MGX RESOURCES LIMITED — AGM Information 2017

Apr 4, 2017

General Meeting 2017

MGX

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 ”) make 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 MGX shares are considered highly speculative.

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EGM Update Business overview

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Koolan Island

• Site placed on care and maintenance in the June 2016 quarter.

• Business Interruption component of insurance claim progressing.

• Outcome of Main Pit seawall rebuild and restart evaluation expected shortly.

Mid-West Region Extension Hill and Iron Hill

• Mining completed in the Extension Hill pit in November 2016, with stockpile sales to extend into mid 2017.

• Iron Hill development approved and underway to extend the life of the Mid-West operations to late 2018.

• Total Iron Hill life-of-mine sales of 5.5-6.0 Mwmt projected until planned end of production in late 2018.

• Iron Hill total Mineral Resource 8.8Mt @ 58.3%*.

*Refer slide 10 and ASX release dated 31 August 2016.

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Mid West

Extension Hill and Iron Hill

• Extension Hill pit completed in November 2016, sales from stockpiles to continue into mid 2017.

• Development of Iron Hill Deposit, 3km south of Extension Hill pit, approved and site works commenced in February 2017.

• Negligible capital to be spent, utilises existing Extension Hill workforce, camp, mining, processing and transport infrastructure.

• Total Iron Hill life-of-mine sales of 5.5-6.0 Mwmt until scheduled end of production in late 2018.

• Iron Hill sales to commence May 2017.

• Site cash costs^ similar to Extension Hill’s at $46-48/wmt FOB.

• Sales guidance of 3.2-3.5 Mwmt in FY2016-17:

• Approximately 2.4 Mwmt of standard Extension Hill/Iron Hill material.

• Remainder from low-margin sales from existing low grade stockpiles at Extension Hill and Tallering Peak.

• Iron Hill total Mineral Resource of 8.8 Mt @ 58.3% Fe *.

^Site cash costs are reported FOB and include royalties and capex but are before corporate costs.

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*Refer slide 10 and ASX releases dated 31 August 2016 and 9 February 2017.

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Koolan Island

A high quality asset

• Operation placed on care and maintenance in June 2016 quarter.

• Seawall insurance claim progressing:

• $86m property damage settlement agreed, all funds received by end-July 2016.

• No restrictions on deployment of settlement proceeds.

• Business interruption component of claim progressing with the insurers.

• Advanced detailed evaluation of the potential to rebuild seawall and restart Main Pit operations.

• High grade Main Deposit* offers significant future production potential.

• Targeting significant reduction in average strip ratio (3:1 or less), and higher average product grade (+62% Fe).

• Referral documents submitted to Commonwealth Department of Energy and Environment January 2017.

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• Technical and financial evaluation of restart options being finalised with outcome expected shortly.

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* Refer Slide 10 and ASX releases dated 17 and 31 August 2016.

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Key Business Objectives

• Mid West – complete development of the Iron Hill deposit to commence sales in the June 2017 quarter, and maximise sales/cashflow from operations and low grade stockpiles.

• Koolan Island – maintain the site on care and maintenance and complete assessment of the viability of a production restart.

• Koolan Island seawall insurance – progress and finalise the business interruption claim.

• Cost Reduction – continue to drive sustainable cost improvements.

• Treasury Returns – seek to further optimise the yield on cash reserves.

• Growth Projects – continue to seek business development opportunities in the resource sector.

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FY2016-17 Outlook Continued focus on cash margins and cost reductions

Sales Guidance:

• Group sales guidance of 3.2 - 3.5 Mwmt in FY2016-17.

• Extension Hill and Iron Hill to contribute approximately 2.4 Mwmt of standard product.

• Remainder to comprise mix of low margin sales of stockpiled low grade material.

Cost Guidance:

• Average all-in group cash cost target reduced to $47-51/wmt* FOB, including all operating, capital, royalties and head office costs.

• Iron Hill site cash costs^ to be consistent with Extension Hill at $46-48/wmt FOB.

• *All-in group cash costs are unaudited and reported FOB including all operating, capital, royalties and corporate costs. ^Site cash costs are reported FOB and include royalties and capex but are before corporate costs.

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Looking to the future

Longer Term:

Continue to seek out opportunities that leverage our strengths to provide value creation for MGX shareholders:

What strengths differentiate MGX?

• Iron Hill mine extends life of the Mid-West operations to late 2018.

• A premier potential high-grade iron ore opportunity at Koolan Island*.

• Robust balance sheet provides leverage and flexibility.

• Proven cost reduction capability.

• Proven ability to generate positive operating cashflow in a volatile price environment.

• Focused team with a broad range of operating and corporate experience.

*Refer slide 10 and ASX release dated 31 August 2016.

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General Meeting 2017

MGX

Supplementary Information Mineral Resources & Ore Reserves at 30 June 2016

Koolan Island (includes Main Deposit)	Tonnes millions Fe % SiO2 % Al2O3 % P %
Mineral Resources above 50% F	e
Measured Indicated Inferred Total	7.69 59.1 13.53 1.16 0.018 41.93 64.4 6.36 0.76 0.014 10.89 60.2 12.48 0.79 0.015 60.51 63.0 8.38 0.82 0.015
Extension Hill	Tonnes millions Fe % SiO2 % Al2O3 % P %
Mineral Resources above 50% F	e
Measured Indicated Inferred Total	2.10 56.7 8.13 2.41 0.077 0.34 57.3 10.31 1.60 0.072 0.20 56.6 10.49 1.66 0.055 2.64 56.8 8.59 2.25 0.076
Ore Reserves, above 50% Fe
Proved Probable Total	1.10 58.0 7.09 2.10 0.088 0.05 56.8 9.87 1.91 0.087 1.15 58.0 7.21 2.09 0.088
Iron Hill	Tonnes millions Fe % SiO2 % Al2O3 % P %
Mineral Resources above 50% F	e
Indicated Inferred Total	1.47 60.5 8.35 1.02 0.047 7.33 57.9 8.65 1.74 0.069 8.80 58.3 8.60 1.62 0.065
Tallering Peak	Tonnes millions Fe % SiO2 % Al2O3 % P %
Mineral Resources above 50% F	e
Measured Indicated Inferred Total	0.41 58.9 6.26 3.50 0.082 1.03 58.1 11.70 1.66 0.066 0.20 54.7 17.89 1.93 0.056 1.65 57.9 11.10 2.15 0.069
Shine	Tonnes millions Fe % SiO2 % Al2O3 % P %
Mineral Resources above 50% F	e
Measured Indicated Inferred Total	5.73 58.9 9.04 1.81 0.076 6.57 58.0 10.01 1.35 0.070 3.59 56.8 9.61 1.18 0.063 15.89 58.1 9.57 1.48 0.071
NOTE: Discrepancies may appear due tonnages are estimated as dry tonnage	to rounding. Mineral Resources are reported inclusive of Ore Reserves. All s.

Koolan Island
Main Deposit	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Mineral Resources, above 50% Fe
Measured	2.97	60.1	13.45	0.34	0.007
Indicated	33.51	65.7	4.61	0.67	0.011
Inferred	5.41	61.4	10.96	0.77	0.010
Total	41.90	64.8	6.06	0.66	0.011
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	Total Group Mineral Resources and Ore Reserves at	30 June	2016
(above 50% Fe) Tonnes millions Fe %	SiO2 %	Al2O3 %	P %
Mineral Resources 89.5 61.4	8.67	1.08	0.032
Ore Reserves 1.2 58.0	7.21	2.09	0.088
NOTE: Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore
Reserves. All tonnages have been estimated as dry tonnages.

Attributions

The information in this report relating to the Mineral Resources for the Koolan Island, Extension Hill, Iron Hill, and Tallering Peak and Shine deposits 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 and a member of the Australian Institute of Geoscientists. Ms Haren was previously a full-time employee of, and is now a consultant to, Mount Gibson Iron Limited, 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’. Ms 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 information in this report relating to Ore Reserves at 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. Mr Salmon was a full-time employee of Mount Gibson Iron Limited. Mr 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’. Mr 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.

*Refer ASX release dated 31 August 2016.

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