GRANGE RESOURCES LIMITED. — AGM Information 2018

May 29, 2018

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AGM Presentation

May 2018

✓ Most EXPERIENCED magnetite producer

• ✓ STRONG Safety Culture

• ✓ Shipped ~1.9m 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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Blast Furnace

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Lower

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~57% - ~ 61% Fe
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Developing Fluxed Pellet

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~
63% Fe
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Price

Iron Ore Pellet ~65% Fe

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~65%-67% Fe
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Higher

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Pellets are an enriched form of iron ore and provide significant benefits for the steel maker:

• ✓ Reduction in energy consumption

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• ✓ Lower maintenance costs in the Blast Furnace

• ✓ Reduction in waste - slag

• ✓ Higher yield of metallic iron due to higher Fe content

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• ✓ Reduced environmental impact with decrease in air emissions

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120

120

100

80

60

Pellet Premium Received (FOB USD)

100

80

60

40

20

62% Index FOB Calculated Price

Grange Price

65% Index FOB Calculated Price

0 Jan-2017 Feb-2017 Mar-2017 Apr-2017 May-2017 Jun-2017 Jul-2017 Aug-2017 Sep-2017 Oct-2017 Nov-2017 Dec-2017

40

20

0

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Stronger Iron Ore Business

Seek Strategic Partner(s) for Southdown Project

Optimise Capital Allocation Plan

Focus on Tasmania Operations

• Improve productivity

• • Sustain access to high grade ore

Investment for the long term

• Optimise LOMP

• • North Pit underground feasibility study

• Centre Pit feasibility study

• • Long Plains

Further progress sales process with our JV partners and advisor

Maintain tenements, permits and project assets and continue to monitor all ongoing project requirements to ensure the current status of the feasibility studies allow the full recommencement of the project

Generate, conserve and actively manage our cash reserve for future mine investment.

Diversify risk & return to create a well-balanced portfolio of investments that can meet our future mine investment needs while achieving enhanced returns within conservative risk parameters.

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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.

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Ordinary Shares on issue	31 Mar 2018	1,157m
Share Price	31 Mar 2018	$0.17
Market Capitalization	31 Mar 2018	$197m
Cash and Term Deposits	31 Mar 2018	$185m
Loan	31 Mar 2018	$3m

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43%
47%
2%
8%
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Indicator	2017 AUD’000	2016 AUD’000	Difference AUD’000	Variance%	Comments
Current Assets	261,339	232,806	28,533	12%	↑Cash,↓ Shipping receivables, ↑Inventories
Non-current Assets	228,622	196,150	32,472	17%	↑ PP&E ↑ Mine Properties & Dev ↓Deferred Tax Assets
Total Assets	489,961	428,956	61,005	14%
Current Liabilities	41,176	36,185	4,991	14%	↑Creditors ,↓Borrowings
Non-current Liabilities	61,206	60,118	1,088	2%	↑Provisions
Total Liabilities	102,382	96,303	6,079	6%
Net Assets	387,579	332,653	54,926	17%	Development in North Pit, construction of SDTSF and increased Ore and Pellet stockpiles

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Indicator	Unit	2017 Actual	2016 Actual	Difference	Variance %	Comments
Concentrate	Tonnes ‘000	1,960	2,397	(437)	(18%)	↓ Mining delays with restricted access to ore has impacted full year production.
Pellet	Tonnes ‘000	1,895	2,378	(483)	(20%)	↓ Pellet production line balanced with concentrate production
C1 Cash Operating Costs	AUD/t	99.17	79.13	20.04	(25%)	↑ Maintenance works undertaken at pellet and concentrate plant
Iron Ore Sales	Tonnes ‘000	1,896	2,750	(854)	(31%)	↓ Sales line balanced with production
Average Realized Price of Iron Ore Products*	AUD/t	127.20	98.06	29.14	30%	↑ Strengthening iron ore prices, in particular pellet premium
Average Realized Exchange Rate	AUD:USD	0.7692	0.7438	0.0254	3%	↑ AU Dollar strengthening
Sales Revenue (before freight adjustments)	AUD ‘000	241,175	269,675	(28,500)	(11%)	↓ Decreased sales volume ↑ Increase in iron ore prices
Profit after tax	AUD ‘000	60,713	92,903	(32,190)	(35%)	↓ Decreased sales revenue

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Indicator	Unit	Q1 2018 Actual	Q4 2017 Actual	Difference	Variance%	Comments
Concentrate	Tonnes ‘000	647	696	(49)	(7%)	↓ Q4 2017 record daily and weekly production rates achieved
Pellet	Tonnes ‘000	623	674	(51)	(8%)	↓Pellet production line balanced with concentrate production
C1 Cash Operating Costs	AUD/t	82.02	76.89	5.13	7%	↑ Lower production rates
Iron Ore Sales	Tonnes ‘000	632	693	(61)	(9%)	↓Sales line balanced with production
Average Realised Price of Iron Ore Products*	AUD/t	136.54	137.08	(0.54)	(0.4%)	↓Iron ore prices remain strong, in particular pellet premium
Average Realised Exchange Rate	AUD: USD	0.7853	0.7697	0.0156	2%	↑StrongAU Dollar in Q1 2018
Sales Revenue (before freight adjustments)	AUD ‘000	86,293	94,956	(8,663)	(9%)	↓Decrease in iron ore sales volume and strongAU Dollar

May 2018

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• ✓ Restored ore production from Main Ore Zone

• ✓ Second Autogenous Mill Shell replacement successfully completed ahead of

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• ✓ Continued investment in Mine Development

✓

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North Pit

Centre Pit

South Deposit

Long Plains

Total resources exceeding 374MT which support long life operations

May 2018

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North Pit Development
North Pit Mine Development
▪
West wall cut-back continues
North Pit East Wall Remediation
▪
Supporting continued ore production
Ore Supply
▪
Main Ore Zone production
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North Pit Mine Development

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North Pit Underground

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Centre Pit

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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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The on-going strategy is to maintain the currency and good standing of all tenements,

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• Joint Venture with ROC Built

• JV Board and Management

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• Project 1 – Lumley Court, Prahran

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• Project 2 – Brookville Road, Toorak

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• Improve productivity and sustain access to high grade ore

• Continue to invest in process infrastructure

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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