MGX RESOURCES LIMITED — AGM Information 2021

Nov 9, 2021

Mount Gibson Iron Limited

Annual General Meeting CEO Presentation 10 November 2021 MGX

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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 warranties (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.

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Corporate Overview

MGX Share Price

Issued shares 1,211 million shares Market capitalisation A$0.5 billion ($0.40/share) Cash/investments A$250 million (30 September 2021) Bank Borrowings Nil

Index ASX-300

Dividends A$332 million (fully franked) paid since 2011

Shareholder Distribution (% issued shares at 30 September 2021)

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0.5%
APAC Resources
Australia/NZ Institutions
0.5% 14.8%
Shougang Fushan 2.5%
36.7%
Australian/NZ Retail
North America
15.7%
UK & Europe
Directors & Management 6.3%
9.2%
Other
13.8%
Asia/Middle East
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1.20
1.00
0.80
0.60
0.40
0.20
0.00
Share Price (A$/share)
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Board and Management

• Lee Seng Hui – Non-Executive Chairman

• Simon Bird – Lead Independent Non-Executive Director

• Russell Barwick – Independent Non-Executive Director

• Paul Dougas – Independent Non-Executive Director

• Alan Jones – Independent Non-Executive Director

• Ding Rucai – Non-Executive Director

• Peter Kerr - CEO

• Mark Mitchell - COO

• Gillian Dobson - CFO

• David Stokes - Co. Sec. & General Counsel

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Business Overview

Kimberley Region Koolan Island

• High grade hematite Direct Shipping Ore (DSO) with a 65.3% Fe ore reserve grade*.

• Ore sales 1.8 Mwmt in 2020/21 financial year, targeting sales of 2.0 Mwmt in 2021/22, with grades rising in June half.

• Elevated waste stripping phase progressing toward planned completion in 2021/22.

• Sales and cashflow to rise as stripping phase is completed.

Mid-West Region

Shine Project, Extension Hill, Geraldton Port

• Operations now suspended following rapid deterioration of market conditions. Site held on care & maintenance for prompt restart if conditions justify.

• Extension Hill site rehabilitation progressing to plan, after successful completion of low grade sales program in late 2020.

• Mid-West rail refund stream accruing at ~$2 million/quarter, based on third party rail volumes on segments of the Mid-West network. Capped at $35M (indexed), ~$18M earned to date.

*As at 30 June 2021. Refer Mineral Resources and Ore Reserves slide at the end of this presentation and ASX release dated 8 October 2021. Mwmt = million wet metric tonnes.

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FY2021 Highlights

(all currency in Australian dollars unless stated otherwise):

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Sales of 3.0 Mwmt
Koolan 1.8 Mwmt
Mid-West 1.2 Mwmt
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Koolan Island

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NPAT of $64.0 million
On sales revenue of
$312 million FOB
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Shine Project
Developed and successfully
commissioned but now moving to
staged suspension given market
conditions after year end
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Operating cashflow of $165.2 million

Final dividend of 2.0 cents per share

Mwmt = million wet metric tonnes. FOB = Free on Board. DRP = Dividend Reinvestment Plan. NPAT = net profit after tax.

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Market Conditions Iron Ore Pricing and Grade Differentials

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High Grade Premium / Medium Grade Discount HG Premium Iron Ore Price
(% per dmtu relative to 62% index) MG Discount (US$/dmt CFR North China)
300 50%
40%
30%
20%
250 10%
0%
-10%
-20%
200
-30%
-40%
-50%
150
100
50
0
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21
65% Fe 62% Fe 58% Fe
Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21
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Source: Platts

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September Quarter 2021

(all currency in Australian dollars unless stated otherwise):

Sales of 0.44 Mwmt

Koolan Ore Reserves 17.5 Mt at 65.3% Fe*

Cash/investment reserves of $250 million

Koolan Island

Shine Project

Regional Exploration

• Refer ASX release dated 8 October 2021 and the final slide of this presentation. Mwmt = million wet metric tonnes.

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Mid-West Operations Shine Iron Ore Project - Optionality

Suspension to preserve Shine’s value and enable restart if conditions improve sufficiently and sustainably:

• Suspension due to deteriorating prices and increased product discounts and shipping freight costs.

• Ore mining and crushing continued through October, with trucking continuing through November.

• Final lump shipment completed late October, and final fines cargo planned for early December.

• Core team retained and redeployment opportunities are being pursued for roles at Koolan Island.

• Site to be secured and restart options are being actively monitored.

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Koolan Island

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1km
N
Original
Airstrip
Seawall
Mangrove
deposit
Koolan Island is located in Yampi Sound in the Buccaneer
Archipelago off the northern Kimberley coast of Western
Australia, approximately 140 kilometres north of Derby.
Western Australian
Mainland 9
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Koolan Island

A premium direct-shipping iron ore product

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WA DSO Iron Ore Fines WA DSO Iron Ore Fines WA DSO Iron Ore Fines
Comparative Iron and Phosphorus Comparative Iron and Alumina Comparative Iron and Silica
Fe % Fe % Fe %
66 MGX Koolan Island Main Pit 66 MGX Koolan Island Main Pit 66 MGX Koolan Island Main Pit
64 64 64
62 62 62
MGX Shine
60 60 60
MGX Shine
MGX Shine
58 58 58
56 56 56
0 0.05 0.1 0.15 0.2 0 1 2 3 4 0 1 2 3 4 5 6 7 8 9
Phosphorus % Alumina % Silica %
Koolan Island – Mineral Resources and Ore Reserves at 30 June 2021
Tonnes Fe SiO2 Al2O3 P • High grade hematite iron ore (65.3% Fe).
millions % % % %
Mineral Resources, above 50% Fe • Low levels of contaminants (particularly alumina and phosphorus,
Measured 2.9 60.2 13.36 0.30 0.007 and competitive on silica).
Indicated 32.5 64.9 5.71 0.65 0.013
Inferred 9.9 60.5 12.30 0.59 0.013 • Sought-after product.
Total 46.2 63.7 7.59 0.61 0.013
•
Production sold under life-of-mine offtakes, at market prices.
Ore Reserves, above 50% Fe
Proved - - - - -
Probable 17.5 65.3 4.80 0.88 0.013
Total 17.5 65.3 4.81 0.88 0.013 Chart sources: Mount Gibson Iron, public/company reports and Metals Market Index. MGX Koolan Island and Shine
Direct Shipping Ore (DSO) reflects current Ore Reserves. Other ores depicted represent fines products from other WA
Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore producers. Refer slides at the end of this presentation for MGX Mineral Resources and Ore Reserves information.
Reserves. All tonnages have been estimated as dry tonnages. 10
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Koolan Island Current Mining Operations

Substantial investment program is tracking to deliver production and cashflow gains:

• Advanced waste stripping program will open up high-grade Main Pit orezones for increased production and cashflows from early 2022 onwards.

• Total mining movement (waste and ore) increased 32% to 20.1 Mwmt in 2020/21 and is currently progressing at ~5 Mwmt per quarter.

• Upper western footwall anchoring progressing, first zone completed.

• • Mining of high-grade ore set to resume in the western half of Main Pit, and average grades are expected to rise significantly in the coming half year.

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Mining in central Main Pit, September 2021.
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• Average waste:ore strip ratio set to reduce rapidly over remainder of mine life after peaking this year – and deliver significantly increased shipment volumes and reduced unit cash costs.

• Processing plant upgrade scheduled for completion at end-2021 to accommodate increased high grade ore production levels for the following five years.

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Koolan Island
Main Pit Operations
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Upper Footwall ground
support program area
P1
P3
Seawall P4
embankment
P2
Hanging wall Footwall
Main Pit, looking west, October 2021.
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Koolan Island

A new angle on high grade mining - Upper footwall anchoring program

• Geotechnical controls focus on various aspects of the seawall, hanging wall and footwall.

• The footwall geotechnical program involves the installation of rock anchors using suspended drilling “wagons”.

• Work area divided into 4 zones in order of priority aligned with mining schedule.

• Work completed in “Priority 1” zone, enabling mining in the westernmost floor of Main Pit.

• Footwall anchor work now focused on “Priority 2” zone in central area of Main Pit footwall.

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Koolan Island Main Pit operations

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Mining in east end of Main Pit,
October 2021.
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Koolan – Crusher Upgrade Project

• Upgrade to handle the substantial increase in ore production expected over the following five years.

• First stage completed: reconfiguration of lump and fines conveyors and stacker systems.

• Second stage underway: new ROM wall, installation of new jaw and cone crushers, and upgrade of screening capacity.

• Completion and tie-in scheduled in current quarter.

Carbon Emission Reduction Opportunities & Initiatives

• Iron ore is essential for steel production, and we seek to minimise our carbon emissions from the activities we control. We do not “greenwash”.

• Higher grade (lower impurity) iron ores facilitate lower energy use and lower emissions by steel producers.

• Mount Gibson invests in substantial offsets via

• environmental contributions and direct flora cultivation and rehabilitation programs.

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• Energy consumption on Mount Gibson’s mine sites is modest, relating predominantly to mining and crushing/sizing, with unit emissions (greenhouse gases per tonne mined) reducing in recent years.

Darwinia Masonii translocation area, Iron Hill

• Various opportunities for renewable power generation and power savings are under review.

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Communities are Critical

(Figures as at 31 October 2021)

• Local employment - Over 20% of our Koolan Island employees reside in the Kimberley region. We seek to increase this.

• Gender diversity - women account for 18% of our employees and 22% of executive and senior management roles. We aim higher.

• Traditional Owners – we are grateful for positive longstanding relationships with Traditional Owners and we are committed to Indigenous employment - 13% of MGX’s employees are Indigenous, including 17% of our Koolan Island employees. MGX is actively working with Traditional Owner groups to grow this percentage.

• –

• Significant national impact MGX directly contributed $388 million to the Australian economy in 2020/21, via supplier payments, wages, royalties, taxes and community contributions/sponsorships.

• Support for local communities – we have established active and respectful relationships with local shires and we directly partner and support various community organisations and initiatives, with a focus on .

• youth and education

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Mount Gibson take-aways

• Mount Gibson is an established independent mid-tier iron ore producer offering meaningful .

• exposure to production growth of premium high grade iron ores

• A disciplined pathway to materially higher sales and cashflows at its Koolan Island operation where sales are forecast to increase significantly in the second half of this financial year as the advanced waste stripping program is substantially completed, with higher production and cashflows expected for the following five years.

• Lean, stable and experienced team.

• Desired growth in bulk materials and base metals, with a priority focus on Australia.

• Strong balance sheet , providing operational flexibility and the ability to pursue internal and external growth opportunities.

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Mount Gibson Iron Limited

MGX

www.mtgibsoniron.com.au

Supplementary Information Mineral Resources and Ore Reserves Information at 30 June 2021*

Koolan Island	Koolan Island	Koolan Island	Koolan Island	Koolan Island	Koolan Island
	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Mineral Resources, above 50% Fe
Measured	2.9	60.2	13.36	0.30	0.007
Indicated	32.5	64.9	5.71	0.65	0.013
Inferred	9.9	60.5	12.30	0.59	0.013
Total at 30 June 2021	46.2	63.7	7.59	0.61	0.013
Total at 30 June 2020	48.0	63.7	7.63	0.61	0.013
Ore Reserves, above 50% Fe
Proved	-	-	-	-	-
Probable	17.5	65.3	4.80	0.88	0.013
Total at 30 June 2021	17.5	65.3	4.81	0.88	0.013
Total at 30 June 2020	18.7	65.2	4.96	0.88	0.013
Extension Hill
	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Mineral Resources, above 50% Fe
Measured	1.3	55.3	9.16	2.76	0.077
Indicated	0.3	57.3	10.42	1.62	0.076
Inferred	0.2	56.6	10.49	1.66	0.055
Total at 30 June 2021	1.8	55.8	9.53	2.44	0.074
Total at 30 June 2020	1.8	55.8	9.53	2.44	0.074
Iron Hill
	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Mineral Resources, above 50% Fe
Indicated	2.6	55.0	13.94	1.74	0.074
Inferred	1.1	55.0	9.86	2.61	0.081
Total at 30 June 2021	3.7	55.0	12.76	1.99	0.076
Total at 30 June 2020	3.7	55.0	12.76	1.99	0.076
Shine
	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Mineral Resources, above 50% Fe
Measured	5.6	59.0	8.98	1.75	0.077
Indicated	6.5	58.0	10.00	1.33	0.070
Inferred	3.6	56.8	9.61	1.18	0.063
Total at 30 June 2021	15.7	58.1	9.55	1.44	0.071
Total at 30 June 2020	15.89	58.1	9.57	1.48	0.071
Ore Reserves, above 55% Fe	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Proved	2.0	59.9	7.32	2.28	0.087
Probable	0.7	58.4	9.72	2.12	0.057
Total at 30 June 2021	2.7	59.5	7.94	2.24	0.079
Total at 30 June 2020	-	--	-	-	-
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 2021(above 50% Fe)	Total Group Mineral Resources and Ore Reserves at 30 June 2021(above 50% Fe)	Total Group Mineral Resources and Ore Reserves at 30 June 2021(above 50% Fe)	Total Group Mineral Resources and Ore Reserves at 30 June 2021(above 50% Fe)	Total Group Mineral Resources and Ore Reserves at 30 June 2021(above 50% Fe)	Total Group Mineral Resources and Ore Reserves at 30 June 2021(above 50% Fe)
	Tonnes millions	Fe %	SiO2 %	Al2O3 %	P %
Total Mineral Resources at 30 June 2021	67.4	61.7	8.39	0.93	0.032
Total Ore Reserves at 30 June 2021	20.3	64.5	5.23	1.06	0.022
Total Mineral Resources at 30 June 2020	69.4	61.7	8.40	0.93	0.031
Total Ore Reserves at 30 June 2020	18.7	65.2	4.96	0.88	0.013
Discrepancies may appear due to rounding. Mineral Resources are reported inclusive of Ore Reserves. All tonnages have been estimated as dry tonnages.

Competent Persons Statements

Exploration Results:

The information in this report that relates to Exploration Results including sampling techniques and data management is based on information compiled by Mr Brett Morey, a Competent Person who is a member of the Australasian Institute of Mining and Metallurgy. Mr Morey is a full-time employee of Mount Gibson Iron Limited and has sufficient experience relevant to the style of mineralisation and type of deposits 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 Morey consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Mineral Resources:

The information in this report relating to Mineral Resources is based on information compiled by Ms Elizabeth Haren, a Competent Person who is a member and Chartered Professional of the Australasian Institute of Mining and Metallurgy and member of the Australian Institute of Geoscientists. Ms Haren was a full-time employee of, and is a consultant to, Mount Gibson Iron Limited. Ms 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’. 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.

Ore Reserves:

The information in this report relating to Ore Reserves is based on information compiled by Mr Brett Morey, a member of the Australasian Institute of Mining and Metallurgy. Mr Morey is a full-time employee of 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’. Mr Morey consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

*For more information refer to the Company’s 2021 Annual Statement of Mineral Resources and Ore Reserves released 8 October 2021.

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