GRANGE RESOURCES LIMITED. — Remuneration Information 2012

Jul 30, 2012

31 July 2012

ASX: GRR

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– SUMMARY OF KEY TERMS OF ENGAGEMENT CEO & MD

Mr Richard Mehan will take up his role of CEO and Managing Director of Grange Resources Limited (“Grange” or the “Company”) with effect from 6 August 2012. The key terms of Mr Mehan’s employment arrangements are summarised below. They are in line with industry practice and ASX corporate governance guidelines. The remuneration package is designed to ensure alignment of reward with achievement of corporate objectives as determined by the Board.

Term

Mr Mehan’s employment as Chief Executive Officer and Managing Director will be effective from 6 August 2012. The appointment will continue until the employment is terminated in accordance with the Employment Agreement.

Remuneration

Mr Mehan will be provided with the following elements of remuneration:

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• total fixed annual remuneration (“TFR”) inclusive of superannuation of $545,000; and

• a variable annual reward composed of a short term incentive component of up to a maximum of 21.1% of TFR ($115,000) and a long term incentive component of up to a maximum of 25.7% of TFR ($140,000).

Short Term Incentive

The Short Term Incentive (“STI”) is determined by the Board annually and will be based on Mr Mehan’s performance. 50% of the STI payment will be linked to Company performance, as measured by key performance indicators set for Company performance by the Board. 50% of the STI payment will be linked to Mr Mehan’s personal performance as measured against personal key performance indicators set by the Board. The Short Term Incentive will be paid as cash.

Long Term Incentive

The Long Term Incentive (‘LTI”) is granted in the form of performance rights to shares in the Company. Subject to the achievement of qualifying hurdles set by the Board, the Company will grant to Mr Mehan an annual LTI up to a value of $140,000. (ie 25.7% of his TFR). The rights to shares will vest in line with terms as set by the Remuneration Committee subject to the achievement of hurdles and will vest after the conclusion of a three year period.

Termination

This may be effected by three months payment of termination by the Company and three months’ notice by Mr Mehan. Customary restraint provisions apply.

Enquiries:

Donna Cole or Tarryn Truscott LastSay Communications www.lastsay.net.au +61 8 6102 7295 Donna 0419 901229 or Tarryn 0438 906 643