GWR GROUP LIMITED — Capital/Financing Update 2021

Jan 31, 2021

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1 February 2021

ASX Announcement

First Iron Ore Shipment Update – C4 Deposit

HIGHLIGHTS

• Loading of ore onto the Cargo Ship “PANAFRICAN” is progressing well with 30,000 tonnes of premium high-grade lump currently loaded on board the vessel (Figure 1 & 2).

• Due to Port surge (weather event which results in evacuation of ships from Port) and berth maintenance at the Port of Geraldton, GWR’s vessel will have a pause in loading but has priority to dock at Berth 5 to continue to load the remaining ~25,000 tonnes of ore onto the vessel on 6 February 2021.

• GWR and Alliance Partner Pilbara Resource Group (PRG) expect the vessel the MV PANAFRICAN to depart on or before 8 February 2021 to make its first historic shipment of Iron Ore from the C4 Iron deposit.

• High-Grade lump and fines product will continue to be stockpiled at the Port of Geradlton Site 88 location, and shipments will now continue each month in accordance with GWRs offtake agreement with Hong Kong Trader, Pacific Minerals.

• GWR is currently in the process of securing a Vessel for its second shipment of Iron Ore to its Offtake partner.

• C4 Stage 1 mining activites continue to progress on site with crushing and screening activites on-going.

• The current review being undertaken by GWR on its entire Wiluna West Iron Ore project is progressing very well with regards to:

• Stage 1 - C4 production tonnage expansion

• Stage 2 – C4 portion of the remaining ~20 million tonnes[1] to be optimised and discussions with interested parties having commenced.

• Other GWR Iron Ore deposits – Focussing on optimised high grade low strip ratio deposits.

• PRG is engaged for Stage 1 of the C4 mining operations which covers the first 1 million tonnes of C4’s Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe[1] .

1 2004 JORC Code compliant Resource is 131.1 Mt at 60.0% Fe, comprising of 10.1 Mt at 62.5% Fe Measured, 72.0 Mt at 59.9% Fe Indicated and 48.8 Mt @ 59.4% Fe Inferred. (refer ASX announcement dated 12th November 2019 and 8th July 2011 and 11th April 2013).

GWR Group Limited (ASX:GWR) (“GWR Group” or “the Company”) is pleased to provide this shipping and production update to shareholders with operations continuing to progress at GWR’s 100% owned flagship C4 Iron Ore deposit in Wiluna.

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Figure 1: GWR Director Mr Jimmy Lee and GWR Chairman Mr Gary Lyons with cargo ship PANAFRICAN (Port of Geraldton) in the background being loaded with High-grade lump ore from the C4 deposit.

GWR Chairman Mr Gary Lyons commented:

“The loading of premium high grade lump ore onto our cargo ship has progressed well and will resume on the 6[th] day of this month. Due to Port surge and maintenance at the Port of Geraldton, our vessel is anchored just out of port and has priority to dock at Berth 5 once maintenance has been conducted and will then load the remaining ~25,000 tonnes of ore.

We now expect the first historic shipment of Iron Ore to our offtake partner to leave the Port of Geraldton on or before 8 February 2021 and we look forward to securing a vessel for our second shipment this month.

Iron ore stockpiles continue to build at Site 88 Storage Facility at the Port of Geraldton with operations on site continuing to progress.”

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Figure 2: High-grade lump ore being transported onto PANAFRICAN cargo ship (Port of Geraldton)

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Figure 3: GWR representatives and Traditional owners the Wiluna Martu people, including TMPAC Board Members and leaders

Alliance Partner Pilbara Resource Group (PRG) is engaged for Stage 1 of the C4 mining operations which covers the first 1 million tonnes of C4’s Mineral Resource estimate of 21.6 million tonnes at 60.7% Fe with assessment and modelling currently underway to increase production tonnage on Stage 1.

Under the Joint Venture with PRG, GWR is required to provide minimal capex and opex, will retain 70% share in the project profit as well as retaining the rights for ore sales, strategy and timing.

The current review being undertaken by GWR on its entire Wiluna West Iron Ore project is progressing very well with regards to increasing the production tonnage at Stage 1 (C4 Iron deposit) and optimising the remaining ~20 million tonnes[1] to be optimised for Stage 2 whilst discussions with interested parties have commenced

Other than at C4 GWR currently has mining approvals in place for the C3 and Bowerbird deposits which permit the mining of a combined 7 million tonnes per annum.

The emphasis being placed on this review is to focus on high grade portions of deposits , which have low strip ratios and can be brought to production in the most effective manner in order to maximise the benefits to shareholders from the current buoyant Iron Ore prices.

Table 1: Key Project Milestones to be achieved for the development of the C4 Iron Deposit

MILESTONE The Company will keep shareholders informed of operational milestones as they progress		PROGRESS
Historic First Shipment of Iron Ore to Offtake Partner		8 Feb 2021
First Ore at Geraldton Port of Iron Ore Mined and Transported		Completed
Haulage contracts		Completed
Completion of service agreement with nearby mine for access to site services such as village, workshops and water.		Completed
Finalisation of contract rates for major services; mining, crushing and screening		Completed
Northern Haul Road construction and site setup (workshops, lay down area’s, internal access roads and services such as water, power and communication)		Completed
Works Approval (required for crushing and screening operations)		Completed
Road user agreement for the gravel sections and low standard tar sealed sections of the C4 turn to Meekatharra portion of the Gold Fields highway		Progressing
Completion of agreements with Port of Geraldton for services and third party for shed access		Completed
Commencement of Production Mining Operations		Commenced
Commencement of first Iron Ore Haulage		Commenced
Offtake Agreements of High-grade DSO Iron Ore		Completed

This ASX announcement was authorised for release by Gary Lyons, Chairman of GWR Group Limited

For further information please contact:

Gary Lyons David Utting Mark Pitts Chairman David Utting Corporate Company Secretary Ph: +61 416187462 E: garylyons@heiniger.com.au E: david@davidutting.com E: markp@endeavourcorp.com.au

Competent Person’s Statement

The information in this report which relates to Exploration Targets, Exploration Results and Mineral Resources or Ore Reserves is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”) a Corporate Member of the AusIMM and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 40 continuous years of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

The Mineral Resource Estimate was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

Table 2. Wiluna West Iron Ore Project Mineral Resources by Deposit

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Note: Differences may occur due to rounding. Refer ASX Announcements 12[th] November 2019, 8[th] July 2011 and 11 April 2013.