GRANGE RESOURCES LIMITED. — Investor Presentation 2012

Jan 16, 2012

==> picture [315 x 60] intentionally omitted <==

Russell Clark

January 17, 2012

Slide 2

January 17, 2012

Slide 3

Ordinary shares on issue 16 January 2012 1,154m Last share price 16 January 2012 $0.545 33.9% 46.78% Market capitalization 16 January 2012 $628m 7.83% Cash & Receivables 31 December 2011 $226.7m 11.49% Research Bell Potter (target $1.06) Patersons (target $0.81) Citi (target $0.80) Petra Capital (target $1.06) JP Morgan (target $0.95) RBS (target $0.70) Macquarie (target $1.00) RBS Morgans (target $0.82) Merrill Lynch (target $0.90) UBS (target $0.80)

January 17, 2012

Slide 4

Australia’s Leading Magnetite Producer

Grange’s position is supported by quality assets In Tasmania and Western Australia.

Southdown Project (70%)

• 90km northeast of the

• 698 million tonnes of

premium quality magnetite resource

Savage River (100%)

• Northwest Tasmania

• Annualised production rate of 2.4 Mtpa premium blast furnace pellets and concentrate

• Mine life to 2030

• Targeting 10Mtpa concentrate, to produce

• 118Mt reserves at 51% DTR

• Infrastructure solutions in place (power,

• Owner-operated open pit mine, 83km slurry

• Advanced permitting

• DFS conclusion Q1 2012

 Dedicated infrastructure – no third party

• Extensive operating experience applicable to

January 17, 2012

Slide 5

• 17 months of no Lost Time Incidents (LTI) achieved.

• • Improved cash, term deposits and trade receivables position of A$226.7 million

• • No net debt at the end of the quarter.

• .

• Pellet prices remained strong during the quarter averaging US$198.9 per tonne

• • Direct operating cost per tonne of pellets produced reduced to A$89.65 per tonne for the quarter, a 30% reduction on the previous quarter.

• • .

• Inaugural two cent dividend paid

• Highest quarterly concentrate and pellet production for 15 months.

• Southdown project DFS continues, with completion due first quarter 2012.

• • Southdown Mineral Resources increased and confidence improved.

January 17, 2012

Slide 6

	Production and Costs December Quarter 2011	Production and Costs September Quarter 2011	Production and Costs December Quarter 2010
Total BCM Mined	4,240,390	3,184,680	3,971,951
Total Ore BCM	531,189	402,846	361,781
Weight Recovery (% DTR)	41.70	34.5	40.29
Concentrate Produced(t)	612,189	556,122	447,404
Pellets Produced (t)	632,143	506,143	442,427
Pellet Stockpile (t)	351,376	193,386	68,850
Concentrate Stockpile ( t)	671	35,581	10,562
Direct Operating Cost A$/tonne Pellet Produced	89.65	127.72	91.37

January 17, 2012

Slide 7

==> picture [424 x 318] intentionally omitted <==

January 17, 2012

Slide 8

==> picture [720 x 379] intentionally omitted <==

January 17, 2012

Slide 9

==> picture [712 x 337] intentionally omitted <==

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

700,000
650,000
600,000
550,000
500,000
450,000
400,000
350,000
300,000
Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
Tonnes
----- End of picture text -----

January 17, 2012

Slide 10

==> picture [676 x 347] intentionally omitted <==

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

180
160
140
120
100
80
60
40
20
0
Dec-09 Mar-10 Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
C1 Unit cost per tonne of pellets produced $/t
----- End of picture text -----

January 17, 2012

Slide 11

As at December 2010 As at December 2011 Tonnes Grade Tonnes Grade (Mt) wt% DTR (Mt) wt% DTR Measured 220 37.4 407 37.1 Indicated 210 38.9 40.2 40.7 Inferred 224 33.4 250.8 32.5 Total 654 36.5 698 35.7

January 17, 2012

Slide 12

==> picture [490 x 291] intentionally omitted <==

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

December 2011
Margin
----- End of picture text -----

Revenue Costs

January 17, 2012

Slide 13

• Strong December Quarter

 Increased production - highest concentrate production for 15 months

 Lower unit costs – 30% reduction from previous quarter

• Robust margins

• Continuing solid safety performance

 Improved cash and receivables position

 No net debt

• Predictability improved in future

• Increased research coverage

 Increased Southdown mineral resource, with improved confidence

• Advanced Southdown DFS study

January 17, 2012

Slide 14

Primary contacts:

Russell Clark

managingdirector@grangeresources.com.au

tarryn@lastsay.net.au

January 17, 2012

Slide 15

Southdown Project

January 17, 2012

Slide 16