GRANGE RESOURCES LIMITED. — AGM Information 2008

Nov 27, 2008

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CHAIRMAN’S ADDRESS ANNUAL GENERAL MEETING 28 NOVEMBER 2008

28 November 2008

2007/08 has been a very important and busy year for Grange Resources Limited. We have seen a number of significant achievements and changes.

In September 2007 the company successfully negotiated with Rio Tinto Limited to purchase the Exploration Licence that surrounds our Mining Leases at the Southdown Magnetite project near Albany, providing significant reserve expansion potential for the project.

In October and November 2007 we saw Doug Stewart and David Macoboy, two seasoned resource professionals, join the Board.

In March of this year the company appointed a new Managing Director, Mr Russell Clark, following Mr Geoff Wedlock’s completion of his contract.

We have focussed the company on its magnetite ventures, divesting or farming out non-core tenements and committing capital to the Bukit Ibam project in Malaysia, of which we own a 51% share and which will come into production early in the new year.

Environmental approvals for the Southdown project are now well advanced with a recommendation for approval of the mine being issued by the EPA in June 2008. We expect final ministerial approval to be granted in early 2009.

In addition we recently announced that we had successfully negotiated with our join venture partners, Sojitz, for them to buy a 30% share of the exploration licence which Grange purchased from Rio Tinto in 2007, so that they are now our partners for 30% of the total project.

As I address you today, your company is poised to undertake a most substantial transformation from that of an Iron Ore Project developer to an Iron Ore Producer through its merger with Australian Bulk Minerals (ABM).

ABM owns the Savage River iron ore pellet project in Tasmania which currently produces 2.3 million tonnes of iron ore pellets per annum from its integrated magnetite mine and pellet

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processing plant. Savage River offers Grange immediate exposure to a premium product in the iron ore market, strong cash flows and a mine life that extends to at least 2023.

The Merger will also give Grange access to the extensive knowledge and expertise in production and project development that is present at Savage River and will provide us with an enhanced financial platform to accelerate the development of our flagship project at Southdown, at a time when accessing capital from financial markets is extremely difficult.

On completion of the Merger, Grange will be catapulted into the top ranks of the mid tier resources companies listed on the ASX. Existing shareholders of Grange will hold about 23% of the expanded Company on an undiluted basis with the ABM shareholders receiving about 77%.

The ABM shareholders include subsidiaries of Jiangsu Shagang Group Limited which is China’s largest private steel producer and the third largest Chinese steel producer in 2007. Shagang manufactured 22.9Mt of crude steel in 2007 and is the largest Electric Arc Furnace steel producer in China.

Shagang’s ongoing support of Grange via iron ore product offtakes will be a vital element in the development of the Southdown Project. Despite recent iron ore spot price falls, the long term outlook for demand for iron ore from China remains very positive.

There will be a General meeting on the 12[th] December at which shareholders will be asked to vote on the transaction. An explanatory memorandum has been sent to all shareholders to fully explain the transaction. An Independent Expert has determined that the transaction to be fair and reasonable to Grange Shareholders and the Board recommends approval of the transaction to shareholders. The directors will be voting their shares in favour of the transaction.

On behalf of the Board of Directors, I would like to take this opportunity to thank Russell Clark, the management team and all employees and contractors at Grange Resources for their efforts and successes during the past year.

I also want to acknowledge the efforts of one of our Directors, Mr Alex Nutter. Alex will retire from the board today after almost 15 years of loyal service to the company. His expertise has been valuable in bringing the Southdown Project to its current position and I extend my sincere thanks and well wishes to him on behalf of all shareholders.

To our loyal shareholders we extend our gratitude for your continued support. I look forward to the imminent transformation of your Company into a mid-tiered iron ore producer in 2009.

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ANTHONY BOHNENN

Chairman

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