GRANGE RESOURCES LIMITED. — Investor Presentation 2012

May 3, 2012

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Australia’s leading magnetite producer

Russell Clark Managing Director & CEO 4 May 2012

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~67% Fe
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~63% Fe
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Iron Ore Pellet ~65.5% Fe ~US$172[1] FOB Tasmania

2prices from Dec 11 quarterly

Lower

Price

Higher

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20% - 50% Lump and Pellets

50% - 80% Sinter

•

New products from new producers:

•

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Contaminants are rising

Molten slag out

Molten iron out

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x 2

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Ordinary shares on issue 27 April 2012 1,155m Last share price 27 April 2012 $0.575 Market capitalization 27 April 2012 $664m Cash & Receivables 31 March 2012 $274.2m Research Bell Potter Patersons Citi Petra Capital JP Morgan RBS Macquarie RBS Morgans Merrill L nch UBS y

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9%
7.80%
36.70%
46.50%
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Australia’s Leading Magnetite Producer

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Quality assets in Tasmania and Western Australia.

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	Production and Costs March Quarter 2012	Production and Costs March Quarter 2011
Total BCM Mined	4,342,253	4,098,752
Total Ore BCM	490,301	248,221
Weight Recovery (% DTR)	43.10	38.10
Concentrate Produced(t)	573,625	349,328
Pellets Produced (t)	511,630	319,233
Pellets shipped (t)	732,551	209,798
“C1” Cost A$/tonne Pellet Produced	111.09	161.00

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DFS

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The Southdown Project DFS Highlights

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The Southdown Project DFS Highlights

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The Resource The Southdown Project

DFS: 14 year: 397 million tonne reserve @ 35.7% DTR

LOM: 30+ years: 1.22 billion tonnes resource @ 34.1%DTR

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Mineral Resources & Reserves The Southdown Project

Tonnes (Mt) Grade (% DTR) Measured 423.0 37.6 Indicated 87.4 38.4 Inferred 710.6 31.5 Total 1 221 34.1 ,

Concentrate Fe Tonnes (Mt) Grade (%DTR) (%) Proven ore 221 35.5 68.5 Probable ore 176 35.9 68.6 Total 397 35.7 68.6

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Southdown Magnetite Project Mining

 Open pit mining  Conventional bulk mining methods utilising Mining Method hydraulic face shovels, dump trucks and drill and blast coupled to a Run of Mine (ROM) stockpile Material  ~110 Mtpa for first six years Movement  Shovel size – 650 tonnes Equipment  Truck size – 220 tonnes Production  Provide 78,000 tonnes per day to the primary Schedule crusher Waste : Ore Ratio  2.3 : 1 (tonnes) Mine Life  >14 years (potential for 40 years)

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Concentrator Flow Sheet Southdown Magnetite Project

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PRIMARY CRUSHER (x1)
COARSE ORE STOCKPILE (x1)
AG MILL FEED
CONVEYOR 2
AG MILL FEED CONVEYORS (x2) AG MILLS (x2)P80 500um
INTERMEDIATE MAGNETIC
SEPARATION (2x8)
MAGS BALL MILL
ISAMILLS (2x4)P80 34um CYCLONE CLUSTER (x2) FINE SCREENS (2x2)
BALL MILLS (x2)P80 100um MAGS
ROUGHER MAGNETIC
SEPARATION (2x9)
PAXH2SO4 HYDRO-SEPARATION (x2) NON-MAGS
MAGS NON-MAGS
Frother
CLEANER MAGNETIC RMS TAILS
SULPHIDE FLOTATION (x2) SEPARATION (2x10) CYCLONES (x2)
NON-MAGS
TAILINGS
THICKENER
Lime FEED TANK
CONCENTRATE TAILINGS
THICKENER PROCESS WATER TO PLANT THICKENER
SULPHIDE
THICKENER
CONCENTRATE PIPELINE PROCESS TAILINGS TANKTHICKENED
HEADER TANKS (x2) WATERPOND POTABLE WATER
SEA WATER DESALINATION PLANT PIPELINE DESALINATED WATER SUPPLY TO PLANTPROCESS WATER MAKE-UP
CONCENTRATE TANKS (x2) STORAGE DECANT WATERPOND BRINE DESALINATED
PIPELINE FILTRATE TANK TAILINGS DAM WATERDAM
CERAMEC
FILTRATE DISC FILTERS (x9) TO DIRECT SALES
PORT
CONCENTRATE THICKENER STACKER RECLAIMER
BY SHIP
TO
CONCENTRATE STOCKPILE KEMAMAN PELLET PLANT
FILTER FEED
TANKS
ALTERNATE FLOW
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Southdown Magnetite Project Product Quality (Process Design Criteria)

Southdown Magnetite Concentrate	%
Total Fe	69.5
SiO2	1.50
Al2O3	1.48
TiO2	0.38
P	0.04
S	0.08
LOI (Loss of ignition)	-3.15

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Southdown Magnetite Project Power and Pipelines

Ke Facts - Power: y Estimated Len th 288km g Ca acit 330kV transmission line p y Ke Facts – Pi elines y p Estimated Len th 100km g

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Southdown Magnetite Project Water Supply

Source Seawater reverse osmosis desalination lant p Ca acit 11 GL/a p y Location Coastal location 25km from mine

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Port Infrastructure Southdown Magnetite Project

		Cape size (18m draft)	Cape size (18m draft)
	Vessels	Cape size (18m draft)
	Activities	Deepen, widen and extend existing shipping channel New wharf Dewatering plant and storage shed
	Area Reclaimed	9ha Increases port capacity from 2.5Mt to 14Mt

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Southdown Magnetite Project Permitting

Granted November 2009, amendment Mine environmental permit þ required in 2011 for 10mtpa Port permits Granted November 2010 þ Water permit Desalination permit targeted Q2 2012

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Southdown Project DFS Capital Expenditure

Description

Total Cost (A$ M)

Mine & Concentrator Desalination Plant, Pipelines and Transmission Line Albany Port Works, Berth, Storage Facilities Sub-total enc Owners Costs, EPCM and Conting y Total Estimate Project Costs

1,330

640

380

2,350

535

2,885

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Southdown Project DFS Operating Cost Summary

Operating Costs	A$/t Concentrate
Mining	24.4
Concentrator	24.6
Pipeline, Filtration and Port	5.7
Overheads	3.8
Total Operating Costs	58.5

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Southdown Project DFS price and FX assumptions

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Forecast Iron Ore Price
(68.5% Fe content)
180
170
160
150
140
130
120
110
100
Year
Forecast Foreign Exchange Rate
(AUD:USD)
1.00
0.95
0.90
0.85
0.80
0.75
0.70
Year
Iron Ore Price (USD per DMT)
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
FX Rate (AUD:USD)
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
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NPV Sensitivities Southdown Magnetite Project

10% Net Present Value (NPV ) Sensitivity A$m

DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	DFS NPV = $1,008M	Sensitivity Range on Average Price	Sensitivity Range on Average Price	Sensitivity Range on Average Price	Sensitivity Range on Average Price
Adjusted NPV Adjusted NPV											Downside Case		DFS Base Case	Upside Case
Iron Ore Price	$168	- 15%				+ 15%				$1,848	US$106/t US$125/t US$143/t
Foreign Exchange	$278		+15%			- 15%			$1,996		1 AUD = US$0.98 1 AUD = US$0.85 1 AUD = US$0.72
Operating Expenses	$802			+10%		-10%		$1,214			A$64/t A$58/t A$52/t
Capital Expenditure	$717				+15%	-15%	$1,300					A$3,318m A$2,885m A$2,453m

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Extended mine life case Southdown Project

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Southdown Magnetite Project Target Time Line

	2011	2012	2013	2014	2015
Pre- feasibility
Definitive Feasibility
Financing
Construction
Production

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Primary contacts:

Russell Clark

managingdirector@grangeresources.com.au

Tarryn Truscott

tarryn@lastsay.net.au

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Southdown Project

• The information in this report which relates to the Mineral Resources of the Southdown Project is based

• The information in this report which relates to the Ore Reserves of the Southdown Project is based on

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