GRANGE RESOURCES LIMITED. — Major Shareholding Notification 2009

Jan 7, 2009

201 Elizabeth Street Sydney NSW 2000 Australia DX 107 Sydney Tel +61 2 9286 8000 Fax +61 2 9283 4144 www.dlaphillipsfox.com

Our ref: JRT 0411706

8 January 2009

The Company Secretary Grange Resources Limited Level 11 200 St Georges Tce PERTH WA 6000

Attention: Stacey Apostolou

By email: sapostolou@grangerescources.com.au

Dear Madam

Stemcor Pellets Limited

We act for Stemcor Pellets Limited and enclose form 603, notice of initial substantial holder.

Yours sincerely

Adrian Smith Partner Direct +61 2 9286 8545 adrian.smith@dlaphillipsfox.com

DLA Phillips Fox is a member of
DLA Piper Group, an alliance of independent legal practices. It is a
separate and distinct legal entity.

Please notify us if this communication has been sent to you by mistake. If it has been, any client legal privilege is not waived or lost and you are not entitled to use it in any way.

117885577\0411706\JRT01

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Form 603 Corporations Act 2001 Section 671B

NOUCE OF INITIAL SUDSTANTIAL NOIGER
To: Company name/ Scheme	Grange Resources Limited
ACN/ARSN	009 132 405
Details of substantial holder (1) -1.
Name	Stemcor Pellets Limited
ACN/ARSN (if applicable)	n/a
The holder became a substantial holder on	2 January 2009
Dataile of voting power 2.

Details or voting power

The total number of votes attached to all the voting shares in the company or voting interests in the scheme that the substantial holder or an associate (2) had a relevant interest (3) in on the date the substantial holder became a substantial holder are as follows:

Class of securities (4) _________	Number of securities ---------------------------------------	votes $(5)$ Persons' --------------------------------------	Voting power (6)
Ordinary Shares	.002.555 38 _________	38.002.555	.67%

Details of relevant interests 3.

The nature of the relevant interest the substantial holder or an associate had in the following voting securities on the date the substantial holder became a substantial holder are as follows:

dolder of relevant interest ____	relevant interest Nature of www.facture.com/and-and-and-and-and-and-and-and-and-and- ---------	Class and I number of securities --------------------------------------- _________
Stemcor ∵ Pellets ∟ ∟imited	Holde __	38,002,555 Ordinary Shares ________

Details of present registered holders 4.

The persons registered as holders of the securities referred to in paragraph 3 above are as follows:

Holder of relevant interest	Registered holder of securities	Person entitled to be registered as holder (8)	Class and number of securities
Stemcor Pellets Limited	Stemcor Pellets Limited ________	n/a	38,002,555 Ordinary Shares

5. Consideration

The consideration paid for each relevant interest referred to in paragraph 3 above, and acquired in the four months prior to the day that the substantial holder became a substantial holder is as follows:

Holder of relevant interest	Date of acquisition	Consideration (9)		Class and number of securities
		Cash	Non-cash
Stemcor Pellets Limited	Completion Date		Pursuant to Share Sale Agreement dated 24/9/08 and approved bν Grange shareholders on 12/12/08.	38,002,555 Ordinary Shares

6. Associates

The reasons the persons named in paragraph 3 above are associates of the substantial holder are as follows:

_________ Name and ACN/ARBN (if applicable) -------------------------------------- --------------------------------------	___ Nature of association
-n/a	_____ ___ n/a

Addresses $\mathbf{7}$

The addresses of the person named in this form are as follows:

Name STATISTICS IN THE REAL PROPERTY AND INCOME. ------------------------------	______ ______ Address ---------------------------------------
Stemcor Pellets Limited	City - 7 EC 2 Y9ST Point. Ropemaker Street, Level 27 $\overline{\phantom{a}}$ London.
______ ______ --------------------	' Kinadom Jnited . ---------------------------------------

Signature

print name PH OPPEN ALINED Capacity DIRECTOR $\mathbf{Q}$ Date $\mathbf{D7}$ / $O(1)$ sign here

DIRECTIONS

• $(1)$ If there are a number of substantial holders with similar or related relevant interests (eg a corporation and its related corporations, or the manager and trustee of an equity trust), the names could be included in an annexure to the form. If the relevant interests of a group of persons are essentially similar, they may be referred to throughout the form as a specifically named group if the membership of each group, with the names and addresses of members is clearly set out in paragraph 7 of the form.
• $(2)$ See the definition of "associate" in section 9 of the Corporations Act 2001.
• $(3)$ See the definition of "relevant interest" in sections 608 and 671B(7) of the Corporations Act 2001.
• $(4)$ The voling shares of a company constitute one class unless divided into separate classes.
• $(5)$ The total number of votes attached to all the voting shares in the company or voting interests in the scheme (if any) that the person or an associate has a relevant interest in.
• $(6)$ The person's votes divided by the total votes in the body corporate or scheme multiplied by 100.
• $(7)$ Include details of:
• any relevant agreement or other circumstances by which the relevant interest was acquired. If subsection 671B(4) $(a)$ applies, a copy of any document setting out the terms of any relevant agreement, and a statement by the person giving full and accurate details of any contract, scheme or arrangements, must accompany this form, together with a written statement certifying this contract, scheme or arrangement; and
• $(b)$ any qualification of the power of a person to exercise, control the exercise of, or influence the exercise of, the voting powers or disposal of the securities to which the relevant interest relates (indicating clearly the particular securities to which the qualification applies).

See the definition of "relevant agreement" in section 9 of the Corporations Act 2001.

• If the substantial holder is unable to determine the identity of the person (eg if the relevant interest arises because of an option) $(8)$ write "unknown".
• Details of the consideration must include any and all benefits, money and other, that any person from whom a relevant interest $(9)$ was acquired has, or may, become entitled to receive in relation to that acquisition. Details must be included even if the benefit is conditional on the happening or not of a contingency. Details must be included of any benefit paid on behalf of the substantial holder or its associate in relation to the acquisitions, even if they are not paid directly to the person from whom the relevant Interest was acquired.