) 100% of Mineral Rights other than Fe

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