Cotton & Western Mining Inc. (CWRN)

[Digra Ive]

Update for Iron ore prices. Go up.

MBIO Index 13 January 2011; $174.02/tonne MBIO Index 12/1/11 $173.48/tonne % Change +0.3%/tonne $ Change +$0.54/tonne The MBIO Index today calculated to $174.02/tonne cfr Qingdao on a 62% Fe basis. This is a rise of $0.54/tonne on yesterday as the index continues to push up towards the highs seen in April and May last year. Assessments for 63.5% Indian material stayed flat today at $180-$181/tonne. The weather looks to remain a major issue in iron ore supply for the near future. Tropical cyclone Vince is approaching the northwest coast of Australia and the port facilities there. Whilst wet weather at this time of year is nothing new, fears of a worse than normal rainfall may disrupt supply further. Brazil is also suffering from wet weather and with supply still tight out of India a number of market participants believe that iron ore prices will continue to push up towards new highs.