GRANGE RESOURCES LIMITED. — AGM Information 2015

May 12, 2015

==> picture [314 x 61] intentionally omitted <==

Australia’s most experienced magnetite producer

==> picture [720 x 143] intentionally omitted <==

Annual General Meeting

13 May 2015

May 2015

Slide 2

• Most EXPERIENCED magnetite producer

• STRONG Safety Culture

• LONG LIFE producer of PREMIUM iron ore pellets

• STRONG balance sheet

==> picture [285 x 217] intentionally omitted <==

• Advanced GROWTH Project

• Established STRONG DIVIDEND pay-out

May 2015

Slide 3

May 2015

Slide 4

Australia’s Most Experienced Magnetite Producer

Focusing on the fundamentals

Searching for an equity partner

Quality assets in Tasmania and Western Australia.

May 2015

Slide 5

Indicator	Dec 2014 AUD’000	Dec 2013 AUD’000	Difference AUD’000	Variance%	Comments
Current Assets	231,233	252,194	-20,961	-8%	Decrease of Cash, Receivables and Inventory
Non-current Assets	397,016	541,933	-144,917	-27%	Impairment and capex increase
Total Assets	628,249	794,127	-165,878	-21%
Current Liabilities	47,180	55,388	-8,208	-15%	Settlement of deferred consideration (currentportion)
Non-current Liabilities	45,868	70,264	-24,396	-35%	Settlement of deferred consideration (non-current portion) and increase of Decommissioning Provision
Total Liabilities	93,048	125,652	-32,604	-26%
Net Assets	535,201	668,475	-133,274	-20%	Impairment and dividends

May 2015

Slide 6

Ordinary Shares on issue	30 Apr 2015	1,157m
Share Price	30 Apr 2015	$0.115
Market Capitalisation	30 Apr 2015	$133m
Cash and Term Deposits	30 Apr 2015	$144m
Loan	30 Apr 2015	-

==> picture [341 x 157] intentionally omitted <==

==> picture [187 x 180] intentionally omitted <==

----- Start of picture text -----

41.13%
46.90%
8.48%
3.49%
----- End of picture text -----

May 2015

Slide 7

==> picture [421 x 302] intentionally omitted <==

----- Start of picture text -----

~67% Fe
Direct Shipping Lump
~63% Fe
Direct Shipping Fines
~57% - ~ 61% Fe
----- End of picture text -----

Higher

Lower

Price

May 2015

Slide 8

May 2015

Slide 9

• Strong focus on safety

• Ore supply and head grade sustained despite major rockfall

==> picture [160 x 141] intentionally omitted <==

• Produced over 2.6 million tonnes of concentrate during 2014

• Sold in excess of 2.5 million tonnes of iron ore products at a fair market value

• Strong focus on cost control continues with C1 unit costs of under $87 for 2014

• Continue to progressively invest in key capital projects

==> picture [160 x 157] intentionally omitted <==

May 2015

Slide 10

Indicator	Unit	2014	2013	Difference	Variance%	Comments
Lost Time Injuries	Case	0	0			No LTIs since June 2010
Iron Ore Sales	Tonne	2,501,996	1,899,286	602,710	31.7%	Higher production and sales
Average Price of Iron Ore Products	AUD/t	118.77	147.99	-29.22	-19.7%	FOB Port Latta; Pellet sales price of AUD119.7/t,down 20% from 2013
Sales Revenue	AUD ‘000	297,155	281,072	16,083	5.7%
Statutory Profit/(Loss) (Consolidated)	AUD ‘000	(110,164)	21,830	-131,994		Including AUD (207.3m) impairment and profit from deferred consideration AUD 20.8m
Operating Profit before Other Income/Expense	AUD ‘000	105,441	24,292	81,149	334%	46% increase in Weight Recovery Better strip ratio Cost reduction initiatives
Cash Operating Costs	AUD/t	86.51	119.94	-33.43	-27.9%

May 2015

Slide 11

May 2015

Slide 12

• The Project continued on reduced expenditure while Grange seeks an equity

• Existing tenure and approvals have been maintained with notable achievements

==> picture [160 x 141] intentionally omitted <==

• Project security has been enhanced by continuing to build land tenure and

• Progressed studies relating to project engineering and further environmental

==> picture [160 x 157] intentionally omitted <==

May 2015

Slide 13

May 2015

Slide 14



Continued Safety Focus

==> picture [160 x 141] intentionally omitted <==

• Ore Supply from NP Stage 3A & blending with SD ore

• Autogenous Mill Shells replaced in 2015 and 2016

==> picture [114 x 110] intentionally omitted <==

• Produce over 2.4 million tonnes of concentrate & pellets during 2015

• Continued investment in Mine Development

==> picture [160 x 157] intentionally omitted <==

• Strong focus on cost control required to achieve C1 unit costs

Further development on condition monitoring and predictive maintenance and only committing

May 2015

Slide 15

	Result 2014	Result 2015 Q1	Result 2014 Q4	Result 2014 Q1
Production
Concentrate (t ‘000)	2,626	710	706	558
Pellet (t ‘000)	2,341	645	595	504
C1 Operational Cost (AUD/ t)	87	71	78	105
Shipping and Sales
Total Iron Ore Product Sales (dmt)	2,501,996	595,674	650,093	362,402
Avg Realised Product Price (US$/t FOB)	107.34	78.73	91.34	138.82
Avg Realised Exchange Rate (AUD:USD)	0.9038	0.7930	0.8508	0.8913
Avg Realised Product Price (A$/t FOB)	118.77	99.28	107.36	155.75

May 2015

Slide 16

North Pit

Centre Pit South

South Deposit   Long Plains

Total resources exceeding 390MT which support operations to beyond 2030

May 2015

Slide 17

==> picture [344 x 179] intentionally omitted <==

Reducing risk associated with a single pit operation

==> picture [344 x 189] intentionally omitted <==

North Pit Production Stripping

North Pit Mine Development

==> picture [332 x 186] intentionally omitted <==

South Deposit Mine Development

May 2015

Slide 18

==> picture [313 x 20] intentionally omitted <==

----- Start of picture text -----

Concentrator Pipeline
----- End of picture text -----

==> picture [215 x 144] intentionally omitted <==

==> picture [217 x 144] intentionally omitted <==

• Autogenous milling and magnetic separation process

• 85km pipeline connecting Savage River to Port Latta

• Progressing the phased upgrade of the original autogenous mills and associated infrastructure

• Low cost mode of transportation using pipeline pumps and gravity fed technologies

==> picture [136 x 16] intentionally omitted <==

----- Start of picture text -----

Pellet Plant & Port
----- End of picture text -----

==> picture [107 x 144] intentionally omitted <==

• Four furnace lines capable of producing ~2.4mtpa of iron ore pellets

• Dedicated port facility providing access to Panamax vessels (80k tonnes)

Strategic Production Priorities

Strategic Production Priorities

• Continuous improvement in product quality (via TQM processes)

• Construction of South Deposit Tailings Storage Facility

• Naturally occurring properties of the slurry protect the pipeline and reduce sustaining capital and maintenance costs

• Develop market driven bulk production output capabilities (concentrate & pellets offering)

• Re-commission fifth furnace (ore availability)

May 2015

Slide 19

 Shagang Commitment

• Secured 3 x 12 month agency agreements

Our customers recognise the value of our premium product

May 2015

Slide 20

==> picture [720 x 204] intentionally omitted <==

May 2015

Slide 21

May 2015

Slide 22

• Drive operating costs down further and sustain access to high

• Continue to invest in process infrastructure

==> picture [198 x 195] intentionally omitted <==

==> picture [157 x 127] intentionally omitted <==

Target growth opportunities to complement existing business

May 2015

Slide 23

 Our fundamentals are solid

 We are taking action:

May 2015

Slide 24

Primary Contact:

Honglin Zhao

May 2015

Slide 25