GRANGE RESOURCES LIMITED. — AGM Information 2017

May 24, 2017

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AGM Presentation May 2017

• Most EXPERIENCED magnetite producer

• STRONG Safety Culture

• Record Shipping of ~2.7 million tonnes of Iron Ore Products

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• LONG LIFE producer of PREMIUM iron ore pellets

• STRONG balance sheet

• PRESERVED balance sheet strength with disciplined cost control

• Advanced GROWTH Project

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May 2017

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Australia’s Most Experienced Magnetite Producer

Focusing on the fundamentals

Searching for an equity partner

Quality assets in Tasmania and Western Australia.

May 2017

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Indicator	Dec 2016 AUD’000	Dec 2015 AUD’000	Difference AUD’000	Variance%	Comments
Current Assets	232,806	229,522	3,284	1%	↑Cash & Receivables↓Inventory
Non-current Assets	196,150	111,772	84,378	75%	↑ PP&E ↑ Mine Properties & Dev
Total Assets	428,956	341,294	87,662	26%
Current Liabilities	36,185	37,490	-1,305	-3%	↓Current Tax Liability↑Creditors & Borrowings(transfer from non-current)
Non-current Liabilities	60,118	58,267	1,851	3%	↑of Provisions↓Borrowings ( transfer current)
Total Liabilities	96,303	95,757	546	1%
Net Assets	332,653	245,537	87,116	35%	Development in North Pit and construction of SDTSF

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Ordinary Shares on issue	31 Mar 2017	1,157m
Share Price	31 Mar 2017	$0.195
Market Capitalization	31 Mar 2017	$226m
Cash and Term Deposits	31 Dec 2016	$166m
Loan	31 Dec 2016	$9m

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Grange Resources Limited Share Price Performance
6.0 0.25
5.0
0.20
4.0
0.15
3.0
0.10
2.0
0.05
1.0
0.0 0.00
02 Mar 17 06 Mar 17 08 Mar 17 10 Mar 17 14 Mar 17 16 Mar 17 20 Mar 17 22 Mar 17 24 Mar 17 28 Mar 17 30 Mar 17
Volume Share Price
Volume (m)
Share Price ($/share)
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42%
47%
3%
8%
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Slide 6
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May 2017

Developing Fluxed Pellet

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Lower

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~57% - ~ 61% Fe
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~
63% Fe
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Price

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~
67% Fe
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Higher

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Indicator	Unit	Dec 2016	Dec 2015	Difference	Variance%	Comments
Concentrate	Tonne ‘000	2,397	2,606	-209	-8%	↓Concentrate production in line with planned South Deposit Ore delivery
Pellet	Tonne ‘000	2,378	2,528	-150	-6%	↓ Pellet production line balanced with concentrate production
C1 Cash Operating Costs	AUD/t	79.13	77.18	1.95	3%	↑ Reduction in production
Iron Ore Sales	Tonne ‘000	2,750	2,357	393	17%	↗ Improved market conditions
Average Realized Price of Iron Ore Products*	AUD/t	98.06	87.23	10.83	12%	↑ Strengthening iron ore prices ↓ FX rate
Average Realized Exchange Rate	AUD: USD	0.7438	0.7593	-0.0155	-2%	↓ AU Dollar declining
Sales Revenue (Consolidated)	AUD ‘000	276,345	205,562	70,783	34%	↑Increase in iron ore prices ↑Increased salesvolume
Profit before Tax excluding impairment (Consolidated)	AUD ‘000	94,809	72,445	22,364	31%	↑Revenue increased due to price increase and increased sales volume
Profit after Tax (Consolidated)	AUD ‘000	92,903	(277,814)	370,717	133%	◦Nil Impairment in 2016

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Indicator	Unit	Q4 2016 Actual	Q3 2016 Actual	Difference	Variance %	Comments
Concentrate	Tonne ‘000	605	567	38	7%	↑Achieved production target
Pellet	Tonne ‘000	586	632	(46)	(7%)	↓ Maintenance undertaken at Pellet Plant
C1 Cash Operating Costs	AUD/t	80.13	86.78	(6.65)	(8%)	↓ Cost reductions, slowed down movement and deferred maintenance
Iron Ore Sales	Tonne ‘000	667	617	50	8%	↑ Increased shipment in Q4 2016
Average Realized Price of Iron Ore Products*	AUD/t	118.96	103.32	15.64	15%	↑ Price increased in Q4 demonstrating strong demand for pellets
Average Realized Exchange Rate	AUD:USD	0.7435	0.7556	(0.0121)	(2%)	↓ Declining Australian Dollar
Sales Revenue (Consolidated)	AUD ‘000	82,676	63,777	18,899	30%	↑Increase in Iron Ore Price ↑Increase in pellet sales volume
Profit before Tax excluding impairment (Consolidated)	AUD ‘000	38,149	23,284	14,865	64%	↑ Costs reduced to counter adverse market ↑Revenue increased due to increased sales volume
Profit after Tax (Consolidated)	AUD ‘000	36,775	23,284	13,491	58%	↑ Costs reduced to counter adverse market ↑Revenue increased due to increased sales volume

May 2017 Slide 10

• Continued Safety Focus

• Ore Supply sustained from South Deposit

• Autogenous Mill Shell replacement deferred in 2016

• Record Shipping of Iron Ore Products ~2.7 million tonnes

• Continued investment in Mine Development

• Strong focus on cost control continues to achieve reduced C1 unit costs

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North Pit

Centre Pit

South Deposit

Long Plains

Total resources exceeding 374MT which support long life operations

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Ore Reserves

Other Potential

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百
万
吨
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May 2017

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North Pit Production Stripping

North Pit Mine Development

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South Deposit – reaching completion of current design

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• The Project continues on reduced expenditure while Grange seeks an equity partner

• Existing tenure and approvals have been maintained .

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

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• Progressed studies relating to project engineering and further environmental

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• Improve productivity and sustain access to high grade ore

• Continue to invest in process infrastructure

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Target growth opportunities to complement existing business

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• Our fundamentals remain firm

• We are proactively:

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 We continue to:

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Primary Contact:

Honglin Zhao

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May 2017

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