MGX RESOURCES LIMITED — AGM Information 2007

Nov 21, 2007

2007 Annual General Meeting 21[st] November 2007

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Disclaimer
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This Document is Confidential and may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval from Mount Gibson Iron Limited.

This Document is not a Prospectus nor an Offer to Subscribe for Shares.

Mount Gibson Iron Limited and its subsidiaries (“MGI”) makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGI and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (expressed or implied) arising out of, or contained in or derived from, or for any omissions from this document, except liability under statute that cannot be excluded.

This document contains reference to certain forecasts, projections, intentions, expectations and plans of MGI, which may or may not be achieved. They are based on certain assumptions which may not be met or on which views may differ.

The performance and operations of MGI may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGI and its directors.

No representation or warranty (expressed or implied) is made by MGI or any of its respective directors, officers, employees, advisers or agents that any forecasts, projections, intentions, expectations or plans set out in this document will be achieved, either totally or partially, or that any particular rate of return will be achieved. Investments in shares in MGI is considered highly speculative.

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Agenda
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• Chairman’s address

• Managing Director’s presentation

• Formal business

• Resolutions 1 - 8

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Chairman’s address
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Neil Hamilton

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Managing Director’s presentation
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Luke Tonkin

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Company overview
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Corporate

• Market cap[1]

• Cash[2]

• Total debt[2]

• EV

• Index

• Issued capital

• Finance facilities

A$2,000 million

A$61 million A$90 million

• A$2,029 million S&P/ASX 200

793 million shares, 21.1 million options A$200m (includes A$25m contingent debt)

Financials

2007

• Sales

• NPAT

A$162.7 million (excluding finance income) A$47.8 million

Shareholders

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Top 50 Shareholders
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• Gazmetall 19.8%

• • APAC Resources 20.3%

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Institutional
30%
Represents 70% of shareholding
Other
10%
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Notes:

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Key investment themes
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1
Quality assets
2
Solid growth profile
3
Earnings leverage to strong iron ore price outlook
4
Disciplined financial strategy & strong performance
5
Experienced - disciplined Board & executive team with proven track record
…Mount Gibson has a solid investment case
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1

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Koolan Island
production
Tallering Peak
production
Extension Hill
near-term production
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1

KEY STATISTICS	KEY STATISTICS	KEY STATISTICS	KEY STATISTICS	KEY STATISTICS
	Tallering Peak	Koolan Island	Extension Hill	Combined
Reserves and Resources1	18.3 (61.7% Fe) 21.0 (61.6% Fe)	29.9 (65.0% Fe) 62.8 (63.1% Fe)	12.8 (60.3% Fe) 19.5 (59.9% Fe)	62.0 (62.9% Fe) 103.3 (62.2% Fe)
Proven & Probable Ore Reserves (Mt)
Measured, Indicated and Inferred Mineral Resources (Mt)
Operations Data	3 6 65%:35% 65 107 6:1 Geraldton	4 (target) 8 30%:70% - - 6:1 (est.) Koolan Island	3 (target) 6 50%:50% 85 240 <1:1 Geraldton
Annual production (Mt)
Expected minimum mine life
Lump:Fines ratio
Truck (km)
Rail (km)
Strip ratio
Port

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1

Tallering Peak

Main Range Pits looking west at end of September 2007

• First hematite ore shipped Feb 2004

• Producing 3 Mtpa

• 65% Lump & 35% Fines ratio

• Quality high grade, low contaminant product (61.7% Fe, 5.32 % SiO2,

• 2.6 % Al2O3 and 0.025 % P)

• Access to installed infrastructure

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2005-2006 2006-2007 Variance
‘000 ‘000 %
Ore Mined wmt 1,122 2,932 161%
Ore Crushed wmt 1,608 2,711 69%
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1

Koolan Island

Crushing, port & ship-loading facilities

• First hematite ore shipped June 2007

• Production ramping up to 4 Mtpa (expected to reach capacity by 4Q 2009)

• 30% Lump & 70% Fines ratio (initial production 50% Lump & 50% Fines)

• Quality high grade, low contaminant product

• (64.8% Fe, 5.32% SiO2, 0.99% Al2O3 and 0.018% P)

• Access premium Main Pit orebody - 18 months

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Eastern Pit August 2007

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1

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Main West ore-body has ensured timely access to Koolan Island Main Pit

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1

Extension Hill (detailed feasibility study)

• Available resource for mining will be increased

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• Operationally robust and straightforward

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• Low capital cost: $84m (including contingency 15%)

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• Up to 3 Mtpa production rate

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• Average LOM cash cost: $34/t

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• Low strip ratio – <1:1

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Extension Hill development timeline
3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09
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• 50% Lump & 50% Fines ratio

• Quality grade, low contaminant ore (60.3% Fe, 5.48% SiO2, 1.64% Al2O3 and 0.06% P)

Environment approval Infrastructure development Mine development First ore shipped

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• Immediate cash generator

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2

Production growth of 59% 2007-2010 CAGR[1]

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12.0 CAGR 2007 - 2010: 59%
10.0
10.0
8.0
8.0
6.0
6.0
4.0
2.5
2.0
0.0
Note: 2007A 2008F 2009F 2010F
1 2007A figure represents shipped tonnage vs. 3.5 Mt (wmt) ore mined in 2007
Production (Mt)
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Tallering Peak – full production

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Koolan Island – increasing production
Extension Hill – development commenced
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• Production CAGR 2007-2010 of 59% from existing operations and Extension Hill project

• Well placed for further organic growth (2008 exploration budget of $3.3m)

– Further growth at Tallering Peak

• Koolan ramp up to 4Mtpa – installed capacity 6Mtpa

• Koolan surface and underground iron ore opportunities

• Extension Hill conversion of Resources to Reserves

• M&A opportunities in core steel production inputs— iron ore, coking coal

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2

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Ship-loading capacity increasing to meet growth in Mount Gibson’s production from the Mid West…

Rail unloading capacity requires upgrading to meet ship-loading capacity…

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2

Main Pit - World class grade and quality– 66.5% Fe, 3.48% SiO2, 0.69% Al2O3, 0.019% P, 0.3 LOI

2

Koolan Island ore surfaces provide significant upside potential…

Mullet Main West Acacia East Acacia Main

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Eastern

Mangrove

Barramundi

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2

Section 2200 East

Extensive potential mineralised surface…

2

Mount Gibson’s projects have amongst the lowest capital intensity of any of its peers

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200
180 Balmoral South
Southdown
160
140
Karara magnetite
120
100
Rapid growth project 4
80
Pardoo
Jack Hills Stage 2
60 Rapid growth project 3 Cloud
Break
40
Koolan Island Weld Range
20 Extension Hill
Tallering Peak
0
0 5 10 15 20 25 30 35 40 45 50
Capacity (Mtpa)
Magnetite
Capital intensity (US$/t)
‘Greenfields’ infrastructure requirement
Hematite
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Source: Company reports
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Magnetite projects

Hematite projects

3

Robust iron ore price outlook

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Dramatic growth in global iron ore
consumption…
2,000 …largely driven by
China’s industrialisation
1,500
and urbanisation
1,000
500
0
2000 2001 2002 2003 2004 2005 2006
China Other
Consumption (Mt)
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Source: Mount Gibson

…combined with limited supply flexibility …

• Long lead times to bring new supply to the market, with supply substantially lagging growth in demand

• Supply lag being compounded by infrastructure bottlenecks e.g. ports/shipping/rail

• Spot price driven higher by limited supply and substantial increase in shipping freight rates

Substantial increases forecast in iron ore prices…

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140
120 +c. 20%
100
80
60
40
20
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Lump historical & forecast Lump recent forecast
UScper dry metric ton unit
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Source: Mount Gibson, Macquarie forecasts

Mount Gibson has captured the sweet spot of the cycle …

• Current production with developments to reach full production by 2010

�

• 100% current production and 50% Extension Hill

• � production contracted

Capturing price upside through Hamersley benchmark contract prices

4

Good operating margins

2005-2007 sales revenue

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200 CAGR 2005 - 2007: 45%
163
160
120
77 73
80
40
0
2005A 2006A 2007A
Sales revenue (A$m)
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Disciplined risk management strategy

Mount Gibson has…

• First mover status & access to existing infrastructure

• ��Substantially improved operational performance

• Substantially improved operational performance

• �Divested high risk, high cost and capitally intensive assets

• � Provided a comprehensive organic growth plan

• Demonstrated M&A credentials

• �

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2005-2007 net profit

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60.0 CAGR 2005 - 2007: 88% 47.8 [1]
45.0
30.0 23.5
13.5
15.0
0.0
2005A 2006A 2007A
NPAT (A$m)
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Strong cash flow generation

• Growing production profile

• �� Robust iron ore price outlook

• Clean & strong balance sheet

• ? Continued operating and capital cost pressures

Reinvestment of capital for growth

• organic (exploration, development)

• M&A

5

Mr Luke Tonkin Mr Alan Rule Mr Neil Hamilton Mr Craig Readhead Managing Director CFO Chairman Non-Executive Director B.E., MAusIMM, B.Comm, B.Acc, CA LLB B.Juris, LLB, AICD AICD • Appointed in Oct 05 • Appointed CFO in Jun 07 • Appointed Non–Exec Chairman in • 26 years practicing in resources law • 22 years experience, with • Finance Director Jul 05 – Jun 07 April 07 • Partner in law firm Pullinger Readhead management and executive roles • Extensive experience in financial • 23 years experience as a director of Lucas with WMC (KNO, St Ives, Leinster, roles & international financing of publicly listed companies • Non-Exec’ Director of Heron Resources, Experienced CNGC) and Sons of Gwalia mining projects • Chairman of IRESS and Non – Exec of Galaxy Resources, Halcyon Group, Board & • Multi commodity executive and operational experience • CFO Western Metals and St Barbara Insurance Australia Limited and Programmed Maintenance Services • Past President of AMPLA and Vice Frankland River & Olive Company executive Ltd President of AMEC Mr Ian Macliver Mr Mark Horn Mr Alan Jones Mr Peter Bilbe management Non-Executive Non-Executive Non-Executive Non-Executive team Director - B.Comm, Director – M.A., Director - CA Director – B.E. CA, F Fin, AICD LLB(Hons), • MD of Grange Consulting Group Pty • Appointed Jun 07 Dip.B.Admin, FSI (Dip) • Appointed July 2006 • Appointed June 2007 Ltd • Chief Exec’ of Mark Horn & Co, a • Extensive senior management & • 30 years' experience in senior • Many years experience as senior British corporate finance boutique Board in listed & unlisted Australian operational and corporate roles in exec’ & Director of resource & • Chairman of ReSel Communications public companies, particularly in the resources sector both in industrial companies with Ltd, Director and General Council of construction, engineering, finance Australia and overseas responsibility for capital raising & Lakeshore Capital and Non-Exec and investment industries • Formerly MD of Aztec Resources Ltd, other corporate initiatives Director of numerous companies • Non - Exec of APAC Resources Ltd GM of Operations at Portman Mining • Served as a Director of AIM2 plc • Merger & acquisition expertise Ltd Produced ore tonnage 2006-2007: 211% Shipped ore tonnage 2006-2007: 78% Proven track Sales revenue 2006-2007: 119% record NPAT 2006-2007: 103% Net assets 2006-2007: 316%

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Tallering Peak
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Access to infrastructure – full production

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Koolan Island
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Installed infrastructure – capacity 6Mtpa

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Formal business of the meeting
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• Quorum

• Notice of meeting and explanatory statement taken as read

• 436,102,935 valid available proxy votes received, representing 55% of total shares on issue

• • Details of proxies will be provided for each resolution

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Financial Reports
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To receive and consider the financial report for the year ended 30 June 2007 and the related Directors’ and Auditors’ Reports.

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Resolution 1
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That Craig Readhead, who retires in accordance with Clause 3.6 of the Company’s Constitution, and being eligible, is re-elected as a Director of the Company.”

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Resolution 1 - Proxies
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• In favour:

291,887,818

• Against:

3,310,171

• Proxy’s discretion:

139,923,237

• Abstain:

2,064,809

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Resolution 2
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That Neil Hamilton, having been appointed as a Director since the last annual general meeting and who retires in accordance with Clause 3.3 of the Company’s Constitution, and being eligible, is re-elected as a Director of the Company.”

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Resolution 2 - Proxies
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• In favour:

293,000,957

• Against:

2,088,088

• Proxy’s discretion:

139,920,237

• Abstain:

2,176,753

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Resolution 3
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That Mark Horn, having been appointed as a Director since the last annual general meeting and who retires in accordance with Clause 3.3 of the Company’s Constitution, and being eligible, is re-elected as a Director of the Company.”

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Resolution 3 - Proxies
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• In favour:

290,257,926

• Against:

4,816,379

• Proxy’s discretion:

139,931,723

• Abstain:

2,180,007

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Resolution 4
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That the Remuneration Report for the Company (included in the Report of the Directors) for the year ended 30 June 2007 be adopted.”

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Resolution 4 - Proxies
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• In favour:

287,734,340

• Against:

6,823,846

• Proxy’s discretion:

140,012,468

• Abstain:

2,615,381

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Resolution 5
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That, for purposes of rule 10.2 of the Company’s Constitution, Listing Rule 10.17 and for all other purposes, the maximum aggregate remuneration payable by the Company to NonExecutive Directors as Directors’ fees be increased by $450,000 from $300,000 per annum to $750,000 per annum.”

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Resolution 5 - Proxies
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• In favour:

286,406,021

• Against:

9,910,420

• Proxy’s discretion:

83,709,105

• Abstain:

682,866

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Resolution 6
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That, for all purposes including for the purposes of ASX Listing Rule 10.14, approval is given to grant performance rights to Mr Tonkin in respect of the financial years ending 30 June 2008, 2009 and 2010 on the terms set out in his employment agreement with the Company and the Mount Gibson Iron Limited Performance Rights Plan, as more fully described in the Explanatory Memorandum.”

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Resolution 6 - Proxies
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• In favour:

270,741,217

• Against:

26,040,899

• Proxy’s discretion:

134,852,688

• Abstain:

764,884

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Resolution 7
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To consider and, if thought fit, to pass the following resolution as an ordinary resolution:

“That, for all purposes including for the purposes of ASX Listing Rule 10.14, approval is given to grant performance rights to Mr Rule in respect of the financial years ending 30 June 2008, 2009 and 2010 on the terms set out in his employment agreement with the Company and the Mount Gibson Iron Limited Performance Rights Plan, as more fully described in the Explanatory Memorandum.”

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Resolution 7 - Proxies
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• In favour:

270,521,182

• Against:

26,224,952

• Proxy’s discretion:

134,862,688

• Abstain:

780,866

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Resolution 8
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To consider and, if thought fit, to pass the following resolution as a special resolution:

“That the Company’s Constitution be amended by deleting the words “the Company must not charge any fee on transfer of a share” from rule 29.1.”

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Resolution 8 - Proxies
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• In favour:

295,174,781

• Against:

1,324,044

• Proxy’s discretion:

139,901,385

• Abstain:

785,825

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Wrap up
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Thank-you for your attendance

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