MGX RESOURCES LIMITED — AGM Information 2004

Nov 29, 2004

Annual General Meeting

Mr Bill Willis

It is a pleasure to welcome you to Mount Gibson Iron Limited's first Annual General Meeting as an iron ore producer.

I do not propose to re-state the content of my letter to shareholders contained in the Annual Report. This address will simply update the Company's performance since the end of the last financial year.

The quarter ended September 2004 saw the Company's sales to China reach a rate of 1.8Mtpa. This was achieved despite the poor performance of the rail contractor and operational problems at the Port of Geraldton.

Sales of ore to date have met expectations with profitability impacted by the less than contracted performance by our rail contractor and the Geraldton Port Authority (GPA).

However, I am happy to report that the operational problems which caused the poor performance are being addressed and the performance of both the rail contractor and GPA are improving. The Company looks forward to a continuation of this improved performance and hopefully the achievement of contracted performance rates in the near future.

The market for iron ore remains strong and significant price increases are expected to be achieved for our product following price setting by the major suppliers. These increases will become effective from 1^st April 2005.

This together with price premiums which are currently being achieved on ore sales in excess of contracted tonnages will offset the over budget costs which have been incurred in the year to date.

The Company is actively assisting Asia iron Holdings Limited in the progression of a bankable feasibility study for the development of the Mt Gibson Magnetite Project. This project would see the building of a 2.5Mtpa (increasing to 5Mtpa after one year) magnetite concentrator at the Mt Gibson magnetite deposit with transport links to a pellet plant near Shanghai.

Mount Gibson Iron Limited would operate and manage the Australian end of the operation for an annual fee.

This bankable feasibility study is progressing.

The Company continues to review and evaluate other opportunities for growth as they occur.