News Release

FOR IMMEDIATE RELEASE
Wednesday July 7, 2010

CHINA STEEL MAJOR PAYS A$102 MILLION IN TO CENTREX AND SOUTH AUSTRALIAN IRON ORE JOINT VENTURE

FIRST STAGE OF A$261 MILLION CONTRACT

HIGHLIGHTS:

• A$51.5m initial payment to Centrex from WISCO received today (A$0.5m deposit already received)
• A$50m paid today by WISCO into 60/40 joint venture exploration account
• Further A$26m unconditional payment from WISCO to Centrex due on first anniversary in July next year
• Further A$25m unconditional payment into joint venture exploration account due on first anniversary
• Up to a potential further A$108m (4 stage payments) by WISCO to Centrex on reaching resource milestones

Emerging iron ore producer, Centrex Metals Limited ("Centrex" ASX code: "CXM" ) is pleased to announce that it has reached financial close on its South Australian Iron Ore Joint Venture, with investment partner, Wuhan Iron & Steel (Group) Co. ("WISCO").

As of today, WISCO has now paid A$102 million into the deal with A$52 million paid directly to Centrex (including an earlier A$0.5 million deposit paid by WISCO in 2008) and A$50 million paid into an unincorporated joint venture for exploration.

WISCO has acquired a 60% interest in the iron ore rights over five of Centrex's exploration licences on South Australia's Eyre Peninsula that make up the joint venture. Centrex will hold the remaining 40% of the 60/40 iron ore joint venture.

In order to maintain its 60% interest, WISCO must make further unconditional payments one year from today with another A$26 million to be paid directly to Centrex, and an additional A$25 million into the exploration for the joint venture.

WISCO is also further obliged to make four staged payments of A$27 million each directly to Centrex if the joint venture reaches Inferred Resource milestones of 1.25, 1.5, 1.75 and 2 billion tonnes of iron ore respectively (a maximum payment of A$108 million).

WISCO and Centrex have established a joint venture management company, Eyre Iron Pty Ltd (owned 60/40) to commence exploration and development studies on the projects immediately.

The joint venture aims to establish two, 5 million tonne per annum magnetite iron ore operations within 4-5 years on the southern Eyre Peninsula. If the joint venture moves to construction on the projects, WISCO has agreed to assist Centrex with arranging financing.

The companies are also committed to a separate 50/50 incorporated joint venture to develop a deep water Cape-vessel capable port on the eastern Eyre Peninsula. Centrex and WISCO signed a Heads of Agreement ("HOA") on the port project on the 27th of April, 2010 and have 90 days to complete and sign the final transaction documents for the deal.

Centrex Chairman, Mr David Klingberg, AO said "The WISCO joint venture is a company making deal for Centrex and is significant news for the economy of the Eyre Peninsula and South Australia. We are very pleased with the relationship that has developed with WISCO during the extensive negotiations and we look forward to a successful enterprise."

Information about WISCO

Wuhan Iron & Steel (Group) Co. ("WISCO") is ranked third in its sector in China, with current annual capacity of 30 million tonnes of steel making and rolling operations. WISCO's operations are predominately located in Wuhan in the Hubei province of central China. WISCO operates an integrated supply chain comprising mining, coking, sintering, pelletising, iron making, steel making and rolling operations. WISCO has a 51% interest in Echeng Steel Company located in Hubei province. WISCO has a 48.3% interest in Kunming Iron and Steel Corporation which is located in Yunnan province. WISCO also has an 80% interest in the Guangxi Iron and Steel Group which currently has approval to construct a new 10 million tonne steel plant in the Guangxi port of Fangchenggang with further plans to expand the facility to 50 million tonnes per annum by 2011.

MEDIA CONTACT:

Ben Hammond
Business Development Manager
Centrex Metals Limited
Ph (08) 8232 0400

David Klingberg AO
Chairman
Centrex Metals Limited
Ph. (08) 8232 0400

Kevin Skinner
Field Public Relations
(08) 8234 9555
0414 822 631