MGX RESOURCES LIMITED — AGM Information 2014

Nov 11, 2014

Annual General Meeting Built on quality

Disclaimer

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 (ASX:MGX, “ MGX ”) makes no representations or warranty (express or implied) as to the accuracy, reliability or completeness of this document. MGX 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 MGX, 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 MGX may be influenced by a number of factors, uncertainties and contingencies many of which are outside the control of MGX and its directors.

No representation or warranty (expressed or implied) is made by MGX 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 MGX are considered highly speculative.

JORC COMPLIANCE STATEMENT – Iron Hill Exploration Target, Extension Hill South Project

The Iron Hill Prospect at the Extension Hill South Project has an Exploration Target of 5 - 7 million tonnes grading 58-61% Fe (refer ASX release 13 February 2014 for full details). The potential quantity and grade of this Exploration Target is conceptual in nature and there has been insufficient exploration to estimate a Mineral Resource. It is uncertain if further exploration will result in a Mineral Resource. The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Gregory Hudson, who is a member of the Australian Institute of Geoscientists. Gregory Hudson is an employee of Mount Gibson Iron Limited group, and has sufficient experience relevant to the styles of mineralisation and type of deposit under consideration and to the activity he is undertaking, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Gregory Hudson has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears.

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FY2014 - Excellent operational performance

• Lost time injury frequency rate reduced 38% to 3.43

• Record group ore sales of 9.7 Mt

• Record sales revenue of $898 million

• Record year-end cash balance of $520 million

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• Net operating cashflow up 32% to $238 million

• Net profit after tax of $96.4 million

• Underlying net profit of $117.7 million*

• Fully franked dividend of 4.0 cps

* Excludes MRRT non-cash accounting charge_ _.** The underlying basis is a non-IFRS measure that in the opinion of the Directors provides useful information to assess the Company’s financial performance. This non-IFRS measure is audited.

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Tallering Peak – a final year of adding value

• Tenth anniversary of sales February 2014

• Life of mine ore sales +25 Mt

• FY14 ore sales of 3 Mt vs 2.5 Mt forecast

• LG stockpile sales generated strong cash margins while market window was open

• Final year contribution from T6 pit extension, T1 development and LG sales demonstrate value-add capability

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• Record site safety performance: 760 consecutive days LTI-free at closure on 30 September 2014

• Significant life of mine contribution to local community and regional economy

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Maximising value – a solid start to FY2015

• Group ore sales 1.9 Mt

Strong

• Ore sales revenue of $117 million FOB

operating

• Koolan Island unit cash mining and admin costs reduced to bottom end of guidance of $7-9/t moved

performance in

September Qtr

• Further productivity improvement expected following delivery of replacement mining fleet

• October pit wall instability at Koolan Island to have short term impact of approximately 3 months*

• Sales guidance revised to 6.0 to 6.4 Mt in FY15*

*Reported subsequent to the end of the September quarter.

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Koolan Island – seawall update

• Minor slip occurred in upper section of southern pit wall on 24 October

• Seawall remained effective, but mining in Main Pit suspended pending repairs

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Acacia East Pit
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• Acacia East mining accelerated to provide blending stocks on Main Pit resumption

• Additional movement occurred 8 November

• Further remedial works expected to take approx. 3 months

• Estimated capital cost $5 -10m

• Full year ore sales guidance lowered to 6.0 to 6.4 Mt

Approximate location

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Main Pit
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• Revised plan includes conventional sheet piling

• Material and equipment procurement underway

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Typical examples of
sheet piling
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Koolan Island – a compelling value proposition

• Long life asset: ~7 years*

• High grade DSO products

• 3.7 Mt sold in FY14, including RSP

• Ramping up to 4 Mtpa

• Reducing unit mining costs and increasing productivity

• Mobile fleet replacement progressing

• Targeting bottom quartile cash costs after Main Pit cutback completed

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Koolan Island Productivity Index Over Time
(3 month rolling actual)
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*Refer slides at end of presentation for Mineral Resource and Ore Reserve information.

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Indicative Koolan Island waste stripping and iron ore sales profile

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Actual Forecast
Iron Ore Sales (Mwmt)
Indicative strip ratio
8 (waste:ore tonnes)
Remaining life-of-mine
average strip ratio (4.5
waste:ore)
4
Low cash
cost period
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year to
30 June
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Note: Forecast ore sales shown are indicative only, and include all iron ore products. Actual future sales remain subject to future mine performance, continuous optimisation, exploration success and general market factors. Indicative stripping profile shown as at 20 August 2014.

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Extension Hill – a low-capital growth platform

• Established road, rail and port solutions

• ~0.6:1 remaining LOM strip ratio

• +3 years life at 3Mtpa*

• High potential targets within 3km of existing pit, in Extension Hill South area

• Iron Hill Prospect Exploration Target of 5-7 Mt @ 58-61% Fe.^

• Significant intercepts in 15 of 16 holes targeting primary Iron Hill hematite from initial RC drilling, including:

• 22m @ 63.8% Fe from 18m downhole

• 53m @ 61.8% Fe from surface

• 52m @ 61.2% Fe from 2m

• 2[nd] RC drill programme underway at Iron Hill

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N
3km
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*Refer Slide at end of presentation for Mineral Resource and Ore Reserve information. ^Refer ASX release 13 February 2014, JORC compliance statement on Slide 2.

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Looking to the future

Ore sales history and indicative outlook*

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Forecast
Actual
10
First
8
priority
goal
Ore Sales
6
(Mwmt)
4
2
0
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Year to 30 June
FY'15 guidance 6.0 - 6.4 Mt Shine (potential) # Extension Hill Koolan Island Tallering Peak
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Projected ore sales shown are indicative only, and include all iron ore products. Actual future sales remain subject to future mine performance, continuous optimisation, exploration success and general market factors. FY2015 sales guidance is 6.0 to 6.4 Mt as indicated

# Shine development deferred and potential future sales subject to decision to proceed. Indicative Shine sales reflect current Ore Reserves and in-pit Inferred Resources. Refer ASX release dated 7 March and slides at the end of this presentation for Mineral Resources and Ore Reserves information.

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Summary

• An established mid-cap iron ore producer

• Strong balance sheet

• Increasing ore grade and quality profile

• Established transport infrastructure and long term customer contracts

• • Exploration upside and disciplined value-focused growth strategy

• Experienced management team with demonstrated capacity to:

• Optimise and drive operations to extract maximum value

• Reduce costs and eliminate inefficiencies

Thank You

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MGX
For more information:
Phone: +618 9426 7500
Email: admin@mtgibsoniron.com.au
Web: www.mtgibsoniron.com.au
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Supplementary information Mineral Resources and Ore Reserves

Mineral Resources and Ore Reserves at 30 June 2014

Koolan Island
	Tonnes	Fe	SiO2	Al2O3	P
	millions	%	%	%	%
Mineral Resources,	above 50% Fe
Measured	8.62	59.2	13.48	1.06	0.017
Indicated	43.14	64.3	6.42	0.75	0.014
Inferred	10.90	60.2	12.48	0.79	0.015
Total	62.66	62.9	8.44	0.80	0.014
Ore Reserves, above 50% Fe
Proved	4.16	59.3	14.52	0.33	0.008
Probable	24.08	64.7	5.88	0.79	0.011
Total	28.24	63.9	7.16	0.72	0.011
Extension Hill
	Tonnes	Fe	SiO2	Al2O3	P
	millions	%	%	%	%
Mineral Resources,	above 50% Fe
Measured	10.25	58.5	6.46	2.07	0.073
Indicated	0.70	57.9	9.99	1.36	0.068
Inferred	0.24	56.6	10.17	1.83	0.060
Total	11.19	58.4	6.76	2.02	0.072
Ore Reserves, above 50% Fe
Proved	9.90	58.4	6.66	2.07	0.072
Probable	0.55	57.3	11.33	1.21	0.063
Total	10.45	58.3	6.90	2.02	0.072
Tallering Peak
	Tonnes	Fe	SiO2	Al2O3	P
	millions	%	%	%	%
Mineral Resources,	above 50% Fe
Measured	0.41	58.9	6.26	3.50	0.082
Indicated	1.03	58.1	11.70	1.66	0.066
Inferred	0.20	54.7	17.89	1.93	0.056
Total	1.65	57.9	11.10	2.15	0.069
Shine
	Tonnes	Fe	SiO2	Al2O3	P
	millions	%	%	%	%
Mineral Resources,	above 55% Fe
Measured	2.65	59.7	7.58	2.18	0.085
Indicated	4.17	58.7	9.14	1.72	0.078
Inferred	0.95	58.0	9.80	1.50	0.079
Total	7.76	59.0	8.69	1.85	0.080
Ore Reserves, above 55% Fe
Proved	2.20	60.0	6.88	2.33	0.080
Probable	3.40	58.9	8.92	1.79	0.077
Total	5.60	59.3	8.12	2.00	0.079
Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore Reserves. All tonnages
have been estimated as dry tonnages.

Total Group Mineral Resources and Ore Reserves at 30 June 2014

Total Group Mineral Resources and Ore Reserves at	Total Group Mineral Resources and Ore Reserves at	Total Group Mineral Resources and Ore Reserves at	30 June
(above 50% Fe and above 55% Fe Tonnes	Fe	SiO2	Al2O3	P
for Shine Project) millions	%	%	%	%
Mineral Resources 83.27	61.8	8.29	1.09	0.029
Ore Reserves 44.29	62.0	7.22	1.19	0.034
NOTE: Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore				Reserves. All
tonnages have been estimated as dry tonnages.

Attributions

Mount Gibson Iron Exploration Results

The information in this report that relates to Exploration Targets and Exploration Results including sampling techniques and data is based on information compiled by Gregory Hudson, a Competent Person who is a member of the Australian Institute of Geoscientists. Gregory Hudson is an employee of Mount Gibson Iron Limited, and he has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as a Competent Person as defined in the December 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Gregory Hudson consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Mount Gibson Iron Mineral Resources (excluding the Shine and Koolan Island Main deposits)

The information in this report relating to Mineral Resources, excluding the Shine Deposit and Koolan Island Main Deposit, is based on information compiled by Elizabeth Haren, a Competent Person who is a member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Elizabeth Haren was a full-time employee of, and is a consultant to, Mount Gibson Iron Limited. Elizabeth Haren has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Elizabeth Haren consents to the inclusion in this report of the matters based on her information in the form and context in which it appears. The Mineral Resource estimates comply with recommendations in the Australasian Code for Reporting of Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC). Therefore they are suitable for public reporting.

Mount Gibson Iron Mineral Resource (Main Deposit at Koolan Island)

The information in this report relating to the Mineral Resources of Main Deposit at Koolan Island is based on information compiled by Jani Kalla, a Competent Person who is a member and Chartered Professional of the Australasian Institute of Mining and Metallurgy. Jani Kalla is a full-time employee of Mount Gibson Iron Limited. Jani Kalla has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Jani Kalla consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The Koolan Island Main Deposit Mineral Resource estimate complies with recommendations in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC). Therefore it is suitable for public reporting.

Shine Deposit Mineral Resource

The information in this report that relates to Mineral Resources at the Shine Deposit is based on information compiled by John Graindorge, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy. John Graindorge is a full-time employee of Snowden Mining Industry Consultants Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. John Graindorge consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The Mineral Resource estimate complies with recommendations in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC). Therefore it is suitable for public reporting.

Tallering Peak, Koolan Island and Extension Hill Ore Reserves

The information in this report relating to Ore Reserves at Tallering Peak, Koolan Island and Extension Hill is based on information compiled by Paul Salmon, a Competent Person who is a member and a Chartered Professional of the Australasian Institute of Mining and Metallurgy. Paul Salmon is a full-time employee of Mount Gibson Iron Limited. Paul Salmon has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Paul Salmon consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The Ore Reserve estimates comply with recommendations in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC). Therefore they are suitable for public reporting.

Shine Ore Reserve

The information in this report that relates to Ore Reserves at the Shine Deposit is based on information compiled by Steve O’Dea, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy. Steve O’Dea is a full-time employee of Coffey Mining Pty Ltd and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Steve O’Dea consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. The Ore Reserve estimate complies with recommendations in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012) by the Joint Ore Reserves Committee (JORC). Therefore it is suitable for public reporting.

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